Deutsch v. Textile Waste Merchandising Co.

212 A.D. 681, 209 N.Y.S. 388, 1925 N.Y. App. Div. LEXIS 9530
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 1, 1925
StatusPublished
Cited by24 cases

This text of 212 A.D. 681 (Deutsch v. Textile Waste Merchandising Co.) 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
Deutsch v. Textile Waste Merchandising Co., 212 A.D. 681, 209 N.Y.S. 388, 1925 N.Y. App. Div. LEXIS 9530 (N.Y. Ct. App. 1925).

Opinion

Burr, J.:

The complaint alleges:

I. On information and belief that the defendant is a domestic corporation with its principal offices in the Borough of Manhattan, City of New York.
II. That on or about the 7th day of May, 1924, the plaintiff and one Leo Sprai, President of the defendant corporation, entered-into a contract as follows:
“1. In consideration of plaintiff’s introducing said Leo Sprai into the business of the wholesale buying and selling of rags, and in further consideration of the plaintiff’s introducing the said Leo Sprai into the Trade Association of that trade, plaintiff was to secure from the defendant corporation a written contract of employment as follows:
a. Plaintiff to be the Manager of the Textile Waste Merchandising Corporation for a term of five years;
b. Plaintiff to receive as such manager ten per cent of The [683]*683profits of the business and the sum of Fifty Dollars per week to cover his general expenses.
III. That plaintiff at the times hereinafter mentioned was the American representative of the foreign firm of Bernard Deutsch & Sohn, of Bielitz, Poland, a very well-known firm in the trade, and through this connection was thoroughly familiar with the trade and the business.
“ IV. That beginning on or about the 7th day of May, 1924, plaintiff assisted in the organization of the business.
V. That on or about the 29th day of May, 1924, the defendant corporation sent out letters broadcast into the trade announcing that plaintiff had been hired by it as manager of the defendant corporation, that plaintiff was thoroughly familiar with the foreign market in the trade through his connection with the firm of Bernard Deutsch & Sohn, and on that basis defendant corporation solicited business.
" VI. That as a result of these letters and through the personal solicitation of plaintiff, orders were received and goods and samples were shipped to the defendant corporation by firms who knew plaintiff in the trade and relied on bis connection as manager.
“ VII. Plaintiff, pursuant to the terms of the contract, introduced Leo Sprai, President of the defendant corporation, into the Trade Association.
“ VIII. Plaintiff duly performed all of the conditions on his part to be performed.
“ IX. That on or about the 23d day of June, 1924, plaintiff was summarily discharged as manager of the defendant corporation and failed to receive the contract of employment although he had made repeated demand for the same.
X. That plaintiff, relying on defendant’s promise, had given the defendant the benefit of all of the trade secrets, had brought to the defendant company a large volume of business, had lost the opportunity of making other connections in the trade; that by reason of the plaintiff’s association and assistance the defendant corporation was unjustly enriched.
“ XI. That defendant has failed to give to plaintiff the written contract of employment; that plaintiff has received no share of the profits, to his damage in the sum of twenty-five thousand ($25,000) Dollars.
Wherefore, plaintiff demands judgment against defendant in the sum of Twenty-five Thousand ($25,000) Dollars, together with the costs of this action.”

The motion to dismiss was made under rule 106 and rule 107 of the Rules of Civil Practice. Under rule 106 defendant moves to dis[684]*684miss the complaint on the ground that it does not state facts sufficient to constitute a cause of action, alleging that whatever value it might have had as a complaint if Leo Sprai had been the defendant, the complaint sets forth no cause of action against the defendant corporation.

Under rule 107 defendant moves on .the complaint and supporting affidavit of Irving G. Warshaw to dismiss on the ground that the alleged contract sued on is unenforcible under the Statute of Frauds.

In the affidavit submitted by plaintiff in opposition to that part of the motion made under rule 107, the plaintiff states: This action as set forth in the complaint could be performed in less than a year, could be performed in a few weeks or months and is, therefore, not within the provisions of the Statute of Frauds. It is not a contract of employment that we sue on. Suit is predicated on the breach of a contract which had for its terms the performance by the plaintiff of certain acts, in exchange for which defendant was to give plaintiff a written contract. Plaintiff has fully performed; defendant has accepted the performance and benefited by it and has failed and refused to perform in return."

There is no dispute about the fact that the alleged original agreement between the plaintiff and Sprai was oral. The very basis of the action is the failure of the defendant to deliver a written contract to plaintiff. The written contract which Sprai orally agreed the defendant company would give plaintiff, as alleged, was to have provided that defendant employ plaintiff for a term of five years and give plaintiff a share of the profits. Because Sprai’s alleged oral promise, that defendant would give plaintiff such contract, was not fulfilled, it is alleged that “ plaintiff has received no share of the profits, to his damage in the sum of twenty-five thousand ($25,000) dollars. Wherefore, plaintiff demands judgment against defendant in the sum of twenty-five thousand ($25,000) dollars.”

This is clearly an attempt to recover, on the alleged breach of an oral contract to give a written contract, damages that "would have been recoverable on an action on the written contract, and thus to nullify the Statute of Frauds. (See Pers. Prop. Law, § 31, subd. 1.)

In the case of McLachlin v. Village of Whitehall (114 App. Div. 315) the plaintiff brought an action to recover damages sustained by him for the breach by defendant of an alleged agreement to enter into a written contract with the plaintiff for lighting the streets and public buildings of the village of Whitehall for the term of five years. The plaintiff claimed that in pursuance of the oral agreement made with the trustees he expended from $8,000 to $10,000 in installing an incandescent lighting system, and that thereafter the board of trustees, in violation of such agreement, [685]*685refused to enter into the written contract for fighting for five years, and awarded the contract to another bidder. The jury awarded the plaintiff damages for the breach of such agreement, and the defendant appealed from the judgment entered thereon. The court said (at p. 317): “ The question is, therefore, presented whether damages can be recovered for the breach of an oral agreement to enter into a contract which under the Statute of Frauds is required to be in writing.

It is true that the oral agreement to enter into the written contract might be fully performed within a year or within a day.

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Cite This Page — Counsel Stack

Bluebook (online)
212 A.D. 681, 209 N.Y.S. 388, 1925 N.Y. App. Div. LEXIS 9530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deutsch-v-textile-waste-merchandising-co-nyappdiv-1925.