Eunhasu Corporation, Plaintiff–Appellant, v. Gene Kaufman et al., Defendants. (2025)

Order, Supreme Court, New York County (Leslie A. Stroth, J.), entered on or about September 4, 2024, which, insofar as appealed from, denied plaintiff-appellant Eunhasu Corporation's motion for leave to amend the complaint to add a cause of action for breach of a licensing agreement against defendant-respondent 140 West 28 Owner LLC, unanimously reversed, on the law, without costs, and the motion granted.

Supreme Court improvidently exercised its discretion in denying plaintiff's motion insofar as it sought to add a cause of action for breach of the licensing agreement (but not the separate but complementary cooperation agreement) against 140 West 28 Owner LLC. Motions for leave to amend pleadings should be freely granted (CPLR 3025[b]) absent prejudice or surprise resulting from the proposed amendment, unless the proposed amendment is palpably insufficient or patently devoid of merit (see Ferrer v. Go N.Y. Tours Inc., 221 A.D.3d 499, 500, 198 N.Y.S.3d 345 [1st Dept. 2023];  Smith v. Founders Entertainment LLC, 216 A.D.3d 417, 417, 189 N.Y.S.3d 91 [1st Dept. 2023]).  The record does not support the conclusion that having to defend against a newly added cause of action for breach of the licensing agreement, which was asserted in the related, consolidated subrogation action brought against defendants by plaintiff's insurer, would prejudice defendants.

We have considered defendants’ remaining arguments and find them unavailing.