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GOTHAM PARTNERS v. HIGH RIVER

602582/04, 20042005

76 A.D.3d 203 (2010)

906 N.Y.S.2d 205

GOTHAM PARTNERS, L.P., et al., Respondents, v. HIGH RIVER LIMITED PARTNERSHIP, Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided July 20, 2010.

Attorney(s) appearing for the Case

Morrison Cohen LLP, New York City ( Y. David Scharf , Jerome Tarnoff and Jay R. Speyer of counsel), for appellant.

Dechert LLP, New York City ( Andrew J. Levander and Jonathan D. Perry of counsel), for respondents.

MAZZARELLI, J.P., ACOSTA, DEGRASSE and MANZANET-DANIELS, JJ., concur.

OPINION OF THE COURT

SAXE, J.

In this state, and indeed, in the rest of the country, the longstanding "American rule" precludes the prevailing party from recouping legal fees from the losing party "except where authorized by statute, agreement or court rule" (U.S. Underwriters Ins. Co. v City Club Hotel, LLC, 3 N.Y.3d 592, 597 [2004]). Indemnification provisions in contracts have spurred the ingenuity of attorneys...

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