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S.D.N.Y.OtherFiled Aug. 23, 2022

Lateral Recovery, LLC v. Capital Merchant Services, LLC

Judge
Lewis Liman
Docket
1:21-cv-09336
Court
U.S. District Court · Southern District of New York
Pages
1
Civil ProcedureMotion to Dismiss
In one sentence

In Lateral Recovery v. Capital Merchant Services, Judge Liman invited briefs on prior decisions’ effect on three pending motions to dismiss.

Who this affects

The plaintiffs and defendants in Lateral Recovery, LLC v. Capital Merchant Services, LLC, because the defendants’ three motions to dismiss remained pending and the parties were required to submit letter briefs.

What happened

Lateral Recovery, LLC v. Capital Merchant Services, LLC concerns three motions to dismiss an amended complaint filed collectively by various defendants. The court identified legal questions involving the Racketeer Influenced and Corrupt Organizations Act, state usury law, and whether agreements are loans or sales of future accounts receivable.

Because similar questions had recently been considered in Fleetwood Services, LLC v. Ram Capital Funding, LLC, the court asked the parties to explain whether those decisions affected the pending motions. Each letter brief could be no more than four single-spaced pages and had to be submitted by August 30, 2022.

Judge Lewis J. Liman did not decide the motions to dismiss in this order. He ordered the parties to submit the requested letter briefs, leaving the motions pending.

The detailed version

For law students, journalists, and other readers who want the full reasoning

Case
Lateral Recovery, LLC v. Capital Merchant Services, LLC · No. 1:21-cv-09336
Judge
Lewis Liman
Date
Aug. 23, 2022

Background

Various defendants collectively filed three motions to dismiss the plaintiffs’ amended complaint. The court stated that the case raised legal questions involving the Racketeer Influenced and Corrupt Organizations Act, state usury law, and whether agreements should be classified as loans or sales of future accounts receivable.

Court’s Action

The court noted that it had recently addressed similar questions in Fleetwood Services, LLC v. Ram Capital Funding, LLC. It invited the parties to submit letter briefs explaining what effect, if any, those decisions had on the pending motions. Each brief could be no more than four single-spaced pages, and the briefs were to be submitted by August 30, 2022.

Disposition

The order did not grant or deny any of the three motions to dismiss. It required the parties to provide the requested briefing before the court addressed the motions.

The authoritative version

Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.

Open opinion PDF →
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