Series of E-mails Insufficient to Save Contract Claim from Dismissal Under the Statute of Frauds

On August 14, 2024, the Second Department issued a decision in Hopwood v. Infinity Contr. Servs. Corp., 2024 NY Slip Op. 04197, holding that a series of e-mails was insufficient to save a contract claim from dismissal under the statute of frauds, explaining:

The statute of frauds bars oral agreements to pay compensation for services rendered in negotiating a business opportunity, unless there is some note or memorandum in writing, subscribed by the party to be charged therewith. This provision also applies to a contract implied in fact or in law to pay reasonable compensation.

Here, the defendants established, prima facie, that the alleged agreement was for the negotiation of a business opportunity and thus was required to be in writing and subscribed by the parties to be charged. The defendants established that the alleged agreement failed to comply with these requirements.

In opposition, the plaintiffs failed to raise a triable issue of fact as to whether the alleged agreement satisfied the statute of frauds. To satisfy the statute of frauds, a memorandum, subscribed by the party to be charged, must designate the parties, identify and describe the subject matter, and state all the essential terms of a complete agreement. Here, email conversations submitted by the plaintiffs did not state all of the essential terms of the alleged agreement. Accordingly, the Supreme Court properly granted that branch of the defendants’ motion which was for summary judgment dismissing the ninth cause of action, alleging breach of contract.

(Internal quotations and citations omitted).

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