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Katz v. Zuckermann

Appellate Division of the Supreme Court of New York, Second Department
Apr 21, 1986
119 A.D.2d 732 (N.Y. App. Div. 1986)

Summary

allowing for recovery despite illegal contract under theory of unjust enrichment

Summary of this case from Kleinberg v. Radian Group, Inc.

Opinion

April 21, 1986

Appeal from the Supreme Court, Queens Count (Beerman, J.).


Order affirmed insofar as appealed from, with costs.

The defendant, who is a medical doctor, entered into an agreement with the plaintiffs, who are nonprofessional medical technicians, wherein the defendant would pay the plaintiffs 50% of the fees (less certain office expenses) received for certain tests performed by the plaintiffs on the defendant's patients. Special Term properly found that this fee-splitting arrangement was violative of the laws of this State (see, Education Law § 6509-a; 8 NYCRR 29.1 [b] [4]; Matter of Bell v. Board of Regents, 295 N.Y. 101, 111, reh denied 295 N.Y. 821; Baliotti v Walkes, 115 A.D.2d 581). While the courts will generally not enforce illegal contracts, an exception to the rule is recognized where, as here, the contract is merely prohibited by statute (malum prohibitum), and is not criminal in nature (see, Rosasco Creameries v. Cohen, 276 N.Y. 274). Therefore, under the circumstances of this case, Special Term properly found that the plaintiffs, as nonprofessionals, were less culpable than the defendant, at whom the prohibitions of Education Law § 6509-a are directed, and accordingly they should not be precluded from recovering under a theory of unjust enrichment (see, Baliotti v Walkes, supra). Mollen, P.J., Mangano, Gibbons and Bracken, JJ., concur.


Summaries of

Katz v. Zuckermann

Appellate Division of the Supreme Court of New York, Second Department
Apr 21, 1986
119 A.D.2d 732 (N.Y. App. Div. 1986)

allowing for recovery despite illegal contract under theory of unjust enrichment

Summary of this case from Kleinberg v. Radian Group, Inc.
Case details for

Katz v. Zuckermann

Case Details

Full title:JOSEPH KATZ et al., Respondents, v. EMIL C. ZUCKERMANN, Appellant

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

Date published: Apr 21, 1986

Citations

119 A.D.2d 732 (N.Y. App. Div. 1986)

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