Kozlowski v. Seville Syndicate, Inc.

64 Misc. 2d 109, 314 N.Y.S.2d 439, 1970 N.Y. Misc. LEXIS 1356
CourtNew York Supreme Court
DecidedAugust 31, 1970
StatusPublished
Cited by4 cases

This text of 64 Misc. 2d 109 (Kozlowski v. Seville Syndicate, Inc.) 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
Kozlowski v. Seville Syndicate, Inc., 64 Misc. 2d 109, 314 N.Y.S.2d 439, 1970 N.Y. Misc. LEXIS 1356 (N.Y. Super. Ct. 1970).

Opinion

Matthew M. Lew, J.

(I)

The petitioner, Moshe Kozlowski (suing herein as Moritz Kozlowski) brings this special proceeding to obtain inspection of the corporate books of the respondent Seville Syndicate, Inc. (Seville), a close corporation. Menachem Margulies1 (sued as Mundek Margulies) and Techeskiel Morganstern (sued as Charles Morgenstern) —who, together with the petitioner, constitute all the parties currently or formerly having an interest in Seville — are also parties respondent. The petitioner’s right to the inspection sought depends upon whether, at this time, he has an appropriate interest in Seville.

During the past several years, difficulties have arisen between the petitioner on the one hand, and the individual respondents. on the other. Commencing in 1965, numerous legal proceedings were initiated between the parties concerning the management of the corporation and other matters, including suits for defamation. In September of 1967, as a result of legal action commenced by the petitioner, Seville’s major asset, a Manhattan hotel, was sold, the corporation receiving a purchase-money mortgage securing a note for approximately $1,250,00.0, [111]*111payable in quarterly payments of roughly $25,000 for 10 years, with the balance due at the expiration of the 10 years. Due to conflicting claims among the parties as to the proper respective shares of the assets, no distribution was ever made.

In the spring of 1968, the individual parties — being desirous of settling their differences — met with Rabbi Israel Yitzchok Piekarski, who, like themselves, is an Orthodox Jew. As a result, on May 20 of that year, the three entered into an agreement, written on Rabbi Piekarski’s letterhead in Talmudic Hebrew, and signed by the three stockholders, which, according to the translation in evidence, reads as follows: “We each submit ourselves to the decision of Rabbi Israel Yitzchok Piekarski. It is Rabbi Piekarski’s privilege to take to himself two other rabbis and whatever will be the decision, whether by Din Torah or by compromise similar to Din Torah, we undertake to obey such in all respects. Furthermore, with respect to the matter of the corporation (problem) we rely on Rabbi Piekarski to consult an attorney with respect to what he may suggest as best in both matters.

“ [Dated] Bechikoisai 2-5728.

“ [Signed] Menachem Margulies

“ [Signed] Yecheskiel Morganstern

“ [Signed] Moshe Kozlowski ”

Pursuant to the agreement of May 20,. there were held two meetings at the Rabbi’s house attended by the petitioner, the individual respondents, the Rabbi and one Zuker (a friend of the petitioner). Also present was Isaac Strahl, Esq., a member of the New York Bar and a Talmudic scholar, who attended at the Rabbi’s invitation, in accordance with the provision in the agreement permitting the Rabbi to consult an attorney. These meetings (on June 10 and July 16 of 1968) resulted in a document written on the Rabbi’s letterhead, dated the Jewish equivalent of July 16, 1968, which, as translated from the Talmudic Hebrew, reads as follows:

“In the matter of the differences between Syndicate, Inc., 22 E. 29th Street, New York and Moshe Kozlowski of 2275 Barker, Bronx.

‘1 Mr. Margulies and Mr. Morgenstern are required to pay annually to Mr. Moshe Kozlowski 21,000 twenty-one thousand dollars until the termination of the mortgage. And the taxes (before each payment- to Kozlowski) are to be paid by the corporation. And the corporation, whether it makes profits or [112]*112sustains losses such belong solely to Mr. Margulies and to Mr. Morgenstern. Mr. Margulies and Mr. Morgenstern are responsible with all their assets for the payment annually of the twenty-one thousand dollars due to Mr. Kozlowski.

This is the first part of the Din Torah. The Din Torah will be concluded soon. From this day on it is forbidden to pursue further court proceedings both by Mr. Margulies and Mr. Morgenstern and also by Mr. Kozlowski (against each other).

“ Dated: 20 days in Tammuz, 5728, in Queens.

“ (Signed) Israel Yitzchok PiekarsM.

“ KB. Upon the termination of the mortgage % of the balance then due thereon belongs to Mr. Kozlowski.

“ (Signed) Menachem Margulies

Yecheskiel Morgenstern

Moshe Kozlowski ’ ’

Thereafter, a stockholders’ meeting of Seville was held, of which meeting the petitioner did not receive notice, and he and his wife were removed from their respective offices and directorships in Seville.

It is the position of the respondents that, following the paper-writing of May 20, the July 16 document quoted above — whether considered as an arbitrator’s award or as a settlement agreement — worked the termination of the petitioner’s interest in the corporation. Therefore, they maintain, the subsequent shareholders’ meeting was properly held, that the removal by the shareholders at that meeting of the petitioner and his wife from their offices and directorships was valid, and that petitioner, being neither a stockholder nor a director nor an officer, it is argued, has no right to inspect the books of the corporation. If, as contended by the petitioner on the other hand, the respondents’ interpretation of the July 16 document is incorrect, then the petitioner’s interest in Seville continues, the stockholders’ meeting was invalid, and the petitioner remains a stockholder, director, and officer, and there can then be no question as to his right to an inspection of the corporate books.

There is no serious dispute that all of the parties signed the May 20 agreement as indicated, but before I may determine the legal significance of the July 16 document,. I must dispose of a threshold question of the legitimacy of the petitioner’s signature thereon.

[113]*113The petitioner does not deny that the signature is his, but asserts that he signed a blank sheet of paper on the day that he and the individual respondents first appeared before Rabbi Piekarski, and that there was no textual matter above his signature at that time, and that is what now has come to be the addendum to the July 16 award. If his assertion is accepted as fact, it would of course destroy the legal effect of the document insofar as the same is dependent upon the petitioner’s signature.

Arrayed against the assertion of the petitioner in this regard is the testimony of the respondent Margulies (which by stipulation would have been the testimony of the ill respondent Morgenstern as well), of Rabbi Piekarski, and of Mr. Strahl, that the petitioner executed the document after it was completed, and not before. On this disputed' question of fact, I find that the document was fully finished at the time that the petitioner signed it, and that accordingly he is bound by whatever legal consequences flow from his assent thereto.

(H)

Jewish jurisprudence, as it has developed over the millenia, has a number of devices for resolving disputes among persons of that faith. One method is by “ Din Torah ”, the traditional Jewish “court of law”, which proceeds strictly according to Jewish law; another method is by “ Pesharah ”, which is, effectively, an arbitration tribunal. A Pesharah may seek to compromise the parties ’ claims, and is not bound to decide strictly in accordance with the governing rules of Jewish law, but may more carefully weigh the equities of the situation.

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Cite This Page — Counsel Stack

Bluebook (online)
64 Misc. 2d 109, 314 N.Y.S.2d 439, 1970 N.Y. Misc. LEXIS 1356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kozlowski-v-seville-syndicate-inc-nysupct-1970.