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Morgan Guaranty Trust Co. v. Westreich

Citations: 213 A.D.2d 238; 624 N.Y.S.2d 8; 1995 N.Y. App. Div. LEXIS 2752

Court: Appellate Division of the Supreme Court of the State of New York; March 13, 1995; New York; State Appellate Court

Narrative Opinion Summary

In a decision rendered by the Supreme Court of New York County, the plaintiff's motion for summary judgment in lieu of complaint was denied, and the defendant's motion to dismiss the action as time-barred was initially granted. The case involved a dispute over a promissory note executed in 1986, with the plaintiff seeking recovery in 1993. The court applied a six-year Statute of Limitations as per CPLR 213 and UCC 3-122. However, the court found factual issues concerning potential periodic payments and a 1992 financial statement by the defendant that might acknowledge the debt, which could extend the limitations period. These unresolved issues led to the modification of the order to deny the defendant's motion to dismiss, with no costs awarded. All justices concurred in the modified decision, underscoring the necessity of further examination of the factual circumstances surrounding the debt acknowledgment and payments.

Legal Issues Addressed

Extending the Limitations Period

Application: The court identified factual issues that could extend the limitations period, such as periodic payments and a March 1992 financial statement acknowledging the debt.

Reasoning: However, the court identified factual issues regarding whether periodic payments, borrowings, and repayments relating to the loan occurred within the six years preceding the action, which could potentially extend the limitations period.

Motion to Dismiss Based on Time-Bar

Application: Initially, the defendant's motion to dismiss the action as time-barred was granted, but the order was modified to deny this motion due to unresolved factual issues.

Reasoning: The order was modified to deny the defendant's motion to dismiss while affirming the rest of the ruling, with no costs awarded.

Statute of Limitations for Promissory Notes

Application: The court applied a six-year Statute of Limitations to the plaintiff's action to recover on a promissory note executed in 1986, as governed by CPLR 213 and UCC 3-122.

Reasoning: The court determined that the plaintiffs' attempt to recover on a promissory note, initiated in 1993, was subject to a six-year Statute of Limitations, as stipulated by CPLR 213 and UCC 3-122, since the note was executed in 1986.