From Casetext: Smarter Legal Research

In the Matter of Design Concepts v. Walsh

Appellate Division of the Supreme Court of New York, Second Department
Apr 15, 2002
293 A.D.2d 605 (N.Y. App. Div. 2002)

Opinion

2001-01177

Argued March 8, 2002.

April 15, 2002.

In a proceeding pursuant to Business Corporation Law § 1104 for the dissolution of Design Concepts, Ltd., and two related actions for, inter alia, an accounting and repayment of a loan, respectively, which were joined for trial, Bruce Zipes appeals in Matter Nos. 1 and 3, and Bruce Zipes and Design Concepts, Ltd., appeal in Matter No. 2, as limited by their brief, from so much of a judgment of the Supreme Court, Nassau County (Martin, J.), entered February 1, 2001, which, after a nonjury trial, awarded Terence Walsh the principal sum of $270,000 to be paid out of the assets of Design Concepts, Ltd., and one-half of the remaining assets of Design Concepts, Ltd.

Jaspan Schlesinger Hoffman, LLP, Garden City, N.Y. (Stanley Harwood, Steven R. Schlesinger, and Marci S. Zinn of counsel), for appellants.

Robert P. Lynn, Jr., LLC, Mineola, N.Y. (John W. Dunne of counsel), for respondent Terence Walsh.

Before: FRED T. SANTUCCI, J.P., SANDRA J. FEUERSTEIN, SONDRA MILLER, ROBERT W. SCHMIDT, JJ.


ORDERED that the judgment is affirmed insofar as appealed from, with costs.

Design Concepts, Ltd. (hereinafter DCL), was a corporation formed in 1984 by the appellant Bruce Zipes to build a house that was to be his personal residence. Zipes was initially the sole shareholder of DCL. His then brother-in-law, Terrence Walsh, was designated secretary-treasurer of DCL. In essence, Zipes hired Walsh to build the house. After it was completed, Zipes and Walsh, through DCL, began a business of constructing other luxury homes on Long Island. In 1988 Walsh was issued 50% of DCL's shares of stock. However, as Zipes's marriage to Walsh's sister failed, so too did the business relationship in DCL, resulting in the instant proceeding for dissolution of DCL and claims for damages by each of the principals.

After a nonjury trial, the Supreme Court found that Walsh established his cause of action to recover damages for fraudulent misrepresentation by clear and convincing evidence. In making its determination, the court found Walsh more credible than Zipes, and determined that Walsh had been denied his rightful earnings and was misled by Zipes's false promises of an interest in the profits of a real estate enterprise which Zipes had no intention of fulfilling. The court awarded damages to Walsh in the sum of $270,000 and declared his entitlement to one-half of the net assets of DCL. We affirm.

Zipes contends, inter alia, that Walsh's claims are barred by the statute of frauds as they were not memorialized in written agreements. However, Walsh demonstrated that Zipes admitted entering into the challenged agreements (see Matisoff v. Dobi, 90 N.Y.2d 127, 133; see also Whitehorn Assocs. v. One Ten Brokerage, 264 A.D.2d 516, 517). Moreover, Walsh partially performed the agreements and his performance was unequivocally referable to the agreements (Messner Vetere Berger McNamee Schmetterer Euro RSCG v. Aegis Group, 93 N.Y.2d 229, 235; see also Whitehorn Assos. v. One Ten Brokerage, supra, at 517; Spodek v. Riskin, 150 A.D.2d 358, 360; Fiske v. Fiske, 95 A.D.2d 929, 931, affd, 62 N.Y.2d 828). As such, enforcement of the oral agreements is not barred by the Statute of Frauds.

Zipes's further contention that Walsh's claims are barred by the statute of limitations must also fail. Under the circumstances of this case, where Walsh was induced by Zipes's misrepresentations from filing a timely claim, Zipes may not assert the statute of limitations as a shield against an action which he forestalled (see Simcuski v. Saeli, 44 N.Y.2d 442; Schirano v. Paggioli, 99 A.D.2d 802).

The appellants' remaining contentions are without merit.

SANTUCCI, J.P., FEUERSTEIN, S. MILLER and SCHMIDT, JJ., concur.


Summaries of

In the Matter of Design Concepts v. Walsh

Appellate Division of the Supreme Court of New York, Second Department
Apr 15, 2002
293 A.D.2d 605 (N.Y. App. Div. 2002)
Case details for

In the Matter of Design Concepts v. Walsh

Case Details

Full title:IN THE MATTER OF DESIGN CONCEPTS, LTD. BRUCE ZIPES, appellant, v. TERENCE…

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

Date published: Apr 15, 2002

Citations

293 A.D.2d 605 (N.Y. App. Div. 2002)
741 N.Y.S.2d 93

Citing Cases

Oceana Holding Corp. v. Atlantic Oceana Co., Inc.

The general merger and "no oral modification" clauses, as well as the preclusion of easements and licenses…

Chuang v. Quezada

[A]ll applicable City, State, and/or Federal Codes must be met; any violations must be corrected at the…