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CAPSTONE BUS. FUNDING, LLC v. SHAMES CONSTR. CO., LTD.

Index No. 651801/19. Appeal No. 16021. Case No. 2021-03313.

205 A.D.3d 606 (2022)

169 N.Y.S.3d 599

2022 NY Slip Op 03439

Capstone Business Funding, LLC, Appellant, v. Shames Construction Company, Ltd., Respondent.

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

Decided May 26, 2022.

Attorney(s) appearing for the Case

Crowell & Moring LLP, New York ( Gary A. Stahl of counsel), for appellant.

Olshan Frome Wolosky LLP, New York ( Scott Shaffer of counsel), for respondent.

Concur—Manzanet-Daniels, J.P., Kapnick, Shulman, Rodriguez, Pitt, JJ.

Under Uniform Commercial Code § 9-404(a)(1), "Unless an account debtor [defendant in the case at bar] has made an enforceable agreement not to assert defenses or claims, ... the rights of an assignee are subject to ... all terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract." The question here is whether the estoppel...

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