Mehdizadeh v. Mehbisar, Inc.

Summary

The Appellate Division, Second Department, affirmed an order denying the defendant summary judgment dismissing the portion of an accounting claim accruing on or after March 24, 2008. The court held that the six-year limitations period did not begin until the plaintiff received direct, definitive notice repudiating his alleged interest, and the defendant failed to establish that such repudiation occurred before March 24, 2008.

Holdings

1. Defendant failed to establish prima facie that it had directly and definitively repudiated the plaintiff's alleged interest before March 24, 2008. Therefore, dismissal of the accounting claim was properly limited to the period more than six years before commencement of the action.
2. Defendant was aggrieved by the order insofar as it denied summary judgment dismissing the portion of the complaint seeking an accounting as of March 24, 2008.

Questions Presented

1. Whether defendant established prima facie that the plaintiff's accounting claim was time-barred as of March 24, 2008.
2. Whether the statute of limitations began to run before March 24, 2008, absent direct and definitive notice repudiating the plaintiff's alleged interest in the corporation.
3. Whether defendant was aggrieved by the order denying summary judgment as to the portion of the accounting claim accruing on or after March 24, 2008.

Disposition

affirmed