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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: September 9, 2015

Statute of Frauds Bars Contract Claim

On August 27, 2015, Justice Rosenbaum of the Monroe County Commercial Division issued a decision in Juliano v. Paragon, Inc., 2015 NY Slip Op. 51291(U), dismissing a breach of contract claim on statute of frauds grounds, explaining:

Here, it is undisputed that there is no written contract or client agreement between Plaintiff and Defendants. Rather, Plaintiff submits that the liability flows from an implied contract whereby [the defendant] offered to act as the broker or intermediary and locate a dental practice for Plaintiff, Plaintiff agreed to retain [the defendant] and pay [it] a commission. Plaintiff has cited several cases, however those cases are not analogous to the situation presented here. GOL Section 5-701(10) provides that a contract to pay compensation for services rendered in negotiating the purchase of a business opportunity is void, unless it or some note or memorandum thereof be in writing, and subscribed by the party to be charged therewith. It is undisputed that there is no written agreement or memorandum thereof.

(Internal quotations and citations omitted) (emphasis added).

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