- Court
- New York Supreme Court, Appellate Division, First Department
- Case
- James Thomas Realty, LLC v. Cheliotes
- Date
- May 28, 2026
- Slip Op. No.
- 2026 NY Slip Op 03362
Background
Plaintiff James Thomas Realty, LLC, brought this action against Arthur Cheliotes and other defendants in connection with disputes involving the Communications Workers of America Local 1180 Retirees Security Benefits Trust and related entities. The plaintiff demanded a jury trial. Defendants moved to strike the jury demand, arguing that the action was primarily equitable in nature. The Supreme Court, New York County, granted the motion and struck the jury demand. The plaintiff appealed.
Holding
The Appellate Division unanimously affirmed the striking of the jury demand. The Court applied CPLR 4101(1), which provides for a jury trial in actions for legal relief where a party demands and sets forth facts permitting a judgment for a sum of money only. The Court held that the action was primarily equitable in nature, notwithstanding the plaintiff’s demand for monetary damages. When the primary relief sought is equitable—such as an accounting, constructive trust, or declaration of rights—the incidental demand for monetary damages does not convert the action into one at law that entitles a party to a jury trial. The Court examined the nature of the claims and the relief sought and determined that the equitable aspects of the action predominated over the legal claims.
Takeaways
The right to a jury trial under CPLR 4101 depends on the nature of the action, not merely the form of relief demanded. An action that is primarily equitable in nature does not become a legal action entitling a party to a jury trial simply because the plaintiff also seeks monetary damages. Courts will look beyond the form of the demand to the substance of the claims to determine whether the action sounds in law or equity. Practitioners seeking to preserve a jury trial right should ensure that their claims are genuinely legal in nature and that the primary relief sought is a money judgment rather than equitable relief.
Why It Matters
This decision is important for commercial litigators handling disputes involving trusts, fiduciaries, and corporate governance, where claims often straddle the boundary between law and equity. The distinction between legal and equitable claims has direct procedural consequences, as the loss of a jury trial right can significantly affect litigation strategy and outcomes. Plaintiffs who prefer a jury trial should structure their claims and demands for relief to emphasize the legal aspects of their case, while defendants who prefer a bench trial should move promptly to strike the jury demand if the action is primarily equitable.