Fallon v.McKeon
Opinion of the Court
—Order, Supreme Court, New York County (Richard Lowe, III, J.), entered February 16, 1995, which granted defendants’ motion to dismiss the second amended complaint, unanimously affirmed, without costs.
The complaint was properly dismissed as the oral partnership agreement alleged by plaintiff, purportedly entitling him to 50% of the stock of defendant KFS Service Inc., is void and unenforceable under the Statute of Frauds contained in UCC 8-319 (see, Hart v Windjammer Barefoot Cruises, 220 AD2d 252; Goldfinger v Brown, 169 AD2d 702). Plaintiff’s contributions to the development of the signature guaranteeing program, known originally as "SignaSure,” while substantial, do not constitute sufficient part performance of the oral agreement to remove the bar of the Statute of Frauds, since those actions were not "unequivocally referable” to an agreement which would provide plaintiff with half ownership of the program, or the corporation which administers it (see, Anostario v Vicinanzo, 59 NY2d 662; Newman v Crazy Eddie, 119 AD2d 738).
Although the IAS Court properly dismissed the fourth and fifth causes of action for breach of fiduciary trust and breach of partnership, since they both were clearly based on the unenforceable partnership agreement, the court erroneously concluded that the remaining causes of action were subject to dismissal on that basis as well (see, Channel Master Corp. v Aluminium Ltd. Sales, 4 NY2d 403, 408). However, these claims were deficient for other reasons, and thus were properly dismissed. The cause of action for fraud was properly dismissed since it fails to allege a breach of duty distinct from that arising from the oral agreement (see, Mastropieri v Solmar Constr. Co., 159 AD2d 698, 700). Additionally, the mere allegation that
Case-law data current through December 31, 2025. Source: CourtListener bulk data.