Komp v. Luria

92 N.Y.S. 569
CourtNew York Supreme Court
DecidedDecember 15, 1904
StatusPublished

This text of 92 N.Y.S. 569 (Komp v. Luria) 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
Komp v. Luria, 92 N.Y.S. 569 (N.Y. Super. Ct. 1904).

Opinion

GIEGERICH, J.

This action is brought for an interlocutory decree directing the defendant to account to the plaintiff for the rents received from the apartment house in suit, and for judgment in favor of the plaintiff for a percentage of the net rents up to the time of judgment, and decreeing that the plaintiff is entitled to a percentage of the rents and profits thereafter accruing, and impressing a lien upon the property for such percentage of rents, and for a percentage of the profits-that may be received upon a sale of the property, and declaring her interest in the property to such extent. The facts, stated in outline, are as follows:

On the 26th day of March, 1900, the defendant, then owning a plot of ground on West 116th street, east of Amsterdam avenue, borough of Manhattan, and desiring to erect thereon an apartment house, entered into an agreement with the plaintiff’s intestate, .Albert Komp, Jr., [570]*570who was an experienced builder, whereby the latter was to assist and advise the defendant in every way in the erection of the projected building, for which services Komp was to receive one-tenth of the net profits, which it was guarantied by the defendant would not be less than $10 per day for each full working day spent by Komp in the enterprise. It was further provided that if Komp should fail to superintend the building to its substantial completion or sale, by reason of death or any other acts beyond his control, his compensation should be limited to the $10 per day received up to the time of his stopping work; and it was further stipulated that he should act solely in the interests of the defendant, and should not receive “directly or indirectly any benefit or emolument,” except from the latter. The terms of the agreement also prescribe how the profits should be arrived at, namely, by charging against the enterprise every expenditure, including commissions, architect’s fees, interest on loans, the defendant’s own investment, expenses of obtaining loans and advertising and all other expenses, until the receipt of the proceeds of the sale of the building. The contract, which is in the form of a letter written by the defendant Komp, then continued :

“In case of not selling the building all net earnings therefrom shall go to reimbursement of my expenditures, including my advances to you, until the building shall be entirely without cost to me, and then the earnings shall be divided between us in the proportion of ten per cent. (10%) to you and ninety per cent. (90%) to me until its sale.”

In accordance with the agreement, Komp devoted his time to the undertaking from March, 1900, until September 6th of that year, on which date he died suddenly.

A question much mooted upon the trial and in the briefs was whether or not the building was substantially completed on the date of Komp’s death. The facts bearing upon this point are not disputed to any considerable extent; the chief issue being whether, upon the facts shown, it could properly be said that the structure was substantially completed. Upon this question I am inclined to the view that, where so many and such important things remained to be done, as are here shown, it would be stretching the term “substantial completion” unduly to hold that the conditions of the contract were complied with in this respect. In the view I take of the entire case, however, this question is not important, because of things that occurred after Komp’s death between his widow (the plaintiff) and the defendant. A few days after the funeral the defendant assured the plaintiff that he considered the building substantially completed, and that her interest should remain the same as though her husband had lived. About two weeks later he notified her that Komp had broken his contract by receiving commissions from contractors on the building. Still later, in further interviews between them, it was agreed that such commissions, whether received by Komp during his lifetime, or thereafter to be received, should be considered a part of the profits arising from the enterprise, and that the plaintiff should pay back to the defendant such amounts as Komp had received during his lifetime, and that any other commissions thereafter received should be deducted from the 10 per cent, interest belonging to the estate. The only written evidence of this agreement consists in a [571]*571receipt given by the defendant to the plaintiff upon the steamship as she was about to sail with her daughter to Italy for the benefit of the latter’s health. The plaintiff testified that the defendant had agreed to bring her a written acknowledgment of her 10 per cent, interest to her hotel on different occasions, but failed to do so, and that finally, as the vessel was about to sail, she told him that unless she received the paper she would go ashore, whereupon he wrote and gave to her the following :

“October 6, 1900.
“Received from Mrs. Albert Komp, four hundred and thirty-seven 50-100 ($437.50) dollars in payment of one-half of commissions received by Mr. Komp, from plumbing, framing and roofing contracts. The remaining one-half of the commissions are to be deducted, together with any other commissions received from the ten per cent, of the net profits of the operation coming to the estate of Mr. Komp. Arthur S. Luria.”

On behalf of the defendant it is claimed that, after the giving of this paper, he discovered that the building was not what the contract called for, but that inferior materials had been used, and omissions had been made. Much of the evidence on these points is indefinite and conflicting and unsatisfactory, to such an extent as to render a conclusion very difficult. That there were some such defects and omissions is undisputed, but just what they all were, and to what extent Komp could properly be held responsible for them, and to what extent the defendant reimbursed himself by making deductions from the contract price in his final settlements with the different contractors, or to what extent he might-have done so, but did not, and when he first obtained knowledge of the various defects complained of, are matters which the evidence leaves in doubt. The defendant’s attorney insists that, while the agreement between Mrs. Komp and the defendant, as evidenced by the receipt of October 6th, might operate as a waiver of Komp’s breach of contract in receiving commissions, it could not be extended to cover other breaches subsequently discovered, namely, his failure to hold the various contractors to their agreements. The general and well-known rule is that there can be no waiver without full knowledge, but in the present case the application of this rule is rendered difficult by the fact that on November 14, 1900, the defendant wrote to the plaintiff the following letter:

"New York, November 14, 1900.
“My Dear Mrs. Komp: Further developments of Mr. Komp’s dealings with the contractors on the Hillcrest make it impossible for any share of the profits ' of the operation to become due him or you. The matters brought to your attention just before sailing are trivial compared to his conduct in the trim, mason and cut stone contracts. While I dislike calling your attention to such matters during what I hope is a pleasant trip, I do so in order that you may regulate your financial affairs without expecting to receive anything from me in the future. * * *
“Yours very truly, Arthur S. Luria.”

While still later, in December, he wrote as follows:

“New York, December 9, 1900.

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Bluebook (online)
92 N.Y.S. 569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/komp-v-luria-nysupct-1904.