Donnell v. Stogel

139 Misc. 2d 72, 526 N.Y.S.2d 744, 1988 N.Y. Misc. LEXIS 74
New York Supreme Court·Decided March 21, 1988·Published·Cited by 1 cases

Opinion

OPINION OF THE COURT

Edwin Kassoff, J.

This action arises out of a written contract entered into by the parties in 1982 at the termination of their cohabitation. Defendant made a motion for judgment dismissing the plain[73] tiffs complaint pursuant to CPLR 4401 at the close of plaintiff’s case.

Plaintiff, Laura J. Donnell (LJD), was married on September 6, 1975 and entered into a separation agreement on April 17, 1978 with her husband. Plaintiff began cohabiting with defendant, Conrad Y. Stogel (CYS), in the latter part of 1978 while still married. She did not obtain a final divorce decree from her husband until November 18, 1980.

The parties cohabited from 1978 until January 1982. Upon termination of their relationship, the parties on January 9, 1982, entered into a written contract which was drafted by defendant after consultation with an attorney.

The contract expressly stated that the consideration for the agreement was the parties "living together under the same roof as man and wife for four years and during that time [plaintiff] contributing to the general well being of CYS’s business career, providing sound business counsel and working without salary in the development of Markon Footwear.” The contract provided that defendant would pay the plaintiff $35,000 per year for three years payable in monthly installments from January 1982 through December 1984. The contract in subsection 2 provided for additional compensation for the plaintiff in the amount of $35,000 per year for three years starting within the first year of profitability of Markon Footwear. In order for the plaintiff to receive the agreed moneys she had to abide by one restriction, which was that she would not marry within the term of the contract. If Ms. Donnell did marry, she was expressly prohibited from receiving further payments under the contract. Furthermore, the contract provided that "in the event LJD is unemployed in the fourth year, the compensation in item 1 ($35,000 salary) shall be extended for the fourth year.”

The defendant paid the plaintiff $12,000 under the agreement and plaintiff now sues for the alleged balance of the contract which she claims to be $87,500 plus a bonus of an additional $35,000 a year for the three profitable years for a total of $192,500 plus interest less the $12,000 defendant already paid. Plaintiff acknowledges that she is only entitled to the money until June 1984, the date of her marriage.

In support of the motion, defendant contends that the contract is void by reason of lack of consideration running from the plaintiff to the defendant. The defendant states the agreement was primarily an agreement to commit adultery, [74] which is a crime in New York pursuant to New York Penal Law § 255.17.

Plaintiff, in opposing the motion, contends that the contract did not facilitate adultery because although plaintiff was married to another man, her marriage was dead. Furthermore, plaintiff contends there is other sufficient consideration for the contract. This consideration included services rendered for Markon Footwear, including negotiating a contract, finding a corporate office, designing the corporate logo, stationery, business cards, shoe box, advertisements and entertaining clients in addition to various household services.

The issue before the court is whether a written contract for alleged services rendered, entered into by unmarried parties cohabiting together while one party to the contract is married to another, is enforceable. This case appears to one of first impression in New York.

It is well settled that the New York courts will enforce "an express agreement between unmarried persons living together * * * provided only that illicit sexual relationships were not 'part of the consideration of the contract’ ”. (Morone v Morone, 50 NY2d 481, 486 [1980].) Although cohabitation does not prevent the parties from entering into an agreement, it must still be a valid agreement with valid consideration. The contract at issue in this case expressly states that the consideration is "for living together under the same roof as man and wife”. The relationship of man and wife necessarily includes sexual relations. In this case the sexual relations were illicit because during the first part of the parties’ relationship the plaintiff was married. Plaintiff through her own testimony admitted to regularly having sex with defendant and becoming pregnant by him while still married to her husband. The pregnancy was terminated by abortion. This relationship was in violation of Penal Law § 255.17 which makes adultery a crime.

Plaintiff relies on General Obligations Law § 5-1105 to validate the past illicit consideration. Plaintiff contends that since the agreement was not entered into until the end of the relationship the consideration could not be for the purpose of facilitating adultery because plaintiff was no longer married. The plaintiff’s reliance upon this section is misplaced. The purpose of this statute is not to transform illegal consideration into legal consideration, but rather to permit enforcement of a contract based upon past consideration. (See, Calamari and Perillo, Contracts § 5-18, at 268-269 [1987 ed].)

[75] New York public policy disfavors "[agreements tending to dissolve a marriage or to facilitate adultery”. (McCall v Frampton, 81 AD2d 607, 608 [2d Dept 1981].) Therefore, courts "closely [scrutinize]” these agreements to "determine whether the main objective of the agreement is aimed to produce that result”. (McCall v Frampton, supra, at 608.) Although plaintiff contends the relationship did not facilitate adultery because her marriage was dead, she was nevertheless still married. As the court noted in Isabellita S. v John S. (132 Misc 2d 475, 476 [1986]), although parties are separated they are still married. Therefore, the agreement has an illegal component to it which renders it unenforceable.

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Donnell v. Stogel, 139 Misc. 2d 72, 526 N.Y.S.2d 744, 1988 N.Y. Misc. LEXIS 74 (N.Y. Super. Ct. 1988).

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