G.K. Alan Assoc., Inc. v. Lazzari
This case involves an action by G.K. Alan Assoc., Inc. (Alan) against Derval Lazzari (Lazzari) to enforce a consulting agreement. Lazzari asserts Alan was a "faithless agent" due to alleged insurance fraud against corporations in which Lazzari purchased stock, arguing this forfeits Alan's right to compensation under the consulting agreement. Alan counter-argues that the consulting agreement was part of the stock purchase price, making misconduct irrelevant, and that Lazzari was aware of the alleged fraud. The court examines the "faithless agent" rule, determining that forfeiture applies only to compensation for services rendered to the disloyal principal and is subject to apportionment if performance on other duties is untainted. The court found triable issues of fact, precluding summary judgment for Lazzari on his "faithless agent" defense. Consequently, the Supreme Court's order granting Lazzari's motion for summary judgment dismissing the complaint was reversed, and the matter was remanded, while an earlier order granting Lazzari leave to amend his answer was affirmed.