Paitchell v. Goldman

Summary

The Appellate Division, First Department affirmed the denial of plaintiffs' motion for summary judgment and the grant of defendants' cross-motion dismissing claims for breach of contract and imposition of a constructive trust. The court held that Harold's failure to execute a will complying with the parties' post-nuptial agreement was a material breach that excused Joanne's performance, and that plaintiffs failed to establish the transfer element required for a constructive trust.

Holdings

1. Harold's failure to execute and maintain a will addressing the apartment's disposition if Joanne predeceased him was a material breach of the post-nuptial agreement and excused Joanne's performance.
2. Plaintiffs were not entitled to a constructive trust because they failed to demonstrate a legally cognizable transfer made in reliance on a promise, and the post-nuptial agreement did not clearly sever or modify the tenancy by the entirety.

Questions Presented

1. Whether Harold's failure to execute a will complying with paragraph 7 of the post-nuptial agreement constituted a material breach that excused Joanne's performance under the agreement.
2. Whether the post-nuptial agreement and related conduct created a legally cognizable transfer or severed the tenancy by the entirety so as to support imposition of a constructive trust.
3. Whether plaintiffs were entitled to summary judgment on their breach-of-contract and constructive-trust claims.

Disposition

affirmed