Computerized Medical Imaging Equipment, Inc. v. Diasonics Ultrasound, Inc.
Opinion of the Court
—Appeal from an order of Supreme Court, Erie County (Mintz, J.), entered October 5, 2001, which, inter alia, granted defendant’s motion for summary judgment in part and dismissed the complaint except for that part of the first cause of action seeking past due sales commissions in the amount of $25,591.
Memorandum: Plaintiff, a former sales representative for defendant, commenced this action alleging that defendant had wrongfully terminated the parties’ contractual relationship. The complaint asserts causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, quantum meruit, and tortious interference with economic advantage. With respect to the order in appeal No. 1, we conclude that Supreme Court properly granted plaintiffs cross motion for partial summary judgment on that part of the first cause of action seeking past due sales commissions in the amount of $25,591, which defendant does not dispute that it owes. The court otherwise properly granted defendant’s motion for summary judgment and dismissed the remainder of the complaint.
This case was previously before us on an appeal involving an arbitration issue (see Computerized Med. Imaging Equip. v Diasonics Ultrasound, 278 AD2d 946 [2000]). The dispute arose following the expiration of an integrated written contract between the parties. The record establishes as a matter of law that the parties were unable to reach agreement on terms for extending their business relationship, and indeed never executed a written contract drafted to replace the expired written contract, thus signifying that there was no enforceable agreement between the parties. Where the parties by their conduct have manifested “their mutual intent not to be bound until execution of a formal contract, effect will be given to that intention and, until the written contract is executed, no enforceable obligation will be held to arise” (Rochester Community Individual Practice Assn. v Finger Lakes Health Ins. Co., 281 AD2d 977, 977 [2001], citing Matter of Municipal Consultants & Pubis, v Town of Ramapo, 47 NY2d 144, 148-149 [1979] and Scheck v Francis, 26 NY2d 466, 469-470 [1970]). In any event, absent a manifestation of mutual assent sufficiently definite to ensure that the parties are truly in agreement with respect to all material terms of the proposed contract, there is no basis for concluding that there is a contract in effect between the parties (see Matter of Express Indus. & Term. Corp. v New York State Dept. of Transp., 93 NY2d 584, 589 [1999], rearg denied 93 NY2d 1042 [1999]; Joseph Martin, Jr., Delicatessen v Schumacher, 52 NY2d 105, 109 [1981]).
Contrary to plaintiffs further contention, the ongoing dealings of the parties following the expiration of the prior written contract and during their attempts to negotiate a replacement
In view of our determination that defendant was entitled to terminate plaintiff from its position as sales representative, we conclude that the court properly granted defendant’s motion for summary judgment dismissing the complaint, with the exception of that part of the first cause of action seeking past due sales commissions that defendant does not dispute that it owes. In view of our determination, it is unnecessary to address plaintiff’s remaining causes of action or the statute of frauds issue raised by plaintiff.
With respect to the order in appeal No. 2, we conclude that the court properly denied that part of the motion of plaintiff seeking to renew its opposition to defendant’s prior motion for summary judgment dismissing the complaint. Plaintiff “failed to establish that the purported ‘new’ material was not in existence or was unavailable at the time the initial motion was
Case-law data current through December 31, 2025. Source: CourtListener bulk data.