Ambatielos v. Foundation Co.

203 Misc. 470, 116 N.Y.S.2d 641, 1952 N.Y. Misc. LEXIS 1928
CourtNew York Supreme Court
DecidedOctober 31, 1952
StatusPublished
Cited by11 cases

This text of 203 Misc. 470 (Ambatielos v. Foundation Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ambatielos v. Foundation Co., 203 Misc. 470, 116 N.Y.S.2d 641, 1952 N.Y. Misc. LEXIS 1928 (N.Y. Super. Ct. 1952).

Opinion

Schwartz, J.

This is an action to enforce a final judgment of the High Court of Justice, Queens Bench Division, of Great Britain. Plaintiff moves for summary judgment.

[472]*472The judgment in question enforced the provisions of an oral agreement made in London in 1924. Plaintiff herein, a Greek national and retired shipbuilder who had long resided in London, was at that time well acquainted in Greek Government circles. Defendant, a New York corporation, was and is a recognized construction engineering firm. Defendant’s English representative, in December, 1924, engaged plaintiff to go to Greece for the purpose of seeking contracts for defendant in connection with proposed government projects for irrigation and reclamation of the Vardar Valley. If the mission was a success, plaintiff was to receive 10% of the profits made by defendant from the contracts. Plaintiff went to Greece where his services included discussion with high officials of the Greek Government whom plaintiff knew personally. The defendant secured an unusually favorable contract.

Plaintiff’s demands for payment from the defendant were ignored and in 1928 he brought suit against the defendant in the High Court of Justice of Great Britain. Defendant denied that it had entered into any agreement. The jury believed plaintiff and, in 1930, a judgment was rendered in his favor. That judgment ordered an immediate inquiry (accounting) of defendant’s profits, but, on defendant’s appeal to the Court of Appeal, the judgment was modified by deferring the taking of an inquiry until all of the work under defendant’s contract with the Greek Government had been completed.

Apparently dissatisfied with the delay in the British Courts, plaintiff in 1936 brought an action against the defendant in the Court of First Instance of Athens, Greece, basing his claim both upon the English judgment and upon the oral contract itself. Although a default judgment was initially rendered, the defendant’s motion to open the default was granted, and it was permitted to defend on the merits. Defendant contended that the agreement was against public policy, both under traditional Roman-law doctrine and under a Greek statute, enacted in 1931, that declared null and void all agreements with intermediaries ” in the obtaining of government contracts. The Greek court dismissed the complaint and rendered judgment for the defendant, holding that the agreement between the parties contravened the provisions of the 1931 statute, and that therefore the contract and the judgment based thereon were unenforcible.

Plaintiff next sought relief in this court, in 1944. That action was dismissed at the end of three years for failure to prosecute.

[473]*473In 1947 (all work under defendant’s contract with the Greek Government having been completed some ten years before) plaintiff returned to the British court and, in accordance with the provisions of the 1930 judgment, initiated an accounting of defendant’s profits. Defendant thereupon obtained an order from the Court of Appeal directing that a hearing be had before a referee to determine whether or not plaintiff’s rights under the 1930 judgment had been ‘ ‘ defeated or otherwise impaired ’ ’ by the subsequent Greek judgment or by the 1931 Greek statute. The order further provided that the parties shall “ be at liberty to apply to the said Official Referee for any further directions in respect of the said Issue ” (apparently an authorization to extend the scope of the reference) and that it shall be open for plaintiff to argue that defendant is estopped from now first contending that Greek law is the proper law of the contract.

Both parties actively participated in the very extensive hearing thereafter had before the referee. The latter ruled that the rights of Ambietelos under the Judgment of Mr. Justice Horridgb of 1930 are not affected or defeated in England by the Greek Law 5227 or by the Greek Judgment of 1940, or by either of them ”. The referee further held that, although he was of the opinion that defendant was not estopped from contending for the first time that Greek law was the proper law of the contract, he was convinced that “ the presumed intention of the parties is that this bargain shall be regulated by the law of England ”.

The inquiry (accounting) was thereafter held. On January 23, 1952, judgment was rendered for plaintiff, with costs and accrued legal interest thereon aggregating £44,526.3.3, which in dollars (the parties are in agreement as to the applicable rate of exchange) amounts to $123,838.39.

Plaintiff now seeks to enforce that judgment in this State. The complaint sets forth the commencement of the British action, defendant’s appearance therein and the rendition of the judgment of January 23, 1952. Defendant’s answer substantially admits the allegations of the complaint, but interposes seven affirmative defenses, which may be summarized as follows:

1. The agreement between the parties is contrary to the public policy of New York and to the public policy of Greece, and the British judgment based thereon is similarly contrary to our public policy and is, therefore, unenforcible.

2. The final judgment of the Court of First Instance of Athens is entitled to full faith and credit ” in this country, and plaintiff is barred thereby from maintaining this action.

[474]*4743. Institution of the Greek proceeding by plaintiff constituted an abandonment of his rights under the prior judgment.

4. By reason of his institution and prosecution of the Greek action, plaintiff is estopped from denying the effect of the Greek judgment.

5. The British action was merged into the Greek final judgment.

6. The substantial variance between the pleadings and testimony of plaintiff in the British action and the pleadings and testimony of plaintiff in the Greek action so impeaches the British judgment as to require this court, in equity, to refuse recognition of the British judgment.

7. Plaintiff’s statements in the British action were false and fraudulent, requiring this cotirt to deny enforcement of the British judgment.

Defendant counterclaims for a judgment declaring that the contract and the British judgments based thereon are unenforcible, and enjoining plaintiff from taking any further proceedings to enforce the judgments or the contract. Plaintiff’s reply substantially denies the allegations of the answer.

In opposition to plaintiff’s motion for summary judgment, defendant contends that its defenses tender substantial triable issues of fact and, alternatively, that if there are no triable issues of fact, the motion should be denied and judgment awarded defendant in accordance with rule 113 of the Rules of Civil Practice.

The question here presented is whether the British judgment is, under the circumstances of this case, conclusive proof of liability in the courts of this State. The general rule in this State is settled as follows: A judgment recovered in a foreign country, when sued upon in the courts of this State, is conclusive so far as to preclude a retrial of the merits of the case, subject, however, to certain well-recognized exceptions, namely, where the judgment is tainted with fraud, or with an offense against the public policy of the State, or the foreign court had not jurisdiction. (Lazier v. Westcott, 26 N. Y. 146; Dunstan v. Higgins, 138 id. 70).” (Cowans v.

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Bluebook (online)
203 Misc. 470, 116 N.Y.S.2d 641, 1952 N.Y. Misc. LEXIS 1928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ambatielos-v-foundation-co-nysupct-1952.