A. Aversa Brokerage, Inc. v. Honig Ins. Agency, Inc.
| Decision Date | 13 April 1998 |
| Citation | 671 N.Y.S.2d 135,249 A.D.2d 345 |
| Parties | , 1998 N.Y. Slip Op. 3362 A. AVERSA BROKERAGE, INC., et al., Respondents, v. HONIG INSURANCE AGENCY, INC., et al., Appellants. |
| Court | New York Supreme Court — Appellate Division |
O'Rourke & Friedman, Brooklyn (Michael J. O'Rourke, of counsel), for appellants.
Before PIZZUTO, J.P., and SANTUCCI, JOY and FRIEDMANN, JJ.
MEMORANDUM BY THE COURT.
In an action, inter alia, to recover damages for breach of an oral contract relating to the sale of an insurance business, the defendants appeal from so much of an order of the Supreme Court, Kings County (Rappaport, J.), dated January 24, 1997, as denied that branch of their motion which was for summary judgment dismissing the complaint.
ORDERED that the order is modified, on the law, by deleting the provision thereof which denied those branches of the motion for summary judgment which were to dismiss the first through fourth causes of action and substituting therefor a provision granting those branches of the motion; as so modified, the order is affirmed insofar as appealed from, with costs to the appellants.
The defendant Howard Honig entered into negotiations with the plaintiff Arlene Aversa for the sale of the insurance business owned by A. Aversa Brokerage, Inc. However, after Honig had performed a "due diligence" examination of the insurance files which had been delivered to him by the plaintiffs, he discovered, inter alia, that Aversa had been conducting business without a broker's license since 1987, when she was convicted of two counts of grand larceny in the second degree (see, People v. Aversa, 156 A.D.2d 371, 548 N.Y.S.2d 327). Honig thereupon terminated negotiations and no written agreement was ever signed by the parties. Although Honig attempted to return the files to Aversa, she refused to accept them, and he delivered the files to the New York State Department of Insurance.
Aversa commenced an action against Honig and his brokerage firm alleging, in the first four causes of action, breach of contract, fraud, conversion, and unjust enrichment, claiming that the parties had completed negotiations and reached an oral agreement and that delivery of her files to Honig constituted her full performance of the contract. Aversa further alleged, in a fifth cause of action, that Honig had made defamatory statements to some of her clients. The Supreme Court denied the defendants' motion for summary judgment.
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