Christine A. Ramsay v Veronica Garland
Attorneys and Parties
Brief Summary
Real property—enforceability of oral reconveyance promises under the Statute of Frauds, and availability of equitable remedies (constructive trust, unjust enrichment) and declaratory relief regarding deed-as-mortgage.
The Supreme Court, Queens County denied the defendant’s motion for summary judgment (SJ) dismissing all causes of action against her.
The Appellate Division modified by granting SJ dismissing the fraud and breach of contract causes of action; it otherwise affirmed, allowing constructive trust, unjust enrichment, and RPAPL article 15 declaratory claims to proceed.
Under New York General Obligations Law (GOL) § 5-703 [statute of frauds requiring that conveyances and contracts concerning real property be in writing], the alleged oral agreement to reconvey the property is unenforceable, warranting dismissal of the contract claim; the fraud claim is duplicative of the contract claim because it arises from the same alleged promise and seeks the same damages. Equitable claims (constructive trust and unjust enrichment) are not barred by the statute of frauds and present triable issues of confidential relationship and unjust enrichment.
Background
In 2010, plaintiff, facing mortgage distress on her Queens home, conveyed title to defendant, who obtained a mortgage. Plaintiff alleges an oral promise that defendant would reconvey the property once plaintiff’s finances improved. Plaintiff remained in possession, paying mortgage and utilities to defendant. When plaintiff sought reconveyance after approximately two years, defendant allegedly stalled and later sought to sell the property in 2018 and demanded plaintiff vacate. Plaintiff sued for constructive trust, unjust enrichment, fraud, breach of contract, and declaratory relief under the Real Property Actions and Proceedings Law (RPAPL) article 15, alleging a longstanding friendship and familial-type relationship with defendant (mother of plaintiff’s longtime friend).
Lower Court Decision
The Supreme Court, Queens County denied defendant’s motion for summary judgment dismissing the complaint in its entirety.
Appellate Division Reversal
Modified on the law: summary judgment granted dismissing the breach of contract claim due to GOL § 5-703 [statute of frauds requiring written agreements for real property] and the fraud claim as duplicative of the contract claim. Affirmed the denial of summary judgment on constructive trust and unjust enrichment, holding these equitable claims are not subject to the statute of frauds and that issues of confidential/fiduciary relationship and unjust enrichment are fact-specific. Also affirmed denial as to RPAPL article 15 declaratory relief, as plaintiff may prove the deed was intended as security and thus a mortgage under Real Property Law (RPL) § 320 [a deed absolute in form may be deemed a mortgage if intended as security], making quiet title relief potentially appropriate under RPAPL article 15 [allows an action to quiet title].
Legal Significance
Reaffirms that while the Statute of Frauds (GOL § 5-703) bars enforcement of oral promises to convey real property, equitable remedies such as constructive trust and unjust enrichment remain available where there is evidence of a confidential relationship and potential unjust enrichment. Clarifies that fraud claims duplicative of unenforceable contract claims will be dismissed, and that deed-as-mortgage theories under RPL § 320 can support declaratory quiet title claims under RPAPL article 15.
An oral promise to reconvey real property is unenforceable under the Statute of Frauds, and a parallel fraud claim based on the same promise is duplicative; however, equitable claims (constructive trust, unjust enrichment) and a quiet title claim premised on a deed intended as security may proceed to trial.