All Premium Contractors Inc v. Sunlight Financial LLC

District Court, S.D. New York·Decided October 19, 2023·No. 1:23-cv-05059·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

ALL PREMIUM CONTRACTORS INC., Plaintiff, Case No. 1:23-cv-05059 (JLR) -against- OPINION AND ORDER SUNLIGHT FINANCIAL LLC, Defendant.

JENNIFER L. ROCHON, United States District Judge: Plaintiff All Premium Contractors Inc. (“Plaintiff” or “All Premium”) filed this action against Defendant Sunlight Financial LLC (“Defendant” or “Sunlight”) on June 15, 2023, alleging five causes of action: (1) breach of contract, (2) fraud, (3) conversion, (4) breach of the covenant of good faith and fair dealing, and (5) unjust enrichment. See ECF No. 1 (“Compl.”). The dispute relates to a Financing Program Agreement that the parties entered on March 23, 2019, regarding the installation of solar panels, which is attached as Exhibit 1 to the Complaint. See id. ¶ 7; ECF No. 1-1 (the “Agreement”). Now before the Court is Defendant’s motion to compel arbitration and stay this action based on the Agreement’s arbitration clause. See ECF Nos. 14 (“Br.”), 24 (“Reply”). Plaintiff opposes the motion. ECF No. 18 (“Opp.”). For the reasons stated below, Defendant’s motion is GRANTED. BACKGROUND The following facts are taken from the Complaint and the papers submitted by the parties in connection with Defendant’s motion to compel arbitration. There is no dispute that the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (the “FAA”), applies to the Agreement’s arbitration provision, and the Court applies a “standard similar to that applicable for a motion for summary judgment” in deciding the motion to compel arbitration. Bensadoun v. Jobe-Riat, 316 F.3d 171, 176 (2d Cir. 2003); see Opp. at 1-2. The Court considers all relevant, admissible evidence submitted by the parties and contained in the pleadings. See Nicosia v. Amazon.com, Inc., 834 F.3d 220, 229 (2d Cir. 2016). Unless otherwise noted, the facts are undisputed and the Court draws all reasonable inferences in favor of the non-moving party. See id. A. The Agreement

Because the instant motion involves the parties’ contractual relationship, the Court begins with the contractual provisions agreed to by the parties. On March 23, 2019, the parties entered into the Agreement. Compl. ¶ 7; Agreement. The Agreement contains a section titled “Dispute Resolution,” which states: Arbitration. Any dispute that is not otherwise settled to the mutual satisfaction of the Parties without formal proceeding or through mediation, shall then be settled by final, binding arbitration pursuant to the U.S. Federal Arbitration Act, 9 U.S.C. Section 1 et seq., in accordance with the American Arbitration Association Commercial Arbitration Rules. In any arbitration, the number of arbitrators will be three (3). Each Party shall have the right to appoint one arbitrator, who will together appoint a third neutral arbitrator within thirty (30) days after the appointment of the last Party-designated arbitrator. All arbitration proceedings will take place in New York, New York. The arbitrators will be entitled to award monetary and equitable relief, including specific performance and other injunctive relief; provided, however, that only damages allowed pursuant to this Agreement may be awarded. Except as specifically provided herein, the arbitrators will allocate the costs of the arbitration proceeding.

Agreement § 15.1. In a section titled “Miscellaneous,” the Agreement contains a choice-of-law provision selecting New York law, id. § 16.2(a), and provisions captioned “Submission to Jurisdiction” and “Jury Waiver,” which state, respectively: (b) Submission to Jurisdiction. Each party irrevocably consents and agrees that any action, proceeding, or other litigation by or against the other party with respect to any claim or cause of action based upon or arising out of or related to this agreement, shall be brought and tried exclusively in the federal or state courts located in New York City, New York, and any such legal action or proceeding may be removed to the aforesaid courts. By execution and delivery of this agreement, each party accepts, for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. Each party hereby irrevocably waives (A) any objection which it may now or hereafter have to the laying of venue with respect to any such action, proceeding, or litigation arising out of or in connection with this agreement brought in the aforesaid courts, and (B) any right to stay or dismiss any such action, proceeding, or litigation brought before the aforesaid courts on the basis of forum non conveniens. Each party further agrees that personal jurisdiction over it may be affected by service of process by certified mail, postage prepaid, addressed as provided in section . . . , and when so made shall be as if served upon it personally within the State of New York.

(c) Jury Waiver. To the fullest extent permitted by applicable law, each party hereby waives its rights to a trial by jury with respect to any claim or cause of action based upon or arising out of or related to this agreement, in any action, proceeding or other litigation of any type brought by any party against the other party, whether with respect to contract claims, tort claims, or otherwise. Each party hereby agrees that any such claim or cause of action shall be tried by a court trial without a jury. Without limiting the foregoing, the parties further agree that their respective right to a trial by jury is waived by operation of this Section 16.2 as to any action, counterclaim or other proceeding which seeks, in whole or in part, to challenge the validity or enforceability of this agreement, or any provision hereof. This waiver shall apply to any subsequent amendments, renewals, supplements, or modifications to this agreement.

Id. § 16.2(b), (c) (capitalization omitted). On March 23, 2019, the parties entered into a Prequalification Addendum to the Agreement concerning Plaintiff’s use and access to Defendant’s credit agency. See ECF No. 16- 2 (the “Prequalification Addendum”) § 1. The Prequalification Addendum “supplement[s]” the Agreement and does not contain any arbitration or forum selection clause. Id. § 8. On August 10, 2021, the parties entered into a Solar Plus Product Amendment to the Agreement. See ECF No. 16-3 (the “First Amendment”). The First Amendment does not expressly change the Agreement’s arbitration or forum selection clauses. See id. § 4.1. Section 4.1 of the First Amendment states: Effect of Amendment: Entire Agreement. Except as expressly amended and modified by this Amendment, all terms and conditions set forth in the Agreement shall remain unmodified, binding, and in full force and effect. This Amendment sets forth the entire agreement and understanding of the Parties regarding the particular subject matter of this Amendment, and merges and supersedes all prior or contemporaneous agreements, discussions and correspondence pertaining to the subject matter of this Amendment.

Id. The First Amendment is governed by New York law, id. § 4.3, and states that it is subject to Section 16 of the Agreement, id. § 4.4. Section 16 of the Agreement contains the forum selection clause quoted above. Agreement § 16.2(b). On February 15, 2022, the parties entered into a Direct Funding Program Addendum to the Agreement. See ECF No. 16-4 (the “Second Addendum”). Like the previous addendum, the Second Addendum does not expressly change the Agreement’s arbitration or forum selection clauses. See id. § 5.1. Section 5.1 states: Effect of Addendum: Entire Agreement.

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All Premium Contractors Inc v. Sunlight Financial LLC, (S.D.N.Y. 2023).

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