ESTATE OF ELLINGTON v. AMERICAN SOCIETY OF COMPOSERS


25 A.D.3d 426 (2006)

809 N.Y.S.2d 10

ESTATE OF MERCER K. ELLINGTON, Deceased, Appellant, v. AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS, Defendant. AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS, Interpleader Plaintiff, v. MERCEDES ELLINGTON et al., Interpleaded Defendants-Respondents.

Appellate Division of the Supreme Court of the State of New York, First Department.

January 12, 2006.


There is no proof that the agreement at issue was an illegal contract designed to evade, as opposed to avoid, taxes, nor is there proof that any taxes owed were actually evaded. In any event, if the contract were illegal, it would constitute no more than an act malum prohibitum, for which forfeiture is disfavored (see Lloyd Capital Corp. v Pat Henchar, Inc., 80 N.Y.2d 124, 127 [1992]).

The agreement is clear on its face,...

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