102 A.D.2d 810 | N.Y. App. Div. | 1984
In a proceeding, inter alia, to determine adverse claims, petitioners appeal, as limited by their brief, from so much of an order and judgment (one paper) of the Supreme Court, Suffolk County (Mclnerney, J.), dated February 9, 1983, as denied their application to set side a Sheriff’s sale, and dismissed the petition. H Order and judgment reversed insofar as appealed from, on the law and the facts, without costs or disbursements, petition reinstated, and application to set aside the sale granted, f In 1972, Siegmund Homes, Inc., built three model homes on certain property owned by John Siegmund on Route No. 24 in Hampton Bays, New York. In October, 1972, the model homes were sold to Siegmund Enterprises, Ltd., a corporation which Siegmund had formed in February of that year. Siegmund Enterprises leased the models back to Siegmund Homes under an oral lease. After the transfer of the model homes, Siegmund Enterprises carried them on its books, and depreciated them on its corporate tax returns. In December, 1972, plaintiff Burton Herman’s employment with Siegmund Homes was terminated and, in 1973, he commenced an action (action No. 1) against both Siegmund Homes and Siegmund individually for breach of his employment contract.. On April 5, 1977, a judgment was entered against Siegmund Homes in the sum of $4,260.17. The complaint with respect to John Siegmund individually was dismissed. Uln September, 1976, John Siegmund formed Siegmund Construction Enterprises, Inc. After the incorporation of Siegmund Construction Enterprises, the at-will tenancy of Siegmund Homes in the model homes came to an end, and the homes were then leased to the new corporation under oral leases. In October, 1976, Siegmund Homes stopped doing business, and in December, 1976, it closed out its bank account. On November 29,1977, acting pursuant to an execution, the Suffolk County Sheriff levied upon the