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Val-Ford Realty Corp. v. J.Z.‘s Toy World, Inc.

Supreme Court of New York, Appellate Division
647 N.Y.S.2d 488 (1996)


Facts

J.Z.’s Toy World, Inc. (J.Z.) (defendant) entered into a lease agreement with Val-Ford Realty Corp. (Val-Ford) (plaintiff). J.Z.’s rental payments were guaranteed by an individual (defendant). When defendants failed to pay the rent, Val-Ford sued them and moved for summary judgment. Defendants conceded signing the lease and the guarantee but contended that the parties mutually intended such documents to be a sham created for the purpose of defrauding Val-Ford’s construction lender. The individual defendant served as a corporate director of Val-Ford. The New York Supreme Court denied Val-Ford’s motion for summary judgment. Val-Ford appealed.

Rule of Law

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Issue

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Holding and Reasoning

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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