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European Am. Bank v. Syosset Autorama, Inc.

Appellate Division of the Supreme Court of New York, Second Department
May 2, 1994
204 A.D.2d 266 (N.Y. App. Div. 1994)

Opinion

May 2, 1994

Appeal from the Supreme Court, Nassau County (DiNoto, J.).


Ordered that the order is reversed, on the law, with costs, the motion is granted, the respondents' affirmative defenses are dismissed, and the matter is remitted to the Supreme Court, Nassau County, for a hearing to determine the amount of the attorneys' fees owed to the plaintiff under the promissory notes and guarantees which are the subject of the action.

Contrary to the finding of the Supreme Court, there were no triable issues of fact to warrant the denial of the plaintiff's motion for summary judgment. The plaintiff, as the movant, met its initial burden of establishing a prima facie entitlement to judgment as a matter of law by submitting proof of the existence of notes, guarantees, and the default in payment (see, North Fork Bank Trust Co. v. Bernstein Gershman, 201 A.D.2d 472). The respondents, however, failed to meet their burden of coming forward with evidentiary proof demonstrating the existence of a triable issue of fact. The respondents' contention that the plaintiff perpetrated a fraud against them because the guarantees were signed in blank was waived because the respondents continued to make payments pursuant to the guarantees after discovering the alleged fraud (see, Gannett Co. v. Tesler, 177 A.D.2d 353). In any event, the guarantees are clear and unambiguous, and the respondents are required to show something more than their own unsubstantiated, conclusory allegations of fraud (see, Kornfeld v. NRX Technologies, 62 N.Y.2d 686, 687-688; State Bank v. Patel, 167 A.D.2d 242, 243; Columbus Trust Co. v. Campolo, 110 A.D.2d 616, 617, affd 66 N.Y.2d 701). Additionally, to the extent that the respondents relied upon prior or contemporaneous negotiations with the plaintiff at the time of the execution of the notes and guarantees in order to vary the terms of those documents, such assertions violated the parol evidence rule (see, W.W.W. Assocs. v. Giancontieri, 77 N.Y.2d 157, 163; Chimart Assocs. v. Paul, 66 N.Y.2d 570, 571; National Bank v. ESI Group, 167 A.D.2d 453, 454).

In light of the fact that the promissory notes and guarantees grant the plaintiff the right to recover attorneys' fees, we remit the matter to the Supreme Court for a hearing to determine the amount of those fees. Mangano, P.J., Thompson, Joy and Friedmann, JJ., concur.


Summaries of

European Am. Bank v. Syosset Autorama, Inc.

Appellate Division of the Supreme Court of New York, Second Department
May 2, 1994
204 A.D.2d 266 (N.Y. App. Div. 1994)
Case details for

European Am. Bank v. Syosset Autorama, Inc.

Case Details

Full title:EUROPEAN AMERICAN BANK, Appellant, v. SYOSSET AUTORAMA, INC., et al.…

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

Date published: May 2, 1994

Citations

204 A.D.2d 266 (N.Y. App. Div. 1994)
611 N.Y.S.2d 585

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