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Reede v. Karp

Appellate Division of the Supreme Court of New York, Second Department
Jun 17, 1991
174 A.D.2d 659 (N.Y. App. Div. 1991)

Opinion

June 17, 1991

Appeal from the Supreme Court, Nassau County (Brucia, J.).


Ordered that the orders are affirmed, with one bill of costs.

The plaintiff is a licensed real estate salesperson employed by Lefcon Properties, Inc. (hereinafter Lefcon). The defendant Honey Karp, a former Lefcon affiliate, terminated her relationship with Lefcon and obtained a judgment against Lefcon, entered July 3, 1989, based on a series of promissory notes.

Lefcon, as broker, and the plaintiff as salesperson, earned commissions for two real estate transactions consummated on June 26, 1989, and August 9, 1989, respectively. Before these commissions were paid to Lefcon, however, Karp served a Restraining Notice to Garnishee on the attorney for the seller in the first transaction, and an Execution with Restraining Notice to Garnishee on the attorney for the sellers in the second transaction. Thereafter, the plaintiff commenced the instant actions.

We agree with the Supreme Court that the commissions on the transactions were due and owing to Lefcon (Real Property Law § 294-b, [2]). The plaintiff, as a salesperson, must look to the broker for her portion of the commission (Real Property Law § 442-a; Myles v Litas Investing Co., 152 A.D.2d 731). Karp, as a prior judgment creditor of the broker Lefcon enforced her previous judgment against the debt owed to Lefcon by the sellers for commissions payable from the real estate transactions in issue (see, CPLR 5202 [a]). Karp's claim against Lefcon, therefore, takes priority over the plaintiff's claim (see, Matter of Mason v Belski, 82 A.D.2d 939). Thompson, J.P., Bracken, Eiber and Rosenblatt, JJ., concur.


Summaries of

Reede v. Karp

Appellate Division of the Supreme Court of New York, Second Department
Jun 17, 1991
174 A.D.2d 659 (N.Y. App. Div. 1991)
Case details for

Reede v. Karp

Case Details

Full title:ROSE REEDE, Appellant, v. HONEY KARP, Respondent, et al., Defendants…

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

Date published: Jun 17, 1991

Citations

174 A.D.2d 659 (N.Y. App. Div. 1991)
571 N.Y.S.2d 521

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