Berkule v. Feldman

39 Misc. 2d 250, 240 N.Y.S.2d 462, 1963 N.Y. Misc. LEXIS 2035
New York Supreme Court·Decided May 15, 1963·Published·Cited by 3 cases

Opinion

Irving H. Saypol, J.

Plaintiffs allege six causes of action; five are against the moving defendants, all arising under a partnership agreement between plaintiffs as limited partners and movants as general partners owning a sanitarium in Georgia [251] which, allegedly, movants improperly sold to the other defendants. The five causes under attack seek, respectively, a declaratory judgment of the rights of the parties under the partnership agreement; damages for breach of this agreement by movants; to impress a trust on the proceeds of the sale; an order directing movants to effect a rescission of the contract of sale; and damages resulting from the conspiratorial fraudulent acts of all defendants.

The motion to dismiss the first cause for a declaratory judgment, attacks its legal sufficiency (Bules Civ. Prac., rule 106, subd. 4) and condemns it as an improper remedy (Buies Civ. Prac., rule 212) and for not being concisely stated, containing irrelevant, unnecessary and prejudicial matter (Civ. Prac. Act, § 241). Movants’ primary argument is that declaratory judgment is unavailable to plaintiffs because of other available remedies which, in fact, are asserted in the same complaint. (Elmsford Props. Corp. v. Daitch Crystal Dairies, 13 A D 2d 1026.) Generally, the existence of other available remedies does not alone limit a declaration and it is discretionary with the court. (Woollard v. Schaffer Stores Co., 272 N.Y. 304) However, as the court noted in Woollard (supra, p. 311) on the institution of the action for a declaration when there is pending an action at law, “ the court abuses its discretion when it entertains jurisdiction. (Colson v. Pelgram, 259 N. Y. 370.) ” There appears to be no valid basis for a distinction between declaration following action at law and, as here, joinder of a cause for a declaration with other causes which are based upon the very agreement sought to be construed by declaration. Here the other remedies are not inadequate (cf. Garden Hall v. Abidor, 18 Misc 2d 584), no presuit controversy exists as a basis for resolution to avoid litigation (cf. Woollard v. Schaffer Stores Co., supra) and the question posed is not limited to the single question of availability of a declaratory judgment. (Cf. National Academy of Design v. Jimenez, 81 N. Y. S. 2d 644.) There is no doubt as to rights which if declared will avoid litigation; the dispute is real as is the litigation a reality. Furthermore, no question of the meaning or constitutionality of a statute is presented (cf. Dun & Bradstreet v. City of New York, 276 N. Y. 198), although, perhaps, some question may arise as to the applicability of certain unstated Georgia statutes. Accordingly the motion to dismiss the first cause is granted (Nysco Labs. v. Yoss, N. Y. L. J., March 28, 1963, p. 16, col. 6).

Movants move to dismiss the second cause, for damages for breach of contract, for legal insufficiency (Civ. Prac. Act, § 241; Buies Civ. Prac., rule 106, subd. 4). It is contended that the [252] allegation that movants ’ acts in effecting an improper dissolution of the partnership render movants liable in damages under certain unspecified laws of Georgia is insufficient for failure to plead the particular statute charged to have been violated, citing Schumann v. Loew’s, Inc. (199 Misc. 38) and Frenkel & Co. v. L’Urbaine Fire Ins. Co. (222 App. Div. 299). However, as noted in the Schumann case, it has long been assumed that (pp. 40-41) “ common-law rights are alike in all common-law jurisdictions. These assumptions dispensed with both pleading and proof * '* * allows the court to research the law of the foreign jurisdiction * * * with or without the aid of counsel * * *. And it precludes the possibility of this proof being met with the objection that it was not pleaded.” There is an exception to this rule where the statute of a foreign, non-common-law jurisdiction is involved as in the Frenkel case {supra) but the test seems to be, as noted by the court in the Schumann case, whether the pleading is (p. 41) “ sufficient to enable the [opposite party] to controvert the factual issue.” Here it is sufficient and the motion to dismiss,' on this ground, i's denied (see Pfleuger v. Pfleuger, 304 N. Y. 148).

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Berkule v. Feldman, 39 Misc. 2d 250, 240 N.Y.S.2d 462, 1963 N.Y. Misc. LEXIS 2035 (N.Y. Super. Ct. 1963).

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