Oral Agreement For Share of Company’s Profits Not Unenforceable Under Statute of Frauds, Court Holds

From Garcia v. Habacus Constr., Inc., 2018 NY Slip Op 00397 (App. Div. 1st Dept. Jan. 23, 2018):

The motion court correctly ruled that the alleged oral agreement between plaintiff and Habacus for a share of the company’s profits during the duration of plaintiff’s employment did not violate the statute of frauds. Plaintiff testified that the profit-sharing agreement was for the duration of his employment, which was at will and thus could have been terminated within one year of his hiring (see Cron v Hargro Fabrics , 91 NY2d 362, 366 [1998]). In addition, issues of fact exist concerning the nature of plaintiff’s employment agreement with defendants.

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