Rodriguez v Lopez
Annotate this CaseDecided on January 30, 2008
Civil Court of the City of New York, Kings County
Israel Rodriguez, Plaintiff,
against
Osiris Lopez and D'Caches Bar & Night Club, Defendant.
14414/05
Sylvia G. Ash, J.
Plaintiff seeks to recover the sum of $24,000 for alleged breach of an oral
employment contract.
Plaintiff testified that on or about February, 2002, Defendant purchased a Bar located in Brooklyn, New York. That shortly thereafter, Plaintiff and Defendant entered into an oral agreement whereby Plaintiff agreed to assist Defendant in setting up the Bar. Plaintiff stated that he started working as the Manager of the Bar on May 7, 2002, and as the Manager he was responsible for the daily operation of the Bar including obtaining the necessary licenses and permits; dealing with the security alarm company; dealing with the beer and liquor suppliers; hiring, firing and paying the employees and musicians; collecting the proceeds from the Bar and opening and closing the Bar. In exchange for the above duties, Plaintiff testified that Defendant verbally agreed to pay him a weekly salary of $1,500.00 when the Bar started making money. Plaintiff further stated he collected approximately $2000.00 per week in proceeds from the Bar. That there were 5 employees whom he hired to work at the Bar who were each paid $300.00 in cash per week from the collected proceeds. Plaintiff presented witnesses who testified that they were hired and paid by Plaintiff to work at the Bar and that during their employment, although Defendant was present at times, Plaintiff was the Manager and the person responsible for the daily operation of the Bar. Plaintiff stated that all money transactions concerning the operation of the Bar were conducted in cash. Plaintiff further stated he worked at the Bar from May, 2002 to August, 2002 and did not receive any payment from Defendant during this period.
Defendant testified that he knew the Plaintiff since 1998 and that Plaintiff had worked for
him as a taxi driver from 1999 to 2002. That when Plaintiff found out that Defendant had
purchased a Bar, Plaintiff approached him and offered to give him advice on how to operate
[*2]the Bar such as how to obtain the necessary permits and
where to purchase liquor. That in exchange for Plaintiff's advice, Defendant compensated
Plaintiff by reducing his bar bill and that he asked Plaintiff to stop coming to the Bar when he
found out that Plaintiff was stealing liquor from the Bar and being fresh with the clients.
Defendant further testified that at no time did he agree to hire Plaintiff as the Manager of the Bar
and that he never agreed to pay Plaintiff $1,500.00 per week. Defendant produced a witness,
Nelson Batista, who testified that he was hired by Defendant to be the Manager of the Bar and
that he worked at the Bar from April, 2002 until the Bar was sold. Defendant further testified that
he had no business records or receipts from the Bar and that all transactions concerning the Bar
was by way of cash or personal checks.
The Court does not credit Defendant's testimony that the services provided by
Plaintiff was merely friendly unsolicited advice. It is clear from the testimony, that while
Defendant was present at the Bar on a daily basis, Plaintiff was the one who handled the
personnel issues and dealings with various providers and suppliers. Significantly, Plaintiff was
the one who collected the Bar proceeds and paid the employees in Defendant's absence.
Defendant's witness, Nelson Batista's, testimony that he was the Manager of the Bar was not
persuasive. Mr. Batista testified that he had never worked in a Bar and had no prior managerial
experience. He was unable to describe his duties as the Manager, he did not know the names of
the liquor distributors or the security alarm company and did not handle any correspondence
concerning th Bar.
Accordingly, the Court finds that there was an oral agreement between the parties
wherein Defendant agreed to hire Plaintiff to work as the Manager in his Bar. That based on their
past relationship, the parties agreed that Plaintiff would receive payment when the Bar began
making money.
The Court must now determine if the oral agreement between the parties is
enforceable. Oral agreements are covered by the Statute of Frauds as found in section 5-701(a)1)
of the General Obligation Law, which require that employment contracts for more than one year
must be in writing to be enforceable. Therefore any oral agreement for employment for more than
one year is within the Statute of Frauds and is thus unenforceable. Courts have generally been
reluctant to give this provision too broad an interpretation and have limited it to those contracts
that have absolutely no possibility of performance within one year. Wherever an agreement has
been found to be capable of fulfillment within one year, Courts have found the Statute to be
inapplicable. Here the parties did not set a specific length of time for Plaintiff's employment and
the testimony established that Plaintiff's employment lasted less than one year. The Court finds
that the oral agreement in this case constitutes a "hiring at will, terminable at any time by either
party" (Sabetay v Sterling Drug, 69 NY2d 329). A contract that is terminable at will by either
party does not violate the Statute of Frauds. Therefore, the oral agreement between the Plaintiff
and the Defendant does not violate the Statute of Frauds and is thus enforceable. (Raes v. So-Lite
Furniture Corp., 4 AD2d 851).
[*3]
Plaintiff argues that Defendant breached the
contract by failing to pay him for his services.
However, Plaintiff's compensation was conditioned on the business making money.
It was Plaintiff's burden to demonstrate that the condition was met to establish the breach.
Plaintiff testified that the business started making money, but did not produce proof to support
this contention. Both parties testified that during the period that Plaintiff worked at the Bar,
weekly proceeds in the sum of $2,000.00 was collected. However, there was no testimony from
either party as to the weekly expenses of the Bar or whether the $2,000.00 collected were weekly
net proceeds. Plaintiff's testimony established that 5 employees were each paid $300.00 per week
from the $2,000.00 collected which left a balance of $500.00. If we are to assume that the
remaining $500.00 balance was the Bar's profit, it is clear that there was insufficient funds to pay
Plaintiff the $1,500.00 per week pursuant to the terms of the agreement. Accordingly, the Court
finds that Plaintiff has failed to meet his burden and may not recover for breach of contract.
However, "...where a litigant fails to establish the right to recover under an express
contract he may, in the same action, recover in quantum meruit."(Smith v. Kirkpatrick, 305 NY
66). Under quantum meruit a party may recover the value of work, labor, or services. The phrase
quantum meruit means "as much as deserved" ( Buckley & Co. v. New York, 121AD2d 933). It
is used as a device for the prevention of unjust enrichment of one party at the expense of another.
Here, Plaintiff alleged that based on the contract, Defendant has unjustly benefitted at his
expense and seeks compensation. There is no dispute that Plaintiff was not compensated for the
services he rendered. The Court finds that based on the facts of this case, recovery under
quantum meruit is appropriate.
Having found that Plaintiff was an employee of the Bar, as such, he was entitled to
receive weekly compensation for his services. Given the fact that the other employees of the Bar
each received $300.00 per week for their services, the Court finds that as the Manager, Plaintiff
is entitled to receive a sum higher than the amount received by the employees whom he
supervised. Therefore, the Court awards payment of $500.00 per week to the Plaintiff under the
theory of quantum meruit.
Accordingly, Judgment is entered in favor of Plaintiff for the sum of $8,000.00 for
the period from May 7, 2002 through August 31, 2002, plus interest thereon at 9 percent per
annum from August 30, 2002.
This constitute the decision and order of the Court. Plaintiff shall serve a copy of this
order on the Defendant with notice of entry within 30 days hereof.
Dated: January 30, 2008____________________________
SYLVIA G. ASH, J.C.C.
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