Bander v. Grossman

161 Misc. 2d 119, 611 N.Y.S.2d 985, 23 U.C.C. Rep. Serv. 2d (West) 1159, 1994 N.Y. Misc. LEXIS 172
CourtNew York Supreme Court
DecidedApril 25, 1994
StatusPublished
Cited by4 cases

This text of 161 Misc. 2d 119 (Bander v. Grossman) 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
Bander v. Grossman, 161 Misc. 2d 119, 611 N.Y.S.2d 985, 23 U.C.C. Rep. Serv. 2d (West) 1159, 1994 N.Y. Misc. LEXIS 172 (N.Y. Super. Ct. 1994).

Opinion

OPINION OF THE COURT

Diane A. Lebedeff, J.

Following a jury trial on a claim that the defendant, a sports car dealer, repudiated plaintiff’s contract to purchase a rare Astin-Martin automobile, plaintiff moves for judgment on its alternative request for monetary specific performance in the form of a judgment approximately 10 times greater than the breach of contract damages awarded by the jury. In opposition, defendant moves to set aside the breach of contract jury verdict in favor of plaintiff. Both motions are consolidated for purposes of this decision.

Because the complaint presented a mixture of legal and equitable claims, a single trial was held with jury consideration limited to issues related to the legal claim (see, Cowper Co. v Buffalo Hotel Dev. Venture, 99 AD2d 19, 23 [4th Dept 1984]; Vinlis Constr. Co. v Roreck, 23 AD2d 895, 896 [2d Dept 1965]). On one factual issue relevant to the equitable claim, the uniqueness of the vehicle, the jury was instructed on the applicable law and issued an advisory verdict. The jury found, on the facts, that the automobile was unique.

I

The attack on the verdict requires an amplification of the underlying facts. In the summer of 1987, plaintiff looked for a sports car to purchase for interim personal use and to sell when the price rose (a practice in which he had previously engaged). The defendant had in his inventory the subject 1965 DB5 Astin-Martin convertible with left-hand drive. Plaintiff learned this particular model was one of only 20 in existence, [121]*121with only 40 having been made, although those 20 cars seem to turn over with more frequency than their number might suggest. Plaintiff testified he thought the car was undervalued, based upon his knowledge of sports car prices, and anticipated a price rise. A contract of sale was reached with a purchase price of $40,000, with plaintiff depositing $5,000.

The commercial agreement proceeded to unwind thereafter. The dealer could not obtain the title documents from the wholesaler from whom he had agreed to purchase the vehicle; the deposition testimony of the out-of-State wholesaler was read into evidence and confirmed that the title had been misplaced. The defendant did not transmit this explanation to plaintiff, but instead told a story about problems of getting title from a different individual. In August of 1987, the defendant attempted to return the deposit, but advised that he would continue to try to resolve the title problems. Plaintiff pursued the purchase until, ultimately, in December of 1987, plaintiffs lawyer wrote defendant that the contract had been breached and plaintiff would commence litigation. However, no further action was taken by plaintiff until this case was commenced in 1989, four months after defendant sold the car.

There was no dispute that the contract had been canceled. It was agreed that contract damages were to be given to the jury under the standard of UCC 2-713, applicable to a buyer who does not cover: the difference between the market price when the buyer learned of the breach, and the contract price. The jury did not accept the defendant’s claim that he could not deliver title, which would have excused his performance under the concept of "commercial impracticability” and the defendant does not challenge this aspect of the jury verdict.

The jury fixed plaintiffs knowledge of the breach as the time his attorney announced it, and did not accept plaintiffs insistence that the contract remained in effect thereafter. Given the continued assurances of defendant that he would pursue title, which proved to be a hollow promise, it was a fair view of the evidence that plaintiff could no longer claim ignorance of breach after his attorney proclaimed one.

The jury concluded that the market price had increased $20,000 by December, which defendant urges is unsupported. The jury was presented with evidence that the price remained basically flat at $40,000 throughout 1987, and by January of 1988 was in a range from $70,000 to $100,000. The jury clearly rejected the proposition that there was no upward [122]*122curve in value toward the end of 1987. Accordingly, as of December of 1987, $60,000 was a fair and logical assessment of the value of the car and the jury, as it was instructed to do, deducted from the value the purchase price of the car, to reach an award of $20,000.

Plaintiff’s final protest is that there was no specific car on the market in December of 1987. It cannot be ignored that the evidence before the jury fully portrayed an intimate community of Astin-Martin enthusiasts, linked by membership in an Astin-Martin club and supported by an Astin-Martin speciality dealer located in New Jersey. The jury’s verdict is soundly premised on the conclusion that, had plaintiff attempted to offer to purchase a comparable Astin-Martin within this community, one would have surfaced with a price of $60,000. After all, the same seller who sold a vehicle in January would only have to be lured into the market a month earlier, somewhat before the market price ascent.

The court must "afford * * * great deference to the fact-finding function of the jury” (Martin v McLaughlin, 162 AD2d 181, 184 [1st Dept 1990]). Defendant here does not show, to the satisfaction of the court, that the verdict does not "fairly reflect[ ] the evidence in the case” (Niewieroski v National Cleaning Contrs., 126 AD2d 424 [1st Dept 1987]). Further, although some mention was made that plaintiff had other incidental damages, such as attempting to trace the title, these expenses were not quantified for the jury although, if advanced, they might have been proper incidental or consequential damages (UCC 2-715).

On the basis of this record, the court finds that defendant has failed to sustain his attack on the verdict.

II

The request for specific performance raises a novel issue under the Uniform Commercial Code concerning entitlement to specific performance of a contract for the sale of unique goods with a fluctuating price. Section 2-716 (1) of the Uniform Commercial Code, which is controlling, provides that "[specific performance may be decreed where the goods are unique or in other proper circumstances.” The jury’s advisory determined that the Astin-Martin car at issue was unique.

As noted above, the car was sold prior to the commencement of this litigation for a price of $185,000 more than the $40,000 contract price, and plaintiff requests that he be [123]*123granted specific performance in the form of a constructive trust impressed upon the proceeds of sale, plus interest from the date of sale. As it developed, the defendant had not sold at the "top of the market,” which peaked in July of 1989, approximately two years after the original contract, when the car had a value of $335,000, which was $295,000 over the contract price. Thereafter, collectible automobile values slumped and the sale price of a comparable Astin-Martin vehicle by January of 1990 was $225,000 and, by the time of trial, was $80,000.

Clearly, plaintiffs request for an award of specific performance monetary damages is legally cognizable, for every object has a price and even rare goods are subject to economic interchangeability (Van Wagner Adv. Corp. v S & M Enters., 67 NY2d 186, 191-194 [1986]; compare, no other opportunity, Triple-A Baseball Club Assocs. v Northeastern Baseball, 832 F2d 214 [1st Cir 1987]).

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Bluebook (online)
161 Misc. 2d 119, 611 N.Y.S.2d 985, 23 U.C.C. Rep. Serv. 2d (West) 1159, 1994 N.Y. Misc. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bander-v-grossman-nysupct-1994.