From Casetext: Smarter Legal Research

Bailon v. Guane Coach Corp.

Appellate Division of the Supreme Court of New York, First Department
Nov 30, 2010
78 A.D.3d 608 (N.Y. App. Div. 2010)

Opinion

No. 3518N.

November 30, 2010.

Order, Supreme Court, Bronx County (Mark Friedlander, J.), entered June 26, 2009, which, in effect, denied plaintiffs' motion to settle judgment against defendants Oliverio and Sylvia Calderon in the amount of $29,575,000, unanimously affirmed, without costs.

Simonson Hess Leibowitz Goodman, P.C., New York (Edward S. Goodman of counsel), for appellant-respondent.

Cobert, Haber Haber, Garden City (Eugene F. Haber of counsel), for respondents-appellants.

Before: Saxe, J.P., Acosta, Freedman, Richter and Abdus-Salaam, JJ.


We find no error in the default taken against the Calderons. However, the motion court properly declined to enter judgment against the Calderons for the amount of the $29 million jury verdict in favor of plaintiff Clara Bailon.

The default order against the Calderons directed that an inquest and assessment of damages against them be conducted at the time of trial against the nondefaulting defendants, but the record reflects no action taken by plaintiffs at trial regarding their claim against the Calderons. To the extent that plaintiffs' theory against the Calderons was based on alter ego liability, arising out of the Calderons' disregard of the corporate form of Guane Coach Corp., there would have been no need for a separate damages determination against them, since the Calderons would be responsible for the corporation's liabilities ( see Sterling Doubleday Enters, v Marro, 238 AD2d 502, 503). However, under the alter ego theory, the Calderons must be treated as having stepped into the shoes of the corporation, and their liability would be that of Guane ( see Trans Int'l. Corp. v Clear View Tech., 278 AD2d 1, 1-2). By executing a release in favor of Guane upon payment by its insurer of $100,000, plaintiffs necessarily released the Calderons as well ( see DePinto v Ashley Scott, Inc., 222 AD2d 288, 289-290). Nor may plaintiffs rely on some other theory against the Calderons, since they failed to establish at inquest the extent of their liability under any other theory. Accordingly, plaintiffs were not entitled to the judgment they sought against the Calderons.

We have considered the parties' remaining arguments and find them unavailing.


Summaries of

Bailon v. Guane Coach Corp.

Appellate Division of the Supreme Court of New York, First Department
Nov 30, 2010
78 A.D.3d 608 (N.Y. App. Div. 2010)
Case details for

Bailon v. Guane Coach Corp.

Case Details

Full title:CLARA BAILON, Appellant-Respondent, et al., Plaintiff, v. GUANE COACH…

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

Date published: Nov 30, 2010

Citations

78 A.D.3d 608 (N.Y. App. Div. 2010)
2010 N.Y. Slip Op. 8791
912 N.Y.S.2d 188

Citing Cases

Bd. of Managers of 325 Fifth Ave. Condo. v. Cont'l Residential Holdings LLC

In May 2011, plaintiff board executed a release that released Sponsor, Douglaston Development, 325 Fifth…

Helicon Partners, LLC v. Kim's Provision Co.

Alter egos own a pool of common assets, and creditors may look to the assets of one to satisfy claims against…