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Cialeo v. Mehlman

Appellate Division of the Supreme Court of New York, First Department
Dec 8, 1994
210 A.D.2d 67 (N.Y. App. Div. 1994)

Opinion

December 8, 1994

Appeal from the Supreme Court, New York County (Diane Lebedeff, J.).


In this action brought by a limited partner against the general partners and the assignees of a mortgage which was the limited partnership's only asset, in which plaintiff alleged that the general partners converted the mortgage and breached their fiduciary duties by pledging the mortgage as collateral for non-partnership obligations, the IAS Court properly concluded that, although the nature of the claim was derivative, plaintiff was not suited to represent the other limited partners in the action based upon, inter alia, plaintiff's statement that he was not concerned with vindicating the rights of the limited partners and the court's conclusion, predicated upon several years of litigation before her, that plaintiff was not interested in anything beyond what was due him personally.

Even if there were an issue of fact with respect to the authenticity of the signature of Wolitzer on an unrecorded assignment, any failure to have the requisite two signatures on the document as required by the partnership agreement did not vitiate the subsequent assignments, since there was no reason for the assignees to be on notice of any claimed irregularity and thus no basis for inquiry as to any alleged forgery or backdating. Nor was there reason to apply the six year contractual limitation period (see, e.g., Baratta v Kozlowski, 94 A.D.2d 454) rather than the shorter period applicable to conversion claims (CPLR 214) in the absence of any allegation of a contractual obligation between plaintiff and the assignees. So, too, based upon the deposition testimony indicating that the title company defendants had not executed the documents at issue, which plaintiff did not attempt to rebut in opposition to the summary judgment motion, there was no fraudulent concealment that would warrant an extension of the accrual of such claims until two years after discovery of the alleged fraud.

We have considered plaintiff's other arguments, including those with respect to the disqualification of counsel and the denial of prejudgment restraints against the general partner defendants, and conclude that they do not warrant a departure from the IAS Court's determination.

Concur — Kupferman, J.P., Rubin, Nardelli and Tom, JJ.


Summaries of

Cialeo v. Mehlman

Appellate Division of the Supreme Court of New York, First Department
Dec 8, 1994
210 A.D.2d 67 (N.Y. App. Div. 1994)
Case details for

Cialeo v. Mehlman

Case Details

Full title:JOSEPH CIALEO, Individually and as a Limited Partner of LEXINGTON-56TH…

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

Date published: Dec 8, 1994

Citations

210 A.D.2d 67 (N.Y. App. Div. 1994)
619 N.Y.S.2d 276

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