L-Tron Corp. v. Davco Systems, Inc.

60 A.D.2d 25, 400 N.Y.S.2d 243, 1977 N.Y. App. Div. LEXIS 13959
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 9, 1977
StatusPublished
Cited by11 cases

This text of 60 A.D.2d 25 (L-Tron Corp. v. Davco Systems, Inc.) 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
L-Tron Corp. v. Davco Systems, Inc., 60 A.D.2d 25, 400 N.Y.S.2d 243, 1977 N.Y. App. Div. LEXIS 13959 (N.Y. Ct. App. 1977).

Opinion

OPINION OF THE COURT

Moule, J. P.

This appeal is from an order denying plaintiff’s motion pursuant to CPLR 3102 (subd [c]) and CPLR 3111 for disclosure for the purpose of framing a complaint.

Plaintiff commenced this action by service of a summons upon defendant corporation (hereinafter referred to as Davco) on September 2, 1976. Thereafter, on September 29, 1976 plaintiff served upon Davco a notice of motion for disclosure for the purpose of framing a complaint and identifying parties pursuant to CPLR 3102 (subd [c]) and CPLR 3111, in which it noted its intention to seek an order permitting it to depose orally David Grazen, who was president of Davco but not a party to this action, or any other officer of Davco and to produce for inspection, discovery and copying the complete records of Davco with respect to transactions occurring between Grazen and Rochester Instrument Systems, Inc. (hereinafter referred to as RIS) and between Davco and RIS.

[27]*27In an affidavit in support of its motion plaintiffs treasurer alleged the following: that on or about October 3, 1970 plaintiff and RIS entered into a sales representative agreement which provided that plaintiff would be the exclusive sales representative for RIS products within a territory consisting of northeastern and western New York; that the agreement was terminable at will, in that either party could terminate it upon 30 days’ written notice to the other party; that on or about January 1, 1969 Grazen was hired by plaintiff as a sales engineer to service its accounts in the western part of New York, among which was the RIS account; that during 1973, as part of plaintiffs internal reorganization, the territory originally assigned to Grazen was decreased and limited to the extreme northwestern part of New York; that on or about July 25, 1974 Grazen, with plaintiffs approval, formed Davco for the purpose of realizing an income tax benefit, it being mutually agreed that Davco was not to be an independent corporation but rather remain an employee of plaintiff; that the territory assigned to Davco was the same as that assigned to Grazen, individually; and that on or about April 14, 1976 Grazen, individually, and Davco resigned from plaintiffs employ.

Plaintiffs treasurer further alleged that on or about May 13, 1976 plaintiff received a letter from RIS containing an amendment to their sales representative agreement under which RIS deleted approximately 70% of the territory assigned by it to plaintiff and reassigned this deleted territory to Davco; that plaintiff, by letter dated June 15, 1976, objected to this revision and assured RIS that it was fully capable of servicing the territory in issue; that after much correspondence and negotiation between plaintiff and RIS, plaintiff received a letter from RIS dated June 28, 1976 in which RIS elected to terminate the existing contract effective May 17, 1976; that although by its letter dated May 13, 1976 RIS gave notice of its election to reassign the territory previously handled by plaintiff to Davco, upon information and belief, a list of sales offices dated May 11, 1976 and submitted to existing and potential customers, reflected "D. Grazen of Davco Systems, Inc.” as an independent sales engineer of RIS, some 48 days prior to the date RIS elected to terminate the sales representative agreement; that inasmuch as pursuant to its contract with RIS plaintiff was entitled to commissions on orders placed by customers in the territory assigned to it, it is necessary that plaintiff be allowed to examine the books and [28]*28records of Davco and to take the oral deposition of Grazen in order to compute damages resulting from the wrongful placement of orders by customers through Davco to RIS; and that a mere chronological review of the facts and circumstances strongly implies that Davco and/or Grazen individually is guilty of interference with the contract existing between plaintiff and RIS and may have directly induced a breach thereof by RIS and, accordingly, discovery sought by the motion was necessary for the framing of a complaint. In addition to the affidavit of plaintiff’s treasurer, plaintiff’s attorney submitted an affidavit in support of the discovery motion. However, that affidavit sets forth no new allegations of fact.

In an affidavit in opposition to the motion for discovery Davco’s attorney alleged the following: that the moving affidavit sets forth numerous factual allegations which are more than sufficient to frame any alleged complaint that plaintiff may have; that the remedies sought here are not available to ascertain whether one has or may have a cause of action; and that to allow the requested deposition and production of all documents as demanded by plaintiff would amount to permitting a "fishing expedition” and prove highly prejudicial to Davco.

Special Term denied plaintiff’s motion for disclosure stating that plaintiff had failed to show sufficiently that it has a good cause of action against Davco and that disclosure may not be had to enable plaintiff to ascertain damages. We agree.

CPLR 3102 (subd [c]) states that "[b]efore an action is commenced, disclosure to aid in bringing an action, to preserve information or to aid in arbitration, may be obtained, but only by court order.” To become entitled to an examination for the purpose of framing a complaint plaintiff must first show that he has a good cause of action (East v Endicott Forging & Mfg. Co., 280 App Div 651). In Stewart v Socony Vacuum Oil Co. (3 AD2d 582, 583) the court held:

"The party seeking the examination ought to disclose under oath facts which will fairly indicate he has some cause of action against the adverse party. He need not, of course, either name it correctly or state it with technical precision, but as a matter of judicial policy he ought to be required to show * * * that the examination he seeks is 'material’ and 'necessary’ to some actionable wrong.
"If he does not have a describable sense of the wrong that [29]*29he thinks hurt him, he ought not be allowed a judicial franchise to penetrate into another party’s affairs, either by examination or inspection, to find out whether he ought to sue or ought not to sue.”

Accordingly, applications have been denied where the affidavits did not fairly indicate that the applicant had a good cause of action and it appeared that the plaintiff was merely seeking to ascertain whether facts existed to create a cause of action (New Rochelle Precision Grinding Corp. v Marino, 9 AD2d 685; see, also, Stewart v Socony Vacuum Oil Co., supra; East v Endicott Forging & Mfg. Co., supra; Beikirch v Loebs, 243 App Div 859). Furthermore, disclosure has been denied where sought only to enable the plaintiff to state the amount of damages (Zakarias v Radio Patents Corp., 20 AD2d 795). Finally, disclosure should not be permitted where the facts disclosed indicate that plaintiff has sufficient information to enable it to draw a complaint without the examination which it seeks (Matter of City of Buffalo v Orlando, 52 AD2d 1061).

Plaintiff first asserts that based upon the facts set forth in its affidavits it has a cause of action against Davco for tortious interference with its contract with RIS or for wrongful inducement of breach of that contract.

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

Related

Hoffman v. Batridge
155 Misc. 2d 862 (New York Supreme Court, 1992)
Gorgoni v. Rapson
166 A.D.2d 901 (Appellate Division of the Supreme Court of New York, 1990)
In re MacDonald
149 A.D.2d 923 (Appellate Division of the Supreme Court of New York, 1989)
In re Taylor
143 Misc. 2d 259 (New York Supreme Court, 1989)
Gleich v. Kissinger
111 A.D.2d 130 (Appellate Division of the Supreme Court of New York, 1985)
Emmrich v. Technology for Information Management, Inc.
91 A.D.2d 777 (Appellate Division of the Supreme Court of New York, 1982)
Manufacturers & Traders Trust Co. v. Bonner
84 A.D.2d 678 (Appellate Division of the Supreme Court of New York, 1981)
Holly v. Holly
78 A.D.2d 673 (Appellate Division of the Supreme Court of New York, 1980)
In re Dack
101 Misc. 2d 490 (New York Supreme Court, 1979)
In re Janosik
71 A.D.2d 1058 (Appellate Division of the Supreme Court of New York, 1979)
State v. Braunstein
66 A.D.2d 885 (Appellate Division of the Supreme Court of New York, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
60 A.D.2d 25, 400 N.Y.S.2d 243, 1977 N.Y. App. Div. LEXIS 13959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-tron-corp-v-davco-systems-inc-nyappdiv-1977.