Greidinger v. Hoffberg

49 A.D.2d 549, 370 N.Y.S.2d 934, 1975 N.Y. App. Div. LEXIS 10388
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 10, 1975
StatusPublished
Cited by4 cases

This text of 49 A.D.2d 549 (Greidinger v. Hoffberg) 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
Greidinger v. Hoffberg, 49 A.D.2d 549, 370 N.Y.S.2d 934, 1975 N.Y. App. Div. LEXIS 10388 (N.Y. Ct. App. 1975).

Opinion

Order, Supreme Court, New York County, entered on April 14, 1975, affirmed, without costs and without disbursements. Concur—Kupferman, J. P., Nunez and Lynch, JJ.; Lupiano, J., dissents in part in a memorandum and Capozzoli, J., concurs in the dissenting memorandum in a separate memorandum, as follows: Lupiano, J., (dissenting in part). Plaintiffs B. Bernard Greidinger and Jerry B. Klein commenced an action against defendants Samuel I. Hoffberg, Abraham Oberfest, Henry M. Burger and Stanley G. Berger, hereinafter referred to as HOB&B, and against defendants Arthur G. Cohen and Arthur N. Levien, doing business as Arlen Operating Company, hereinafter referred to as Arlen. HOB&B served an answer and impleaded Hertz, Herson & Company as an additional defendant. Subsequently, the plaintiffs received a release from Arlen and discontinued their action against Arlen. In consequence, defendants HOB&B instituted a separate action wherein they were denominated plaintiffs, against Greidinger, Klein and Arlen. Both actions seek declaratory judgment with respect to the rights of the parties under a lease entered into on December 24, 1969 between Arlen as landlord and a partnership, Greidinger, Hoffberg & Oberfest, as tenant. In essence, a determination of the liability of certain retiring and certain remaining partners of that partnership under the lease was sought. The appeals before this court are as follows: Arlen appeals from an order of Special Term insofar as such order grants a motion by defendants HOB&B for preliminary injunction restraining Arlen from giving notice of intention to terminate the lease dated December 24, 1969 and commencing a summary proceeding for nonpayment of 35% of the rental due. Arlen also complains of the limitation placed upon the undertaking posted by HOB&B under this injunction in the amount of $85,000. Plaintiffs Greidinger and Klein appeal from Special Term’s order insofar as it denies their motion for summary judgment against HOB&B in the amount of $16,000 and for a declaratory judgment in plaintiffs’ favor. Defendants HOB&B cross-appeal from that portion of Special Term’s order which granted the motion of the additional defendant Hertz, Herson & Company for summary judgment dismissing the counterclaim made against Hertz, Herson & Company by said defendants. Scrutiny of the record discloses the following undisputed facts: in December, 1969, Greidinger and Klein formed a partnership with HOB&B, for the practice of accountancy under the firm name of Greidinger, Hoffberg & Oberfest. This partnership entered into a 10-year lease with Arlen as landlord whereby the former was leased 3,692 square feet, being a portion of the 19th floor at 888 Seventh Avenue, Manhattan, New York. The critical clause in said lease at issue herein is paragraph 9.08 which provides: "9.08. [550]*550Tenant represents that it is a partnership comprised of the general partners who have executed this Lease. Tenant further represents that the foregoing general partners are all of the partners of said firm and that there are no other partners at the present time. Tenant represents and agrees that such partners are and shall for all purposes be jointly and severally liable for the keeping, observing and performing of all of the terms, covenants, conditions, provisions and agreements of this lease. Tenant covenants that it will notify Landlord by registered mail of the admission of any new partner into the firm, and Tenant, and each of the existing partners thereof, further covenant that each newly admitted partner, by virtue of admission into the firm, shall and will assume the liabilities and obligations of the partnership, so that each such newly admitted partner will become liable under this lease as though he had executed the same originally; and Tenant further covenants that upon the request of Landlord, each present and newly admitted partner will execute an agreement, in form and substance reasonably satisfactory to counsel for Landlord assuming joint and several liability for keeping, observing and performing all of the terms, covenants, conditions, provisions and agreements of this lease. Each of such partners consents in advance to, and agrees to be bound by any modification of this lease which may hereafter be made and by any notices, demands, requests or other communications which may hereafter be given by Tenant or by any of the partners comprising Tenant; and all bills, statements, notices, demands, requests or other communications given or rendered to Tenant or to any of the partners comprising Tenant, shall be deemed given or rendered to Tenant and to each of the partners comprising Tenant and shall be binding upon Tenant and each of such partners. In the event, from time to time, of the death or retirement of one or more partners, written application may be made by Tenant, by such retired partner, or by the estate of any deceased partners, requesting that Landlord release said deceased or retired partner from further liability hereunder. Landlord shall thereupon release said deceased or retired partner or partners from all further liability hereunder; provided, however, that (i) at the time of such release the net worth of the partnership and the personal net worth of the remaining partners amounts, in the aggregate, to at least $50,000.00 and (ii) Tenant furnishes Landlord with a certificate to that effect. Neither the release of any such deceased or retired partner or partners, nor anything contained herein, nor any act of Landlord pursuant hereto shall be effective as or shall be deemed a release, in whole or in part, of the liability of the partnership, or of any partner not specifically released in writing, and the partners not released shall continue and remain fully and completely liable for keeping, observing and performing all of the terms, covenants, conditions, provisions and agreements of this lease.” (Emphasis supplied.) On September 30, 1971, plaintiffs Greidinger and Klein withdrew from the partnership Greidinger, Hoffberg & Oberfest. This withdrawal was not wrongful because it is clear that the partnership term was indefinite. Section 62 (subd 1, par [b]) of the Partnership Law states: "Dissolution is caused * * * By the express will of any partner when no definite term or particular undertaking is specified”. Consequently, dissolution of Greidinger, Hoffberg & Oberfest was effected (see 43 NY Jur, Partnership, § 185). Concomitant with their retiring from Greidinger, Hoff-berg & Oberfest, the plaintiffs Greidinger and Klein joined as partners Hertz, Herson & Company. Thereafter, and for a period of approximately 15 months (Nov. 1, 1971-Dec. 31, 1972), Greidinger and Klein or the partnership which they joined, defendant Hertz, Herson & Company, paid 35% of the rental due under the lease between Arlen and the dissolved firm of [551]*551Greidinger, Hoffberg & Oberfest, amounting to $16,000. Examination of the record discloses that the landlord continued to direct its rental bills to the dissolved firm up to, and including 1974. After the tenant’s dissolution, 65% of the rental due was paid by the remaining partners, to wit, HOB&B. In January, 1973, plaintiffs refused to continue payments of 35% of the rent due under the subject lease and for the first time asserted their rights under said lease to be relieved of this liability. By letter dated December 31, 1972, delivered on or about January 10, 1973, plaintiffs pursuant to paragraph 9.08 of the lease requested Arlen to release them. On February 6, 1973, Arlen released the plaintiffs.

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

Related

Cohen v. Akabas & Cohen
79 A.D.3d 460 (Appellate Division of the Supreme Court of New York, 2010)
Eagle Associates v. Bank of Montreal
926 F.2d 1305 (Second Circuit, 1991)
Midwood Development Corp. v. K 12th Associates
146 A.D.2d 754 (Appellate Division of the Supreme Court of New York, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
49 A.D.2d 549, 370 N.Y.S.2d 934, 1975 N.Y. App. Div. LEXIS 10388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greidinger-v-hoffberg-nyappdiv-1975.