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Altamore v. Sequa Capital Corp.

Citations: 224 A.D.2d 469; 637 N.Y.S.2d 786; 1996 N.Y. App. Div. LEXIS 1173

Court: Appellate Division of the Supreme Court of the State of New York; February 12, 1996; New York; State Appellate Court

Narrative Opinion Summary

The case involves G&L Capital Corporation and Susan F. Altamore against Sequa Capital Corporation and Sequa Corporation, where the plaintiffs are seeking recovery of commissions under an alleged oral contract for consulting services related to leveraged leasing transactions. Originally, the defendants succeeded in having the complaint dismissed on the grounds of failure to state a cause of action. However, the plaintiffs later moved to renew their motion based on new discovery obtained from a related federal case, which included over 100,000 documents and deposition excerpts. The court granted this motion, allowing the case to proceed. The appellate court affirmed the decision, recognizing the plaintiffs' right to renew due to the extensive new evidence, and declined to apply General Obligations Law § 5-701(a)(10) at this juncture. The appellate court dismissed the defendants' other arguments as without merit, ensuring the continuation of the case.

Legal Issues Addressed

Discovery and Diligence in Obtaining Evidence

Application: The appellate court acknowledged the extensive discovery, noting the plaintiffs could not have obtained it with reasonable diligence before the initial dismissal.

Reasoning: The appellate court affirmed the lower court's decision, noting that the plaintiffs acted within their rights to renew the motion due to the extensive discovery that could not have been obtained with reasonable diligence prior to the original dismissal.

General Obligations Law § 5-701(a)(10)

Application: The court found it premature to apply this statute to the case at the current stage, allowing the proceedings to continue.

Reasoning: Additionally, the court found that it could not determine the applicability of General Obligations Law § 5-701(a)(10) at this stage, supporting the decision to allow the case to proceed.

Motion to Dismiss for Failure to State a Cause of Action

Application: The defendants initially succeeded in having the complaint dismissed on these grounds, but the decision was later challenged and overturned.

Reasoning: The defendants initially filed a motion to dismiss the complaint for failure to state a cause of action, which was granted by the Supreme Court on March 18, 1994.

Oral Contracts and Commission Payment

Application: The plaintiffs sought to enforce an oral contract for consulting services, claiming entitlement to commissions based on a percentage of the sales price of leased assets.

Reasoning: G&L alleges that SCC retained them in January 1991, with commissions based on a percentage of the sales price of leased assets.

Renewal of Motion Based on New Evidence

Application: The plaintiffs successfully renewed their motion to proceed with the case after acquiring new evidence from a related federal case.

Reasoning: On August 31, 1994, the court granted the plaintiffs' motion to renew and denied the defendants' motion to dismiss.