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McKernan v. Doniger

Appellate Division of the Supreme Court of New York, Fourth Department
May 11, 1990
161 A.D.2d 1159 (N.Y. App. Div. 1990)

Opinion

May 11, 1990

Appeal from the Supreme Court, Monroe County, Willis, J.

Present — Doerr, J.P., Boomer, Green and Lawton, JJ. (Order entered Mar. 16, 1990.)


Order unanimously reversed on the law with costs, lis pendens canceled and judgment granted, in accordance with the following memorandum: Plaintiff and defendant Doniger are partners. The partnership owns real property in Rochester. Doniger, who has a majority interest in the partnership, executed a purchase and sale contract with a third party on behalf of the partnership. Plaintiff maintains that the proposed sale is prohibited by the partnership agreement. Plaintiff brought an action seeking a declaration of his rights under the partnership agreement and filed a notice of pendency (lis pendens). Supreme Court erred in denying defendants' motion to cancel the lis pendens. A lis pendens is not appropriate in such action (see, Rosen v. Rosen, 126 Misc. 37). In his declaratory judgment action plaintiff does not seek dissolution of the partnership or partition of the partnership assets. Plaintiff's interest in the partnership is an interest in personal property, not an interest in the real property owned by the partnership (see, Partnership Law § 52; General Prop. Corp. v. Diamond, 29 A.D.2d 173, 175). Thus, a judgment declaring plaintiff's rights under the partnership agreement would not directly affect the title to, or the possession, use or enjoyment of, real property (see, CPLR 6501; 5303 Realty Corp. v. O Y Equity Corp., 64 N.Y.2d 313; Interior Design Force v. Dorfman, 151 A.D.2d 461; Alternate Energy Mgt. Corp. v. Fontana, 141 A.D.2d 482).

The Partnership Agreement, upon which plaintiff seeks a declaratory judgment, is clear and unambiguous (see, State of New York v. Home Indem. Co., 66 N.Y.2d 669, 671). The agreement created an entity dealing in real estate in which Doniger has a 75% interest and plaintiff has a 25% interest. Article Thirteen of the agreement entitles plaintiff, upon proper notice, to purchase Doniger's partnership interest in 1993. It also provides for allocation of the relative percentages of partnership ownership before and after the transaction, and establishes the formula to determine the purchase price of Doniger's interest. Nothing in the agreement or in the Partnership Law prohibits Doniger from entering into a contract of sale of partnership assets for the benefit of the partnership prior to 1993. Accordingly, judgment is granted declaring that plaintiff's right to purchase Doniger's partnership interest in 1993 does not give him a right to purchase any specific real property owned by the partnership but only the right to purchase the partnership interest as it may exist in 1993.


Summaries of

McKernan v. Doniger

Appellate Division of the Supreme Court of New York, Fourth Department
May 11, 1990
161 A.D.2d 1159 (N.Y. App. Div. 1990)
Case details for

McKernan v. Doniger

Case Details

Full title:CHARLES McKERNAN, Respondent, v. PETER DONIGER et al., Appellants, et al.…

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

Date published: May 11, 1990

Citations

161 A.D.2d 1159 (N.Y. App. Div. 1990)
555 N.Y.S.2d 517

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