ny mini review
TRANSCRIPT
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MINIREVIEWCONTRACTS
RealEstateContracto 4materialterms
areasonabledescriptionoftherealproperty dontneedastreetaddressorametesandbounds thesaleprice theamountofthedeposit(ifany) theremustbeaclosingdate
o Canthaveacontractunlesstheoffercontainsthe4materialterms Judgewillnotfillinthesematerialterms
EmploymentContracto 3MaterialTerms
Title/dutiesoftheemployee Atitleissufficient
o Ex)youwillbethepresident Compensationoftheemployee
Termsmustbedefiniteandcertain,andmustnotbevagueorambiguousorindefiniteoruncertain
o handsomesalaryandfairbonusisnotgoodenough
CommencementDateo Ifmissingamaterialterm,thereisnocontracto Note:evenifthereisnocontract,employeecouldstillrecoverin
quasi-contract,allowinghimtorecoverforthefairandreasonablevalueoftheservicesrendered
ContractforSaleofGoodso OnlyoneMaterialTerm
Thequantityofthegoods(iftheyintendtocontract)o Whatdoyoudowiththemissingterms?
Thegapfillers Openpriceterm=marketpriceondateofdelivery Openpaymentterm=collectondelivery Opendeliverydate=withinareasonabletime Openplaceofdelivery=sellersplaceofbusiness
o Exception Requirementscontract
Twopartiesdonthavetoagreeonaspecificquantity,justtheonepartysactualgoodfaithrequirements
Offero Cantherebeanoraloffertosellrealproperty?
Yes TheSOFonlyappliestocontracts
o Theoffercanbeoralaslongasthecontractisinwriting
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Aslongasthematerialtermsareinawrittencontractitsfine
o Isanofferassignable? NO
o Whathappenswhentheofferordies? Thedeathoftheofferorortheoffereerevokesorterminatesthatoffer(eventhoughtheotherpartydidnthavenoticeofthe
death) TerminationofanOffer
o Byexpiration Ifnotimeisstated,thenitexpiresafterareasonabletime Whatisareasonabletime?
Factorstoconsidero Perishability(e.g.bananas)o Pricefluctuationo Knownneedsoftheofferor
o ByRevocation Revocationisacceptedwhenreceived
NOTE:eveniftheoffereedoesntreaditthen Byanymethodofcommunication
(oral,written,orbyconduct) Revocationanbecommunicateddirectlyorindirectly
o ByRejection Acounterofferisarejection AninquiryisNOTarejection Arejectioniseffectiveuponreceipt
ItdoesNOThavetobereadtobeeffectiveo Bydeathofofferorordeathofoffereebeforeacceptance
NoteonMailboxRuleforwhenAcceptanceIsEffectiveo Iftheoffereeusesthesamemethodofcommunicationthattheofferor
uses,theacceptanceiseffectiveupondispatcho Iftheoffereeusesadifferentmethodofcommunicationthanthe
offerorused,theacceptanceisonlyeffectiveonreceipt(notonmailing)
o UndertheUCC Anoffermadetosellgoodscanbeacceptedinanymannerand
byanymediumreasonableinthecircumstances Reasonable=asfastorfasterthanthemeansusedby
theofferor Thentheacceptanceiseffectiveupondispatch
Butiftheoffereeusesaslowermeansofcommunication,acceptanceisnoteffectiveuntilreceipt
OptionContracts o CommonLaw
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Underthecommonlaw,anoptioncontractisunenforceableifitisNOTsupportedbyconsiderationeventhoughitisinwritingandsignedbythepartytobecharged
o NYDistinction UndertheNYGOL,anirrevocableofferinasignedwritingis
enforceabledespitetheabsenceofconsiderationforthetimestated(orifnotimeisstated,forareasonabletime).
NOTE:thereisnomaximumperiodofirrevocability ExamTip:alwaysmentionthattheoffereedidnotgive
considerationforthecontracto UCCArticle2
FirmOffer UnderArticle2oftheUCC,afirmofferisanofferwhich
byitstermsgivesASSURANCETHATITWILLBEHELDOPEN
UnderArticle2oftheUCC,afirmoffermadebyamerchanttosellgoodsinasignedwritingisenforceable,despitetheabsenceofconsideration,forthetimestated,orifnotimeisstated,forareasonabletime.However,themaximumperiodofirrevocabilityis3months.
Note:thefirst3monthsareirrevocable,buttheofferisstillonthetableafterthefirst3months
o Afterthefirst3months,theofferisstillonthetable,BUTitisrevocable
o Theofferremainsonthetableuntilitisrevoked LanguageofFirmOffer
Thisofferisfirmfor10days Thisofferisirrevocablefor3weeks Iwillnotcountermandmyofferfor10days Take10daystodecidewhethertoacceptmyofferis
NOTafirmoffer YouhaveafullweektoacceptmyofferisNOTafirm
offer BattleoftheForms
o UnderArticle2oftheUCC,adefiniteandtimelyexpressionofacceptanceoperatesasanacceptanceandformsacontracteventhoughtheacceptancecontainsadditionaltermsordifferenttermsthantheofferorstated
NOTE:itdoesNOThavetobeinwriting NOTE:itcanbebyconduct(e.g.ahandshake)
o Between2merchants,theadditionaltermsordifferenttermsbecomepartofthecontractUNLESS:
Theymateriallyaltertheoffer;OR Ex)arbitrationclausesmateriallyaltertheoffer
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o Thearbitratordoesnothavetobealawyer,butinajudicialproceedingthejudgehastobealawyer
o Anarbitratordoesnothavetofollowtherulesofevidence,butajudgemust
o Verylimitedgroundstoappealanarbitratorsdecision Onlyforbias,misconduct,orfraud
Ex)awaiveroftrialbyjury Ex)aforumselectionclause Ex)anexclusionofallwarranties Ex)limitedliabilityclauses Ex)asubstantialreductionintheSOLrule Ex)SellersayswedeliveronlyonFriday,buyersayswe
acceptanddeliveronThursday Ex)withallfaults Ex)wesellyouthesegoodsasisandthenbuyeraddswarranties
Theofferorexpresslylimitsacceptancetohisterms;OR Theofferorgivesnotice(oralorwritten)ofobjectiontothe
additionaltermsordifferenttermswithinareasonabletime StatuteofFrauds
o UndertheNYGOL,acontractto..mustbeinwritingandsignedbythepartytobecharged(orhislawfulagent)inordertobeenforceable
o WhatfallsundertheSOF: MYLEGS MarriageContracts
Hardlyevertested YearContracts
4Commonlytestedversionso Acontractwhichcannotbeperformedwithin
oneyearofthedateitwasMADEmustbeinwritingandsignedbythepartytobecharged(orhislawfulagent)inordertobeenforceable
o UndertheNYGOL,aleaseofrealpropertyforatermlongerthanoneyearmustbeinwritingandsignedbythepartytobecharged(orhislawful
agent)inordertobeenforceable Note:itdoesNOTmatterwhenthelease
wasmade,justhowlongtheleasetermis Anoralleaseforexactlyoneyear
isenforceableo Alifetimecontract
MBERule:Orallifetimecontractsareenforceable
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NYDistinction:Orallifetimecontractsareunenforceable.
UndertheNYGOL,acontractthatcannotbeperformedbeforetheendofalifetimemustbeinwriting
o IfaservicecontractcanPOSSIBLYbeperformedwithinoneyearfromthedateitwasMADE,itisenforceableeventhoughitisoral
LandContracts UndertheNYGOL,acontracttobuyorsellorexchange
realpropertymustbeinwritingandsignedbythepartytobecharged(orhislawfulagent)inordertobeenforced
o REGARDLESSofdollaramount Exception
o Abuyerwillhavetosatisfy2ofthefollowing3requirementstoenforceanoralcontract:
Buyermustgiveselleradeposit Apennyissufficient
Buyermusttakepossessionofsellersproperty(withsellersconsent)
Buyermustmakesubstantialimprovementtotherealproperty
Amountofmoneyspent,amountofsquarefootageadded,etc
ExecutorContracts Hardlyevertested
GoodsContracts UnderArticle2oftheUCC,acontractforthesaleof
goodsforapriceof$500ormoremustbeinwritingandsignedbythepartytobecharged(orhisauthorizedagentorbroker)inordertobeenforced
Exceptionsforwhenoralcontractisenforcedo MAPSo Merchantmemorule
UnderArticle2oftheUCCmerchantmemorule,whenonemerchantsendsthesecondmerchantasigned,written
confirmationofanoralcontractwhichisreceivedwithinareasonableamountoftimeaftertheoralcontractwasmadeandthemerchanthadreasontoknowitscontentsanddidnotobjectinwritingwithin10daysafterreceipt,thentheoralcontractisenforceable
o Admission
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o Partperformance UnderArticle2oftheUCC,anoral
contractforthesaleofgoodswhichdoesnotsatisfytheSOFisenforceableONLYforthequantityofgoodsforwhich
paymenthasbeenmadeandaccepted,ordeliveredandaccepted
Example:Sellersayshellsell10widgetsfor10K.Buyergiveshimacheckfor2K.Sellerdepositscheck.Thensellerwantstogetoutofthecontract.Sellermustdeliver2widgets
o Theselleracceptedthebuyersdepositbecausehedepositedthecheckinthe
banko Speciallymanufacturedgoods
SuretyshipContracts UndertheNYGOL,acontracttoguaranteethedebtof
anothermustbeinwritingandsignedbythepartytobecharged(orhislawfulagent)inordertobeenforced
Aguaranteeo 1)MUSTbesupportedbyconsiderationo 2)MUSTsatisfythestatuteoffrauds
Exceptiono MBErule
Underthemainpurposeruleexception,anoralguaranteeisenforceabledespitetheabsenceofconsiderationiftheguarantorderivedsomedirecteconomicbenefitasaresultofgivinghisoralguarantee
o NYDistinction NYdoesNOTrecognizethemainpurpose
ruleexception.Therefore,anoralguaranteeisNEVERenforceableinNewYork,eventhough(1)thecreditorrelied
ontheoralguarantee,or(2)thecreditormateriallychangedhispositioninreliance,or(3)thecreditorknewtheguarantorwasawealthypurpose
Considerationo Apartygivesconsiderationwhenheincursalegaldetrimentor
confersabenefito Theconsiderationmustbeactuallybargainedforandexchanged
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o Theconsiderationcanbeeither Apromise; Arequestedact;or Refrainingfromperformingaspecifiedact
o TheconsiderationexchangeddoesNOThavetobeequalinvalueo PastconsiderationisNOTvalidconsideration NYDISTINCTION
UndertheNYGOL,apromiseisenforceablewhenbaseduponpastconsiderationifitisinwritingandsignedbythepartytobecharged(orhislawfulagent)provided:
o Thepastconsiderationisrecitedinthesignedwriting;
o Thepastconsiderationwasperformedbythepromise;AND
o Thepromiseewasnotunderapreexistingduty Testedin:
o goodSamaritancasesandfaithfulemployeecaseso PreexistingDutyRule
Apartydoesnotgiveconsiderationwhenheperformsacontractwhichhewasunderapreexistingdutytoperform
ModificationofContractso MBERule
Modificationsofcontractsrequireconsiderationforthemodification
o NewYorkDistinction UndertheNYGOL,apromiseoragreementtomodifyor
changeordischarge... Anycontract(realestate,employment,service,
contractstobuild,andsaleofgoods) Anobligation Amortgage Alease Asecurityagreement
...isenforceabledespitetheabsenceofconsiderationifitisinwritingandsignedbythepartytobecharged(orhislawfulagent)
ExamTip: ALWAYSMENTION:Thepartyprocuringthe
modificationdidnotgiveconsiderationbecausehewasunderapreexistingdutytoperform
ALWAYSMENTION:Thefactthatthebuyerdidnotalsosignthemodificationletterislegallyirrelevantbecauseheisnotthepartytobecharged
ModificationofSaleofGoodsContracts
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o UnderArticle2oftheUCC,amodificationofasaleofgoodscontractneedsnoconsiderationtobebinding
o But,inordertobeenforceable: Thepartyprocuringthemodificationmustbeactingingood
faith,havealegitimatecommercialreason,andnotbeguiltyof
commercialextortiono Themodificationagreementmustsatisfythestatuteoffrauds
CRIMINALLAW
Homicideo Murder1
Intentionalmurder,plusoneof13specialcircumstances Victimisapoliceofficer
o Thevictimisapoliceofficerwhoatthetimeofhiskillingwasengagedintheperformanceofhisofficialdutiesandthedefendantkneworreasonablyshouldhaveknownthathewasapoliceofficer
o ALWAYSMENTION Killingapoliceofficerunderthose
circumstancesisaggravatedmurderinthefirstdegree
Murderforhireo UndertheNYPenalLaw,apersonisguiltyof
murderinthefirstdegreewhenwithintentto
causethedeathofanotherperson,sheprocuredthecommissionorcommittedthekillingpursuanttoanagreementfortheexpectationofanythingofpecuniaryvalue
Note:TheDmustbeatleast18yearsoldatthedateofkillingtobeconvictedofmurder1
Exam UndertheNYPenalLaw,apersonisguiltyofmurderin
thefirstdegreewhenwithintenttocausethedeathofanotherperson,hecausesthedeathofthatpersonorofanotherperson(codifiesthecommonlawdoctrineof
transferredintent)andoneofthe13specialcircumstancesapply
Noteonvoluntaryintoxication: UndertheNYPenalLaw,aDmayintroduceevidenceof
voluntaryintoxicationtonegatethespecificintentrequiredtoconvicthim
o Murder1woulddropdowntoManslaughter2o Murder2
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IntentionalMurder Withoutthespecialcircumstances
FelonyMurder UndertheNYPenalLawapersonisguiltyoffelony
murderwhenheoranotherparticipantcausesthe
deathofanonparticipantduringthecommissionorattemptedcommissionofanenumeratedfelonyorwhileinimmediateflighttherefrom
o Whataretheenumeratedfelonies? BRAKES
Thedeathofthenonparticipantmustbeanaturalandprobableconsequenceofthefelonyandmustbeforeseeable
DepravedIndifferencetohumanlife Note:
Alsoanymurderthatwouldbemurder1wheretheDisunder18
Note: FelonymurderandDepravedIndifferencearemalice
crimeso IfDisvoluntaryintoxicated,heisstillguiltyof
thefelonymurderandthedepravedindifferencemurderevenifforfelonymurderitmeansthathenolongerhadthespecificintentfortheunderlyingcrime
o Manslaughter1 UndertheNYPenalLaw,apersonisguiltyofmanslaughterin
thefirstdegreewhenwithintenttocauseseriousphysicalinjuryhecausesthedeathofthatperson(orofanotherperson[codifyingthecommonlawdoctrineoftransferredintent])
ExtremeEmotionalDisturbance(heatofpassion) UndertheNYPenalLawapersonchargedwithmurder
inthe2nddegree(intentionalmurder)hasanaffirmativedefensethatheactedundertheinfluenceofextremeemotionaldisturbanceforwhichtherewasareasonableexplanationorexcuse.
WhenthisDprovestothesatisfactionofthejurythatheactedundertheinfluenceofEED,theDcanonlybe
convictedofmanslaughterinthefirstdegree WHENDISCUSSINGANAFFIRMATIVEDEFENSE
ALWAYSMENTION:o TheDmustestablishhisaffirmativedefensebya
preponderanceoftheevidenceandtheprosecutionmustdisprovehisaffirmativedefensebeyondareasonabledoubt
o Manslaughter2
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UndertheNYPenalLawapersonisguiltyofmanslaughterintheseconddegree,whenherecklesslycausesthedeathofanotherperson
Ex)Murder1wheretheDisvoluntarilyintoxicated Recklessapersonactsrecklesslywhenheisawareofand
consciouslydisregardsasubstantialandunjustifiableriskthataparticularresult(inthiscase,death)willoccur
UndertheNYPenallaw,avoluntarilyintoxicatedpersonactsrecklesslywhen,byhisconduct,hecreatesasubstantialandunjustifiableriskthatdeathwilloccurEVENTHOUGHHEWASUNAWAREBECAUSEHEWASVOLUNTARILYINTOXICATED
ReadtheDegreeso Burglary
3degreesallfelonieso Robbery
3degreesallfelonieso Arson
5degrees4degreesarefelonies,1isamisdemeanor LookatGrandLarceny
o Thedollaramountthatthethiefstealsandwhetheritisgrandlarcenyinthe1st,2nd,3rd,or4thdegree
1stdegree mustexceed$1million
2nddegree mustexceed$50,000
3rddegree mustexceed$3,000
4thdegree mustexceed$1,000 Itisgrandlarcenyinthefourthdegreeregardlessofthe
valueandnatureofthestolenpropertyifitisacreditcard,adebitcard,agun,amotorvehicleexceeding$100,propertyobtainedbyextortion,oranypropertystolenfromtheperson(evenifthereisnothinginthewallet)
NEWYORKPRACTICE
StatuteofLimitationso UndertheCPLR,theSOLfora..is..yearsfromthedatethecause
ofactionaccrued.o Breachofemploymentcontract
6years
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o Breachofrealestatecontract 6years
o Breachofsaleofgoodscontract UnderArticle2oftheUCC,theSOLforabreachofasaleof
goodscontractis4yearsfromthedatethecauseofaction
accrued(thedateofthebreach) NOTE:
Sellerandbuyermayreducethe4yearSOLintheiroriginalcontract,buttheycannotreduceittolessthan1year
o Breachofwarrantyinasaleofgoodscontract UnderArticle2oftheUCC,theSOLforabreachofwarranty
claimis4yearsfromthedatetheparticulardefendantdeliveredthegoodstohisimmediatetransferee
o Claimforcontributionorindemnification UndertheCPLR,theSOLforaclaimforcontributionor
indemnificationis6yearsfromthedateofpaymento Replevinaction
UndertheCPLR,theSOLforalegalactionforreplevinis3yearsfromthedatethecauseofactionaccrued
Whereisthistested? Venuequestions
o VenueisproperineitherthecountythePorDresidesinorthecountywherethepersonalpropertyislocatedonthedatetheactioniscommenced
Bailmentquestionso Bailmentatransferofpossession,butnottitle,
topersonalproperty Article2salesquestions
o Carriercasewitharailroad Thisisamutualbenefitbailment
o Saleonapproval Readthisinbarbri
o Replevinisabuyersremedyforabreachofcontractbytheseller
o Conversionaction 3yearsfromthedatethecauseofactionaccrues
o Personalinjuryaction 3yearsfromthedatethecauseofactionaccrues(dateof
injury)o Propertydamageactions
3yearsfromthedateofthepropertydamage(notwhenthePdiscoversthedamage)
o Nonmedicalprofessionalmalpractice WhowillbetheD?
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Architect,attorney,CPA,professionalengineer,landsurveyor
WhatistheSOL? 3yearsfromthedatethecauseofactionaccrues
o MedicalMalpractice 2.5years UndertheCPLR,theSOLformedicalmalpracticeis2.5years
fromthedatethecauseofactionaccrues Continuoustreatmentdoctrine
UndertheCPLRcontinuoustreatmentdoctrine,theSOLwillbegintorunfromthedateofthelasttreatmentforthesamemedicalcondition
ForeignObjectdoctrine UndertheCPLRforeignobjectdoctrine,thePwillhave
eithertheapplicableSOL(2.5years)oroneyearfromthedatehediscoveredtheforeignobjectorshouldhave
discovereditbytheexerciseofduediligence,whicheverislater
ForeignObjectanyobjectleftinthepatientsbodyunintentionallyandwhichdoesnotserveanymedicalpurpose
o Tortactionagainstamunicipaldefendant UndertheNYGeneralMunicipalLaw,theSOLforatortaction
againstamunicipaldefendantis1yearand90daysfromthedatethecauseofactionaccrued
ThePmustserveaSWORNNOTICEOFCLAIMuponthemunicipaldefendant(butnotthemunicipalemployee)within
90daysafterthecauseofactionaccrued Underthisstatute,themunicipaldefendantmustindemnify
themunicipalemployeewhocommitsthetortwhileactingwithinthescopeofhisemployment,EVENTHOUGHthemunicipalemployeewasnegligentorgrosslynegligent
ThemunicipalDcanbe: Acity,acounty,avillage,atown,aschooldistrict,afire
district,thesubwaysystem,thebuscompanyo SurvivalClaims
Asurvivalclaimisanyclaimthedecedenthadathisdeathwhichisnottimebarredasofthedateofhisdeath
UndertheCPLRtheSOLforasurvivalclaimiseithertheapplicableSOLor1yearfromthedateofdeath,whicheverislater
Note: Inasurvivalclaimtortaction,youwillbeaskedwhat
canberecovered:o Decedentspainandsuffering
Thiscanberecovered
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o Decedentslostwagesuptodateofdeath Thatcanberecovered
o Decedentsmedicalexpensesuptodateofdeath Thatcanberecovered
o Decedentspropertydamage Thiscanberecovered Assumedecedentleftwill
o 50%towifeo 0toonlychildo 50%tobestfriend
Assume$1millionsurvivalclaimawardo Whogetsthemoney?
Whenmakingadistributionofasurvivalclaimaward,youFOLLOWTHEWILL(notthelawofintestacy)
Wifegets$500K OnlychildgetsnothingbecauseundertheEPTLatestatorcandisinherithischildren Friendgets$500K
o WrongfulDeathAction UndertheEPTL,theSOLforawrongfuldeathactionis2years
fromthedateofdeathprovidedthattheSOLhasnotexpiredontheunderlyingsurvivalclaimasofthedateofhisdeath
Note:ifsurvivalclaimistimebarred,thenthewrongfuldeathactionisalsotimebarred
o Ifthesurvivalclaimisnottimebarred,thenthewrongfuldeathactionisalsonottimebarred
Whocanbringawrongfuldeathaction? UndertheEPTLonlythedistributeesofthedecedent
cancommenceawrongfuldeathaction DistributeeUndertheEPTLadistributeeisaperson
entitledtoinheritfromthedecedentunderthelawofintestacy
Whatcanberecovered? UndertheEPTL,thedistributeescanrecoverONLY
theirpecuniarylosso Notforthedecedentspainandsufferingo Notforthedistributeesemotionalpainand
suffering Assumedecedentleftawill
o 50%towifeo 0todaughtero 50%tofriend
Assume$1millionwrongfuldeathactionrecovery.Whogetsthemoney?
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o WhendistributingawrongfuldeathawardyouIGNOREthewillandfollowthelawofintestacy
o Thewifegetsthefirst50Kplusonehalfoftheremainder
$525,000o Thedaughterreceivestheotherhalfoftheremainder
$475,000 BonusPoints:
Interestaccruesonthewrongfuldeathawardattherateof9%perannumfromthedateofdeath
Punitivedamagescanberecoveredinawrongfuldeathact
Wrongfuldeathactionsarecreatedbystatuteo Intentionaltorts
UndertheCPLR,theSOLforanintentionaltortis1yearfromthedatethatthecauseofactionaccrued
Whatarethey? Assault Defamation Falseimprisonment Maliciousprosecution IntentionalInflictionofEmotionalDistress Invasionofprivacy
TollingoftheStatuteofLimitationso Children/Minors
UndertheCPLR,theSOListolledduringPsinfancyuntilhereachestheageofmajority,whichis18inNewYork
WhentheapplicableSOLis3yearsorlonger,theinfantplaintiffwillhaveeither:(1)3yearsfromhis18thbirthday;or(2)theapplicableSOLwhichbeginstorunonthedatehiscauseofactionaccrued,WHICHEVERislater
UndertheCPLR,whentheapplicableSOLislessthan3yearsitbeginstorunontheminors18thbirthday
3211MotiontoDismiss o DOWNFALL
Documentaryevidence Otheractionpending Wantoflegalcapacity Nonjoinderofanecessaryparty Failuretostateacauseofaction AffirmativeDefenses Lackofpersonaljurisdiction Lackofsubjectmatterjurisdiction
o Thereare3groundsthatareneverwaivedbyDeventhoughtheDdidnotraisethosethreegroundsinhis3211motionorinhisanswer
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NFL Nonjoinderofanecessaryparty Failuretostateacauseofaction Lackofsubjectmatterjurisdiction
Notetheycanraiseitonappeal
o SPARERIBS(theaffirmativedefenses) Statuteoflimitations
Frequentlytested Payment ArbitrationAward Resjudicata Estoppel Release Infancyofthemovingparty Bankruptcy StatuteofFrauds
Frequentlytestedo TheDcanonlymakeone3211motion
InthatmotionhecanputdownasmanyoftheDOWNFALLorSPARERIBSgroundsashewants
o Thedeadlinetomakea3211motionisthelastdaytheanswerisdueo ItisoptionalfortheDtomakea3211motiontodismisswhenhehas
groundstodosoo Note:
IftheDmakesaCPLR3211motionanddoesnotraiselackofpersonaljurisdiction,heCANNOTthereafterraiselackof
personaljurisdictioninhisanswero Note:
Alwayssaywhetheritisdismissedwithprejudiceorwithoutprejudice
Article16oftheCPLRo UnderArticle16oftheCPLR,atortfeasorwhois50%orlessliablefor
PsinjurieswillhavelimitedliabilityforPsnoneconomicdamagesbaseduponhisequitableshare,BUThewillbeliablefor100%ofplaintiffseconomicdamages
o ExceptionswhenArticle16isnotavailable: Tortfeasorissuedforwrongfuldeath Tortfeasorcommitsanintentionaltort Tortfeasoractedwithrecklessdisregardforthesafetyof
others(grosslynegligent) Tortfeasorreleasesahazardoussubstanceintothe
environment Tortfeasorcommitstortwhileoperatingamotorvehicle
Thisishighlytested Exceptiontotheexception
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o Whenapoliceofficerorfirefighteroperatesamotorvehiclewhileactingwithinthescopeofhisemploymentwhenheis50%orlessliableforthePsinjuries
OrderofAttachmento UnderwhatcircumstancescanaPobtainanorderofattachment? UndertheCPLRanorderofattachmentmaybeproperly
obtainedinanyactionexceptamatrimonialactionwherethejudgmentdemandsmoneydamagesINWHOLEORINPARTwherethePcansatisfyanyofthefollowingrequirements:
1)theDisanondomiciliaryofNYoranunlicensedforeigncorporation
o 95%ofthetimeitwillbethis 2)theDisaNYdomiciliarywhocannotbeservedwith
processdespitediligentefforttodoso 3)theDisaNYdomiciliarywhohasremovedor
concealedhisassetsorisabouttodosowithintenttodefraudhiscreditorsorfrustratetheenforcementofajudgment
Note: IfPisjustseekingspecificperformance,cantgetan
orderofattachmento ProceduralRequirements
PmaymakeanexpartemotionoramotiononnoticetotheDatanytimeuptothedateofjudgmentbutnotafterjudgment
Pmustdemonstrateprobabilityofsuccessbyfactfilledaffidavits
PmustpostabondinanamountsetbythecourttoindemnifytheDforhiscostsanddamages,includingreasonableattorneysfees,intheeventtheorderofattachmentisvacatedortheDprevailsonthemerits
IfthePobtainsanorderofattachmentbeforeserviceofprocessismadeuponD,thenPmustserveprocesswithin60daysfromthedatetheorderofattachmentwasgranted
IfPobtainsanorderofattachmentbyexpartemotion,hemustmakeasecondmotion(amotiontoconfirmtheorderofattachment)
Within5daysiftheDisaNYdomiciliary Within10daysiftheDisanondomiciliaryor
unlicensedforeigncorporation Theorderofattachmentmustbeserveduponthegarnishees
whoareindebtedtotheD Whatdoestheorderofattachmentapplyto?
o Thebankaccounto Stocksandbondso Royalties
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o Land Theorderofattachmentappliestoanypersonalproperty,
tangibleorintangible,orrealpropertysituatedinNY Thegarnisheeswhoareservedwiththeorderof
attachmentfreezestheassets
NoticeofPendencyo UndertheCPLR,anoticeofpendencymaybeproperlyfiledinany
actionwherethejudgmentdemandedwillaffecttheUSE,POSSESSION,ENJOYMENT,ORTITLEtorealpropertyinNYstate
UPETo DoesthePneedleaveofthecourttofileanoticeofpendency?
NOo DoesthePhavetodemonstrateprobabilityofsuccessonthemerits
byfactfilledaffidavits? NO
o DoesthePhavetopostabond? NO
o WhenthePfilesannoticeofpendency,whatisthedeadlinetodoso? Hemayfilethenoticeofpendencyatanytimeuptothedateof
judgment,butnotaftero IfthePfilesthenoticeofpendencyonJanuary1st,buthehasnotyet
servedtheDwiththesummonsandcomplaint,whatisthedeadlineforservingprocessontheD?
UndertheCPLR,wherethePfiledthenoticeofpendencybeforeserviceofprocessontheD,hemustdosowithin30daysafterthePfiledthenoticeofpendency
o DoestheNoticeofPendencycreatealienontherealproperty? NO,butitdoesrendertitleunmarketable
o ItisoptionaltofiletheNoticeofPendencywhenthePisseekingUPET
Exceptionswhereitismandatory: Amortgageforeclosureaction Apartitionaction
o HowlongisaproperlyfiledNoticeofPendencyeffectivefor? UndertheCPLR,aproperlyfiledNoticeofPendencyiseffective
for3yearsfromthedateoffilingandmaybeextendedforanother3yearsuponmotionmadebeforetheexpirationofthe3yearperiod
Forgoodcauseshowingo CanyougetaNoticeofPendencyinasuitrelatedtothesaleofstock?
NO LooktoNewYorkPracticeNotes
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Corporations Preincorporationcontracts
o ApromoterisALWAYSpersonallyliableoneachpreincorporationcontractwhetherornotthecorporationadoptsorrejectsthepreincorporationcontract
o Thecorporationcanadoptorrejectthepreincorporationcontracteventhoughitisfairandreasonabletothecorporationo Thecorporationcanadoptapreincorporationcontracteither
expresslyorimpliedly Expressadoptionofcorporationboardofdirectorsauthorizes
thepreincorporationcontract Impliedadoptioniftheboardofdirectorsengagesinconduct
thatshowsthecorporationisacceptingthebenefitso Thepromoterandthecorporationwhichadoptsthepre
incorporationcontract,expresslyorimpliedly,arejointlyandseverallyliableonthepreincorporationcontract
Bothareliableforthefullamount,andeachisliableforthefullamounto Alwaysmentionthatthepromoterispersonallyliableoneachpre
incorporationcontractbecauseheimpliedlywarrantstothethirdpartythathehasactualauthoritytoexecutethepreincorporationcontract
UltraVireso Ultraviresbeyondthepowersofthecorporationasthosepowers
aredefinedintheBCL,thecertificateofincorporation,thebylaws,oranyotherapplicablestatute
o UndertheBCL,acorporationcannotsellitssharesbelowparvalue Itisultravirestosellthestockbelowparvalue
o Whatarethecorporations(othershareholders)remedies? Thecorporationcanrecovertheunpaidbalancefrom
cheapskate(whoonlypaid80%ofparvalue)eventhoughthestockcertificatewasstampedpaidinfull
UndertheBCL,thecorporationcancancelanypartoftheshareswhichhavenotbeenfullypaidforwhilethosesharesareinthepossessionofcheapskate
Thecorporationcannotcancelanysharessubsequentlysoldtoagoodfaithpurchaserforvalue
Note:Parvaluemustbeobtainedonlyintheoriginalsalebythecorporation,notwhencheapskateresellsit
Cheapskatecansellitforanypriceeitheraboveorbelowparvalue
o Note Alwaysmentionthatthenewyorkattorneygeneralcanobtain
atemporaryrestrainingordertoenjoinanultravirestransaction
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Orhecancommenceanactiontoannulthecertificateofincorporationordissolvethecorporationbecauseitengagedinanultravirestransactionalcontract
o Itisalsoultravireswhen: Thecertificationofincorporationliststhebusinesspurposeas
onethingandthecorporationseekstodosomethingelse UndertheBCL,neitherpartytoanultravirescontract
canrescindit Whataretheunhappyshareholdersremedies?
AnyshareholdercanobtainaTROtoenjoinanultravirescontractfrombeingclosed
o Note:thenewyorkattorneygeneralcanalsodoso
Whatiftheultravirescontracthasalreadyclosed? Whataretheunhappyshareholdersrights?
o Iftheultravirescontracthasalreadybeenexecutedandperformedandthecorporationlosesmoney,thenunhappycancommenceashareholdersderivativesuitagainsttheofficersanddirectorswhoparticipatedintheultravirestransaction
ShareholdersDerivativeSuito Noleaveofthecourtrequiredtocommenceaderivativesuito Shareholderhastomakeawrittendemandontheboard,unlesssuch
ademandwouldbeuselessorfutileo Tobringaderivativesuit,theshareholdermustownatleastone
shareonthedateoftheallegedwrongdoingandonthedatehe
commencestheshareholderderivativesuito WhatistheSOLforaderivativesuit?
UndertheCPLR,theSOLforashareholderderivativesuitis6yearsfromthedateoftheallegedwrongdoing(notthedateofdiscovery),BUTthecourtmaybarthederivativesuitifPisguiltyoflachesbecauseashareholderderivativesuitisequitableinnature.
o Istheshareholderentitledtoatrialbyjury? No,becauseashareholderderivativesuitisequitableinnature
o Isitnecessaryfortheshareholdertonameandservethecorporationasanominaldefendant?
Yes,thecorporationisanecessarypartytoashareholderderivativesuitandmustbenamedasanominaldefendantandservedwithprocess
o CanthePdiscontinuethederivativesuitoncehestarteditwithoutleaveofthecourt?
No Hecantdiscontinue,compromise,orsettlethe
derivativesuitwithoutleaveofthecourt
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o UndertheBCL,thePmayberequiredtogivesecuritytoindemnifythedefendantsfortheircostsanddamages,includingreasonableattorneysfees,UNLESSthePeitherownsatleast5%ofanyclassofoutstandingsharesorthefairvalueofhissharesEXCEEDS$50,000.
o Whogetsthemoneyrecovered? TheshareholdermustturnoveranyrecoveryobtainedfromtheDstothecorporationbecausethecauseofactionbelongstothecorporation,andnottotheshareholder.
Pcangetattorneyfeesoutoftherecoverythough QuorumandVotingRequirements
o Attheboardofdirectorsmeeting UndertheBCLaquorumataboardofdirectorsmeetingisa
majorityofENTIREboardofdirectorsintheabsenceofanycontraryprovisioninthecertificateincorporationonlyrequiringasupermajorityoranycontraryprovisionineither
thecertificateofincorporationorbylawsrequiringlessthanamajority,butnotlessthan1/3
Canthebylawsprovidethataquorumrequiresasupermajority?
o NO,onlyacertificateofincorporationcanrequireasupermajority
o Thatbylawisultravires VotingRequirements
OrdinaryMatterso Electionofanewpresident
Extraordinarymatterso Mergerorconsolidation(mostcommonlytested)o Saleofallorsubstantiallyallofthecorporate
assets,NOTintheregularcourseofbusinesso Acorporateguaranteenotinfurtheranceof
corporatepurposes Rule(sameforordinarymattersandextraordinary
matters)o UndertheBCL,allordinarymattersandall
extraordinarymattersmustbeapprovedbyamajorityofthedirectorspresentataboardofdirectorsmeetingintheabsenceofanycontrary
provisioninthecertificateofincorporationonlyrequiringasupermajorityvote,assumingaquorumispresent
SpecialRuleo Noquorumisrequiredatboardordirectors
meetingtoelectreplacementdirectorswhenanydirectorsresignordieduringtheirtermofoffice.
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o However,ifnoquorumispresent,thereplacementdirectorsmustbeelectedbyamajorityofthedirectorstheninoffice
o Attheshareholdersmeeting UndertheBCL,aquorumatashareholdersmeetingisa
majorityofalloftheissuedandoutstandingsharesentitledtovote,intheabsenceofanycontraryprovisioninthecertificateofincorporationonlyrequiringasupermajorityoranycontraryprovisionineitherthecertificationorincorporationorbylawsrequiringlessthanamajoritybutnotlessthan1/3
Ifthebylawssaythatthequorumshallconsistof300outof1000shares,thatisanultraviresbylaw
VotingRequirements OrdinaryMatters
o Electionofpresident ExtraordinaryMatters
o Mergerorconsolidationo Saleofallorsubstantiallyallofthecorporate
assets,NOTintheregularcourseofbusinesso Acorporateguaranteenotinfurtheranceof
corporatepurposes Ruleforordinarymatters
o Forordinarymatters,undertheBCLamajorityofallthesharespresentandvotingatashareholdersmeetingisrequiredtoapproveallordinarymatters,intheabsenceofanycontraryprovisioninthecertificateofincorporationonly
requiringasupermajorityvote Assumingduenoticeoftheshareholders
meetingwasgivenandaquorumwaspresent
Whatconstitutesduenotice?o Notlessthan10daysand
nomorethan60days Ruleforextraordinarymatters
o Oldlaw UndertheBCL,ifthecorporationwas
formedbeforeFeb22nd1998,theholders
of2/3ofalltheissuedandoutstandingsharesentitledtovotemustapprovethese3extraordinarymattersintheabsenceofanycontraryprovisioninthecertificateofincorporationonlyrequiringagreatervote
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Assuming:duenoticeoftheshareholdersmeetingwasgivenandaquorumwaspresent
o Newlaw UndertheBCL,ifthecorporationwas
organizedafterFeb22nd
1998,themajorityofalltheissuedandoutstandingsharesentitledtovotemustapprovethese3extraordinarymattersintheabsenceofanycontraryprovisioninthecertificateofincorporationonlyrequiringagreatervote
Assuming:duenoticeoftheshareholdersmeetingwasgivenandaquorumwaspresent
IMPORTANTNOTE:thismajorityruleappliesonlytothefirsttwoextraordinarymatters,nottothethirdone
Thethirdextraordinarymatter(acorporateguaranteeforanoncorporatepurpose)stillrequires2/3ofthetotalshares
Wills
Whataretherequirementsfortheproperexecutionofawill?o UndertheEPTL,thetestatormustbeatleast18yearsoldandof
soundmindandmemoryo Thewillmustbeinwritingo ThewillmustbesignedbytheTestatorattheendthereof
OrTmaydirectanotherpersontosignTsname,inTspresence,whichmustbewitnessedby2otherpersons
4mustbeintheroomo Theremustbeatleasttwoattestingwitnesseswhomustalsosignat
theendandstatetheirresidenceaddress UndertheEPTL,theomissionoftheresidenceaddressofthe
twoattestingwitnessesdoesNOTaffectthevalidityofTswill.o Thetwoattestingwitnessesmustsignwithin30daysofeachother
IfTandtheattestingwitnessesdontsignatthesametime,Tmustacknowledgehissignaturetoeachattestingwitnessbeforetheysignit
o Testatormustpublishhiswill,whichmeanshemustdeclaretoeachattestingwitnessthattheinstrumentwhichThassignedishiswill.
InterestedWitnesseso UndertheEPTL,aninterestedwitnessisawitnesswhoreceivesa
dispositionunderTswill
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o UndertheEPTL,thedispositionmadetoaninterestedwitnessisVOID,butthewillisVALID
WhenadispositionisvoiditlapsesintotheresiduaryintheabsenceofanycontraryprovisioninTswill
Whenadispositionisvoidandthereisnoresiduaryclausethedispositionlapsesintointestacy,inabsenceofacontraryprovisioninthewill
o Exceptions UndertheEPTL,theattestingwitnesswhoisaninterested
witnesswillreceivethedispositionmadetohimifthereareatleasttwootherdisinterestedattestingwitnessesandthetestimonyoftheinterestedwitnessisnotnecessarytoprobateTswill
UndertheEPTL,iftheinterestedwitnessifadistributeeofT,hewilltakeeitherthevoiddispositionunderTswillORhisintestateshare,whicheverisless
UndertheEPTL,adistributeeisapersonentitledtoinheritfromthedecedentunderthelawofintestacyo BonusPoint
Aninterestedwitnessis(1)acompetentwitnessand(2)compellabletotestifyconcerningtheexecutionofTswill
Advancementso UndertheEPTL,anintervivosirrevocablegiftmadebythetestator
(donor)tothedoneewhichisintendedtobeananticipatorydistributiontothedoneeofherinterestinthedonorsestate,eitherunderthewillorunderthelawofintestacy,mustbeprovenbyawritingcontemporaneouslymadewiththegiftandsignedbyeither
thedonororthedonee. Contemporaneousmeanswithin24hours
Onthebarexam,itisusuallynotacontemporaneouswriting
PretermittedChildStatuteso UndertheEPTLpretermittedchildstatute,anafterbornchildwhois
notmentionedinTswillandforwhomThasnotmadeanylifetimesettlement:
WhereTmadeabequesttohisexistingchildren,thegiftsmadetothechildrenwillbetreatedasaclassgiftinwhichafterbornchildCwillshare
AandBget150Keach.Cisafterborn,andwilldoesntmentionC.A,B,andCget100Keach.
IfAgets200andBgets100.CisafterbornandwilldoesntmentionC.
o Amustcontributed2/3ofthe100KthatCwillreceive
o Bmustcontribute1/3ofthe100KthatCwillreceive
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o Proratadistribution WhereTmadealimiteddisposition(e.g.$15each)toeach
existingchild,undertheEPTL,theafterbornchildwilltakehisintestateshare
WhereTdisinheritsAandB,afterbornchildCtakesnothing. WhereThasnochildrenandleaves60%tohiswifeand40%tohismother.AfterbornonlychildCtakeshisintestateshare.
Tdiesandissurvivedbywife,mother,andafterbornchild.Tdieswith$1millionestate.Afterbornchildtakesintestateshare$475K.This475Kcomesfromthemotherandthewife.Themotherhastocontribute40%ofthe475Kandthewifehastocontribute60%ofthe475K.
o Whoisthechild? Anadoptedchild Aposthumouschild(conceivedduringlifetime) Anonmaritalchildwhosepaternityhasbeenproven DoesNOTincludegrandchildren
o Whatifthefathermakesalifetimesettlement(e.g.lifeinsurancepolicynamingC,savingsaccountopenedforchildC,stocksandbondsforthebenefitofC)?
Hetakesnothingfromthewillifheisnotmentioned. Ifthefathermadealifetimesettlement,thenthatafterborn
childcannottakefromthewillunderthepretermittedchildstatute
Revocationofawillo Physicalactsofrevocation
UndertheEPTL,atestatormayrevokeonlyhisentirewillbyphysicalactwhendonewiththeintentiontodoso.
Cantrevokejustpartofhiswillbyphysicalact Note:Thimselfdoesnthavetodothephysicalactof
destroyingthewill UndertheEPTL,Tmayrevokehisentirewillordirectanother
persontorevokehiswillinhispresence,whichmustbewitnessedbytwootherpersons,ifdonewiththeintenttorevokehisentirewill,bythephysicalactof
Burningo Youhavetoburnittoacrisp
Ifstillreadable,thennotrevoked Tearing Cutting Cancellation Obliteration Mutilation Orotherdestruction
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Thecontentsofanaccidentallydestroyedwillcanbeprovenby:
Anunsignedcopyofthewill Thedraftingattorneystestimony Thetestimonyofthetypistwhotypedthewill
UndertheEPTL,atestatorcannotrevokeoralterpartofhiswillbyaphysicalact Disqualificationofasurvivingspouse
o DISMALo Afinaldecreeofdivorceorannulmentorajudicialdecreeof
separationhasbeenenteredthesewilldisqualifyasurvivingspouse
o InvaliddivorceprocuredbythesurvivingspousewhichisnotrecognizedinNY
ThehusbandrunsdowntoHaitiandgetsaHaitidivorce.NYdoesntrecognizethatdivorce.Wifethendiesintestate.
Husbandwontbeallowedtorecoverunderintestacyo Thedeceasedspousehasprocuredaseparationdecreeagainstthe
survivingspouse,whichisvalidinNYsurvivingspousewillnottakeunderthelawsofintestacy
o Marriageisvoid(bigamyandincest)survivingspousewillnottakeunderthelawsofintestacy
o Abandonmentthesurvivingspouseabandonsthedeceasedspouseandtheabandonmentcontinuesuntilthedateofdeath
o Lackofsupport Survivingspouseneglectsorrefusestosupporthisspouse
Nonmaritalchildreno Thedecedentdiedandhehadanonmaritalchild.Thedecedentthen
diesintestateo UndertheEPTL,anonmaritalchildwhocanestablishhispaternityis
entitledtohisintestatesharefromhisdeceasedfather 5waystoestablishpaternity
thefathermarriesthemotheratANYtime anorderoffiliationisenteredbythecourtduringthe
lifetimeofthefather thefathersignsaninstrumentacknowledgingpaternity
o instrumentmustbesignedbythefather,notarized,witnessedbyoneotherperson,and
thatwitnessssignaturemustbenotarizedo itmustbefiledintheputativeregistryfile
byclearandconvincingevidenceconsistingofageneticmarkertest(DNA)orotherevidenceinwhichthefatherOPENLYandNOTORIOUSLYacknowledgedthenonmaritalchildashisownchild
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DomesticRelations Whatarethepropergroundsforaseparation?
o 5grounds Cruelandinhumantreatment
DsmisconductendangerstheemotionalorphysicalormentalwellbeingofthePastorenderitimpracticalorunsafetoremaininthemaritalrelationship
o Asingleactofdomesticviolenceisenough Abandonment
3elementsthataPmustprove:o voluntarydepartureo withoutlegaljustification
legaljustificationexample:adulteryo withoutanintentiontoreturn
Onedayofabandonmentissufficientforseparation Adultery 3yearsofconsecutiveimprisonmentduringmarriage TheDfails,neglects,orrefusestosupporttheotherspouse
whenhehastheopportunityormeanstodoso Whatarethepropergroundsforadivorce?
o 6grounds Cruelandinhumantreatment
Sameasforseparation Abandonment
Theabandonmentmustlastforatleastoneyeartogetadivorce
Abandonmentisacontinuingoffense,sotheabandonedspousecanalwaysobtainadivorce(even50yearslater)
o Thereisnostatuteoflimitationsissueordeadline
Theabandoningspouseisdisqualifiedfromtakinghisintestateshare
Adultery Whenbothspouseshavecommittedadultery,neither
spousecangetadivorcebasedonadultery Affirmativedefenses
o Recrimination Palsocommittedadultery
o Condonation Forgiveness HcommittedadulteryandWfoundout.
HbegsforforgivenessandWtakeshimback.Theseresumecohabitationandtheirmaritalrelations
o Connivance
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PsetupDtocommitadulteryo The5yearSOLfromthedateofdiscoveryof
adulteryhasexpired Whendiscussingtheseaffirmativedefenses,always
mentionthattheDmustestablishhisaffirmative
defensebyapreponderanceoftheevidence,andPmustdisprovetheaffirmativedefensebyapreponderanceoftheevidence
3yearsofconsecutiveimprisonmentduringmarriage Thespousesarelivingseparateandapartforaperiodofat
leastoneyearpursuanttoaseparationdecreeoraseparationagreement,andtheplaintiffhassubstantiallyperformedthetermsoftheseparationdecreeoragreement
ThePcanonlyseekaconversiondivorceifhe/shehassubstantiallyperformedthetermsoftheseparationdecree/agreement
o IfPhasnt,heisadelinquentspouseandcantgettheconversiondivorce NoFaultDivorce
UndertheNYDRL,eitherspousemayobtainanofaultdivorceiftworequirementsaresatisfied:
o 1)themarriageisirretrievablybrokenforatleast6months;AND
o 2)allfinancialissuesandallcustodialissues(withregardstothechildren)havebeenresolvedbythespousesBEFOREcommencementofthenofaultdivorceaction
TheSeparationAgreemento Requirements
Mustbeinwritingandsignedbybothspouses,andtheirsignaturesmustbeacknowledgedbeforeanotarypublic
Mustbefiledatanytimebeforethecommencementofthematrimonialaction
Courtwillapplycommonlawrulesofcontractlawtodeterminethevalidityandenforceabilityoftheseparationagreement
Ifitwassignedunderduressorundueinfluence,theseparationagreementisvoid
o Canbereformed,orrevised ifthereisamutualmistakeoffact,thentheseparation
agreementisvoidableo Note:ifaseparationagreementrequiresmaintenanceorchild
supportandthespouseisdelinquent,thereceivingspousehastwooptions:
1)recovertheamountunpaidbythedelinquentspouse;OR
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2)treatthehusbandsbreachoftheseparationagreementasarepudiation
thetermscanthenbechangedandwifecouldgetmoremoneypermonthifhusbandisnowmakingmoremoney
o Canaseparationagreementberescinded? Note:aseparationagreementcanberescindedonlywhenthespousesresumetheirmaritalrelationship(cohabit)
Onenightofcohabitationisnotenough But,oncethespouseshaveresumedtheirmarital
relationship(theytrytoworkthingsout,butitdoesntworkafteramonth),theseparationagreementhasbeenrescinded
o Thepartieswouldhavetoreexecutetheseparationagreementinordertogetaconversiondivorce
Equitabledistributiono Separatepropertynotsubjecttoequitabledistribution
AnypropertyownedbyHorWbeforemarriage Anygiftordeviseorbequestorinheritanceunderthelawof
intestacyreceivedbyonespouseduringmarriageisseparateproperty
Example:Wgetsabequestfromhermother Compensationforpersonalinjuries
Thisincludessettlements Atottentrust
InthenameofH,intrustforhisnewwifeWo ThisistheseparatepropertyofH
CanHchangethenameofthebeneficiarywithoutWsconsentandwithoutnoticetoW?
o Yes CanHclosetheaccount?
o Yes CanHwithdrawmoneyfromtheaccount?
o Yes Wifesinterestinthetottentrusthasanexpectancy
o Thatsallshehaso Shedoesnthavealegalinterestinthataccount
untilHdies ANYpassiveappreciationinthevalueofseparateproperty
Example:theincreaseinvalueofthestockfrom$100,000to$1,000,000ispassiveappreciation,becausetheincreaseinvalueisduetoexternalmarketforces.
o Thewhole$1,000,000wouldbeseparateproperty
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AnymaritalpropertythatthespousesagreeinaSIGNEDWRITING(notoral)tobeseparateproperty
o Maritalpropertysubjecttoequitabledistribution UndertheEPTL,anypropertyacquiredbyeitherspouse
duringthemarriagewhichisbydefinitionnotseparate
propertyismaritalpropertyREGARDLESSoftheformoftitleinwhichthepropertyisowned
StatutoryFactorsConsideredbyCourtinMakingEquitableDistributionofMaritalProperty:
Thedurationofthemarriageo Alongtermmarriageof15yearsorlonger
usuallywindsupina50/50splito Ashorttermmarriagewontbe50/50
Theageandhealthofthespouseso Ex)Ifwifehasbeenstayathomespousefor
manyyears,thenweconsiderherageandhealth
Theamountofmaintenanceonespousegivestheotherspouse Thefinancialcircumstancesofthespousesbefore
marriage,duringmarriage,andaspredictedinthefuture
Thetaxconsequencestotheparties Thelossofpensionandinheritancerights
o Ex)letssayHsjobhasa30yearpension.First5beforemarriage,15duringthemarriage,lasttenafterthemarriage.Youfactorthe15yearsoutof30intothecalculationoftheequitable
distribution Wastefuldissipationofseparatepropertyormarital
propertybytransferringitwithoutfairconsiderationo Ex)Isellblackacretomybrotherfor$1before
thedivorcetotryandlookpoor NOTE:UndertheNYDRL,thecourtmayexpressly
consideranyotherfactorwhichthecourtEXPRESSLYconsidersjustandequitable
RULE Thecourtwillnotconsiderthemisconductofa
spouseinmakingequitabledistributionofmarital
propertyo EXCEPTION
Unlessthemisconducthasbeensoegregiousastoshocktheconscienceofthecourt
REALPROPERTY
ConcurrentEstates
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o TenancyinCommono JointTenancyo TenancybytheEntirety
Thisistheonemostlikelytobetested WhentwopeopleacquiretitletoBlackacrewhiletheyare
married,theyownBlackacreastenantsbytheentirety? IftwopeoplearelivingtogetherinsininNY,NYwillnot
recognizethecommonlawmarriagenottenantsbytheentirety
o Butiftheycamefromanotherstateandcommonlawmarriagewasvalidinthatotherstate,NYwillrecognizethatcommonlawmarriagetheywillbetenantsbytheentirety
IftheybuyBlackacrewhiletheyareengaged,theyarenottenantsbytheentiretyaftertheygetmarried
Howtorevokeatenancybytheentirety? Divorce,annulment,orjudicialdecreeofseparation
o Whenrevoked,theynowownBlackacreastenantsincommon
Whatiftheyseparate,butthereisnoseparationdecreeoragreement?
o Theystillownitastenantsbytheentirety Canaspousemortgagehishalfinterest?
MBEo Aspousecannotmortgagehishalfinterestin
realpropertyownedastenantsbytheentirety NY
o Aspousecanmortgagehishalfinterest,BUTthemortgageebankmustforeclosethemortgagebeforethemortgagordies
Ifmortgageedoesnotdoso,thensurvivingspouseownsblackacrefreeandclearofthemortgage
Canthehusbandaloneexecuteadeedtoconveyblackacretoathirdproperty?
NO Thedeedisvoidandthebuyergetsnothing
CanatenantbytheentiretycommenceapartitionactionseekingacourtordertosellBlackacreanddividetheprofits?
Neitherspousecancommenceapartitionaction.ThereforeDsmotiontodismissmustbegranted,andthegroundisforfailuretostateacauseofaction
UndertheEPTL,whenaninstrumentdescribesthemashusbandandwifeeventhoughtheyarenotmarriedatthetime,buttheygetmarriedafterwards,theythenownblackacreasjointtenantswithrightsofsurvivorship
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Whatiftheynevergetmarriedafter?o UndertheEPTL,whentwoormorepersons
acquireproperty,theyholdtitleastenantsincommonunlesstheinstrumentexpresslydeclaresthemtobejointtenants
AdversePossessiono COAH
Continuous Mustbecontinuousforthestatutoryperiod10years
Open Actual Hostile
Withoutpermissionofthelawfulownero Mustbehostileforthewhole10years
o Onessays,listall4elementsanddiscusswhethereachelementispresent
Dontjustzeroinonthemissingelemento Example
Whenhusbandandwifeadverselypossesspropertytogetherandthentakepossession,theythenownthenewlandastenantsincommon
RISKOFLOSSo CommonLawMBERule
Underthecommonlawdoctrineofequitableconversion,thebuyerhasequitabletitleonthedatethesellersignsthecontractofsale.Withequitabletitle,thebuyerhastheriskoflossintheabsenceofanycontraryprovisionoragreement.
o NYDistinction UndertheUniformVendorandPurchaserRiskAct,theseller
hastheriskoflossbetweenthecontractdateandclosingdateiftherealpropertyismateriallydamagedordestroyedWITHOUTFAULTofthebuyer(ortakenawaybyeminentdomain)unlessthebuyerhastitleorpossessiononthedateofthelossintheabsenceofanycontraryagreement
Ex)Here,thebuyerwasnotatfaultwhenthepropertywasdestroyedbytheactofgod/fire/floodetc.
WhatarethebuyersrightsundertheNYStatute? Underthestatutethebuyerhastherighttorescindthe
contractandrecoverhisentiredeposito Rescissionisanequitableremedy.o Forallequitableremedies(rescission,specific
performance,constructivetrust,etc.): Pmustnotbeguiltyoflaches
(unreasonableandprejudicialdelay) ThePmustreturnanyconsideration
receivedfromtheD
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ThePmustallegethatthereisnoadequatelegalremedyavailable
Thebuyeralsohasthecommonlawrighttopurchasethelandwithoutthehousewithanabatementofthepurchasepriceequaltothevalueofthedestroyed
property(orthevalueofthepropertytakenbyeminentdomain)
Whatifthepropertyisnotmateriallydamaged?Whatifitisonlyalittledamagedoralittletakenawaybyeminentdomain?
Buyerhastobuytheproperty,butheisentitledtoanabatementofthepurchasepriceequaltothevalueofthedestroyedproperty
RaceNoticeo UndertheNYRPL,thesecondbuyerwillprevailoverthefirstbuyerif
hesatisfies3requirements: Hemustbeagoodfaithpurchaseronthedatehesignsthe
contractofsaleorreceivesthedeedormortgage HedoesnothaveactualnoticeofB1scontract,or
constructivenoticeofB1scontract,orinquirynoticeofB1scontract
Hemustgivevalue Loveandaffectionisnotvalue
B2mustrecordfirsto WhathappenswhenneitherB1norB2records?
B1gotequitabletitle Equitabletitlecanonlybegivenonce
B2didnotgetequitabletitle WhenneitherB1norB2records,thenB1willprevailunder
thecommonlawdoctrineofequitableconversionbecauseB1hasequitabletitlewhensellersignedthecontractwithB1.B2doesnthaveequitabletitlebecausesellerhadalreadybeengivenequitabletitletoB1.