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Kavanaugh v. Kavanaugh

Citation: 2021 NY Slip Op 07353Docket: 704 CA 20-01025

Court: Appellate Division of the Supreme Court of the State of New York; December 22, 2021; New York; State Appellate Court

Original Court Document: View Document

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In Kavanaugh v. Kavanaugh, the Appellate Division, Fourth Department, addressed an appeal concerning intra-family disputes over the ownership of Consumers Beverages, Inc. and Kavcon Development LLC. The plaintiff, Matthew G. Kavanaugh, challenged the validity of stock and ownership transfers made by defendants Martha and Mary Ellen Kavanaugh to Neil Kavanaugh (also known as Cornelius Kavanaugh), claiming these transactions violated agreements that restricted such transfers. The Supreme Court initially denied the plaintiff's motion for partial summary judgment, citing unresolved triable issues related to Neil's defenses of waiver and estoppel.

Upon appeal, the Appellate Division reversed the lower court's order, granting the plaintiff's motion and declaring the transfers null and void. The court dismissed cross appeals from Martha Kavanaugh and Neil Kavanaugh, with Neil's cross appeal deemed invalid as he did not seek affirmative relief. The court clarified that a reference to a cross-motion for partial summary judgment in the lower court's order was a clerical error, as no such motion had been filed. Ultimately, the appellate court concluded that the initial denial of the plaintiff's motion was erroneous, affirming the validity of the plaintiff's claims regarding the ownership rights.