On February 25, 2026, the Second Department issued a decision in Catalogne v. Class Action Recovery, LLC, 2026 NY Slip Op. 01029, holding that the statute of frauds barred a claim for breach of an oral agreement to assist in the negotiation of a business opportunity, explaining:
Pursuant to General Obligations Law § 5-701(a)(10), an agreement or some note or memorandum thereof must be in writing and subscribed by the party to be charged therewith, where the agreement is to pay compensation for services rendered in negotiating the purchase, sale, exchange, renting or leasing of a business opportunity, business, its good will, inventory, fixtures or an interest therein. The statute defines negotiating’ to include the act of procuring an introduction to a party to the transaction or assisting in the negotiation or consummation of the transaction.
Here, the defendants established, prima facie, that the purported verbal agreement was for the negotiation of business opportunities. Accordingly, the agreement was required to be in writing and subscribed by the parties to be charged. The agreement herein failed to comply with these requirements. In opposition, the plaintiff failed to raise a triable issue of fact. Accordingly, the Supreme Court properly granted that branch of the defendants’ motion which was for summary judgment dismissing the cause of action alleging breach of contract.
Similarly, the Supreme Court properly granted that branch of the defendants’ motion which was for summary judgment dismissing the cause of action alleging unjust enrichment, as a plaintiff may not assert this cause of action to circumvent the Statute of Frauds.
Further, the Supreme Court properly granted that branch of the defendants’ motion which was for summary judgment dismissing the promissory estoppel cause of action. Insofar as this cause of action was asserted to circumvent the statute of frauds, the plaintiff was required, but failed, to allege that he suffered unconscionable injury in reliance on the defendants’ alleged promise.
(Internal quotations and citations omitted).