CRC Insurance Services, Inc. v. Kullman

Summary

The Appellate Division, Second Department affirmed an order denying the defendant's motion for summary judgment concerning claims arising from his employment termination, an employment agreement, a promissory note, and related counterclaims. The court held that affidavits submitted by the plaintiff raised triable issues regarding whether the defendant was terminated for cause under California law governing the employment agreement and Texas law governing the promissory note. The court also concluded that the affidavit was not hearsay because it was offered to establish the complaints, investigation, and basis for termination rather than the truth of the alleged misconduct.

Holdings

1. Summary judgment was properly denied because CRC's affidavit raised a triable issue of fact as to whether Kullman's employment was terminated for cause under the employment agreement.
2. Summary judgment was properly denied on Kullman's counterclaim alleging violations of Labor Law §§ 191 and 193 because the affidavit raised triable issues of fact as to whether CRC owed him severance compensation and commissions.
3. Summary judgment dismissing CRC's breach-of-promissory-note claim was properly denied because a triable issue existed as to whether Kullman's employment was terminated for cause under the note.
4. The affidavit was not inadmissible hearsay because it was offered to establish that CRC received complaints, investigated them, and terminated Kullman based on the investigation, rather than to prove the truth of the alleged misconduct.

Questions Presented

1. Whether Kullman was entitled to summary judgment on his counterclaim for breach of the employment agreement based on CRC's alleged failure to pay severance and commissions.
2. Whether Kullman was entitled to summary judgment on his counterclaim alleging violations of Labor Law §§ 191 and 193.
3. Whether Kullman was entitled to summary judgment dismissing CRC's breach-of-promissory-note claim on the ground that his employment was not terminated for cause.
4. Whether the affidavit submitted by CRC constituted inadmissible hearsay.

Disposition

affirmed