Skaneateles Country Club (SCC) constructed 80 boat slips on Skaneateles Lake for the benefit of club members. Olivia Cambs was a member who contributed an initial capitalization payment and entered into an Assignment Agreement, which “assign[ed] and transfer[red]” to her the “use and occupancy right with respect to one boat slip,” subject to certain express conditions. The parties later disputed whether this license was revocable at will by the club, or not.
In Skaneateles Country Club v. Cambs, --- N.E.3d ---, 2023 WL 6976508 (N.Y. 2023), the Court of Appeals sided with SCC. Since the parties agreed this was a license, that meant that it was presumably revocable. “A license is a revocable privilege given to one, without interest in the lands of another, to do one or more acts of a temporary nature upon such lands.” Nothing in the agreement between SCC and Cambs indicated that the parties intended to deviate from that default law.
One judge dissented, pointing to the parties’ agreement, that seemed to indicate that Cambs held the right so long as she remained a member.
The takeaway here is a perennial one: the importance of making clear in a written agreement the rights of each party. Although the agreement did list certain circumstances under which Cambs could be terminated, she should have insisted that the agreement state that it could not be terminated except for the reasons stated.
In Skaneateles Country Club v. Cambs, --- N.E.3d ---, 2023 WL 6976508 (N.Y. 2023), the Court of Appeals sided with SCC. Since the parties agreed this was a license, that meant that it was presumably revocable. “A license is a revocable privilege given to one, without interest in the lands of another, to do one or more acts of a temporary nature upon such lands.” Nothing in the agreement between SCC and Cambs indicated that the parties intended to deviate from that default law.
One judge dissented, pointing to the parties’ agreement, that seemed to indicate that Cambs held the right so long as she remained a member.
The takeaway here is a perennial one: the importance of making clear in a written agreement the rights of each party. Although the agreement did list certain circumstances under which Cambs could be terminated, she should have insisted that the agreement state that it could not be terminated except for the reasons stated.