Appellate Division, First Department · October 27, 2026 · 2026 NY Slip Op 06241
Chirico v 3|5|2 Capital ABS Fund LLC
Read the official decision: 2026 NY Slip Op 06241
Holding The Appellate Division reversed the lower court’s dismissal, reinstating the complaint because the plaintiff sufficiently alleged entitlement to advancement of legal fees under the Fund Agreements. The court found that the indemnity clause explicitly continues coverage for former employees and that the plaintiff adequately alleged the underlying actions were not internal disputes.
The court’s words
The indemnification provided by this Section 10.2 . . . shall continue as to an Indemnitee who has ceased to serve in such capacity
2026 NY Slip Op 06241, at the official text
the employment agreement between plaintiff and LAM does not expressly preclude advancement of legal fees under the Fund Agreements, as the documentary evidence does not conclusively establish that the Funds are "affiliates" of the "Jefferies Companies"
2026 NY Slip Op 06241, at the official text
| Court | Appellate Division, First Department |
|---|---|
| Decided | October 27, 2026 |
| Citation | 2026 NY Slip Op 06241 |
| Area of law | Contracts and Commercial |
| Week | Week ending October 31, 2026 |
| Official text | Official decision: 2026 NY Slip Op 06241 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 1517 |
Recommended citation
ESQ HQ, New York Law Watch, Chirico v 3|5|2 Capital ABS Fund LLC, 2026 NY Slip Op 06241 (Appellate Division, First Department, October 27, 2026), https://esqhq.com/decisions/2026-ny-slip-op-06241/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
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