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TENEYCK, INC., formerly known as Neill Supply Co., Inc., Plaintiff–Appellant, v. Robert D. ROSENBERG, Defendant–Respondent.

Fox Rothschild LLP, New York (Ernest E. Badway of counsel), for appellant. Wilentz Goldman & Spitzer, P.A., New York (Willard C. Shih of counsel), for respondent.

Order, Supreme Court, New York County (Barbara R. Kapnick, J.), entered January 11, 2013, which granted defendant's motion to dismiss the complaint, unanimously affirmed, with costs.

This action is barred by the doctrine of in pari delicto ( see Kirschner v. KPMG LLP, 15 N.Y.3d 446, 464, 912 N.Y.S.2d 508, 938 N.E.2d 941 [2010] ). The parties pleaded guilty in federal court to identical charges stemming from the underlying bribery scheme.

Contrary to plaintiff's contention, the adverse interest exception does not avail it ( see id. at 466–467, 912 N.Y.S.2d 508, 938 N.E.2d 941). Apart from plaintiff's guilty plea, the complaint itself demonstrates that plaintiff profited from the bribery scheme.

Plaintiff failed to show that leave to amend the complaint was warranted. ANDRIAS, J.P., FRIEDMAN, RICHTER, MANZANET–DANIELS, FEINMAN, JJ., concur.

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Teneyck, Inc. v. Rosenberg
(Nov 19, 2013)