Karl Ehmer Forest Hills Corp., Respondent, v. Charles Gonzalez, Appellant, et al. Defendant, 159 A.D.2d 613

Summary

The officer made an oral promise to the creditor to pay the debt of the corporation. The creditor filed an action against both the officer and the corporation for payment of the debt and the officer filed a motion to dismiss the complaint asserted against him and alleged that it was barred by the Statute of Frauds pursuant to N.Y. Gen. Oblig. Law § 5-701. The trial court denied the motion and the officer appealed. The court reversed the trial court's order, granted the motion, and severed the action against the corporation. The court held that the officer's obligation was secondary to the corporation's. Further, the corporation was not relieved of its obligation by virtue of the officer's subsequent promise. Because the officer's promise was to answer for the debt of another, it was unenforceable under the Statute of Frauds.