Nature of the Case
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Facts
P and Ds discussed moving a delicatessen from its previous location at 76 South Broadway. P claims that Ds ultimately entered into a partnership agreement concerning the ownership and operation of Murray's Deli of Nyack, Inc. They also agreed to keep the name Murray's Delicatessen because it possessed a license from the New York State Liquor Authority as well as family name recognition. P renovated the building located on the premises for use as a delicatessen at a cost of approximately $225,000. From early 2007 through the Fall of 2008, Ds worked at Murray's Delicatessen. In 2008, P asked Ds to begin making monthly payments towards their capital contribution of $225,000 each pursuant to the partnership agreement. Ds refused to do so and denied the existence of a partnership, prompting the instant litigation. Ds contend they never entered into a partnership agreement regarding the ownership and operation of Murray's Delicatessen. Ds claim that Michael (D) has always been the owner of Murray's Delicatessen and Eileen (D) and P worked there as employees. Ds also allege that Murray's Delicatessen leased the premises from J & T Staprem pursuant to a commercial lease dated May 1, 2007. P claims that Ds established a partnership by signing a written partnership agreement regarding Murray's Delicatessen in January or February of 2007. P introduced three identical partnership agreements drafted by Eileen (D) dated January 28, 2007. The partnership agreement provided, that the individual parties would not receive salaries from the business but would be paid an hourly wage and share the profits and losses of Murray's Delicatessen based upon the number of hours they worked at the deli. The initial agreement states that each of the individual parties made an initial capital contribution of $100,000 and that Ds would pay P $150,000 each in future capital contributions over the course of ten years by making monthly payments of $1,250 beginning on September 1, 2007 with no interest. According to P, Ds agreed to make capital contributions to him as consideration for his renovation expenditures and forbearance in renting the premises to a third party. P claims that he did not agree with the initial capital contribution term and requested that Eileen (D) draft a revised partnership agreement. The revised agreement was identical to the initial agreement except for the capital contribution term, which was revised to read that Ds would pay P $225,000 each over 10 years plus interest at 7.75%. P testified that Ds signed the revised partnership agreement containing this $225,000 provision and he retained a copy at his gas station. P also testified that this copy of the fully signed revised partnership agreement 'disappeared' around the time the instant controversy arose. Eileen (D) claims that although she drafted and signed three copies of the inital partnership agreement, she did not see Michael (D) sign any partnership agreement. She does not believe Michael (D) signed them because of his refusal to enter into any partnership. Eileen (D) claims that she worked and was compensated by Murray's Delicatessen as an employee rather than a partner beginning in early 2007.
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