Dr. Gerald R. Finkel v. Allstate Electric Corp.

CourtDistrict Court, E.D. New York
DecidedApril 14, 2020
Docket1:18-cv-03798
StatusUnknown

This text of Dr. Gerald R. Finkel v. Allstate Electric Corp. (Dr. Gerald R. Finkel v. Allstate Electric Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dr. Gerald R. Finkel v. Allstate Electric Corp., (E.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ------------------------------------------------------------X In the Matter of the Arbitration Between: DR. GERALD R. FINKEL, as Chairman of the Joint Industry Board of the Electrical Industry,

Petitioner, MEMORANDUM AND ORDER -and- 18 CV 3798 (CBA)(RML)

ALLSTATE ELECTRIC CORPORATION,

Respondent. ------------------------------------------------------------X LEVY, United States Magistrate Judge: On August 28, 2019, I issued a Memorandum and Order granting in part and denying in part petitioner’s motion to confirm an arbitration award.1 (See Memorandum and Order, dated Aug. 28, 2019 (the “M&O”), Dkt. No. 40.) While I confirmed the award, I held that respondent was entitled to a reduction in the amount due in order to account for payments it had made to petitioner since the issuance of the award, which petitioner had not applied to the award balance. (See id. at 6-7.) Because I was unable to determine based on the record the exact amount due and owing, I directed the parties to make supplemental submissions clarifying the amount paid. (See id. at 8-9.) Having received multiple rounds of supplemental submissions and held a telephone conference with the parties, I find that petitioner is owed $46,326.79 on the award, plus $15,534.80 in attorney’s fees and $745.18 in costs.

1 The parties consented to my jurisdiction to decide petitioner’s motion. (See Consent to Magistrate Judge Disposition, dated Feb. 8, 2019, Dkt. No. 21.) BACKGROUND AND FACTS Familiarity with the underlying facts of this case and with the M&O is assumed. Briefly, an arbitration award was issued on June 12, 2018 in favor of petitioner Dr. Gerald R. Finkel, Chairman of the Joint Industry Board of the Electrical Industry (“petitioner”), in the amount of $915,030.97. (See id. at 2.) On June 29, 2018, petitioner moved to confirm the

award. (See Petition to Confirm Arbitration Award, dated June 29, 2018 (“Pet.”), Dkt. No. 1.) At some point thereafter, respondent paid a portion of the award, leaving a balance of $259,646.79 unpaid. (See M&O at 3.) The parties then entered into settlement negotiations in an attempt to resolve their dispute as to the remaining balance. (See id.) They reached an agreement in principal, but were ultimately unable to finalize and execute a settlement agreement. (See id.) Following the breakdown in the parties’ settlement negotiations, respondent sent petitioner a series of checks labeled “settlement payment” and numbered “1 of 24,” “2 of 24,” etc. to correspond to the number of payments that would have been made under the settlement agreement had it been executed. (See id.) Petitioner cashed those checks, but did

not apply them to the award balance. (See id. at 4.) Petitioner then renewed its confirmation motion, seeking the full balance of $259,646.79. (See Motion to Confirm Arbitration Award, dated Feb. 22, 2019, Dkt. No. 23.) Respondent did not dispute the validity of the underlying award, but did dispute the amount due. (See M&O at 5.) In the M&O, I confirmed the award, but held that respondent was entitled to have the payments it had made following the breakdown in settlement negotiations applied to the award balance. (See id. at 6-7.) Unfortunately, I was unable to award damages at that time because the record was unclear as to how much respondent had already paid. Whereas respondent claimed it had sent petitioner thirteen checks, each in the amount of $13,332.50, for a 2 total of $173,322.50, petitioner claimed it had received only ten checks, totaling $133,325. (See id. at 8.) Therefore, I directed the parties to submit supplemental documentation clarifying the amount paid. (See id. at 8-9.) I additionally deferred a ruling on petitioner’s application for attorney’s fees and costs until a final judgment could be entered. (See id. at 9.) On September 11, 2019, petitioner filed the declaration of Christina Sessa, Esq.,

which stated that petitioner had received sixteen payments of $13,332.50, for a total of $213,320. (See Declaration of Christina Sessa, Esq., dated Sept. 10, 2019 (“Sessa Decl.”), Dkt. No. 41, ¶ 2; Petitioner’s Payment List (“Pet.’s Payment List”), annexed as Ex. A to Sessa Decl.) Thus, according to petitioner, a balance of $46,326.79 remains due and owing. (See Sessa Decl. ¶ 5.) Meanwhile, on September 20, 2019, respondent filed the declaration of Robert Falesto, which stated that respondent had made seventeen payments of $13,332.50, for a total of $226,652.50. (See Declaration of Robert Falesto, dated Sept. 17, 2019, Dkt. No. 44, ¶ 4; Respondent’s Payment List (“Resp.’s Payment List”), annexed as Ex. A to Falesto Decl.) Thus, according to respondent, a balance of $32,994.29 remains due and owing. (See Falesto Decl. ¶ 8.) The

parties’ dispute centers on a single check, intended to cover the twelfth installment payment under the unexecuted settlement agreement (“check 2836” or “payment twelve”), which respondent claims it sent to petitioner and petitioner claims it never received. (See Pet.’s Payment List; Resp.’s Payment List.; see also Declaration of Christina Sessa, Esq., dated Apr. 12, 2019, Dkt. No. 35, ¶ 10, n.1.) On October 10, 2019, I held a telephone conference with the parties, at which I sought to determine the status of check 2836. (See Minute Entry, dated Oct. 10, 2019.) Respondent’s counsel stated that he would confer with his client’s bank and confirm by letter whether the check had been cashed and, if not, whether the funds were returned to defendant’s 3 account or retained by the bank. (See id.) By letter dated October 21, 2019, respondent’s counsel reported that the bank was not able to provide any information as to the status of the check. (See Letter of Michael Rabinowitz, Esq., dated Oct. 21, 2019 (“Rabinowitz Ltr.”), Dkt. No. 45.) In that letter, respondent’s counsel further clarified that, of the seventeen payments it claims to have sent petitioner, thirteen were in the form of regular checks, each in the amount of

$13,332.50. (See id.) The remaining four were in the form of two cashier’s checks, each in the amount of $26,665. (See id.) Petitioner does not dispute receiving two cashier’s checks in that amount, but maintains that it received only twelve regular checks. (See Letter of Nicole Marimon, Esq., dated Oct. 21, 2019 (“Marimon Ltr.”), Dkt. No. 46.) Thus, the dispute remains over a single payment of $13,332.50. DISCUSSION 1. Damages Under New York law, payment of a debt is an affirmative defense, which the debtor bears the burden of proving. See, e.g., Syrup Assocs. v. Coastal Dev. Mass., LLC, 18 CV

8133, 2019 WL 2121878, at *4 n.2 (S.D.N.Y. May 15, 2019) (citing Weidenfeld v. Pac. Improvement Co., 43 F.2d 817, 820 (2d Cir. 1930)); see also 5A Carmody-Wait 2d § 30:65. In this case, the only evidence of payment that respondent has put forth is a scanned image of check 2836, which is ultimately not probative of whether petitioner actually received the funds.2

2 During the October 10, 2019 telephone conference, respondent’s counsel suggested that payment twelve was made via cashier’s check, meaning that the funds would have been drawn from respondent’s bank account at the time the check was obtained. As a preliminary matter, if respondent cannot show that the funds at issue were delivered to petitioner, it is irrelevant when they were drawn from respondent’s account. Moreover, the record does not support the contention that payment twelve was made by cashier’s check. While it is undisputed that (Continued . . . )

4 (See Check Images, annexed as Ex. A to the Declaration of Robert Falesto, dated Apr. 4, 2019, Dkt. No. 33.) Additionally, respondent has not demonstrated that the check in question was ever cashed or that the proceeds of that check were deducted from its bank account.

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