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Contract Action Barred by Statute of Frauds Did Not Preclude Action Based Upon Quantum Meruit

The Third Department noted that a contract cause of action which is barred by the statute of frauds (re: the conveyance of real property) did not preclude an action based upon quantum meruit:

We agree with Supreme Court that plaintiff’s claim for breach of contract, based on an alleged oral agreement to convey real property, is barred by the statute of frauds (see General Obligations Law § 5-703 [1]…). The statute of frauds does not, however, preclude “quasi-contractual recovery for the reasonable value of services rendered” … . Accepting as true the allegations in plaintiff’s complaint, they adequately set forth a cognizable claim for quantum meruit based on the alleged performance of services by plaintiff and her expectation of payment from defendant … . Inasmuch as the quantum meruit cause of action is subject to a six-year statute of limitations, however, plaintiff’s claims are barred to the extent that they allege the performance of services prior to April 25, 2007, which is six years from the commencement of the action … . Rauch v Ciardullo, 2015 NY Slip Op 02823, 3rd Dept 4-2-15

 

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