SMG Automotive Holdings, LLC v Brooklyn Store, LLC

Holding The Appellate Division modified the lower court’s order to grant the plaintiff’s motion to dismiss several affirmative defenses that were without merit or abandoned, while affirming the denial of summary judgment on the first cause of action because the motion was premature. The court also affirmed the denial of summary judgment on the counterclaims because the plaintiff failed to meet its prima facie burden of eliminating triable issues of fact.

The court’s words

the plaintiff bears the burden of demonstrating that the affirmative defense is 'without merit as a matter of law'

2026 NY Slip Op 05435, at the official text

no motion lies under CPLR 3211(b) to strike this affirmative defense as this amounts to an endeavor by the plaintiff to test the sufficiency of [its] own claim

2026 NY Slip Op 05435, at the official text

A party who contends that a summary judgment motion is premature is required to demonstrate that discovery might lead to relevant evidence

2026 NY Slip Op 05435, at the official text

the defendant demonstrated that further discovery, including the deposition of the plaintiff's president and discovery related to whether the plaintiff's assignment was valid, may result in the disclosure of evidence

2026 NY Slip Op 05435, at the official text

it failed to meet its prima facie burden, as it failed to eliminate the existence of triable issues of fact as to the counterclaims

2026 NY Slip Op 05435, at the official text