Drake v. Drake

89 A.D.2d 207, 455 N.Y.S.2d 420, 1982 N.Y. App. Div. LEXIS 18134
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 29, 1982
StatusPublished
Cited by21 cases

This text of 89 A.D.2d 207 (Drake v. Drake) 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
Drake v. Drake, 89 A.D.2d 207, 455 N.Y.S.2d 420, 1982 N.Y. App. Div. LEXIS 18134 (N.Y. Ct. App. 1982).

Opinion

OPINION OF THE COURT

Doerr, J.

The question presented on this appeal is whether a child of the parties to a separation agreement has standing, as a third-party beneficiary, to enforce the terms of the agreement insofar as it relates to periodic support payments. Under the facts of this case we hold that she may not.

[208]*208In 1963 plaintiff’s parents, Winifred B. Drake and Richard E. Drake, entered into a separation agreement later incorporated, but not merged, in a divorce decree. The agreement required the husband to make periodic payments to the wife for the support of five children, whose custody remained in the wife, according to a fixed schedule tied to the husband’s then earnings. The agreement also provided for escalated payments of child support as the husband’s earnings increased. Payments were to continue until each child reached the age .of 21 years, died, became self-supporting, or married and were to be reduced according to a fixed schedule upon the happening of the expressed contingency. Plaintiff is the only child who has not reached the age of 21 years and is presently a full-time college student.

Defendant made the required fixed payments throughout the intervening years, but never made any escalated payments under the agreement and was never called upon by the wife in any judicial proceeding to make such payments. In February, 1981, while still a high school senior, plaintiff moved from her mother’s house to that of a friend and requested defendant to send the support payments directly to her. Upon learning that plaintiff no longer resided with her mother, defendant concluded that she was emancipated and ceased making any support payments. Plaintiff thereupon learned for the first time of the terms of her parents’ separation agreement, including the escalation clause, and commenced the instant action seeking back payments for the preceding six years, escalated to reflect defendant’s earnings which were now substantially greater than in 1963. She also sought an order directing defendant to make support payments to her as required by the agreement until she reaches the age of 21, marries, dies, or becomes self-supporting.

On cross motions for summary judgment Special Term held that plaintiff could not recover sums due prior to the commencement of the action, but that she may recover sums falling due thereafter, including sums due pursuant to the escalation clause in the agreement. Both parties appeal.

[209]*209The issue here is concerned with the contractual rights of the parties insofar as they flow from the separation agreement of plaintiff’s parents and is not to be confused with a child’s statutory rights to be supported by its parents (Family Ct Act, § 413; Domestic Relations Law, § 32, subd 1; § 240, subd 1).

It is familiar law that a contract entered into between two parties may be enforced by a third party if the contracting parties intended the contract for the third party’s direct benefit (Airco Alloys Div., Airco Inc. v Niagara Mohawk Power Corp., 76 AD2d 68, 79; see, generally, 2 Williston, Contracts [3d ed], §§ 347-403; 22 NY Jur 2d, Contracts, §§ 271-281). Where performance is rendered directly to the third party, it is presumed that the contract was for his benefit (Goodman-Marks Assoc. v Westbury Post Assoc., 70 AD2d 145, 148). It is not enough that the contract benefit the third party incidentally; the agreement must express an intent to assume a duty directly to the third party (Resinol v Valentine Dolls, 14 AD2d 853). In ascertaining the rights of an asserted third-party beneficiary, the intention of the promisee is of primary importance, since the promisee procured the promise by furnishing the consideration therefor (Goodman-Marks Assoc. v Westbury Post Assoc., supra).

Applying these principles to separation agreements, New York courts long ago concluded that a child could not enforce the support provisions of the agreement, although it could enforce other provisions, such as a promise to set up a trust fund. The seminal case is Kendall v Kendall (200 App Div 702; 200 App Div 706). InKendall the child, relying on her parents’ separation agreement, sued her father in two separate lawsuits (1) to recover monthly support arrearages (Kendall I) and (2) to require him to set up a trust fund (Kendall II). The Appellate Division held that the child could enforce the trust fund provision, since she was the sole beneficiary of it, but that she could not enforce the support provisions of the agreement. The court reasoned that the support money was payable to the mother, who had discretion in how the money was spent. Unlike the trust fund, which benefited the daughter exclusively, payment of the support money was an obligation running to [210]*210the child’s mother. Therefore, the court concluded that the mother was the proper party to enforce the support provision of her contract. This distinction has been recognized repeatedly (see Ben Ami v Ben Ami, 9 AD2d 646, affd 8 NY2d 885 [dismissing a complaint seeking enforcement of monthly support, but without prejudice to a suit seeking to enforce other provisions of the agreement relating to life insurance policies; the court noted (p 647) “There is no occasion to depart from the controlling principle that a separation agreement between parents providing for payment to another for the support and maintenance of the children may not, in the ordinary case, be enforced by the children”]; Magrill v Magrill, 16 Misc 2d 896, 900-901 [dismissing a cause of action by a child against the father for support based on the separation agreement, noting that the cause of action vests in the mother and that children have no direct interest in the money paid to the mother even though it be wholly or partly for their benefit]; but see Weiss v Weiss, 190 Misc 687, affd 274 App Div 788 [child permitted to enforce support provisions; issue of standing not discussed]).

In 1966 the Court of Appeals decided what has become the leading case on this issue. In Forman v Forman (17 NY2d 274) the court addressed at length the standing of a child to enforce his parents’ separation agreement. The question of periodic support was not at issue in Forman, since the mother had breached the separation agreement by moving the children out of State. The Court of Appeals noted that the Forman children “concede” that they could not enforce the support provisions. Instead, the Forman children sought specific performance of their father’s promise to make them equal and irrevocable beneficiaries of a life insurance policy in the face amount of $10,000. The Court of Appeals, citing Kendall I (200 App Div 702, supra), noted that the general rule in New York is that ordinarily “children for whose support a provision is made in a separation agreement between their parents, payable to the mother, are usually not able to enforce the agreement directly in an action against their father [since] such a suit ordinarily should be maintained by the mother” (Forman v Forman, supra, p 280). The court then approved [211]*211of this general rule, noting that “there are probably good enough policy reasons to hold to the usual rule that it is preferable to have a mother, who is a direct party to a separation agreement and to whom payments for the support of infant children in her custody are to be made, enforce it” (Forman v Forman, supra, p 280).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Matter of Panella
2023 NY Slip Op 04009 (Appellate Division of the Supreme Court of New York, 2023)
One Flint St., LLC v. Exxon Mobil Corp.
2019 NY Slip Op 752 (Appellate Division of the Supreme Court of New York, 2019)
Sidik v. Royal Sovereign Int'l Inc.
348 F. Supp. 3d 206 (E.D. New York, 2018)
Weber v. Weber
168 A.3d 266 (Superior Court of Pennsylvania, 2017)
Weber, B. v. Weber, M. v. Weber, M.
168 A.3d 266 (Superior Court of Pennsylvania, 2017)
LOGAN-BALDWIN, EMMELYN v. L.S.M. GENERAL CONTRACTORS
94 A.D.3d 1466 (Appellate Division of the Supreme Court of New York, 2012)
Chen v. Chen
893 A.2d 87 (Supreme Court of Pennsylvania, 2006)
Granite Partners, L.P. v. Bear, Stearns & Co.
58 F. Supp. 2d 228 (S.D. New York, 1999)
Houbigant, Inc. v. ACB Mercantile, Inc.
914 F. Supp. 964 (S.D. New York, 1995)
Sazerac Co., Inc. v. Falk
861 F. Supp. 253 (S.D. New York, 1994)
Barnum v. Millbrook Care Ltd. Partnership
850 F. Supp. 1227 (S.D. New York, 1994)
Barringer v. Donahue
168 A.D.2d 406 (Appellate Division of the Supreme Court of New York, 1990)
Key International Manufacturing, Inc. v. Morse/Diesel, Inc.
142 A.D.2d 448 (Appellate Division of the Supreme Court of New York, 1988)
Morelli v. Morelli
720 P.2d 704 (Nevada Supreme Court, 1986)
Fourth Ocean Putnam Corp. v. Interstate Wrecking Co.
108 A.D.2d 3 (Appellate Division of the Supreme Court of New York, 1985)
Nepco Forged Products, Inc. v. Consolidated Edison Co.
99 A.D.2d 508 (Appellate Division of the Supreme Court of New York, 1984)
Goresen v. Gallagher
97 A.D.2d 626 (Appellate Division of the Supreme Court of New York, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
89 A.D.2d 207, 455 N.Y.S.2d 420, 1982 N.Y. App. Div. LEXIS 18134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drake-v-drake-nyappdiv-1982.