Tri-Star Lighting Corp. v. Goldstein

2017 NY Slip Op 5261, 151 A.D.3d 1102, 58 N.Y.S.3d 448
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 28, 2017
Docket2015-03490
StatusPublished
Cited by22 cases

This text of 2017 NY Slip Op 5261 (Tri-Star Lighting Corp. v. Goldstein) 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
Tri-Star Lighting Corp. v. Goldstein, 2017 NY Slip Op 5261, 151 A.D.3d 1102, 58 N.Y.S.3d 448 (N.Y. Ct. App. 2017).

Opinion

*1103 In an action, inter alia, to recover damages for breach of contract, the plaintiff appeals from (1) an order of the Supreme Court, Queens County (Kitzes, J.), entered January 28, 2015, which denied its motion pursuant to CPLR 6301 to preliminarily enjoin the defendant Evan Goldstein from violating a noncompetition clause in its alleged employment agreement with him, and (2) an order of the same court entered May 14, 2015, which denied its motion for leave to reargue its motion pursuant to CPLR 6301 for a preliminary injunction, granted the defendants’ cross motion pursuant to CPLR 3211 (a) to dismiss the second, third, fourth, sixth, and seventh causes of action asserted in the complaint, and, sua sponte, directed the dismissal of the first and fifth causes of action.

Ordered that the appeal from the order entered January 28, 2015, is dismissed as academic, without costs or disbursements; and it is further,

Ordered that the appeal from so much of the order entered May 14, 2015, as denied the plaintiff’s motion for leave to reargue is dismissed, without costs or disbursements, as no appeal lies from an order denying reargument; and it is further,

Ordered that on the Court’s own motion, the notice of appeal from the order entered May 14, 2015, is deemed to also be an application for leave to appeal from so much of that order as, sua sponte, directed the dismissal of the first and fifth causes of action in the complaint, and leave to appeal is granted (see CPLR 5701 [c]); and it is further,

Ordered that the order entered May 14, 2015, is modified, on the law, by deleting the provision thereof which, sua sponte, directed the dismissal of the first and fifth causes of action; as so modified, the order entered May 14, 2015, is affirmed insofar as reviewed, without costs or disbursements.

The plaintiff is a wholesale lighting distributor located in Woodside, Queens. In December 2014, the plaintiff commenced this action against the defendant Evan Goldstein, a former employee, and the defendant Continental Lighting Corp. (hereinafter Continental), a competitor of the plaintiff, alleging, inter alia, that Goldstein breached provisions of an employment agreement entered into between the plaintiff and Goldstein by accepting a position with Continental within nine months after the termination of his employment with the plaintiff, and by making use of the plaintiff’s customer lists during his new employment to unfairly compete against it. The complaint set forth causes of action to recover damages for (1) breach of *1104 contract against Goldstein, (2) tortious interference with contract against Continental, (3) misappropriation of trade secrets against both defendants, (4) tortious interference with business relations against both defendants, (5) breach of fiduciary duty against Goldstein, and (6) aiding and abetting breach of fiduciary duty against Continental. The seventh cause of action sought a permanent injunction.

The plaintiff moved to preliminarily enjoin Goldstein from continuing his employment with Continental and from contacting the plaintiff’s customers. By order entered January 28, 2015, the Supreme Court denied the plaintiff’s motion for a preliminary injunction. Thereafter, the plaintiff moved for leave to reargue its motion for a preliminary injunction. The defendants opposed the motion and cross-moved pursuant to CPLR 3211 (a) (1) and (7) to dismiss the second, third, fourth, sixth, and seventh causes of action. By order entered May 14, 2015, the court denied the plaintiff’s motion for leave to reargue its motion for a preliminary injunction, granted the defendants’ cross motion, and, sua sponte, directed the dismissal of the first and fifth causes of action.

The appeal from the order denying the plaintiff’s motion for a preliminary injunction has been rendered academic. By its own terms, the competition restrictions contained in the alleged employment agreement expired nine months following Goldstein’s termination of employment with the plaintiff, or on or about July 14, 2015. Accordingly, the plaintiff’s appeal from that order must be dismissed as academic (see Pescatore v Dune Alpin Farm Prop. Owners Assn., Inc., 120 AD3d 785, 785 [2014]; Aniqa Halal Live Poultry Corp. v Montague-Lee Ltd. Partnership, 110 AD3d 934, 934 [2013]).

“In considering a motion to dismiss pursuant to CPLR 3211 (a) (7), the facts pleaded are presumed to be true, and the court must afford those allegations every favorable inference and determine only whether the facts as alleged fit within any cognizable legal theory” (Sitar v Sitar, 50 AD3d 667, 669 [2008]; see Leon v Martinez, 84 NY2d 83, 87-88 [1994]). “[T]he sole criterion is whether the pleading states a cause of action, and if from its four corners factual allegations are discerned which taken together manifest any cause of action cognizable at law a motion for dismissal will fail” (Morad v Morad, 27 AD3d 626, 626-627 [2006] [internal quotation marks omitted]; see Leon v Martinez, 84 NY2d at 87-88). “Whether a plaintiff can ultimately establish [his or her] allegations is not part of the calculus” (EBC I, Inc. v Goldman, Sachs & Co., 5 NY3d 11, 19 [2005]).

*1105 Applying those principles here, the complaint adequately pleaded the first cause of action, which sought to recover damages for breach of contract against Goldstein. “The essential elements for pleading a cause of action to recover damages for beach of contract are the existence of a contract, the plaintiff’s performance pursuant to the contract, the defendant’s breach of his or her contractual obligations, and damages resulting from the breach” (Dee v Rakower, 112 AD3d 204, 208-209 [2013]; see 143 Bergen St., LLC v Ruderman, 144 AD3d 1002, 1003 [2016]; Hampshire Props. v BTA Bldg. & Developing, Inc., 122 AD3d 573, 573 [2014]). Here, the complaint alleged the existence of an employment agreement between the plaintiff and Goldstein, the plaintiff’s performance of its obligations under the agreement, Goldstein’s breach of the agreement, and damages resulting therefrom. The determination of the Supreme Court that the contract was unenforceable may involve triable issues of fact which should be resolved upon a formal motion with adequate notice to the plaintiff of the court’s intention to summarily resolve the issue (see Loft Rest. Assoc. v McDonagh, 187 AD2d 643, 644 [1992]; see generally BDO Seidman v Hirshberg, 93 NY2d 382 [1999]). Accordingly, the court should not have, sua sponte, directed the dismissal of the first cause of action.

Similarly, the Supreme Court should not have, sua sponte, directed the dismissal of the fifth cause of action, which sought to recover damages for breach of fiduciary duty against Goldstein, for failure to state a cause of action, in the absence of notice to the parties and an application by the defendants for such relief (see During v City of New Rochelle, N.Y., 55 AD3d 533 [2008]; Jacobs v Mostow, 23 AD3d 623, 624 [2005]).

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Cite This Page — Counsel Stack

Bluebook (online)
2017 NY Slip Op 5261, 151 A.D.3d 1102, 58 N.Y.S.3d 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tri-star-lighting-corp-v-goldstein-nyappdiv-2017.