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56th Street Swim & Health Club, Inc. v. 350 West 57th Street Co.

Appellate Division of the Supreme Court of New York, First Department
Dec 6, 1988
145 A.D.2d 311 (N.Y. App. Div. 1988)

Opinion

December 6, 1988

Appeal from the Supreme Court, New York County (Irving Kirschenbaum, J.).


It was error for the court below to have granted plaintiff's motion for an award of legal fees and expenses against defendant. The Court of Appeals has stated clearly that even in the context of vexatious litigation, "the prevailing party may not collect [attorney's fees and disbursements] from the loser unless an award is authorized by agreement between the parties or by statute or court rule". (Matter of A.G. Ship Maintenance Corp. v Lezak, 69 N.Y.2d 1, 5.)

Here, the settlement agreement between the parties specifically limits recovery of counsel fees to those matters connected with indemnification claims, involving membership contracts, contracts for swimming lessons, massages and locker storage which plaintiff health club had with its members. Nonetheless, the court below awarded legal fees to the plaintiff for expenses incurred in opposing defendant's motion to set aside the stipulation of settlement. Neither statute nor court rule, however, empowered the court to expand the scope of recovery to matters which were not contemplated by the parties' agreement.

Accordingly, the order of the court below is modified to delete the award of legal fees and expenses, and otherwise affirmed.

Concur — Carro, J.P., Asch, Kassal and Smith, JJ.


Summaries of

56th Street Swim & Health Club, Inc. v. 350 West 57th Street Co.

Appellate Division of the Supreme Court of New York, First Department
Dec 6, 1988
145 A.D.2d 311 (N.Y. App. Div. 1988)
Case details for

56th Street Swim & Health Club, Inc. v. 350 West 57th Street Co.

Case Details

Full title:56TH STREET SWIM AND HEALTH CLUB, INC., Doing Business as PARC SWIM HEALTH…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Dec 6, 1988

Citations

145 A.D.2d 311 (N.Y. App. Div. 1988)

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