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Fleet Bank NH v. Royall

Appellate Division of the Supreme Court of New York, Second Department
Aug 21, 1995
218 A.D.2d 727 (N.Y. App. Div. 1995)

Opinion

August 21, 1995

Appeal from the Supreme Court, Dutchess County (Hillery, J.).


Ordered that the judgment is affirmed, with costs.

On January 6, 1989, the plaintiff's predecessor in interest extended a loan to East Wilder Associates (hereinafter East Wilder), a partnership, in the amount of $275,000. A note was executed by Donald H. Myers and the defendant John A. Royall III. When a default occurred, the plaintiff instituted this action against East Wilder, Royall, and Adelphi Securities Ltd. The plaintiff then sought, and obtained, judgment only against Royall, on the theory that he was a partner by estoppel in East Wilder under Partnership Law § 27.

The Supreme Court correctly determined that the defendant Royall was personally liable based on Partnership Law § 27. In essence, Partnership Law § 27 provides that a person is estopped from denying the existence of a partnership when he, by words spoken or written or by conduct, represents himself, or consents that another represent him, as a partner in an existing partnership (see, Ranieri v. Leavy, 180 A.D.2d 723). While partnership by estoppel should not be lightly invoked and generally presents an issue of fact, here, the evidence submitted on the summary judgment motion leaves no question for trial (see, Royal Bank Trust Co. v. Weintraub, Gold Alper, 68 N.Y.2d 124). That the defendant Royall signed the promissory note and modification agreement is not in dispute and an examination of those documents clearly indicates that Royall signed on behalf of the defaulting defendant, East Wilder Associates. Thus, the plaintiff's motion was properly granted. Bracken, J.P., Ritter, Joy and Goldstein, JJ., concur.


Summaries of

Fleet Bank NH v. Royall

Appellate Division of the Supreme Court of New York, Second Department
Aug 21, 1995
218 A.D.2d 727 (N.Y. App. Div. 1995)
Case details for

Fleet Bank NH v. Royall

Case Details

Full title:FLEET BANK NH, Respondent, v. JOHN A. ROYALL III, Appellant, et al.…

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

Date published: Aug 21, 1995

Citations

218 A.D.2d 727 (N.Y. App. Div. 1995)
630 N.Y.S.2d 559

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