317 W. 87 Associates v. Dannenberg

Decision Date08 March 1990
Citation159 A.D.2d 245,552 N.Y.S.2d 236
PartiesASSOCIATES et al., Plaintiffs-Respondents, v. Jeffrey C. DANNENBERG, et al., Defendants. Jeffrey C. DANNENBERG, Third-Party Plaintiff, v. KUROFF ASSOCIATES, Third-Party Defendant-Appellant. Arnold Pross, Non-Party Witness-Appellant.
CourtNew York Supreme Court — Appellate Division

E.N. Kaplan, for plaintiffs-respondents.

A.B. Schultz, Lake Success, for third-party defendant-appellant.

A.B. Schultz, Lake Success, for non-party witness-appellant.

Before SULLIVAN, J.P., and ROSS, ROSENBERGER and KASSAL, JJ.

MEMORANDUM DECISION.

Order, Supreme Court, New York County (David B. Saxe, J.), entered May 5, 1989, which granted plaintiffs' motion to hold third-party defendant, Kuroff Associates, and non-party witness, Arnold Pross, in civil contempt, to strike the third-party answer pursuant to CPLR § 3126, and to deny Kuroff's cross-motion to dismiss the complaint for lack of standing, unanimously affirmed, with costs.

Plaintiff Adam Katz and non-party Pross have been engaged in continuing litigation over control of plaintiff 317 W. 87 Associates, a limited partnership. One of the assets of that partnership is an apartment occupied by defendants Dannenberg. Jeffrey Dannenberg continued to pay rent to third-party defendant, Kuroff Associates, an entity controlled by Pross, even after a preliminary injunction in 1985 awarded at least temporary control of the landlord partnership to Katz. The justification offered for this diversion of rent assets was based upon a sublet agreement approved by Pross back in 1983, when he concededly was in control of the partnership. But this agreement, offered to the court under an affidavit by Dannenberg, and the validity of which was testified to in depositions by Dannenberg and Pross, was later exposed as a fraud--a document drawn and executed in 1987, and backdated to 1983. Dannenberg and Pross subsequently admitted the ruse.

Contributing to "undisputed untruthfulness" on the record justifies imposition of sanctions under CPLR § 3126. Smith v. Malarczyk, 118 A.D.2d 934, 935, 499 N.Y.S.2d 501. Such fraudulent and perjurious conduct during the course of judicial proceedings may also warrant punishment by contempt (Judiciary Law § 753[A][2]; Matter of Goslin, 95 App.Div. 407, 88 N.Y.S. 670, aff'd 180 N.Y. 505, 72 N.E. 1142), even against a non-party witness (Judiciary Law § 753[A][5].

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10 cases
  • CDR Créances S.A. v. Cohen
    • United States
    • New York Supreme Court — Appellate Division
    • December 27, 2012
    ...the purpose was to distinguish the circumstances of the matter before us from the authority cited, 317 W. 87 Assoc. v. Dannenberg, 159 A.D.2d 245, 245, 552 N.Y.S.2d 236 [1st Dept. 1990], in which we concluded that sanctions were supported by “ ‘undisputed untruthfulness' on the record” (quo......
  • Melcher v. Apollo Med. Fund Mgmt. L.L.C.
    • United States
    • New York Supreme Court — Appellate Division
    • January 29, 2013
    ...amendment could have had any possible relevance. Melcher places undue reliance on this Court's decision in 317 W. 87 Assocs. v. Dannenberg, 159 A.D.2d 245, 552 N.Y.S.2d 236 [1990]. In that case, the principal of the third-party defendant created a backdated document and used it in the litig......
  • Stein v. McDowell
    • United States
    • New York Supreme Court — Appellate Division
    • June 29, 2010
    ...are false" (22 NYCRR 130-1.1) including the alteration of original bank documents to support his position ( see 317 W. 87 Assoc. v. Dannenberg, 159 A.D.2d 245, 552 N.Y.S.2d 236). Contrary to McDowell's contention, he owed a fiduciary duty to his co-shareholder Stein and Stein's successors-i......
  • Giaimo v. Vitale
    • United States
    • New York Supreme Court — Appellate Division
    • December 20, 2012
    ...conduct during the course of judicial proceedings” regarding management fee receivables ( see 317 W. 87 Assoc. v. Dannenberg, 159 A.D.2d 245, 246, 552 N.Y.S.2d 236 [1st Dept.1990] ). We have considered the parties' remaining arguments and find them ...
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