Josephson v. Josephson

121 Misc. 2d 572, 469 N.Y.S.2d 285, 1983 N.Y. Misc. LEXIS 3965
CourtNew York Supreme Court
DecidedOctober 24, 1983
StatusPublished
Cited by9 cases

This text of 121 Misc. 2d 572 (Josephson v. Josephson) 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
Josephson v. Josephson, 121 Misc. 2d 572, 469 N.Y.S.2d 285, 1983 N.Y. Misc. LEXIS 3965 (N.Y. Super. Ct. 1983).

Opinion

OPINION OF THE COURT

Allen Murray Myers, J.

Defendant’s motion to restore the action to the Trial Calendar is denied.

This is a matrimonial action commenced by the plaintiff husband on October 16, 1980. Defendant wife appeared on October 23, 1980. Defendant wife is an attorney; plaintiff husband runs a restaurant known as “The Cookery”. Settlement negotiations regarding the issues of divorce and the equitable distribution of the property took place in January of 1983; trial began January 13, 1983 before the Honorable Lawrence E. Kahn, Justice of the Supreme Court. However, negotiations continued. A settlement was reached and a stipulation of settlement was read into the record on January 17, 1983.

The stipulation provided that: (1) the defendant wife agreed to pay to the plaintiff husband the sum of $50,000 over a three-year period; the first payment of $20,000 to be made on or before May 15, 1983, the second payment of $15,000 to be made one year to the day after the first [573]*573payment, and the final payment of $15,000 to be made two years to the date following the first payment of $20,000; (2) the delivery of all shares of stock owned by the wife and the couple’s two sons in the husband’s restaurant business; (3) the designation of an escrow agent to hold the initial $20,000 payment and the corporate stock to be delivered from the children and the defendant wife; (4) the withdrawal of the plaintiff husband’s complaint, his acceptance of the wife’s answer and counterclaim and his concession that he is in default and consents to the defendant wife’s uncontested matrimonial action; upon the entry of a judgment of divorce in favor of the defendant wife, the escrow agent shall deliver the shares of stock and the $20,000 initial payment to the husband; (5) the husband agrees to indemnify and hold the wife and their two sons harmless against any and all claims, damages, liabilities or expenses arising out of their ownership of the restaurant shares prior to their delivery to the husband; (6) upon the entry of a judgment of divorce in favor of the wife, each party releases and relinquishes and waives any and all rights he may have to each other’s real property and personal property, including, but not limited to property in Fire Island, each of their own rental apartments, any and all personal property therein, and any claim which the wife may have had or now has against the Cookery Lafayette, Inc., and any claim which the husband may have against the wife’s property at Fire Island; (7) the proposed divorce decree to be submitted to the court would contain a provision incorporating this stipulation into the divorce decree so that the stipulation would be made a part of the decree, but would not merge into the decree.

Neither party has complied with this stipulation. The defendant wife apparently has not delivered her shares of the restaurant business nor has she made the initial payment of $20,000. The plaintiff husband has not withdrawn his complaint nor accepted service of the wife’s answer and counterclaim, which he claims is conditioned upon his wife’s payment of the initial $20,000 and the delivery of her shares. However, the children have delivered their shares in the restaurant business to the plaintiff husband.

The defendant wife now seeks to vacate the stipulation and to restore the action to the calendar on the grounds [574]*574that, (1) the stipulation is invalid because it does not comply with section 236 (part B, subd 3) of the Domestic Relations Law in that the settlement agreement was not reduced to writing; (2) the stipulation is unenforceable because it was only conditional; and (3) she was not represented by counsel and acquiesced at the trial to the stipulation only because she was ignorant of matrimonial law and procedures and inexperienced in negotiating the settlement of a litigation matter.

SECTION 236 (PART B, SUBD 3) OF THE DOMESTIC RELATIONS LAW

Pursuant to a recent line of cases in the Supreme Court’s Third and Fourth Departments, a stipulation, even if made in open court, settling the equitable distribution of marital property must comply with section 236 (part B, subd 3) of the Domestic Relations Law. This section states, in pertinent part: “3. Agreement of the parties. An agreement by the parties, made before or during the marriage, shall be valid and enforceable in a matrimonial action if such agreement is in writing, subscribed by the parties, and acknowledged or proven in the manner required to entitle a deed to be recorded. Such an agreement may include (1) a contract to make a testamentary provision of any kind, or a waiver of any right to elect against the provisions of a will; (2) provision for the ownership, division or distribution of separate and marital property; (3) provision for the amount and duration or maintenance or other terms and conditions of the marriage relationship, subject to the provision of section 5-311 of the general obligations law, and provided that such terms were fair and reasonable at the time of the making of the agreement and are not unconscionable at the time of entry of final judgment; and (4) provision for the custody, care, education and maintenance of any child of the parties, subject to the provisions of section two hundred forty of this chapter. Nothing in this subdivision shall be deemed to affect the validity of any agreement made prior to the effective date of this subdivision.”

Such a stipulation or agreement is known as an “opting-out agreement”. The line of recent cases referred to above is: Giambattista v Giambattista (89 AD2d 1057 [4th Dept]), [575]*575Hanford v Hanford (91 AD2d 829 [4th Dept]), and Lischynsky v Lischynsky (95 AD2d 111 [3d Dept]).

The stipulation in the instant action was not reduced to writing in the manner required by section 236 (part B, subd 3), but was read into the record. The defendant wife urges this court to follow the approach of the Third and Fourth Departments and invalidate the stipulation of settlement entered into between the parties herein in open court on January 17, 1983.

A stipulation made in open court and read into the record has traditionally been granted the same force and effect as a written agreement. (Puca v Puca, 115 Misc 2d 457.) Such a stipulation has, therefore, proved useful in the expeditious settlement of litigation of all sorts. The different approach that defendant wife urges and, in fact, was adopted by the Third and Fourth Departments would deprive the court and the litigants of the ability to end matrimonial disputes relatively quickly and instead practically mandate their resolution only through protracted litigation.

Generally, “Where a question has not yet been decided by the appellate courts in a certain department, inferior courts in that department must follow the determinations of the appellate courts in any other department until such time as their own appellate tribunals or the Court of Appeals passes upon the question.” (1 Carmody-Wait 2d, NY Prac, § 2:63.) Since there are no First Department cases on point, this court would appear constrained to follow Giambattista (supra), Hanford (supra) and Lischynsky (supra).

However, these cases cited by the defendant wife did not mention decisions of the Court of Appeals enforcing a stipulation made in open court (and incorporated into a Supreme Court judgment), especially Matter of Nurse (35 NY2d 381). The Nurse case dealt with a statute analogous to section 236 (part B, subd 3). Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
121 Misc. 2d 572, 469 N.Y.S.2d 285, 1983 N.Y. Misc. LEXIS 3965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/josephson-v-josephson-nysupct-1983.