NY Mini Review

7/31/2019 NY Mini Review

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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.

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