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Durable Group, Inc. v. De Benedetto

Appellate Division of the Supreme Court of New York, First Department
Dec 8, 1981
85 A.D.2d 524 (N.Y. App. Div. 1981)

Opinion

December 8, 1981


Order of the Supreme Court, New York County (Maresca, J.), entered May 1, 1981, which granted plaintiff-respondent's motion for summary judgment, modified, on the law and the facts, to the extent of vacating the judgment and denying plaintiff's motion, and, otherwise, affirmed, with costs. Plaintiff-respondent seeks to foreclose on a mechanic's lien in the sum of $42,900 filed for construction work performed for Fratorium, Inc., the defaulting tenant. Defendants-appellants wish to interpose counterclaims based on their position as owners of the premises and guarantors for Fratorium of the construction contract, pursuant to a written modification agreement executed January 29, 1979. There are sufficient triable issues of fact so that summary judgment should not be granted. (Sillman v Twentieth Century-Fox Film Corp., 3 N.Y.2d 395; Marshall, Bratter, Greene, Allison Tucker v Mechner, 53 A.D.2d 537.) As either guarantor or surety, appellants are entitled to assert any defenses or counterclaims that were available to the principal obligor, Fratorium, Inc. (Walcutt v Clevite Corp., 13 N.Y.2d 48, 56), and may contest their liability under the gurantee agreement inasmuch as they are not bound by the default of the principal. (Shapiro v Marstone Distrs., 38 A.D.2d 604; 57 N.Y. Jur, Suretyship and Guaranty, § 240 et seq.) Allegations of economic duress and coercion go to the very essence and validity of the modification agreement signed by the appellants. (Austin Instrument v Loral Corp., 29 N.Y.2d 124; see, also, Taylor Jennings v Bellino Bros. Constr. Co., 57 A.D.2d 42. ) The fact that respondent seeks to foreclose against the property owned by the appellants and avoid any claims of setoff by the now defunct Fratorium company should not bar the appellants, as guarantors of the agreement, from interposing as a defense a right of setoff against the lienors.

Concur — Murphy, P.J., Kupferman, Sandler, Lupiano and Bloom, JJ.


Summaries of

Durable Group, Inc. v. De Benedetto

Appellate Division of the Supreme Court of New York, First Department
Dec 8, 1981
85 A.D.2d 524 (N.Y. App. Div. 1981)
Case details for

Durable Group, Inc. v. De Benedetto

Case Details

Full title:DURABLE GROUP, INC., Respondent, v. MICHAEL DE BENEDETTO et al.…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Dec 8, 1981

Citations

85 A.D.2d 524 (N.Y. App. Div. 1981)

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