Lehmann v. Lehmann

182 Misc. 2d 22, 696 N.Y.S.2d 663, 1999 N.Y. Misc. LEXIS 410
Civil Court of the City of New York·Decided September 21, 1999·Published·Cited by 4 cases

Opinion

OPINION OF THE COURT

Bruce M. Balter, J.

This opinion discusses plaintiffs motion for summary judgment and defendant’s cross motion to dismiss the plaintiffs complaint. Plaintiff Uwe E.G. Lehmann (hereinafter referred to as Husband) brings this action against defendant Karen Ferlito Lehmann (hereinafter referred to as Wife) for breach of a separation agreement and alleges $25,000 in damages.

On June 2, 1997, the parties executed an agreement which settled their rights under equitable distribution. (See, Domestic Relations Law § 236 [B].) The parties agreed to each place $12,500 into an investment account for their five-year-old child’s college education. The agreement stated that “[n]o withdrawals shall be made from said account except for post-high school educational expenses * * * or for other catastrophic or extraordinary medical expense.”

It is undisputed that the Husband contributed his share to the account while the Wife did not. The Wife also admits that she withdrew the Husband’s entire contribution to pay for their child’s tuition at the Poly Prep Lower School (hereinafter referred to as Poly Prep). From the evidence presented, the parties obviously disagree as to whether their daughter should attend private school.

Breach of Contract

To state a claim for breach of contract a party must establish (1) the existence of an agreement; (2) due performance of the contract by the party alleging the breach; (3) a breach; and (4) damages resulting from the breach. (Donnelley Corp. v [24] Mark I Mktg. Corp., 925 F Supp 203, 206 [SD NY 1996].) There is no dispute as to the existence of the agreement or that the Husband performed under its terms. However, the Wife claims that she did not breach the agreement because, with regard to her contribution, the agreement does not state when the money should be deposited into the account, and it was in the best interest of the child to use the Husband’s contribution to send her child to Poly Prep since the child would get “lost” in the public school system.

First, with regard to the timing of the Wife’s contribution, as a general rule contracts that do not place a time limit on performance imply a duty to perform within a reasonable time. (See, D'Abreau v Smith, 240 AD2d 616 [2d Dept 1997].) As acknowledged by both parties, the purpose of this clause was to provide for their child’s college education. It is evident that the parties intended to deposit the money as soon as possible with the hope that the funds would increase in value over time. Moreover, article 1, paragraphs 5 and 6 of the separation agreement, when read together, demonstrate that money intended for the account should have been taken from the proceeds of the sale of the marital residence.* * The Wife’s arguments to the contrary are conclusory and unsupported by the record. (Corvetti v J & S Mills, 201 AD2d 448 [2d Dept 1994].) Accordingly, the Wife clearly breached the agreement by failing to deposit the funds into the account two years after the agreement was finalized.

Second, with regard to the best interests of the child, a husband and wife may include support and custody terms in a separation agreement. Such terms, like any other contract clause, are binding on the parties. However, a child is not bound by the terms of an agreement between parents as to support and custody, and courts can modify these terms in the best interest of the child. (See, Family Ct Act § 461 [a]; Matter [25] of Boden v Boden, 42 NY2d 210 [1977]; Sassian v Sassian, 126 AD2d 984 [4th Dept 1987].) Nevertheless, the provision at issue here does not concern the child’s present support or custody. Placing money into an account for a five-year-old child’s college education obviously does not concern the current welfare of that child. When the terms of an agreement are clear and unambiguous, the intent of the parties must be found therein. (Nichols v Nichols, 306 NY 490, 496 [1954], rearg denied 307 NY 677.) There is no precedent to support the defendant’s contention that her breach should be forgiven because the child needs to attend private school now. The proper venue for modifying the Husband’s current support obligation, including his contribution to the child’s current education, is the Family Court, which issued the order of support that is currently in effect.

Accordingly, there is no question of law to be resolved. By not contributing her portion of the funds to the PaineWebber account and by withdrawing her Husband’s contribution to send their child to a private elementary school, the Wife breached the separation agreement.

Plaintiffs Request for Damages and the Civil Court’s Jurisdiction

The Husband requests $25,000 in damages. His attorney suggests that the judgment can provide that the money will be deposited in accordance with the separation agreement. The Wife argues that the Husband is not entitled to any damages, and, if a judgment is entered, it should be in the child’s name.

The árgument that the Husband is not entitled to damages is made in support of the Wife’s cross motion to dismiss the complaint for failure to state a cause of action. While the Husband’s complaint states a legitimate cause of action, it is apparent that the Wife’s cross claim is actually requesting this action be dismissed because this court does not have the subject matter jurisdiction to grant the relief requested. (CPLR 3211 [a] [2].)

The Civil Court of the City of New York (hereinafter referred to as Civil Court) is a court of limited jurisdiction. It has subject matter jurisdiction over causes of action to recover damages not exceeding $25,000. (See, NY Const, art VI, § 15; CCA 202.) Parties to a separation agreement may enforce such agreements in the Civil Court. (See, Milman v Milman, 131 AD2d 826, 827 [2d Dept 1987]; Braunstein v Braunstein, 72 AD2d 682 [1st Dept 1979]; Nopper v Nopper, 50 NY2d 1009 [1980].) [26] However, except as provided by CCA 203, the Civil Court does not have the power to grant equitable relief. (McCarthy v Rocklin, 25 Misc 2d 991 [Sup Ct, NY County 1960].)

While the court could grant a money judgment, such a remedy is improper here. Damages for breach of contract must not be speculative or contingent on other factors, and they must be reasonably certain. (36 NY Jur 2d, Damages, § 13; Najjar Indus. v City of New York, 87 AD2d 329 [1st Dept 1982], affd 68 NY2d 943 [1986].) Damages also cannot be remote or the result of an intervening cause. (Kenford Co. v County of Erie, 67 NY2d 257, 261 [1986].)

An award to the Husband in the amount of $25,000 would overcompensate him because it is double his original contribution. At first glance, $12,500 appears to be the correct figure. However, since the Husband does not directly benefit from the agreement, simply returning his contribution would be an oversimplification of the issue at hand. Money judgments can compensate for past wrongs with ascertainable liquidated damages. However, they cannot cure continuing obligations arising from marital disputes.

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Lehmann v. Lehmann, 182 Misc. 2d 22, 696 N.Y.S.2d 663, 1999 N.Y. Misc. LEXIS 410 (N.Y. Super. Ct. 1999).

182 Misc. 2d 22 (Lehmann v. Lehmann) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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