Forged Deed Partnership
This week we wanted to bring your attention to a very interesting 2022 Second Department Court decision which ultimately enforced a forged deed based on the controlling provisions of New York Partnership Law § 51. A summary of the case facts are set forth below:
In 1964, title to land in Queens County was acquired by a partnership consisting of three brothers. In 1992, a deed was executed by the partnership, signed on behalf of the partnership by the three brothers, one of whom died twenty-three years before the date the deed was purportedly signed by him. The Administrator c.t.a. of the Estate commenced an action seeking to have the deed declared void and to recover damages against, among others, the other brothers in the partnership and the person who notarized the deed for fraudulent concealment and unjust enrichment. The Supreme Court, Queens County’s dismissal of the complaint was upheld by the Appellate Division, Second Department. According to the Appellate Division, the property was held in the name of the partnership and on the death of the partner his interest passed to the other partners under the Partnership Law. Thus, the decedent’s estate
“was not entitled to, and never acquired, any interest [the decedent] may have had in the disputed property prior to his death. Moreover…[the decedent’s] alleged signature on the 1992 deed has no significance, as at that point in time, his interest…had already vested in the remaining partners…Further, while a forged deed is void ab initio [citation omitted], here, the plaintiff was not aggrieved by the 1992 forged deed and, therefore, does not have standing to bring an action for a judgment declaring said 1992 deed void ab initio on behalf of the estate.”
Abruzzi v. Bond Realty, Inc., 2022 NY Slip Op 00156, decided January 12, 2022, is posted at
https://www.nycourts.gov/reporter/3dseries/2022/2022_00156.htm
The unique circumstances of this case highlight the importance for you to review with your clients the ownership structure of any deeds currently titled in the name of a Partnership to ensure that they have a complete understanding of how their partnership interest will be transferred upon their death.
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