NECG Holdings Corp. v. West Broad Service Center, LLC

CourtSupreme Court of Connecticut
DecidedJanuary 27, 2015
DocketSC19300
StatusPublished

This text of NECG Holdings Corp. v. West Broad Service Center, LLC (NECG Holdings Corp. v. West Broad Service Center, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NECG Holdings Corp. v. West Broad Service Center, LLC, (Colo. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** GETTY PROPERTIES CORPORATION v. ATKR, LLC NECG HOLDINGS CORPORATION v. PAMBY MOTORS, INC. (SC 19298) NECG HOLDINGS CORPORATION v. 331 WEST AVENUE GAS STATION, LLC (SC 19299) NECG HOLDINGS CORPORATION v. WEST BROAD SERVICE CENTER, LLC NECG HOLDINGS CORPORATION v. NAVJOT ENTERPRISES, INC. (SC 19300) NECG HOLDINGS CORPORATION v. HSTN, LLC (SC 19301) NECG HOLDINGS CORPORATION v. BODAEVE, INC. NECG HOLDINGS CORPORATION v. MICA ENTERPRISES, INC. (SC 19302) Rogers, C. J., and Palmer, Zarella, Eveleigh, McDonald, Espinosa and Robinson, Js. Argued October 28, 2014—officially released January 27, 2015

John J. Morgan, with whom, on the brief, was Albert J. Barr, for the appellants (defendant in each case). Cort T. Malone, with whom was Heather Spaide, for the appellees (plaintiff in each case). Opinion

EVELEIGH, J. In this consolidated summary process action,1 the defendants, the owners of certain retail gasoline service stations,2 appeal from the judgments of immediate possession rendered by the trial court in favor of the plaintiffs, Getty Properties Corporation (Getty Properties) and NECG Holdings Corporation (NECG), with respect to the properties on which the defendants operate their stations. The defendants claim that the trial court improperly: (1) determined that the plaintiffs’ notices to quit were valid; (2) admitted into evidence the lease between Getty Properties and its tenant, Getty Petroleum Marketing, Inc. (Getty Market- ing), as well as the sublease between Getty Marketing and its subtenant, Green Valley Oil, LLC (Green Valley); (3) interpreted the various pleadings and orders in Getty Marketing’s bankruptcy case as terminating the lease between Getty Properties and Getty Marketing and the sublease between Getty Marketing and Green Valley; (4) found that the plaintiffs proved a prima facie case for summary process; and (5) failed to dismiss the summary process action as premature pursuant to the Petroleum Marketing Practices Act, 15 U.S.C. § 2801 et seq. We affirm the judgments of the trial court. The record reveals the following facts and complex procedural history.3 Getty Properties, a real estate investment trust, owns4 the properties on which the defendants operate retail gasoline service stations. On November 2, 2000, Getty Properties leased the proper- ties to Getty Marketing by way of a master lease (master lease). The master lease provided, in relevant part, that Getty Marketing could sublet the properties, but that such subleases ‘‘shall be subject and subordinate to the terms and conditions of this [master] [l]ease . . . and, unless [Getty Properties] elects otherwise, shall auto- matically terminate upon any termination of this [mas- ter] [l]ease.’’ In 2009, Getty Marketing sublet the properties to Green Valley, a gasoline distributor, by way of a sub- lease (Green Valley sublease). The Green Valley sub- lease expressly referenced the master lease and provided that it was ‘‘subject and subordinate to’’ the master lease. The Green Valley sublease further pro- vided: ‘‘[Green Valley] acknowledges that [Getty Mar- keting] derives its interests in the [properties] pursuant to the terms of the [m]aster [l]ease . . . . If [the master lease] terminates, the [Green Valley] [s]ublease shall terminate with respect to any [properties] affected . . . .’’ Finally, the Green Valley sublease provided: ‘‘[Green Valley] may sublet the [properties] . . . to any person or entity for [approved uses] as long as [Green Valley] is not in default of any provision of [the Green Valley] [s]ublease and the [subsequent] sublease is sub- ject to the terms of the [Green Valley] [s]ublease.’’ Thereafter, Green Valley entered into an individual sub-sublease with each defendant (dealer sub-sub- leases), under which the defendants paid monthly rent to Green Valley in exchange for the right to possess the properties and operate retail gasoline stations thereon. The terms of the dealer sub-subleases were expressly ‘‘subject and subordinate to all ground and underlying leases . . . which may now or hereafter affect this [sub-sub]lease or the [defendants’ stations], and to all renewals, modifications, consolidations, replacements and extensions thereof.’’ The dealer sub-subleases also provided that ‘‘[i]f [Green Valley] is not the owner of the [property], then this lease shall be subject to all of the terms, provisions and conditions of the lease or other arrangement under which [Green Valley] holds the [s]tation, and if such lease or other arrangement shall be canceled or terminated, this lease shall be automatically terminated or canceled, without any liability on the part of [Green Valley] to [the defen- dants].’’ (Emphasis added.) Beginning in August, 2011, and continuing for each of several months, Getty Marketing failed to pay rent, Getty Properties sent a notice of termination, and Getty Marketing subsequently cured the default. Pursuant to the master lease, nonpayment of rent constituted an event of ‘‘ ‘[m]aterial [m]onetary [d]efault’ ’’ for which Getty Properties could properly terminate the lease. In October, 2011, Getty Marketing brought an action against Getty Properties in New York state court, claim- ing that Getty Properties had breached the master lease and seeking an injunction to prevent Getty Properties from terminating the lease.5 The New York state court granted a series of temporary injunctions, requiring Getty Marketing to pay Getty Properties a percentage of its monthly rent and to deposit the remaining portion into escrow pending resolution of Getty Marketing’s claims. Shortly thereafter, Getty Marketing violated these terms by failing to deposit rent into escrow. Accordingly, on November 29, 2011, Getty Properties sent yet another notice of termination to Getty Market- ing—citing Getty Marketing’s material monetary default for nonpayment of rent—that terminated the master lease effective December 12, 2011. On December 5, 2011, Getty Marketing filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York.

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Bluebook (online)
NECG Holdings Corp. v. West Broad Service Center, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/necg-holdings-corp-v-west-broad-service-center-llc-conn-2015.