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Smart Egg Pictures v. New Line Cinema Corp.

Appellate Division of the Supreme Court of New York, First Department
Mar 23, 1995
213 A.D.2d 302 (N.Y. App. Div. 1995)

Opinion

March 23, 1995

Appeal from the Supreme Court, New York County (Walter Schackman, J.).


The venture agreements in issue and other documentary evidence clearly show that plaintiff, a foreign corporation located in a foreign country, was to participate as a full partner in the joint venture that produced a movie and its first sequel, albeit one who had delegated its managerial responsibilities, and, as such, plaintiff was owed fiduciary responsibilities by its coventurers as a matter of law (Birnbaum v. Birnbaum, 73 N.Y.2d 461). However, issues continue to exist whether the venture agreements were intended to bind the parties as to all sequels, whether a 1987 agreement purporting to establish plaintiff's rights in connection with the production and distribution of subsequent sequels properly modified, or improperly abrogated, the joint venture agreements in this regard, and whether, if the 1987 agreement were voidable, plaintiff nevertheless ratified it, which issues warranted denial of summary judgment of the breach of fiduciary duty claims and breach of partnership agreement claims under the first, second and third causes of action. However, defendants should have been granted summary judgment on the sixth and seventh causes of action sounding in fraud in the inducement, plaintiff's claims that defendants entered the agreement denoted therein with the undisclosed intention of not performing them being entirely conclusory and rebutted by defendants' averments that they had no such intent. A contract claim cannot be converted into a fraud claim merely by the expedient of alleging that a contracting party never intended to perform its promise (Cranston Print Works Co. v. Brockmann Intl., 521 F. Supp. 609, 614).

We have considered defendants' remaining contentions and find them to be without merit.

Concur — Rosenberger, J.P., Rubin, Ross, Nardelli and Williams, JJ.


Summaries of

Smart Egg Pictures v. New Line Cinema Corp.

Appellate Division of the Supreme Court of New York, First Department
Mar 23, 1995
213 A.D.2d 302 (N.Y. App. Div. 1995)
Case details for

Smart Egg Pictures v. New Line Cinema Corp.

Case Details

Full title:SMART EGG PICTURES, S.A., Respondent, v. NEW LINE CINEMA CORPORATION et…

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

Date published: Mar 23, 1995

Citations

213 A.D.2d 302 (N.Y. App. Div. 1995)
624 N.Y.S.2d 150

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