Quinones v. Schaap

• Decision Date: 17 January 2012
• Citation: 91 A.D.3d 739,2012 N.Y. Slip Op. 00349,937 N.Y.S.2d 262
• Parties: Leonardo QUINONES, et al., respondents, v. William H. SCHAAP, appellant, et al., defendants.
• Court: New York Supreme Court — Appellate Division

2012 N.Y. Slip Op. 00349

91 A.D.3d 739

937 N.Y.S.2d 262

Leonardo QUINONES, et al., respondents,

v.William H. SCHAAP, appellant, et al., defendants.

Supreme Court, Appellate Division, Second Department, New York.

Jan. 17, 2012.

Beldock Levine & Hoffman, LLP, New York, N.Y. (Vera M. Scanlon and Myron Beldock of counsel), for appellant.MARK C. DILLON, J.P., RUTH C. BALKIN, JOHN M. LEVENTHAL, and CHERYL E. CHAMBERS, JJ.

In an action, inter alia, to recover damages for breach of contract and fraud, the defendant William H. Schaap appeals, as limited by his brief, from so much of an order of the Supreme Court, Nassau County (Brandveen, J.), entered December 21, 2010, as denied his motion pursuant to CPLR 3211(a)(7) and 3016(b) to dismiss the amended complaint insofar as asserted against him.

ORDERED that the order is modified, on the law, by deleting the provisions thereof denying those branches of the motion of the defendant William H. Schaap which were pursuant to CPLR 3211(a)(7) and 3016(b) to dismiss the causes of action to recover damages for fraud and conversion insofar as asserted against him, and substituting therefor a provision granting those branches of the motion; as so modified, the order is affirmed insofar as appealed from, without costs or disbursements.

The amended complaint alleges that the plaintiffs entered into an oral agreement with the defendants for a loan in the sum of $140,000, that such money was wire-transferred into the IOLA account of the defendant attorney William H. Schaap, and that, despite due demand, the defendants failed to repay the loan or provide an accounting of the escrowed funds. In the order appealed from, the Supreme Court, inter alia, denied Shaap's motion pursuant to CPLR 3211(a)(7) and 3016(b) to dismiss the amended complaint insofar as asserted against him. Schaap appeals. We modify.

In determining whether a complaint is sufficient to withstand a motion to dismiss pursuant to CPLR 3211(a)(7), “the sole criterion is whether the pleading states a cause of action, and if from its four corners factual allegations are discerned which taken together manifest any cause of action cognizable at law a motion for dismissal will fail” ( Guggenheimer v. Ginzburg, 43 N.Y.2d 268, 275, 401 N.Y.S.2d 182, 372 N.E.2d 17; see 1414 Realty Corp. v. G & G Realty Co., 272 A.D.2d 309, 707 N.Y.S.2d 885). “The complaint must be construed liberally, the factual allegations deemed to be true, and the nonmoving party granted the benefit of every possible favorable inference” ( Hense v. Baxter, 79 A.D.3d 814, 815, 914 N.Y.S.2d 200; see Leon v. Martinez, 84 N.Y.2d 83, 87, 614 N.Y.S.2d 972, 638 N.E.2d 511; Kopelowitz & Co., Inc. v. Mann, 83 A.D.3d 793, 796–797, 921 N.Y.S.2d 108). In addition, a court may consider any factual submissions made in opposition to a motion to dismiss in order to remedy pleading defects ( see CPLR 3211[c]; Ryan v. Cover, 75 A.D.3d 502, 503, 904 N.Y.S.2d 750; Tarzia v. Brookhaven Natl. Lab., 247 A.D.2d 605, 669 N.Y.S.2d 230).

The Supreme Court properly denied that branch of Schaap's motion which was pursuant to CPLR 3211(a)(7) to dismiss the cause of action to recover damages for breach of contract insofar as asserted against him. The amended complaint effectively alleges that, as part of the subject business transaction, the defendants received the plaintiffs' loan in the sum of $140,000, and that the defendants were to repay that loan with interest.

Furthermore, because the amended complaint alleges that Schaap agreed to separately maintain the loaned sum in his IOLA account, to provide an accounting on demand, and to repay the loaned...