Rajchandra Corp. v. Tom Sawyer Motor Inns, Inc., 1

• Decision Date: 20 December 1984
• Docket Number: No. 3,No. 2,No. 1,1,2,3
• Citation: 484 N.Y.S.2d 257,106 A.D.2d 798
• Parties: RAJCHANDRA CORPORATION et al., Appellants-Respondents, v. TOM SAWYER MOTOR INNS, INC., et al., Respondents, and Joseph R. Amisano, Appellant-Respondent, et al., Defendants (Action) RAJCHANDRA CORPORATION et al., Appellants, v. COUNTY OF CHEMUNG, Respondent (Action) TOM SAWYER MOTOR INNS, INC., Respondent-Appellant, v. RAJCHANDRA CORPORATION et al., Appellants-Respondents, et al., Defendants (Action)
• Court: New York Supreme Court — Appellate Division

Page 257

484 N.Y.S.2d 257 106 A.D.2d 798 RAJCHANDRA CORPORATION et al., Appellants-Respondents,
v.
TOM SAWYER MOTOR INNS, INC., et al., Respondents,
and
Joseph R. Amisano, Appellant-Respondent, et al., Defendants
(Action No. 1.)
RAJCHANDRA CORPORATION et al., Appellants,
v.
COUNTY OF CHEMUNG, Respondent (Action No. 2.)
TOM SAWYER MOTOR INNS, INC., Respondent-Appellant,
v.
RAJCHANDRA CORPORATION et al., Appellants-Respondents, et
al., Defendants (Action No. 3.) Supreme Court, Appellate Division,
Third Department. Dec. 20, 1984.

Page 259

Rhodes & Levinger, Elmira (Donald A. Levinger, Elmira, of counsel), for Rajchandra Corp. et al. in Actions # 1, # 2, # 3.

Bond, Schoeneck & King, Syracuse (John M. Freyer, Syracuse, of counsel), for Tom Sawyer Motor Inns, Inc., et al. in Actions # 1 and # 3.

Before KANE, J.P., and WEISS, YESAWICH, LEVINE and CASEY, JJ.

MEMORANDUM DECISION.

Cross appeals (1) from an order of the Supreme Court at Special Term, entered July 25, 1983 in Chemung County, which, in Action No. 1, denied plaintiffs' motion for summary judgment, partially granted defendant Joseph R. Amisano's cross motion for summary judgment, and granted the cross motion of defendants Tom Sawyer Motor Inns, Inc., James P. Schwartz and Doris B. Clark for leave to serve an amended answer, (2) from an order of said court, entered July 25, 1983 in Chemung County, which, in Action No. 3, denied cross motions for summary judgment by plaintiff and defendants Rajchandra Corporation, Magan R. Patel and Sharda Patel, and (3) appeal from an order of said court, entered August 2, 1983 in Chemung County, which, in Action No. 2, denied plaintiffs' motion for summary judgment and partially granted defendant's cross motion for summary judgment.

From 1949 to 1979, James Schwartz controlled and operated Tom Sawyer Motor Inns, Inc. (hereafter Tom Sawyer) in the City of Elmira. In 1979, the motel operated by Tom Sawyer was listed for sale with a New Jersey real estate broker. Magan R. Patel, an officer and employee of Rajchandra Corporation, reviewed the motel's financial information, expressed an interest in the property, and viewed it on December 13 and 14, 1979. Patel returned to the motel on December 20, 1979, remaining there overnight. During this visit, he retained an attorney, Joseph Amisano, to represent Rajchandra Corporation in the purchase of the inn. It is alleged that Amisano misrepresented to Patel that he was a lifelong resident of, and familiar with, Chemung County.

On December 28, 1979, Patel, on behalf of his corporation, executed a purchase and sale agreement in the amount of $490,000, of which $420,000 was to be secured by two bonds and mortgages on the premises. Tom Sawyer's former attorneys prepared the contract which provided for conveyance of the property by a full covenant warranty deed with lien covenant. Prior to signing the agreement and closing, the prospective purchasers learned that the County of Chemung operated a sewage disposal plant on property adjacent to the motel. Patel briefly visited the plant and was informed by a county employee that there were no present odor problems, but that the previous summer had been "one of the worst * * * as far as odors were concerned". Patel returned to the motel and questioned Tom Sawyer's manager, Doris B. Clark, regarding the matter. Clark avers that, after noting that there had been problems, she "informed Mr. Patel that we had been involved in a lawsuit over the sewer plant,

Page 260

that it was a matter of common knowledge, informed him of some corrective work which the sewer district had done since the litigation, and informed him further that there were plans pending to build a new sewage treatment plant at a different location and to convert the facility adjacent to the Tom Sawyer Motor Inn to a pumping station". Later that afternoon of December 28, 1979, the parties consummated the sale. Tom Sawyer delivered to the purchasers a deed containing a warranty of title, covenant of quiet enjoyment and a lien covenant, rather than a full covenant warranty deed as provided for in the contract; Rajchandra Corporation took possession and commenced operation of the motel on January 1, 1980.

Two days later, Patel read an article in a local newspaper alluding...