Catawba Associates - Christiana, LLC v. Jayaraman

Superior Court of Delaware·Decided September 26, 2016·No. N16C-01-250 PRW·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

CATAWBA ASSOCIATES - CHRISTIANA LLC,

Plaintiff, v. C.A. No. N16C-01-250 PRW PARTHIBAN JAYARAMAN , PRADIP C. SAHA, and PUSAN RE NEWARK, LLC,

Defendants.

V\./v\/\/V`./VVVVV

Submitted: September 1, 2016 Decided: September 26, 2016

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Upon Plaz`ntij§fCataw/)a Associates-Christiana LLC ’s Motionfor Reargument, DENIED.

This 26th day of September, 2016, upon consideration of Plaintiff Catawba Associates-Christiana LLC’s (“Catawba”) Motion for Reargument (D.I. 31) of this Court’s order denying Catawba’s Motion for Judgment on the Pleadings (D.I. 30); the Defendants’ Parthiban Jayaraman, Pradip C. Saha, and Pusan RE Newark, LLC’s response thereto (D.I. 33); and the record in this matter, it appears to the Court that:

(l) A motion for reargument under Superior Court Civil Rule 59(e)

permits the Court to reconsider its findings of fact, conclusions of laW, or

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judgment.] “Delaware law places a heavy burden on a [party] seeking relief pursuant to Rule 59.”2 The moving party has the burden to demonstrate that the Court must correct an error of law in or prevent manifest injustice deriving from its judgment.3 A Rule 59(e) application is not an avenue for the moving party to raise new arguments or to rehash arguments already decided by the Court.4 And such motion will be denied unless the Court has “overlooked a controlling precedent or

legal principles,’ or “has misapprehended the law or facts such as would have changed the outcome of the decision” challenged.5 Upon a Rule 59(e) reargument

motion, the Court “will determine from the motion and answer whether reargument

will be granted.”6

l Bd. of Mcmagers of the Delaware Criminal .]ustice Info. Sys. v. Gannett C0., 2003 WL 1579170, at *1 (Del. Super. Ct. Jan. 17, 2003), aff’d in part, 840 A.2d 1232 (Del. 2003) (intemal quotations omitted); Cummings v. Jimmy’s Grille, 2000 WL 1211167, at *2 (Del. Super. Ct. Aug. 9, 2000).

2 Koslyshyn v. Comm’rs of Bellefonte, 2007 WL 1241875, at *l (Del. Super. Ct. Apr. 27, 2007).

3 See Hessler, Inc. v. Farrell, 260 A.2d 701, 702 (Del. 1969) (“manifest purpose of all Rule 59 motions is to afford the Trial Court an opportunity to correct errors”); Rel`a' v. Hina’t, 2008 WL 2943373, at *1 (Del. Super. Ct. July 31, 2008).

4 CNH Am., LLC v. Am. Cas. C0. ofReading, Pa., 2014 WL 1724844, at *1 (Del. Super. Ct. Apr. 29, 2014); Rel`d, 2008 WL 2943373, at *1; Fisk Ventures, LLC v. Segal, 2008 WL 2721743, at *1 (Del. Ch. July 3, 2008) (“[R]elief under Rule 59 is available to prevent injustice- not to offer a forum for disgruntled litigants to recast their losing arguments with new rhetoric.”) (intemal quotations and citations omitted).

5 Jimmy ’s Grille, 2000 WL 1211167, at *2.

6 Super. Ct. Civ. R. 59(e).

(2) Catawba asks the Court to reconsider two things: (a) what should be the Lease Agreement’s definition of “vacant” after a voluntary termination of the lease; and (b) whether the “materials” it claims were “proffered by the Defendants” and, in its view, “incorporated into the pleadings in this case,” specifically, an exhibit or exhibits from a Justice of the Peace Court (“JP Court”) case, “meet the Court’s requirement of establishing the extent, size, condition, and lack of value of the items” Defendants requested be removed on December 18, 2015.7

(3) In support of this motion, Catawba first argues that the Agreement of Sale “referenced the Lease and therefore its provisions regarding the end of a tenancy.”8 According to Catawba, this reference - requiring the Tenant to surrender the property “in good condition and repair” - alone provided the definition of “vacant” for Section 5(a) in the Agreement of Sale. Thus, Catawba argues, the Property was “vacant” by the terms of the Lease so long as there was a voluntary termination of the Lease.9

(4) This section of the Lease agreement states that the “Seller shall diligently pursue to remove the Tenant occupying the property pursuant to the

Lease, in order to deliver possession of the Property to Buyer vacant and not

Pl.’s Mot. Reargument at 4. 8 Id. at 3.

9 ld. at 3_4.

10 ~ .” The section

subject to any possessory or leasehold rights of the Tenant . . . does not provide a definition of “vacant.” As such, the Court adopted the plain, dictionary meaning of the word.]] There is a meaningful distinction between interpreting the term “vacant” as used in the context of a lease and interpreting that word when “possession is not the goal”.12 Reiterated again here, if the issue of “vacancy was only relevant to determine possession, then the JP Court’s decision would have already resolved the issue and th[is] Court would inquire no further.

”13 Catawba contends the Lease Agreement sufficiently defines

But not so here. “vacant,” and by transferring legal possession under the Lease Agreement, it had transferred sufficiently “vacant” property. Catawba’s reliance on the Lease Agreement here leads to an incorrect conclusion.

(5) Whether or not the property legally changed hands is no longer at

issue. Both parties agreed at argument on the pleadings motion that the JP Court

10 Pl.’s Act. For Declaratory Judgment, Exhibit A.

" Catawba Associazes_€hrisrzana LLC v. Jayamman, 2016 WL 4502306, ar *6, *8-9 (Del. Super. Ct. Aug. 26, 2016).

'2 Id. ar *8.

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found that rightful possession properly transferred on December 11, 2015.14 At issue here is the definition “vacant” for the purposes of damages

(6) A mere transfer of property rights does not mean that it was “vacant” in the sense that the prior tenants removed their effects. Likewise, assuming the property was entirely clear of any and all items does not mean property rights changed hands. They are two separate and distinct conditions. What defines “vacant” here remains to be answered, while what defines the legal transfer of property is clear.

(7) In this motion, Catawba argues the question already decided, while leaving that still at play unanswered. A motion for reargument under Rule 59(e) does not provide a forum for rehashing old arguments, especially those already decided and agreed upon. Such a motion is only appropriate when the Court must reconsider the findings of fact, conclusions of law, or judgment.15 Here, the findings of fact thus far do not provide a definitive answer as to whether the property was “vacant” in this case. The Court has neither “overlooked a

controlling precedent or legal principle, nor “misapprehended the law or facts

14 Order on Trial De Novo, Justice of the Peace Court No. 13, Pusan RE Newark, LLC v. Grayling Corp. (July 18, 2016).

15 Ba'. of Managers of the Delaware Criminal Justice Info. Sys. v. Gannett Co., 2003 WL 1579170, at *1 (Del. Super. Ct. Jan. 17, 2003), ajj"a' in part, 840 A.2d 1232 (Del. 2003) (intemal quotations omitted); Cummings v. Jimmy’s Grille, 2000 WL 1211167, at *2 (Del. Super. Ct. Aug. 9, 2000).

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such as would have changed the outcome of the underling decision.”16 Thus, Catawba’s argument that “vacant” is defined by the Lease Agreement is without merit.

(8) Second, Catawba argues that the Court overlooked documents proffered in the JP Court case. Catawba claims the documents meet the Court’s requirement for establishing the extent, size, condition, and lack of value of items Defendants requested to be removed.17 While this could be true, the Court could not consider that which it did not have.

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