Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

SCHUSTER v. DRAGONE CLASSIC MOTOR CARS

September 17, 1999

MYRON J. SCHUSTER, PLAINTIFF,
v.
DRAGONE CLASSIC MOTOR CARS, INC., ET AL., DEFENDANTS.



The opinion of the court was delivered by: Kaplan, District Judge.

MEMORANDUM OPINION

Plaintiff in this diversity case, a collector of antique automobiles, claims that he was defrauded by the defendant dealer and its principals in two separate transactions, an alleged loan of $2,125,000 to finance defendants' purchase of a group of rare vehicles from an Italian seller and a purchase of a 1939 Bugatti Type 57. Defendants move to dismiss claims brought under the Connecticut Unfair Trade Practices Act ("CUTPA")*fn1 on the ground that both claims are governed by the law of New York.

Facts

The allegations of the complaint are assumed to be true for purposes of this motion to dismiss.

The Alleged Loan

In May 1997, defendant Emanuel Dragone ("Emanuel") held a number of conversations with plaintiff, a resident of New York, both in person at the offices of defendant Dragone Classic Motor Cars, Inc. ("Classic") in Bridgeport, Connecticut, and over the telephone. At the Bridgeport meetings, Emanuel sought to induce plaintiff to invest or lend money to finance Classic's intended acquisition from an Italian bankruptcy court of certain automobiles. In order to persuade plaintiff to put up funds, Emanuel falsely told him that Classic, he, and his brother, defendant George Dragone, had invested $1.2 million in the transaction and that one Keith Duly had invested an additional $700,000. He further falsely represented that if plaintiff lent the money, his funds would be wired directly to the Italian court.

Plaintiff, in reliance on these representations, lent $2,125,000 to the defendants. On June 4, 1997, the defendants executed a promissory note payable to plaintiff in that amount, $1,675,000 of which was payable on June 21, 1997 and the balance on September 3, 1997. The note provided also:

  "The Laws of New York State shall apply. The venue
  for any litigation shall be the Federal District
  Court, Southern District of New York or New York
  State Supreme Court, New York County."
  Plaintiff duly advanced the $2,125,000. Defendants
  defaulted on the note.

The Bugatti

On January 18, 1995, Classic sold a 1939 Bugatti Type 57 to plaintiff. In order to induce plaintiff to purchase the vehicle, Classic and Emanuel falsely represented to plaintiff that the engine merely had valve problems and that the engine would be repaired and the car delivered in perfect working order as part of the purchase price. In fact, as Classic and Emanuel knew, the vehicle had a cracked engine block, a thrown rod, and a sleeve in one of the cylinders.

The Action

Plaintiff brought this action, which subsequently was transferred to this Court pursuant to 28 U.S.C. ยง 1404(a), in the United States District Court for the District of Connecticut. The complaint contains seven causes of action. The first is an action on the promissory note. The second and third allege unjust enrichment and fraud in connection with the 1997 loan. The fourth seeks recovery with respect to the 1997 loan under CUTPA. The fifth ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.