Opinion ID: 766103
Heading Depth: 2
Heading Rank: 2

Heading: Aramony's Cross-Appeal

Text: 59 Although Aramony appeals the district court's determination that he is not entitled to benefits under the SBA, he fails to contest the basis for the court's ruling: that common-law forfeiture rules apply to the SBA, and that he forfeited his SBA benefits under those rules. Aramony's argument, in substance, is limited to the contention that there somehow is an inconsistency between the court's application of the statute of limitations to United Way's recovery of his salary on its breach of fiduciary duty counterclaim and the court's determination that Aramony's misconduct resulted in a forfeiture of benefits accrued under the SBA for a considerably longer period. Any discrepancy, however, is only apparent. The statute of limitations gave United Way a specified amount of time in which to commence a lawsuit to recover salary it paid to Aramony despite his disloyalty. See N.Y. C.P.L.R. §213-b. United Way is barred by the statute of limitations from bringing suit for and recovering salary from Aramony paid to him before the limitations period began. By contrast, the SBA is a contract under which United Way was to pay money to Aramony. The SBA did not provide that his rights under the SBA vested and became nonforfeitable at a particular time. On the contrary, because he was disloyal he forfeited all contractual rights he may otherwise have had under the SBA. This forfeiture is unaffected by when suit is brought by Aramony in an attempt to recover the benefits or when a defense is asserted by United Way to resist payment. That the statute of limitations limits United Way's tort claim for recovery of past salary is irrelevant to Aramony's contract claim under a contract that is now a nullity. 60 Aramony purports also to appeal the district court's denial of his claim for attorneys' fees, but he makes no attempt to specify how the district court abused its discretion in determining that an award was not justified. See Aramony, 28 F. Supp. 2d at 174-75 (applying the five-factor test governing this determination set forth in Chambless, 815 F.2d at 871). We perceive no error in the court's analysis in any event. Insofar as Aramony still pursues this argument, then, we reject it. 61 We therefore deny Aramony's cross-appeal.