Barry & Sons, Inc. v. Instinct Productions LLC

15 A.D.3d 62, 788 N.Y.S.2d 71, 2005 N.Y. App. Div. LEXIS 39
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 6, 2005
StatusPublished
Cited by7 cases

This text of 15 A.D.3d 62 (Barry & Sons, Inc. v. Instinct Productions LLC) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barry & Sons, Inc. v. Instinct Productions LLC, 15 A.D.3d 62, 788 N.Y.S.2d 71, 2005 N.Y. App. Div. LEXIS 39 (N.Y. Ct. App. 2005).

Opinion

OPINION OF THE COURT

Sullivan, J.

This is an appeal from an order sustaining the sufficiency of a complaint seeking damages for the destruction of a business agent’s “principal asset,” the rhythm and blues vocalist Aaliyah Dana Haughton, known professionally as Aaliyah, arising out of her death in an airplane accident, alleged to have been caused by defendant’s negligence in arranging for her transportation from the filming of a music video.

Plaintiff Barry & Sons, Inc., doing business as Blackground Records, was formed in 1992 to develop, promote and capitalize on the musical talents of Aaliyah, and to oversee the production and distribution of her records, tapes and music videos. In 1998, Blackground entered into a recording agreement with Aaliyah that provided for her to make multiple recordings and music videos for Blackground. In August 2001, Blackground entered into a contract with Instinct Productions LLC calling for Instinct, for a fee to be paid by Blackground, to produce a music video entitled “Rock the Boat.” Aaliyah was killed on August 25, 2001 in the crash of an airplane chartered by Instinct in connection with the production of this video. Blackground brings this action against Instinct for damages it sustained on account of Aaliyah’s death.

After Aaliyah’s death, her parents, individually and as representatives of her estate, brought a wrongful death action in California against Instinct and several other parties. This action was settled on or about October 31, 2003; by the terms of the settlement agreement, Instinct and the other named defendants were released from all claims relating to Aaliyah’s death. On November 5, 2003, five days after the settlement of the California wrongful death action, Blackground commenced this action against Instinct and others, seeking damages “in the millions of dollars” for the loss of “current and future profits” on “account of the death of Aaliyah.”

[64]*64In its amended complaint, Blackground asserts four causes of action: the first, for a declaratory judgment for Instinct’s failure to perform its contractual obligations in that it agreed to be responsible for any loss or damage in connection with the production of the video, is essentially a breach of contract claim; the others, against Instinct and its principals, allege that the Instinct, based on a long, close and trusting professional and personal relationship with Blackground and its principal, Aaliyah’s uncle, owed a duty to Blackground, separate and apart from its contractual obligations, to “use reasonable care in selecting the mode of transportation to transport. . . Aaliyah,” and that Instinct’s negligence in failing to arrange for such safe and reliable passage was the proximate cause of her death.

Instinct moved, pre-answer, to dismiss the complaint pursuant to CPLR 3211 (a) (7) for failure to state a cause of action, arguing that an employer has no right to recover damages resulting from the death of an employee or key personnel caused by another. Blackground opposed the motion, arguing, inter alia, that it was not suing for wrongful death but, rather, for Instinct’s negligence resulting in severe harm and loss to it, and that the courts should recognize an exception to the bar against an employer’s suing for the wrongful death of an employee or key personnel in a case where, as here, the parties had a “long, close and trusting personal relationship,” tantamount to a fiduciary one.

Supreme Court granted Instinct’s motion to the extent of dismissing Blackground’s first cause of action for a declaratory judgment, from which Blackground does not appeal. As the court explained, paragraph 4 (e) of the video agreement was a “standard third-party indemnification clause written to protect Blackground from third-party claims arising out of the production of the ‘Rock the Boat’ video, and not to provide Black-ground with a basis to assert a first-party claim against Instinct.” (5 Misc 3d 172, 181 [2004].) As to the negligence claim, the motion court, acknowledging the rule barring an employer from recovering damages when one of its employees is injured as a result of a third party’s negligence (see Ferguson v Green Is. Contr. Corp., 36 NY2d 742 [1975]), found that the rule did not apply because the complaint did not allege any of the control factors under Labor Law § 190 (3) that are essential for a finding of the existence of an employer/employee relationship between Blackground and Aaliyah. Instead, the court, citing Laird v United States (556 F2d 1224 [5th Cir 1977], cert denied [65]*65434 US 1014 [1978] [professional football players’ contracts represent independent and uniquely valuable assets to professional football franchises]) and KFOX, Inc. v United States (510 F2d 1365 [Ct Cl 1975] [as to professional sports teams, athletes and their contracts are at the heart of profitability]), found that, as alleged in the complaint, Aaliyah was Blackground’s “primary asset.” (5 Misc 3d at 184.) Thus, Supreme Court held, Black-ground was not improperly asserting, in the guise of a negligence claim, a cause of action for wrongful death, but rather an “ordinary negligence claim seeking recovery for damages allegedly arising out of the negligent destruction of a valuable property asset.” (Id. at 185.)

Instinct appeals, arguing that, however styled, Blackground’s complaint is a wrongful death action in violation of well-established precedent, public policy and statutory provision. Noting that there is no common-law right to maintain a wrongful death action (see Carrick v Central Gen. Hosp., 51 NY2d 242, 249-250 n 2 [1980]) and that the right to maintain such an action is purely a creature of statute (Liff v Schildkrout, 49 NY2d 622, 632 [1980]; see EPTL 5-4.1) that may be brought only by the personal representative of a decedent survived by distributees, which Blackground is not, Instinct asserts the complaint must be dismissed. We agree.

The courts have uniformly held that a company may not sue in negligence for damages arising out of the death of another

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Klaar v. Fedex Corp.
203 A.D.3d 435 (Appellate Division of the Supreme Court of New York, 2022)
Estate of Hirshfeld v. Islamic Republic of Iran
330 F. Supp. 3d 107 (D.C. Circuit, 2018)
Doppelt v. Denahan
2016 NY Slip Op 7868 (Appellate Division of the Supreme Court of New York, 2016)
Cantor Fitzgerald & Co. v. American Airlines, Inc.
760 F. Supp. 2d 433 (S.D. New York, 2011)
In Re September 11 Litigation
760 F. Supp. 2d 433 (S.D. New York, 2011)
Behrens v. Metropolitan Opera Ass'n
18 A.D.3d 47 (Appellate Division of the Supreme Court of New York, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
15 A.D.3d 62, 788 N.Y.S.2d 71, 2005 N.Y. App. Div. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barry-sons-inc-v-instinct-productions-llc-nyappdiv-2005.