Richard Arzu v. Frank Arzu and Estanisalo Arzu
597 N.Y.S. 2d 322
Richard Arzu brought action against his father, Frank Arzu, and step-mother, Estanisalo Arzu, alleging misrepresentation and fraud in connection with a medical malpractice action settlement monies which Frank entrusted to his father; and seeking compensatory damages and related relief. The Supreme Court, Bronx County, Silver J. , vacated ex parte order of attachment against defendants’ real and personal property. The son appealed to the Supreme Court, Appellate Division. Justice Sullivan held that the son was entitled to attachment of defendant’s property in light of evidence that they had disposed of or secreted son’s money, with intent to defraud son. The Supreme Court, Appellate Division, reversed the decision of the lower court.
STATEMENT OF FACTS:
Richard Arzu underwent a surgical procedure to correct a condition he was born with; known as dwarfism. He became paralyzed from the waist down as a result of the operation. Through legal representatives, Richard was awarded a substantial structured settlement from his malpractice action against the hospital that performed the said surgical procedure. The settlement payments were deposited into a joint account between Richard and Frank. Over a period of a few years, the father withdrew numerous times, large amounts of money. These transactions were not authorized or to the knowledge of the son. When Richard turned eighteen, the funds in the account were turned over to him. The son gave the money to defendants on representations that the amount given and all further monies would be deposited and held in the account for Richard’s sole use and benefit. Richard commenced...