Fingerhut v. Kralyn Enterprises, Inc.
Supreme Court, New York County, New York
337 N.Y.S.2d 394 (Sup. Ct. 1971)
Stanley Fingerhut (plaintiff), a successful stockbroker with a history of manic-depressive illness, contracted with Kralyn Enterprises (defendant), in the presence of his own lawyer, to buy a golf and country club, making a $225,000 down payment. He later wrote to Kralyn claiming he had been manic when he signed and sought to rescind, but Kralyn refused. At trial, Fingerhut's psychiatrists testified he was psychotic at signing and witnesses described his behavior as bizarre, while Kralyn's psychiatrists and other witnesses testified his behavior and mental state were rational; Fingerhut himself did not testify.
Whether an individual diagnosed with manic-depressive psychosis can be deemed competent to contract if he was not in the manic phase of the illness at the time the contract was executed.