Mid-Atlantic Residential Investors Ltd. Partnership v. McGuire, MID-ATLANTIC

• Decision Date: 09 October 1990
• Docket Number: MID-ATLANTIC
• Citation: 166 A.D.2d 205,560 N.Y.S.2d 431
• Parties: RESIDENTIAL INVESTORS LIMITED PARTNERSHIP, Plaintiff-Respondent, v. Ernest D. McGUIRE, Defendant-Appellant. Ernest D. McGUIRE, Third-Party Plaintiff-Appellant-Respondent, v. PERKINS & ZURES, INC., et al., Third-Party Defendants-Respondents-Appellants, Ernest & Whinney, Third-Party Defendant-Respondent, and Integrated Resources, Inc., Third-Party Defendant-Respondent-Appellant.
• Court: New York Supreme Court — Appellate Division

Page 431

560 N.Y.S.2d 431

166 A.D.2d 205

MID-ATLANTIC RESIDENTIAL INVESTORS LIMITED PARTNERSHIP, Plaintiff-Respondent, v. Ernest D. McGUIRE, Defendant-Appellant.

Ernest D. McGUIRE, Third-Party Plaintiff-Appellant-Respondent, v. PERKINS & ZURES, INC., et al., Third-Party

Defendants-Respondents-Appellants,

Ernest & Whinney, Third-Party Defendant-Respondent,

and

Integrated Resources, Inc., Third-Party

Defendant-Respondent-Appellant.

Supreme Court, Appellate Division First Department.

Oct. 9, 1990.

Before MURPHY, P.J., and KUPFERMAN, ROSS and ELLERIN, JJ.

MEMORANDUM DECISION.

Order, Supreme Court, New York County (David B. Saxe, J.), entered April 5, 1989, which, inter alia, granted plaintiff's motion for summary judgment on the first cause of action in the amount of $47,247, plus interest, and for summary judgment as to liability on the second cause of action for attorneys' fees, and referred third-party defendants' Randel Perkins and Perkins & Zures, Inc. motion for dismissal of the complaint pursuant to CPLR 3211(a)(8) on grounds of lack of personal jurisdiction, to a referee to hear and report, is unanimously modified, on the law, to the extent of granting the motion to dismiss the third-party complaint against said third-party defendants, and the order is otherwise affirmed, without costs and without disbursements.

Interlocutory judgment, Supreme Court, New York County (David B. Saxe, J.), entered April 26, 1989, which awarded plaintiff $78,252 on the first cause of action, unanimously affirmed, without costs and without disbursements.

Defendant, a California resident engaged in the construction business, was advised by his accountants to consider tax shelter investments to reduce his potential 1985 income tax liability. The accountants arranged a meeting with Randel Perkins of Perkins & Zures, Inc. at the latter's San Bernadino, California office. Defendant asserts that Perkins represented that defendant would secure substantial tax benefits by the purchase of one unit in plaintiff's limited partnership, and that if defendant could not meet future periodic payments required by the promissory note, his interest could be resold without substantial loss. Defendant received, but allegedly did not read plaintiff's offering materials, which stated that no agent was authorized to make representations other than those contained in the written materials; that tax benefits to any given individual could be substantially or completely negated by the alternative minimum tax or the adoption of tax revisions being debated in Congress; that as the interest was not to be registered, there would be no public resale market for the interest, and thus the purchaser should expect to hold his...