Case Name: David Lampert, Appellant, v. John Ravid, Respondent
Court: New York Supreme Court, Appellate Term
Jurisdiction: New York
Decision Date: 1900-11
Citations: 33 Misc. 115
Docket Number: 
Parties: David Lampert, Appellant, v. John Ravid, Respondent.
Judges: 
Reporter: New York Miscellaneous Reports
Volume: 33
Pages: 115–116

Head Matter:
David Lampert, Appellant, v. John Ravid, Respondent.
(Supreme Court, Appellate Term,
November, 1900.)
1. Municipal Court of the city of New York — An action to recover a deposit made to bind the formation of a future partnership is not equitable in its nature — Jurisdiction.
An action to recover a deposit, not made to create a partnership but merely as an assurance of the performance of an executory agreement to form a partnership within a definite time, is not equitable in its nature, does not involve an accounting, and, therefore, may be brought in the Municipal Court of the city of New York.
2. Same — Dismissal on the merits, when improper.
Where a complaint is dismissed in said court at the close of the plaintiff’s case, there can be no absolute dismissal,.as there has been no trial on the merits.
Appeal from a judgment of the Municipal Court of the city of Mew York, tenth district, borough of Manhattan, in favor of the defendant.
L. B. Boudin, for appellant.
William Stainton, for respondent.

Opinion:
Per Curiam.
We think, upon the whole, there should be a reversal of the judgment in this case. The evidence shows that the agreement, with respect to the performance of which the money sued for was deposited with the defendant, was not an agreement of partnership, hut an agreement to enter into a copartnership, the articles of which were to be subsequently drawn and executed. It is true that the record shows that counsel on both sides apparently admitted the existence of a copartnership, but the evidence, with respect to the circumstances under which the money was paid, certainly indicates that such payment was understood by the parties to be in the nature of an assurance that the articles of copartnership would be executed within the time stipulated therefor by the parties. At the close of the plaintiff's case the court below dismissed the complaint, evidently on the ground that because a copartnership was admitted, the plaintiff could, only bring an action in equity for an accounting, and. that' the Municipal Court had no jurisdiction to entertain such a suit. The facts, however, plainly show that the money was paid to the dofendant and was received by him as a deposit which was to be forfeited in case the plaintiff failed to sign the articles of copartnership; that is,"in case of a breach of the executory contract which he had entered into with the defendant, that a copartnership between them should be formed. An action upon such an executory agreement may be maintained at law.
The trial justice also erred in awarding judgment in favor of the defendant dismissing the complaint on the merits. There was no trial of the cause on the merits, and if it was to be dismissed, there could be only a dismissal without prejudice to a new action. Merkin v. Gersh, 30 Misc. Rep. 758.
Judgment reversed and new trial ordered, with costs to the appellant to abide the event..
Present: Beekman, P. J., Giegebich and O'Gorman, JJ.
Judgment reversed and new trial ordered, with costs to appellant to abide event.