From Casetext: Smarter Legal Research

Computersearch Corp. v. ECL Industries, Inc.

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 7, 1988
142 A.D.2d 961 (N.Y. App. Div. 1988)

Opinion

July 7, 1988

Appeal from the Supreme Court, Erie County, Flaherty, J.

Present — Callahan, J.P., Denman, Boomer, Balio and Lawton, JJ.


Order unanimously affirmed with costs. Memorandum: Plaintiff appeals from an order which granted defendants' motion to dismiss the complaint on the grounds that the first and second causes of action are barred by the Statute of Limitations and the third and fourth causes of action fail to state a cause of action. In opposing defendants' motion at Special Term, plaintiff argued that defendants' filing of a notice of appeal of a prior order, entered June 11, 1987, which allegedly raised the same issue as presented here, vested exclusive jurisdiction in this court and precluded Special Term from considering defendants' subsequent motion to dismiss. Plaintiff conceded on oral argument that its jurisdictional objection is moot as the time to perfect that appeal has expired.

While plaintiff relied solely upon its jurisdictional objection to defendants' motion to dismiss and never addressed the substantive merits until this appeal, we may nevertheless consider them as the question presented is one of law which appeared upon the face of the record (see, Matter of Block v Franklin Sq. Union Free School Dist., 72 A.D.2d 602).

Plaintiff contends that its second and third causes of action, when read together, "sound in contract" and thus were timely commenced under the applicable six-year Statute of Limitations (see, CPLR 213). The second cause of action, however, only alleges that "Moog was acting as the agent of Defendant NORLIN INDUSTRIES, INC. at the time that it wrongfully breached and repudiated the Agreement", and the third cause of action adds only that plaintiff "undertook these services and supplied this equipment at the instance and request of the Defendant". Plaintiff's contract for computer services is with Moog Music, Inc., a wholly owned subsidiary of defendant Norlin. Plaintiff has commenced a separate action for breach of contract against Moog and that action is still pending. A parent or affiliated corporation will not be held liable for the contractual obligation of a subsidiary or affiliate, unless it is exercising complete domination and control in the matter (see, Berkey v. Third Ave. Ry. Co., 244 N.Y. 84; Gulf W. Corp. v. New York Times Co., 81 A.D.2d 772, 773; Musman v. Modern Deb, 50 A.D.2d 761). Here, plaintiff failed to show that the activities of defendant, the parent corporation of Moog, sufficiently dominated Moog to make the parent a proper party defendant (see, Bernick v Cigna Corp., 112 A.D.2d 45). Plaintiff raises no argument on appeal with respect to the court's dismissal of plaintiff's first and fourth causes of action, and agreed at oral argument that they were properly dismissed.


Summaries of

Computersearch Corp. v. ECL Industries, Inc.

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 7, 1988
142 A.D.2d 961 (N.Y. App. Div. 1988)
Case details for

Computersearch Corp. v. ECL Industries, Inc.

Case Details

Full title:COMPUTERSEARCH CORPORATION, Appellant, v. ECL INDUSTRIES, INC., et al.…

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

Date published: Jul 7, 1988

Citations

142 A.D.2d 961 (N.Y. App. Div. 1988)

Citing Cases

Lorkowski v. J.C. Pitman Company, Inc.

In opposition to that showing, plaintiff failed to raise any issue of fact that would preclude judgment in…

Lippens v. Winkler Int'l Corp.

Consequently, Werner has no successor liability exposure as to Winkler GmbH under this exception.…