Diaz v. Rosbrock Associates Ltd. Partnership

188 Misc. 2d 159, 727 N.Y.S.2d 272, 2001 N.Y. Misc. LEXIS 146
CourtNew York Supreme Court
DecidedApril 23, 2001
StatusPublished
Cited by1 cases

This text of 188 Misc. 2d 159 (Diaz v. Rosbrock Associates Ltd. Partnership) 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
Diaz v. Rosbrock Associates Ltd. Partnership, 188 Misc. 2d 159, 727 N.Y.S.2d 272, 2001 N.Y. Misc. LEXIS 146 (N.Y. Super. Ct. 2001).

Opinion

OPINION OF THE COURT

John R. LaCava, J.

The novel and dispositive issue presented to the Court is whether two properly and separately created, operated, and maintained New York limited partnerships which are made up of identical limited and general partners are one and the same for Workers’ Compensation Law purposes so as to preclude an employee of the employer limited partnership from maintaining a cause of action for work-related personal injuries against the landowner limited partnership based upon the exclusive remedy provisions of the Workers’ Compensation Law (Work[160]*160ers’ Compensation Law § 11). The Court answers the question in the affirmative and, therefore, holds that such an action is precluded.

The Ramada Plaza Hotel (the Hotel) is situated in New Rochelle, New York. Pursuant to a franchise agreement, the Hotel is owned and operated by a New York limited partnership named the New Rochelle Hotel Association (NRHA). The Hotel is situated on land leased to NRHA by a New York limited partnership known as the Rosbrock Associated Limited Partnership (Rosbrock), the defendant herein. At the time relevant to this action, Rosbrock had no employees and merely owned the land upon which the Hotel sits. NRHA, on the other hand, employed various persons in connection with its ownership of the Hotel and operation of the franchise.

Plaintiff Eduardo Londono Diaz (Diaz) was one of NRHA’s employees. As part of his duties, plaintiff was charged with checking the Hotel boiler and adding water, if necessary, by opening and closing a valve. On January 16, 1998, while so employed, plaintiff allegedly sustained injuries when he fell from a closed and upright “A-frame” stepladder while prying a valve with a screwdriver and spraying it with lubricant. Plaintiff was using the stepladder in the closed position because of space constraints.

Diaz commenced this action against Rosbrock, as the landowner, to recover damages for personal injuries allegedly sustained from that fall. Among other things, plaintiff asserts that defendant violated sections 200, 240 and 241 (6) of the Labor Law.

By decision and order of September 20, 2000, the Court (Scarpino, J.) denied plaintiff’s motion for summary judgment. The Court also denied defendant’s cross motion to dismiss the plaintiff’s Labor Law § 240 (1) and § 241 (6) claims upon concluding that plaintiff’s conduct constituted a “repair” within the statute.

While defendant’s further application to amend its answer to add the affirmative defense of the Workers’ Compensation Law was granted, the Court denied defendant’s motion for summary judgment on that issue. Denial was with leave, however, for the parties to conduct limited discovery to determine whether the owner of the land, Rosbrock, and plaintiff’s employer, NRHA, are one and the same as Rosbrock alleged. More particularly, in support of Rosbrock’s earlier motion, Rosbrock had asserted that Rosbrock and NRHA are comprised of the same general and limited partners. As such, Rosbrock [161]*161urged, such a complete identity of ownership renders the two limited partnerships one and the same entity, thus exposing plaintiffs claim to dismissal under the Workers’ Compensation Law which, among other things, prohibits workers from suing their employers for work-related injuries (see, Workers’ Compensation Law § 11).

Having conducted the permitted disclosure, defendant now moves for renewal of its summary judgment motion based on the exclusivity of remedy of the New York Workers’ Compensation Law, and upon renewal, seeks an order granting defendant summary judgment dismissing plaintiffs complaint.

Upon review of the parties’ respective submissions, the Court hereby grants renewal and, upon renewal, grants defendant’s motion for summary judgment for the reasons herein provided.

Based upon the additional evidence now presented, the Court finds that the landowner limited partnership Rosbrock and the employer limited partner NRHA were separately established for tax considerations. They also maintain separate bank accounts, file separate tax returns, and file distinct partnership statements with the Secretary of State. In fact, all evidence before the Court suggests that the limited partnerships act in full compliance with all relevant statutes, rules, and regulations, so as to properly preserve their distinct limited partnership status. Nonetheless, both limited partnerships are made up of the same individual general and limited partners.

In Jackson v Tivoli Towers Hous. Co. (176 AD2d 918, 919 [2d Dept 1991]), the Court found that the defendant landowner, a general partner of the employer limited partnership, had “purchased and developed the premises on which the accident occurred in furtherance of partnership business.” As such, the Court held that the plaintiff employee of the limited partnership was precluded from bringing an action against defendant landowner.

Upon so finding, the Court stated the well-settled rule that: “In general, a plaintiff may not bring an action against his employer in its capacity as a property owner * * * his exclusive remedy is a claim under his employer’s workers’ compensation policy of insurance (Workers’ Compensation Law §§ 11, 29 [6]).” (Id., at 918.)

More relevant to this proceeding, however, the Court went on to state:

“For purposes of the defenses pursuant to Workers’ [162]*162Compensation Law §§11 and 29, a partnership and its partners are considered one entity when acting in fiirtherance of partnership business” (Jackson v Tivoli Towers Hous. Co., supra, at 918-919; see also Cipriano v FYM Assocs., 117 AD2d 770 [2d Dept 1986]).

While there are various cases wherein courts have emphasized the similarities between limited partnerships and corporations (see, for example Ruzicka v Rager, 305 NY 191 [1953] [in suit by limited partnership, neither limited nor general partners are subject to counterclaims on causes of action unrelated to partnership affairs]; Lichtyger v Franchard Corp., 18 NY2d 528 [1966] [limited partners akin to corporate shareholders and may bring a representative action for breach of fiduciary duty]), nonetheless, “under the law, ‘limited and general partnerships are identical forms of doing business’ ” (People v Zinke, 76 NY2d 8, 15 [1990], quoting Executive House Realty v Hagen, 108 Misc 2d 986, 991). They are “partnerships in the eyes of the law of this State” (People v Zinke, at 15). As such, generally, they do not exist as an entity that is separate and apart from the individuals composing the partnership firm (Chemical Bank v Ashenburg, 94 Misc 2d 64, 67 [Sup Ct, Monroe County 1978], citing Partnership Law § 10 and Caplan v Caplan, 268 NY 445).

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Related

Diaz v. Rosbrock Associates Ltd. Partnership
298 A.D.2d 547 (Appellate Division of the Supreme Court of New York, 2002)

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Bluebook (online)
188 Misc. 2d 159, 727 N.Y.S.2d 272, 2001 N.Y. Misc. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diaz-v-rosbrock-associates-ltd-partnership-nysupct-2001.