Ordered that the order is modified, on the law, by deleting the provisions thereof denying those branches of the plaintiffs’ motion which were for summary judgment dismissing the first counterclaim and the affirmative defense, and substituting therefor provisions granting those branches of the motion; as so modified, the order is affirmed insofar as appealed and cross-appealed from, without costs or disbursements, and the first counterclaim and the affirmative defense are dismissed.
The individual plaintiffs Kathleen Cafaro and William Cafaro, Sr. (hereinafter the Cafaros), commenced this action to recover sums allegedly owed them by the defendant pursuant to two separate consulting agreements. The corporate plaintiff Cafaro Enterprises, Inc. (hereinafter Enterprises), sought to recover certain amounts allegedly due from the defendant pursuant to a promissory note executed by the defendant in connection with an agreement with Enterprises to sell its assets and product line to the defendant (hereinafter the asset purchase agreement). The defendant interposed an affirmative defense and a first counterclaim, both asserting that Enterprises breached the asset purchase agreement, and a second counterclaim asserting that the Cafaros fraudulently misrepresented the nature and extent of problems with the product line being sold. By order
The Supreme Court dismissed the defendant’s second counterclaim, but declined to dismiss the affirmative defense or the first counterclaim. It denied that branch of the plaintiffs’ motion which was for leave to amend their complaint to add the defendant’s president as a party and to assert a claim against him, and also denied further discovery addressed to that claim.
“The nature and degree of the penalty to be imposed pursuant to CPLR 3126 against a party who has refused to obey an order or wilfully fails to disclose information which should be disclosed is a matter within the discretion of the court . . . Absent an improvident exercise of discretion, a determination to impose sanctions for conduct which frustrates the disclosure scheme of the CPLR should not be disturbed” (Jaffe v Hubbard,
The conditional order of preclusion became absolute upon the defendant’s failure to comply with its terms (see Echevarria v Pathmark Stores,
The Supreme Court nonetheless erred in denying that branch of the plaintiffs’ motion which was for summary judgment dismissing the counterclaim asserting breach of contract. The plaintiffs established their entitlement to judgment as a matter of law by demonstrating that the defendant first notified them that the products were defective more than 16 months after discovery of the alleged defect and that the notification was thus untimely as a matter of law (see UCC 2-607 [3] [a]; 2-714 [2]; B/R Sales Co. v Krantor Corp.,
That branch of the plaintiffs’ motion which was for leave to amend the complaint to add a cause of action to recover damages for tortious interference and to add the defendant’s president as a defendant was properly denied for lack of merit (see Beecher v Feldstein,
The parties’ remaining contentions either are academic or
