Scull v. Scull

94 A.D.2d 29, 462 N.Y.S.2d 890, 1983 N.Y. App. Div. LEXIS 17946
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 2, 1983
StatusPublished
Cited by35 cases

This text of 94 A.D.2d 29 (Scull v. Scull) 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
Scull v. Scull, 94 A.D.2d 29, 462 N.Y.S.2d 890, 1983 N.Y. App. Div. LEXIS 17946 (N.Y. Ct. App. 1983).

Opinions

OPINION OF THE COURT

Fein, J.

During the course of a 30-year marriage, the parties, who separated in 1974, earned a reputation as patrons of the fine arts, amassing a valued collection of contemporary works of art. In addition to $1,300 per week in alimony plus health insurance and legal fees, the trial court in this action awarded plaintiff wife sole title to six identified works of art and the proceeds from the sale of a seventh. The trial court denied certain other relief requested, viz., a constructive trust to be impressed on all other art works acquired during the marriage, to which plaintiff asserted joint ownership; a claim for unjust enrichment stemming [30]*30from defendant husband’s exercise of a proprietary interest in those works of art; claimed unpaid necessaries in the amount of $42,491.55; and a declaration that defendant holds certain real property in Warren, Connecticut, presently in his own name, as a constructive trustee for the benefit of both parties. Plaintiff appeals from so much of the judgment as denied this additional relief.

It is clear from the trial record that defendant was not a man of considerable financial means when he entered this union in 1944. In the early years of the marriage, while plaintiff was attending art courses, defendant embarked upon several unsuccessful business ventures. Plaintiff obtained financial assistance during this period from her father, who operated a small fleet of medallion taxicabs in New York City. After first balking at the offer, defendant entered his father-in-law’s business in 1948. In six years the business expanded to the point where defendant was actively involved in its management and operation under a newly formed corporation, and by 1962 the fleet consisted of over 100 medallion taxicabs. The rolling stock was divided among various entities of a complex corporate structure, designed to minimize tort liability. Although all of these corporate entities controlled by defendant were ostensibly owned jointly by both parties, plaintiff left all the financial and management decisions to her husband, and never personally received a corporate dividend. In fact, she conceded that in all the years of their marriage she never signed so much as a tax return, and never even had her own bank account, leaving all these matters to defendant, notwithstanding the fact that her father continued to give them periodic gifts of cash, new taxicab corporations and a down payment on a house in Great Neck. Plaintiff’s father eventually withdrew from active participation in the business with his son-in-law and moved to Florida. Until he died in 1969 he would make periodic visits to New York, at which time he would examine the books. Throughout, it was plain that the taxicab business, largely created by plaintiff’s father, was a family business. The conclusion that the business at some point became that of defendant, without any interest of plaintiff in it, is without support in the record. It must be concluded that the income [31]*31of the business and the loans made on its credit to acquire the art collection were joint property of plaintiff and defendant.

A loan from the major operating corporation enabled the parties to purchase property and build a house in Kings Point. In 1962 the Kings Point house was sold and the parties moved into a magnificent apartment at 1010 Fifth Avenue in Manhattan. They also designed and built a summer home in East Hampton.

Throughout their years in New York City the couple attended art galleries and showings, and occasionally purchased minor works of art for their home. In 1958 they decided to become collectors of art in a formal sense, acquiring works of art at galleries in Paris and New York which they displayed in their Kings Point and East Hampton homes, or stored. By the time they moved to Fifth Avenue, the parties had become prominent figures in the New York City art scene, hosting parties and picnics, loaning parts of their collection to museums, and patronizing many of the new and upcoming modern artists of the day. The apartment, which was featured in major magazine articles, became a veritable gallery for the private showing of art at parties hosted for artists, authors, critics, museum curators and fellow collectors. The parties enjoyed a very high standard of living, and moved among the avant-garde of the world of modern art, recognized as among the great collectors of art in America. The income to maintain this living standard and to permit the purchase of art came, according to defendant, from loans and salary accumulations from the umbrella taxicab concern, Super Operating Company, which was, after all, also jointly owned by the parties, albeit not in name.

Although defendant handled all the business details concerning the purchases of new works, plaintiff points out that only she had formal training in this field. (Curiously enough, defendant admitted that he was color blind.) Consequently, decisions on new purchases and auctions were arrived at after joint consultation, although the financial arrangements were still left to defendant. Testimony of a number of witnesses at trial revealed that the parties were jointly recognized for their contributions to the world of [32]*32art. At one point, however, plaintiff suspected that defendant’s investment in art had changed their status from collectors to dealers, thus prejudicing their standing among collectors in the community and her application for membership in the Junior Council of the Metropolitan Museum of Art.

Plaintiff began to have concerns about leaving all the family financial matters in defendant’s hands after her father died, when she was told that the estate was smaller than she had anticipated. She questioned the authenticity of a power of attorney supposedly executed by her late father in defendant’s favor, and denied ever relinquishing her rights to the proceeds of her father’s life insurance policy, even though defendant tried unsuccessfully to introduce in evidence a purportedly notarized release to that effect. Defendant testified at trial that he often signed plaintiff’s signature to documents — tax returns, loan documents, insurance papers, deeds of gift, etc. — and got so proficient at it that he later could not even distinguish between plaintiff’s genuine signature and his own rendition of it. When the Connecticut property was being considered, the parties discussed the joint purchase in conjunction with the sale of the house in East Hampton. Plaintiff testified that she was surprised to learn, upon the parties’ separation five years later, that her name was not on the Connecticut deed. Later, defendant successfully auctioned a portion of the art collection at Parke-Bernet for more than $2,000,000 (including a Jasper Johns double white map personally autographed “To Ethel”, which fetched $240,000), and showed plaintiff a check for the initial payment, in the round sum of $1,000,000. When plaintiff remarked that the check was made out solely to defendant, he assured her that this was purely for tax purposes. The same answer was given by defendant to the question why he was listed in the catalog as the sole owner of the Scull collection for this — their third — auction at Parke-Bernet, when their previous two auctions (in 1965 and 1970) had listed their works as jointly owned.

Disputes began to arise as to ownership of certain paintings which had been purchased or received as gifts. The climax came in 1974, while plaintiff was still recovering [33]

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Bluebook (online)
94 A.D.2d 29, 462 N.Y.S.2d 890, 1983 N.Y. App. Div. LEXIS 17946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scull-v-scull-nyappdiv-1983.