On April 19, 2023, Justice Ruchelsman of the Kings County Supreme Court issued a decision in Jiang v. Howe, 2023 NY Slip Op. 31304(U), holding that the Statute of Frauds barred a contract claim relating to a real estate investment, explaining:
It is further well settled that to succeed upon a claim of breath of contract the plaintiff must establish the existence of
(Internal quotations and citations omitted).
a contract, the plaintiff’s performance, the defendant’s breach and resulting damages. Moreover, the existence of an oral agreement is generally a question of fact which cannot be summarily determined on a motion to dismiss. The plaintiffs assert the individual plaintiffs entered into an oral agreement with the defendant ‘upon her promise that such monies would be repaid within three months, with interest. However, the Verified Complaint specifically states that Howe informed Plaintiffs that their $400,000 investment would be split into two portions. One part of the $400,000 would be used to purchase 1018 38th Street, Brooklyn, New York. The other part would be used to purchase 239 55th Street, Brooklyn, New York. Thus, the funds were specifically utilized for the purchase of real property, The Statute of Frauds provides that an estate or interest in real property cannot be created, granted, assigned, surrendered or declared, unless by act or operation of law, or by a deed or conveyance in writing subscribed by the person creating, granting, assigning, surrendering or declaring the same, or by his lawful agent, thereunto authorized by writing. Thus, there can be no oral contract made between the parties. Consequently, the motion seeking to dismiss the breach of contract claim as to the individual plaintiffs is granted.