Appellate Court Rules in Favor of CIBC in Contract Dispute

Skadden secured an important victory today for firm client Canadian Imperial Bank of Commerce (CIBC) in New York Supreme Court, First Department, Appellate Division, clarifying whether a signed term sheet is a binding agreement or merely an agreement to agree. On February 4, the First Department dismissed all claims against the defendant bank, holding that the term sheet in question "was clearly dependent on a future definitive agreement, including a credit agreement.” The court departed from the standard employed by the federal courts and looked at whether the parties contemplated further definitive documentation.