Maiuccoro v. Rebusman

55 Misc. 2d 453, 285 N.Y.S.2d 497, 1967 N.Y. Misc. LEXIS 1025
CourtNew York County Courts
DecidedDecember 5, 1967
StatusPublished

This text of 55 Misc. 2d 453 (Maiuccoro v. Rebusman) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maiuccoro v. Rebusman, 55 Misc. 2d 453, 285 N.Y.S.2d 497, 1967 N.Y. Misc. LEXIS 1025 (N.Y. Super. Ct. 1967).

Opinion

Martin Schenick, J.

This is an action for the partition of certain real property in the Town of Colonie known as the Rebusman farm. The action is, therefore, in effect, one in equity and must be examined in the light of rules of law applicable to equity. The matter as submitted to the court, both in the form of testimony at a rather lengthy trial without jury and in the briefs submitted on behalf of four interested parties, appears on its face to be extremely complicated. Analysis, however, resolves the issues down to a relatively simple point of law that, as indicated above, must be determined under the rules of equity.

The basic facts deduced from the evidence involve contractual rights as well as alleged rights concerning the title and interests collateral to the title of the Rebusman farm. The property was the subject of an issue raised in a will contest involving the estate of William H. Rebusman. In the course of the proceedings in Surrogate’s Court a stipulation was entered upon on behalf of Kenneth and Adam Rebusman pursuant to which Adam was to receive a 35% interest in the Rebusman farm. Kenneth would retain a 65% interest. The agreement went on [455]*455to provide that the property should be put upon the market for sale but with the right of Kenneth to have first refusal to meet any bona fide offer of purchase. On or about September 23, 1965 a corporation controlled by the plaintiffs herein made an offer of $75,000 for the property. Kenneth then asserted his right to purchase the property under the stipulation. This would mean that upon the sale of the property Adam would receive $26,250. Kenneth and Adam then entered a written agreement pursuant to which Kenneth was to exercise his right to purchase the property on or before October 15, 1965. Among other things in this agreement was a clause to the effect that Adam would provide a release of a purported lease held by the defendant Coton that had been given Coton by the late William Bebusman. Coton joined Kenneth and Adam in the execution of this agreement. The agreement was also signed by counsel for the three parties thereto. In this connection it might be noted that Mr. Duncan appeared as attorney for both Adam Bebusman and Coton.

Thereafter, Kenneth successfully applied for a loan in order to have the funds to pay Adam for his 35% interest. However, the title examination was not completed by the October 15 deadline. The closing was thereupon postponed by agreement of counsel. At that point it might be noted there is no question but that the counsel concerned had full authority to represent their respective clients. Thereafter, on October 29, while the title examination was still unsettled, the plaintiffs, through their corporate entity known as Carmen Goody, Inc., commenced an action against Kenneth Bebusman and others for specific performance of their purchase offer. On that date a lis pendens was filed in the Albany County Clerk’s office with respect to the Bebusman farm property. Mr. Vinciguerra, who represented Carmen Goody, Inc., concededly had actual knowledge of the contract between Kenneth and Adam. The Carmen Goody, Inc., action then became the subject of motions before this court which were resolved on February 10, 1966 in a decision handed down that date directing the dismissal of the Carmen Goody, Inc., action and providing that the lis pendens should be stricken. An order upon the court’s decision was entered March 7, 1966.

The testimony of Adam Bebusman indicates that during the delay caused by the Carmen Goody, Inc., action and resultant motions before this court, he became increasingly anxious for a resolution of the problem by a sale of the property so that he could obtain the $26,250 to which he would be entitled upon the basis of a $75,000 sale. In the course of the delay it appears [456]*456that he engaged his present counsel to supplant Mr. Duncan. It was not established, however, that he advised Mr. Duncan, or Kenneth’s counsel, Mr. Carnevale, that Duncan was no longer acting on his behalf. It is clear that Mr. Duncan, at least until some time in March of 1966, did have authority to act on behalf of Adam and, as far as Kenneth and his lawyer were concerned, he apparently continued to have that authority until around the 21st of March, 1966.

The evidence sustains a finding that Mr. Duncan, on behalf of Adam, and Kenneth’s attorney were conferring relative to a resumption of negotiations for the consummation of the contract that originally was to have been performed by October 15 and that they had set March 24 as the new date for closing. In the meantime, however, on March 21 Adam, with his new counsel, met with the plaintiffs at the office of Mr.Vinciguerra and deeded to him his interest in the property. The plaintiffs, this time under their individual names rather than as Carmen Goody, Inc., paid to Adam and/or his attorney the sum of $26,250. It is upon the basis of this transaction that the plaintiffs now seek the relief of a judgment for partition providing for the sale of the premises and a division of the proceeds. It is obvious that at best the plaintiffs can be in no better legal position than Adam Rebusman was immediately before the purported sale of his 35% interest to them.

The issue now boils down to the question of whether or not Adam, under all of the foregoing circumstances, had a right to sell his interest to the plaintiffs on March 21, just two weeks after the lis penclens was removed and the Carmen Goody, Inc., action was dismissed. It is manifest that these plaintiffs were not in the position of what might be termed ‘ ‘ innocent ’ ’ third parties who had no knowledge of the contractual claims of Kenneth Rebusman. They not only were aware of the contract between Kenneth and Adam but, indeed, they had commenced litigation to enforce their alleged rights under their purchase offer as against the rights asserted by Kenneth under his contract with Adam and Coton. They, therefore, are bound by the principles of equity, not only as plaintiffs in an' equitable action, but as purported purchasers who had full knowledge of the contractual rights of others. The issue is then whether or not Kenneth’s rights under the contract became dissipated when the contract was not performed by the date set therein, to wit, October 15, 1965 or a postponed date agreed upon by the parties through their respective authorized counsel. As stated above, the plaintiffs’ rights under no circumstances could be better than those of Adam as of March 21, 1966.

[457]*457The argument is raised that the performance date was not extended by a written agreement. That fact is immaterial, because at the outset the parties specifically agreed to a postponement of the closing because of the title problem. At that point, Adam became estopped either until an agreed adjourned closing date or for a “reasonable” time if no date was set. The question is whether or not the long delay subsequent to October 15 was such as to vitiate the terms of the contract in view of the fact that at least by early 1966 Adam was anxious and desirous of having the transaction consummated so that he could receive his share of the proceeds. Here is Avhere the equitable principle of estoppel enters the picture. From October 29, 1965 until March 7, 1966 the plaintiffs by their oato. action had made the title to the premises unmarketable because of the lis pendens. Furthermore, they had commenced litigation affecting the property based upon a purported purchase offer that they were endeavoring to enforce.

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Bluebook (online)
55 Misc. 2d 453, 285 N.Y.S.2d 497, 1967 N.Y. Misc. LEXIS 1025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maiuccoro-v-rebusman-nycountyct-1967.