Stainless Broadcasting Co. v. Clear Channel Broadcasting Licenses, L.P.

58 A.D.3d 1010, 871 N.Y.S.2d 468, 2009 NY Slip Op 180, 2009 N.Y. App. Div. LEXIS 166
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 15, 2009
StatusPublished
Cited by24 cases

This text of 58 A.D.3d 1010 (Stainless Broadcasting Co. v. Clear Channel Broadcasting Licenses, L.P.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stainless Broadcasting Co. v. Clear Channel Broadcasting Licenses, L.P., 58 A.D.3d 1010, 871 N.Y.S.2d 468, 2009 NY Slip Op 180, 2009 N.Y. App. Div. LEXIS 166 (N.Y. Ct. App. 2009).

Opinion

Peters, J.P.

Appeal from an order of the Supreme Court (Lebous, J.), entered October 26, 2007 in Broome County, which granted defendant’s motion to dismiss and/or for summary judgment.

Plaintiff entered into a written lease with Majac of Michigan, Inc. whereby Majac agreed to rent space on plaintiffs antenna tower for two of its radio broadcasting antennas, as well as a portion of land in the Town of Binghamton, Broome County, upon which the tower lies. The five-year lease, which commenced on January 1, 2000, contained an option to extend for an additional five-year period upon timely written notice to plaintiff prior to the expiration of the lease term.

In October 2000, Majac assigned its rights and obligations under the lease to defendant. Although the lease expired on January 1, 2005, and defendant had not exercised its option to extend the lease, it continued to occupy the leased premises and pay rent as invoiced by plaintiff. In December 2005, plaintiffs general manager, John Leet, presented defendant’s marketing manager, Joanne Aloi, with a proposed written lease for a five-year term effective January 2006. Aloi informed Leet that the proposed lease would have to be reviewed and ultimately signed by corporate headquarters. Despite subsequent inquiries by plaintiff, the lease was never executed by defendant. Plaintiff voiced no objection throughout 2006, during which time defendant continued to occupy the leased premises and pay rent as invoiced by plaintiff.

On December 29, 2006, defendant removed its broadcasting equipment and vacated the premises. Thereafter, plaintiff made a written demand for defendant to remit $299,700, a sum which plaintiff claimed represented rent payments for the balance of the five-year 2006 lease term. Upon defendant’s refusal, plaintiff commenced this action on the theories of breach of contract, breach of implied duty of good faith and fair dealing, unjust enrichment, quantum meruit and fraud. Plaintiff also sought a declaration that the 2006 lease was in full force and effect. In lieu of an answer, defendant moved for dismissal of the complaint and summary judgment pursuant to CPLR 3211 [1012]*1012and/or 3212. In an order without a supporting decision, Supreme Court granted defendant’s motion and dismissed the complaint, prompting this appeal.

Initially, we note that Supreme Court’s order fails to specify the ground upon which it granted defendant’s motion. In the event that the court treated defendant’s motion as one for summary judgment, we find this to be error. A motion for summary judgment may not be made prior to joinder of issue (see CPLR 3212 [a]) and, although a motion to dismiss pursuant to CPLR 3211 may be converted to a summary judgment motion by the court after giving the parties adequate notice (see CPLR 3211 [c]; Lockheed Martin Corp. v Aatlas Commerce, Inc., 283 AD2d 801, 802 [2001]), the record discloses no such notice by the court. While “the notice requirement may be obviated in cases where it can be found that the parties ‘deliberately chart[ed] a summary judgment course’ ” (Henbest & Morrisey v W.H. Ins. Agency, 259 AD2d 829, 829-830 [1999], quoting Four Seasons Hotels v Vinnik, 127 AD2d 310, 320 [1987]), the record before us does not support such a finding. Although plaintiff made some effort to controvert the evidence presented in support of defendant’s motion, we cannot conclude that it clearly intended to chart a summary judgment course (see Wadsworth v Beaudet, 267 AD2d 727, 730 [1999]). As a result, we proceed to determine defendant’s motion to dismiss and, in doing so, we “must afford the pleadings a liberal construction, take the allegations of the complaint as true and provide plaintiff the benefit of every possible inference” (EBC I, Inc. v Goldman, Sachs & Co., 5 NY3d 11, 19 [2005]; see Team Mktg. USA Corp. v Power Pact, LLC, 41 AD3d 939, 940 [2007]).

We first address plaintiffs claim that the 2006 lease was a valid and enforceable agreement between the parties. The statute of frauds provides that a contract to lease reed property for a period longer than one year is void and unenforceable unless the contract is in writing and signed by the party to be charged (see General Obligations Law § 5-703 [2]). Here, plaintiff does not dispute that the 2006 lease was never signed by defendant, instead arguing that defendant orally agreed to the 2006 lease and that its partial performance is sufficient to take the oral agreement out of the statute of frauds. Plaintiffs reliance on part performance, however, is misplaced, as “[p]art performance only applies to overcome the defense of the [s]tatute of [frauds in an action for specific performance of a contract” (Tecler v Siwek, 151 AD2d 813, 815 [1989]; see General Obligations Law § 5-703 [4]; Mulford v Borg-Wamer Acceptance Corp., 115 AD2d 163, 164 [1985]; Papell v Calogero, 114 AD2d 403, 404 [1985], [1013]*1013mod, on other grounds 68 NY2d 705 [1986]). As this action is pleaded as one at law and seeks only money damages, without any prayer for equitable relief, the doctrine of part performance is unavailable to plaintiff (see Mulford v Borg-Warner Acceptance Corp., 115 AD2d at 164; Mihalko v Blood, 86 AD2d 723, 724 [1982]).

Nor are we persuaded that the doctrine of equitable estoppel prevents defendant from asserting the statute of frauds as a defense. The doctrine of equitable estoppel is designed “to prevent the infliction of unconscionable injury and loss upon one who has relied on the promise of another” (American Bartenders School v 105 Madison Co., 59 NY2d 716, 718 [1983]; see Jokay, Inc. v Lagarenne, 138 AD2d 778, 780 [1988]). While plaintiff alleged that in January 2006 Aloi orally agreed to the terms of the 2006 lease, plaintiff also acknowledged that Aloi informed Leet at that time that the contract would have to be sent to defendant’s legal department for review and signing. Thus, plaintiff could not have reasonably and justifiably relied on the alleged oral agreement in light of its awareness that Aloi lacked the authority to bind defendant (see Beck v New York News, 92 AD2d 823, 825 [1983], affd 61 NY2d 620 [1983]). Moreover, defendant continued paying rent during that time and continued to do so until it vacated plaintiff’s premises in December 2006 and, therefore, plaintiff’s alleged injury represents nothing more than that which flowed naturally from the nonperformance of the remaining term of the unenforceable agreement (see American Bartenders School v 105 Madison Co., 91 AD2d 901, 902 [1983], affd 59 NY2d 718 [1983]; see also M.K.D. Capital Corp. v Miller, 170 Misc 2d 1002, 1005 [Sup Ct, NY County 1996]; compare Fleet Bank v Pine Knoll Corp., 290 AD2d 792, 797 [2002]). Consequently, plaintiff was not entitled to a declaration that the 2006 lease was valid and binding upon defendant. Because Supreme Court failed to make a declaration that the 2006 lease was unenforceable, the order should be modified accordingly.

Alternatively, plaintiff argues that defendant impliedly agreed to exercise the option to renew the 2000 lease by virtue of its continued possession of the leased premises beyond the lease’s termination date and payment of rent. We disagree.

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58 A.D.3d 1010, 871 N.Y.S.2d 468, 2009 NY Slip Op 180, 2009 N.Y. App. Div. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stainless-broadcasting-co-v-clear-channel-broadcasting-licenses-lp-nyappdiv-2009.