Gutfreund v. DeMian, 227 A.D.2d 234 (N.Y. App. Div. 1996). · Go Syfert
Gutfreund v. DeMian, 227 A.D.2d 234 (N.Y. App. Div. 1996). Cases Citing This Book View Copy Cite
12 citation events (10 in the last 25 years) across 4 distinct courts.
Strongest positive: TC Tradeco, LLC v. Karmaloop Europe, AG (nyappdiv, 2019-11-12)
Top citers, strongest first. 4 distinct citers. How cited ↗
cited Cited as authority (rule) TC Tradeco, LLC v. Karmaloop Europe, AG
N.Y. App. Div. · 2019 · confidence medium
Village Taxi [*2]Corp. v Beltre , 91 AD3d 92, 99-100 [2d Dept 2011]; Gutfreund v DeMian , 227 AD2d 234, 234-235 [1st Dept 1996]).
discussed Cited "see" Roberto Escobio v. American International Group (2×)
11th Cir. · 2001 · signal: see · confidence high
See Gutfreund v. DeMian, 227 A.D.2d 234 , 642 N.Y.S.2d 294 (1996); McEvoy v. American Lumbermen’s Mutual Casualty Co. of Illinois, 51 N.Y.S.2d 806 (1944).
discussed Cited "see, e.g." Eber Bros. Wine & Liquor Corp. v. Rare Spirits, Inc.
N.Y. Sup. Ct. · 2008 · signal: see also · confidence medium
The court, however, is guided by the principles articulated in a well reasoned decision as follows: “It is well settled that contracts which violate statutory provisions are, as a general rule, unenforceable on public policy grounds where the statute which is violated is enacted to protect the public health and safety (Richards Conditioning Corp. v Oleet, 21 NY2d 895, 896-897 [1968]), or where the statute’s ‘ “purpose [is] the protection of public . . . morals or the prevention of fraud.” ’ (Benjamin v Koeppel, 85 NY2d 549, 553 [1995], quoting Galbreath-Ruffin Corp. v 40th & 3rd Co…
discussed Cited "see, e.g." Alsaedi v. Alsaedi
N.Y. City Civ. Ct. · 1998 · signal: see also · confidence medium
(Benjamin v Koeppel, 85 NY2d 549, 553 [1995], quoting Galbreath-Ruffin Corp. v 40th & 3rd Corp., 19 NY2d 354, 363-364 [1967]; see also, Gutfreund v DeMian, 227 AD2d 234, 235 [1st Dept 1996].) The rationale for refusing to enforce such contracts is not based upon a “desire to relieve a party from the obligation which he has assumed, but rather is based upon the theory that such an agreement is injurious to the interests of society in general, and that the only way to stop the making of such contracts is to refuse to enforce them”.
Retrieving the full opinion text from the archive…
Abraham Gutfreund
v.
L. David DeMian
Appellate Division of the Supreme Court of the State of New York.
May 16, 1996.
227 A.D.2d 234
1996 N.Y. App. Div. LEXIS 5197
Cited by 8 opinions  |  Published

Order, Supreme Court, New York County (Walter Schackman, J.), entered April 20, 1995, which, inter alia, granted the cross motion of defendants L. David DeMian, the DeMian Organization, Inc. and SDM Consultations, Inc. for summary judgment dismissing plaintiffs complaint, unanimously affirmed, without costs.

The failure of plaintiff to be licensed as an insurance broker when he allegedly entered into the oral agreement sued upon rendered the agreement between plaintiff and the DeMian defendants illegal and unenforceable, and barred plaintiff from collecting insurance commissions under Insurance Law § 2102 (b) (3) and § 2116 (McEvoy v American Lumbermen’s Mut. Cas. Co., 51 NYS2d 306, affd 269 App Div 857, affd 295 NY 906). The exceptions to the licensing requirement for attorneys, actuaries, certified public accountants, and regular salaried employees of a licensed broker, set forth in Insurance Law § 2101 (c) (2) and § 2102 (b) (4), are inapplicable to plaintiff since he was never an employee of the DeMian defendants, but rather an independent contractor acting as an unlicensed insurance broker who seeks, in the present action, a percentage of commissions earned for procuring new insurance carriers for clients of the DeMian defendants.

Equally lacking in merit is plaintiffs contention that Insurance Law § 2116, which prohibits insurers from "pay[ing] any money or giv[ing] any other thing of value” to unlicensed brokers does not render illegal any agreement made by the DeMian defendants, a licensed brokerage firm, to pay plaintiff, but rather only renders illegal any agreement by an insurer to pay an unlicensed insurance broker. To allow plaintiff, as an unlicensed broker, to evade the statutory scheme by receiving payments from another broker, rather than directly from an insurance carrier, would violate the legislative intent. A party who contracts to violate a statute enacted for public protection[*235] (see, Insurance Law § 2104 [a] [2]), may not sue for a breach thereof (McEvoy v American Lumbermen’s Mut. Cas. Co., supra, at 308; see also, Richards Conditioning Corp. v Oleet, 21 NY2d 895; City of New York v 17 Vista Assocs., 192 AD2d 192, 198).

As to services rendered from December 25, 1989, the date of plaintiffs licensing, more than 10 months after he allegedly entered into the agreement, until July of 1990, when the arrangement concluded, plaintiff concededly failed to assert a cause of action for quantum meruit relief.

We have considered plaintiffs remaining arguments and find them to be without merit. Concur — Murphy, P. J., Milonas, Ellerin, Ross and Mazzarelli, JJ.