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Village Taxi Corp. v. Beltre
New York Supreme Court, Appellate Division
933 N.Y.S.2d 694 (2011)
The village of Port Chester licensed Village Taxi Corporation and Port Chester Taxi Corporation (plaintiffs) to operate taxicabs in the village. Ramon Beltre and Janeth Campos (the sellers) (defendants), who owned both companies, agreed to sell them to Pedro Montoya and Yodna Vivanco-Small (the buyers) (plaintiffs). The sellers and buyers also concluded a transfer agreement to switch several taxicab-operator licenses from one driver to another. Both the sellers and buyers knew that a village ordinance required official approval for all such transfers. The ordinance’s primary purpose was protecting public safety rather than raising revenue for the village. The sellers and buyers agreed to ignore the ordinance. After several drivers left the companies, the buyers and their companies sued the sellers for fraud, breach of contract, and unjust enrichment. The buyers also filed related complaints against other parties. The trial-level supreme court found the transfer agreement unenforceable and dismissed the case. The buyers appealed to the supreme court’s appellate division.
Rule of Law
Holding and Reasoning (Leventhal, J.)
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