New York Law Review

Kaufman v. Brenner, 46 N.Y.2d 787 (1978): Determining Right to Jury Trial When Legal and Equitable Claims Are Joined

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Kaufman v. Brenner, 46 N.Y.2d 787 (1978)

When a plaintiff joins legal and equitable claims, the right to a jury trial on the legal claims is preserved unless the equitable claim is merely incidental to the legal relief sought.

Summary

This case concerns the right to a jury trial when a plaintiff brings both legal (monetary damages) and equitable (specific performance) claims. Kaufman sued Brenner seeking specific performance of a stock sale contract and, alternatively, monetary damages for breach of contract. Brenner demanded a jury trial, which was denied. The New York Court of Appeals affirmed the denial, holding that because the primary relief sought was equitable (specific performance), the legal claims were merely incidental, thus negating Brenner’s right to a jury trial. The dissent argued that the monetary damages claim was the primary focus, entitling Brenner to a jury trial.

Facts

Kaufman contracted to sell his stock in two corporations to Brenner for $1,350,000. The contract also included provisions for continued group insurance coverage and indemnification against corporate tax liabilities. Kaufman sued Brenner alleging breach of contract and seeking specific performance, along with alternative claims for monetary damages amounting to the full contract price.

Procedural History

The trial court denied Brenner’s demand for a jury trial. The Appellate Division affirmed this decision. Brenner appealed to the New York Court of Appeals. The Court of Appeals affirmed the Appellate Division’s order, upholding the denial of a jury trial.

Issue(s)

Whether a defendant is entitled to a jury trial when the plaintiff’s complaint joins a claim for specific performance (an equitable remedy) with alternative claims for monetary damages (legal remedies) arising from the same breach of contract.

Holding

No, because the primary relief sought by the plaintiff was specific performance; therefore, the monetary damages claim was merely incidental, and the defendant was not entitled to a jury trial.

Court’s Reasoning

The Court of Appeals determined that the

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