Hoskin v. New Grovetown Associates

129 Misc. 2d 222, 492 N.Y.S.2d 685, 1985 N.Y. Misc. LEXIS 2687
CourtNew York Supreme Court
DecidedJuly 16, 1985
StatusPublished

This text of 129 Misc. 2d 222 (Hoskin v. New Grovetown Associates) 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
Hoskin v. New Grovetown Associates, 129 Misc. 2d 222, 492 N.Y.S.2d 685, 1985 N.Y. Misc. LEXIS 2687 (N.Y. Super. Ct. 1985).

Opinion

OPINION OF THE COURT

Wilmer J. Patlow, J.

This action seeks cancellation of a contract for the sale of residential real property located in downtown Rochester, New York. Plaintiff alleges a variety of defects in title and in construction of the townhouse built by defendant for plaintiff on the property in question. In addition to cancellation of the contract, plaintiff seeks the return of his $16,000 deposit.

Defendant, in opposition, requests specific enforcement of the same agreement.

Plaintiff now moves for summary judgment based on only one of the many issues raised in his pleadings, namely, the effect of an alleged violation by defendant of General Business Law § 130. This section requires persons conducting business under an assumed name or as partners to file a certificate in the county wherein the business is conducted, setting forth the assumed name and other relevant information.

Defendant New Grovetown Associates identified itself in the [223]*223sales contract and in the proposed deed as a New York State partnership. However, the document by which New Grove-town Associates was created is entitled "Joint Venture Agreement” and defendant is consistently referred to as a joint venture throughout. Additionally, defendant’s attorney caused to be prepared a "Business Certificate for Joint Venture” which was filed in the Monroe County Clerk’s office on or about October 9, 1984.

The basis for this motion is that at the time of the closing on July 31, 1984, at which time was of the essence, no such filing had been made, and consequently defendant had no authority to execute the deed.

It is defendant’s basic position that any failure to file does not render the partnership’s contracts null or void and that the deed tendered at the closing was entirely proper and authorized.

Furthermore, defendant maintains that the "Business Certificate for Joint Venture”, which was executed on July 31, 1984 and would have been filed that day but for plaintiffs refusal to close, satisfies the filing requirements of General Business Law § 130.

Plaintiff counters with the argument that the certificate was defective in certain respects, specifically in that it did not contain all the necessary signatures, and further in that one particular signatory may have already withdrawn from her capacity at the time the certificate was executed.

In addition to the legal argument concerning the effect of General Business Law § 130, plaintiff also makes an equitable argument that the contract should be rescinded due to the misrepresentations of defendant which resulted in considerable confusion as to its legal status and identity, which confusion could have been alleviated by the timely filing of an appropriate certificate. Although the "Business Certificate for Joint Venture” apparently was available for plaintiff’s inspection at the attempted closing, there is a sharp disagreement between the parties as to whether the "Joint Venture Agreement” was also provided to plaintiff at or before that time to clarify the defendant’s legal standing.

Plaintiffs underlying concern, apparently, was assuring himself that the defendant builder/seller was a financially secure entity which could withstand liability after the transfer of title.

More particularly, plaintiff points out that defendant’s pro[224]*224motional literature advised prospective buyers that New Grovetown Associates was a joint venture consisting of three parties, one of which was listed as "Schmier/Butler Properties, a national real estate development firm”. In fact, defendant New Grovetown Associates consists of the following three entities: (1) New Grovetown, a New York partnership of concerned local residents; (2) R. L. Grovetown, Inc., a New York corporation which is a subsidiary of a subsidiary of the Rochester Savings Bank; and (3) Grovetown Developers, Inc., another New York corporation, of which Mr. James Butler is president.

Plaintiff characterizes the two New York corporations as "minimal” in that each has only one incorporator and 200 shares of no par stock. Plaintiff also contends, upon information and belief, that Mr. Butler is no longer connected with the downtown development project involved here.

Defendant explains that Grovetown Developers, Inc., is a corporation formed by Schmier/Butler Properties specifically for the New Grovetown development, their normal operation being to maintain one basic partnership and create a separate corporation or partnership for each development project.

In addition to plaintiffs concern about the role of Schmier/ Butler Properties, plaintiff is also troubled by the possibility that the defendant New Grovetown Associates is not in fact a partnership as stated in the deed and sales contract, but rather is in the nature of a joint venture. According to plaintiff, such difference is significant because venturers, as opposed to partners, need not necessarily share in losses, may not be fully liable for each other’s commitments and are not necessarily bound by provisions in the Partnership Law.

According to plaintiff, the inconsistency between the deed identifying defendant as a partnership and the "Business Certificate for Joint Venture” in and of itself renders the deed inadequate.

It is defendant’s position that the title of the agreement and the certificate are matters of form only, and that the agreement in fact contains all the indicia and elements of a partnership, namely, the sharing of profits and losses, joint liability, joint management with Grovetown Developers, Inc., designated as managing partner having authority to bind the other two, property being held by them all as partners, a community of interest and an intention to be bound as partners. In any event, according to defendant, the difference [225]*225between a partnership and joint venture is insignificant because the same rules of law would apply to either.

Finally, defendant indicates that to the extent plaintiff is worried about binding all of the constituents of New Grove-town Associates to the deed, defendant always has been and still is willing to provide a deed executed by all three of the New Grovetown Associates partners.

Plaintiff raises one last argument which the court will mention here. Now that he clearly has had the opportunity to review New Grovetown Associates’ "Joint Venture Agreement”, plaintiff contends that it itself was improperly executed in that it was signed by only one, but not all of the partners of New Grovetown (the neighborhood partnership) and that this signature was illegible.

After due deliberation, the court makes the following findings.

At the outset, the court determines that defendant New Grovetown Associates is a joint venture rather than a partnership. "A joint venture * * * has been defined as a special combination of two or more persons where in some specific venture a profit is jointly sought without any actual partnership or corporate designation (32 NY Jur, Joint Adventure, § 1). The incidents of a joint adventure and the obligations of the members toward each other are in many respects so similar to those existing in a partnership that joint adventurers’ rights, duties, and liabilities are to be tested by rules closely analogous to and generally substantially the same as those which govern partnerships.

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Cite This Page — Counsel Stack

Bluebook (online)
129 Misc. 2d 222, 492 N.Y.S.2d 685, 1985 N.Y. Misc. LEXIS 2687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoskin-v-new-grovetown-associates-nysupct-1985.