Appellate Division of the Supreme Court of New York, 2012

Mutual Benefits Offshore Fund v. Zeltser

Mutual Benefits Offshore Fund v. Zeltser
Appellate Division of the Supreme Court of New York · Decided March 15, 2012
93 A.D.3d 504; 940 N.Y.S.2d 79
Mutual Benefits Offshore Fund v. Zeltser

Opinion of the Court

Orders, Supreme Court, New York County (Bernard J. Fried, J.), entered November 4, 2010, which granted plaintiffs motion *505to dismiss defendants Sternik & Zeltser’s and Joseph Kay’s counterclaims, and granted plaintiff’s motion to disqualify defendants Emanuel Zeltser and Sternik & Zeltser as counsel for counterclaim plaintiffs, unanimously affirmed, without costs.

Sternik & Zeltser, sued herein solely in its capacity as plaintiffs former counsel, lacks standing to assert a counterclaim in its separate capacity as a purported trustee or representative of an entity that is not a party to the action (see Ruzicka v Rager, 305 NY 191, 198 [1953]; see also Bramex Assoc. v CBI Agencies, 149 AD2d 383, 385 [1989]). Kay lacks standing to assert a counterclaim because the record does not support his allegation that he has an ownership interest in plaintiffs investment or that he otherwise has a stake in the outcome of the dispute over the funds at issue (see Security Pac. Natl. Bank v Evans, 31 AD3d 278, 279 [2006], appeal dismissed 8 NY3d 837 [2007]).

We have considered defendants’ remaining arguments and find them unavailing. Concur — Mazzarelli, J.P., Friedman, Richter and Abdus-Salaam, JJ.

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