From Casetext: Smarter Legal Research

Fleet Bank v. Douglas-Guardian Warehouse

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 12, 1996
229 A.D.2d 962 (N.Y. App. Div. 1996)

Opinion

July 12, 1996

Appeal from the Supreme Court, Onondaga County, Nicholson, J.

Present — Denman, P.J., Pine, Callahan, Balio and Davis, JJ.


Order unanimously affirmed without costs. Memorandum: Plaintiff contracted with defendant in 1991 to monitor inventory owned by Sam Misita Auto Sales, Inc. (Misita), which had borrowed $1.3 million from plaintiff. Pursuant to the contract, defendant would perform monthly audits of Misita's inventory, which served as collateral on the loan, and would then report its findings to plaintiff. In November 1992 plaintiff received an anonymous tip that most, if not all, of Misita's inventory had been sold. That tip was confirmed by an emergency audit conducted by defendant. Misita thereafter defaulted on its loan, leaving plaintiff with little or no collateral to secure its $1.3 million loan. Plaintiff commenced this action against defendant for breach of contract, negligence and gross negligence.

Supreme Court properly granted defendant's motion for partial summary judgment dismissing the causes of action for negligence and gross negligence. "It is a well-established principle that a simple breach of contract is not to be considered a tort unless a legal duty independent of the contract itself has been violated" ( Clark-Fitzpatrick, Inc. v. Long Is. R.R. Co., 70 N.Y.2d 382, 389; see also, Board of Educ. v. Sargent, Webster, Crenshaw Folley, 71 N.Y.2d 21, 29). Here, plaintiff has not alleged that defendant breached a legal duty independent of the contract ( see, Board of Educ. v. Sargent, Webster, Crenshaw Folley, supra, at 29; Bristol-Meyers Squibb, Indus. Div. v Delta Star, 206 A.D.2d 177, 180; cf., Sommer v. Federal Signal Corp., 79 N.Y.2d 540).

We further conclude that the court properly found that the contract's limitation of liability provisions are valid and enforceable. Contrary to plaintiff's contention, those provisions are clear and unambiguous.


Summaries of

Fleet Bank v. Douglas-Guardian Warehouse

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 12, 1996
229 A.D.2d 962 (N.Y. App. Div. 1996)
Case details for

Fleet Bank v. Douglas-Guardian Warehouse

Case Details

Full title:FLEET BANK OF NEW YORK, Appellant, v. DOUGLAS-GUARDIAN WAREHOUSE…

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

Date published: Jul 12, 1996

Citations

229 A.D.2d 962 (N.Y. App. Div. 1996)
645 N.Y.S.2d 384

Citing Cases

Star Direct Telecom, Inc. v. Global Cross. Bandwidth

It is well established under New York law that a breach of contract will not give rise to a tort claim absent…

Production Products Company v. Vision Corp.

Defendant failed to allege the existence of a false representation, an essential element of a fraud claim (…