October 22, 2007

Losing causes.

The First Department affirmed defendant's motion to dismiss, pursuant to CPLR 3211(a)(1), (5) and (7), in Langer v. Dadabhoy, which was decided on October 11, 2007.

The court said that the breach of contract claim was properly dismissed, since plaintiff's bare allegation that he had "set aside" funds for the real estate purchase at issue does not constitute adequate consideration for an alleged agreement.

As regards the claim for breach of a joint venture, the court found that plaintiff failed to sufficiently set forth facts to establish necessary elements such as his contribution of property and skills, control over the venture, and the sharing of possible financial losses. Moreover, absent a proper pleading of a joint venture, plaintiff's alleged oral agreement to invest $150,000 toward the purchase of real property was unenforceable under the Statute of Frauds.

The court also noted that documentary evidence in the form of e-mails conclusively established that the parties intended to finalize their agreement in a writing, which never materialized, since the parties' negotiations were eventually discontinued. As such, there was no meeting of the minds as to the proposed joint venture.

In light of these determinations, the court gave short shrift to the alleged causes of action for breach of fiduciary duty and for the imposition of a constructive trust.