Solo Realty owned two properties on Fire Island. While Frank and Susan Lobacz were married, they each owned a 1/4 interest of the company, while the other half was owned by the Sobels.
In 1990, when Frank and Susan separated, Susan borrowed $87,000 from her ex and agreed to repay the debt upon the sale of the Fire Island properties, the sale of the marital residence, or, Susan's 55th birthday--whichever first occurred.
On August 1, 2001, Solo Realty was dissolved, and one of the Fire Island properties was sold to the Sobels, the other was conveyed to Frank.
Six years and fifteen days later, on August 16, 2007, Frank sued Susan in Suffolk County Supreme Court alleging breach of contract for not repaying the monies that had been loaned to her.
After that court dismissed the case as "time barred," an appeal followed.
Since New York law requires that a contract dispute be brought within six years from when a breach occurs, and because Susan's time to repay the loan started to run once the Fire Island properties were transferred, the Appellate Division, Second Department, agreed that Frank was precluded from seeking relief.
Was this one a sleeper?
To view a copy of the Appellate Division's decision, please use this link: Lobacz v. Lobacz