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Gold v. Royal Cigar Co., Inc.

Appellate Division of the Supreme Court of New York, Second Department
Nov 26, 1984
105 A.D.2d 831 (N.Y. App. Div. 1984)

Opinion

November 26, 1984

Appeal from the Supreme Court, Kings County (Bernstein, J.).


Judgment affirmed, with costs.

On or about May 11, 1977, County Cigar Corp. (County) and Royal Cigar Co., Inc. (Royal), by their respective presidents in their respective capacities, entered into a contract whereby County agreed to purchase the assets of Royal, including the use of its name. While price was left for future negotiation, Royal executed a bill of sale to County. Subsequently, the following letter dated July 31, 1979, was sent on Royal stationery:

"To Whom it May Concern;

"It is hereby understood and agreed by the officers of Royal Cigar Co., Inc. that the sum of 100,000 dollars will be paid to Irving Gold over a period of thirty six months starting Aug. 1st, 1979.

"S Leonard Schwartz, Pres. "S Harold Krasner, Sec. Tres."

Plaintiff's contention that the contract executed by County and the foregoing letter obligated the individual officers to pay the contract price, is without merit. As each document was executed by the individual defendant in his corporate capacity, they cannot form a basis for personal liability upon him (see Cavalla v Ernest F. Elliot, Inc., 86 A.D.2d 884).

Special Term properly denied leave to amend the complaint. In the proposed amended complaint, plaintiff seeks to set forth a new cause of action alleging an oral promise by the individual defendant to make payment of the $100,000 contract price; it clearly fails to allege a meritorious cause of action (see Martin Roofing v Goldstein, 91 A.D.2d 1065, aff'd. 60 N.Y.2d 262, cert den. ___ US ___, 104 S Ct 1681). Boyers, J.P., Rubin, Lawrence and Eiber, JJ., concur.


Summaries of

Gold v. Royal Cigar Co., Inc.

Appellate Division of the Supreme Court of New York, Second Department
Nov 26, 1984
105 A.D.2d 831 (N.Y. App. Div. 1984)
Case details for

Gold v. Royal Cigar Co., Inc.

Case Details

Full title:IRVING GOLD, Appellant, v. ROYAL CIGAR CO., INC., Defendant, and LEONARD…

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

Date published: Nov 26, 1984

Citations

105 A.D.2d 831 (N.Y. App. Div. 1984)

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