Compania Tauben S. A. v. Stolt Tankers Inc.

179 Misc. 2d 933, 686 N.Y.S.2d 916, 1998 N.Y. Misc. LEXIS 682
CourtNew York Supreme Court
DecidedDecember 7, 1998
StatusPublished
Cited by2 cases

This text of 179 Misc. 2d 933 (Compania Tauben S. A. v. Stolt Tankers Inc.) 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
Compania Tauben S. A. v. Stolt Tankers Inc., 179 Misc. 2d 933, 686 N.Y.S.2d 916, 1998 N.Y. Misc. LEXIS 682 (N.Y. Super. Ct. 1998).

Opinion

OPINION OF THE COURT

Barry A. Cozier, J.

Defendant Stolt Tankers Inc. (Stolt), a corporation engaged [934]*934in ocean transportation, storage, and distribution of chemicals and other liquids, originally moved pursuant to CPLR 3211 (a) (5) to dismiss the complaint based upon the Statute of Frauds. Stolt still seeks dismissal, but requests that its motion be treated as one for summary judgment, as the motion was made after issue was joined.

BACKGROUND

By complaint dated September 11, 1997, Tauben alleged that in 1991 the parties entered into an agreement whereby Tauben, through its principal Jose Elias Marin, was to act as exclusive broker for Stolt in connection with Stolt’s contracts of affreightment with third parties for the transportation of chemical cargoes originating out of Brazil. In exchange, Tauben was to receive commission payments from Stolt based upon the amount of ethylene dichloride that was transported by Stolt vessels. Tauben contends that the agreement with Stolt provided, inter alia: (1) the duration of the agreement was to be coextensive with the duration of the contracts; (2) the commission for freight to Japan was a fixed amount per metric ton; and (3) Stolt was making commission payments paid in United States dollars into Tauben’s bank account following the loading of cargo onto Stolt’s vessels. Tauben maintains that it is due approximately $1.25 million in commissions for cargoes already delivered and scheduled to be delivered.

Stolt defends this action claiming that there is no evidence that such an agreement exists. Stolt maintains that agreements for brokerage commissions are governed by the Statute of Frauds and, as no such written agreements exist, the complaint should be dismissed with prejudice. By letter to the court dated June 1, 1998, after receiving notice from Tauben that a motion to dismiss pursuant to CPLR 3211 was procedurally improper, Stolt requested that its motion to dismiss be treated as one for summary judgment.

Tauben asserts five major grounds for denying the motion to dismiss: (1) because Stolt failed to file a preanswer motion to dismiss, it cannot now make such a motion after issue has been joined; (2) the motion may not be considered as a motion for summary judgment, as adequate notice was not given; (3) Stolt cannot establish it is entitled to the relief requested, as the agreement in question falls within the court’s supplemental maritime jurisdiction, precluding any reliance on the Statute of Frauds; (4) Tauben’s documents support the breach of [935]*935contract claim; and (5) Tauben is entitled to complete discovery prior to determination of the matter.

DISCUSSION

A. Conversion of Motion to Dismiss to Summary Judgment

Motion

Tauben maintains that before converting a motion to dismiss to a motion for summary judgment, adequate notice must be given and the parties must be given an opportunity to make an appropriate record. However, Stolt counters that courts regularly convert motions to ones for summary judgment and that Tauben has received notice and an opportunity to submit additional documents to create an appropriate record.

The motion to dismiss should be converted to a motion for summary judgment for three reasons. First, because Stolt had filed its answer prior to filing its motion, the proper interpretation of the motion is one for summary judgment. (See, Tufail v Hionas, 156 AD2d 670, 671 [2d Dept 1989] [because issue had been joined, court should not have deemed unlabeled motion as a motion to dismiss, but instead as one for summary judgment].) Second, the Court of Appeals has stated that a motion labeled as one to dismiss rather than one for summary judgment is a “mere irregularity” that may be overlooked. (See, Rich v Lefkovits, 56 NY2d 276, 280 [1982] [“the fact that the motion as made recited CPLR 3211 rather than 3212 as its basis would constitute a mere irregularity which under CPLR 2001 should be disregarded”].) Third, because Tauben has received notice of the request to convert the motion to one for summary judgment, and because Tauben has submitted additional documents and affidavits into the record, a conversion would not prejudice Tauben. (See, Zack Metal Co. v International Nav. Corp., 67 NY2d 892, 895 [1986] [fact that Appellate Division treated motions as ones for summary judgment when Special Term’s consideration of them was as motions to dismiss was not prejudicial, as “plaintiffs answering affidavit acknowledged in several places that defendants’ motions were for summary judgment and plaintiff responded to the motions by setting forth factual data in support of the allegations of the complaint”].) Accordingly, Stolt’s motion will be treated as one for summary judgment.

B„ Summary Judgment Standard

It is well established that summary judgment may be granted only when it is clear that no triable issue of fact exists. [936]*936(Alvarez v Prospect Hosp., 68 NY2d 320, 325 [1986].) The burden is upon the moving party to make a prima facie showing that he or she is entitled to summary judgment as a matter of law. (Zuckerman v City of New York, 49 NY2d 557, 562 [1980]; Friends of Animals v Associated Fur Mfrs., 46 NY2d 1065, 1067 [1979].) A failure to make such a prima facie showing requires a denial of the summary judgment motion, regardless of the sufficiency of the opposing papers. (Ayotte v Gervasio, 81 NY2d 1062, 1063 [1993].) If a prima facie showing has been made, the burden shifts to the opposing party to produce evidentiary proof sufficient to establish the existence of material issues of fact. (Alvarez v Prospect Hosp., supra, at 324; Zuckerman v City of New York, supra.) Although the papers submitted in support of and in opposition to a summary judgment motion are examined in a light most favorable to the party opposing the motion (Martin v Briggs, 235 AD2d 192, 196 [1st Dept 1997]), mere conclusions, unsubstantiated allegations, or expressions of hope are insufficient to defeat a summary judgment motion. (Zuckerman v City of New York, supra, at 562.) Upon the completion of the court’s examination of all the documents submitted in connection with a summary judgment motion, the motion must be denied if there is any doubt as to the existence of a triable issue. (Rotuba Extruders v Ceppos, 46 NY2d 223, 231 [1978].)

C. Applicability of Statute of Frauds

Stolt argues that the lack of any written agreement violates the Statute of Frauds, justifying dismissal of the complaint. Stolt maintains the Statute of Frauds is applicable for two reasons. First, pursuant to General Obligations Law § 5-701 (a) (1), the terms of the alleged agreement were not to be performed within one year. Second, pursuant to General Obligations Law § 5-701 (a) (10), the alleged agreement is for compensation for services rendered in negotiating the purchase, sale, exchange, renting, or leasing of a business opportunity, business, its good will, inventory, fixtures, or an interest therein.

Tauben counters, asserting that as the agreement falls within the court’s supplemental maritime jurisdiction, it precludes any reliance on the Statute of Frauds. Tauben further maintains that in the event the court determines the Statute of Frauds is applicable, the presence of material issues of fact and documents supporting the breach of contract claim merit denial of Stolt’s motion.

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179 Misc. 2d 933, 686 N.Y.S.2d 916, 1998 N.Y. Misc. LEXIS 682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/compania-tauben-s-a-v-stolt-tankers-inc-nysupct-1998.