State v. 158th Street & Riverside Drive Housing Co.

100 A.D.3d 1293, 956 N.Y.S.2d 196

This text of 100 A.D.3d 1293 (State v. 158th Street & Riverside Drive Housing Co.) 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
State v. 158th Street & Riverside Drive Housing Co., 100 A.D.3d 1293, 956 N.Y.S.2d 196 (N.Y. Ct. App. 2012).

Opinion

Rose, J.E

Appeals (1) from an order of the Supreme Court (Teresi, J.), entered January 12, 2011 in Albany County, which, among other things, denied a motion by defendants A.M.G. Properties Company, Fanny Grunberg & Associates, LLC and Fanny Grunberg for summary judgment dismissing the complaint against them, (2) from a judgment of said court (O’Connor, J.), entered March 4, 2011 in Albany County, upon a verdict rendered in favor of plaintiff, and (3) from an order of said court (O’Connor, J), entered November 17, 2011 in Albany County, which denied a motion by defendants A.M.G. Properties Company, Fanny Grunberg & Associates, LLC and Fanny Grunberg to, among other things, set aside the verdict.

Plaintiff commenced this action pursuant to Navigation Law article 12 in 1999, seeking to recover costs associated with the remediation of two oil spills in the City of New York. The first spill was discovered in 1997 in the crawl space under River Terrace Apartments, owned by defendant 158th Street & Riverside Drive Housing Company, Inc. The second spill was discovered when a water main break caused water to flow down an alleyway between River Terrace Apartments and an apartment building located at 779 Riverside Drive, owned by defendants A.M.G. Properties Company, Fanny Grunberg & Associates, LLC and Fanny Grunberg (hereinafter collectively referred to as defendants). Plaintiff alleged that the source of each spill was, at least in part, a fuel tank system located at 779 Riverside Drive. Following joinder of issue and discovery, the parties’ cross motions for summary judgment were denied by Supreme Court (Teresi, J.) and, after trial, the jury returned a verdict in plaintiffs favor, awarding plaintiff the costs of remediation in the amount of $792,200.98 and assessing penalties aggregating $857,500.1 Supreme Court (O’Connor, J.) denied defendants’ posttrial motion to set aside the verdict. Defendants appeal from the denial of their motion for summary judgment, the [1295]*1295judgment entered against them and the order denying their posttrial motion.2

Defendants contend that the action should have been dismissed at the summary judgment stage because plaintiff failed to preserve the sort of background documents normally generated by a contractor hired by the Department of Environmental Conservation (hereinafter DEC) to assist in the remediation and investigation of the source of the oil spills. Although the contractor’s reports to DEC had previously been disclosed, it was not until 2010 that defendants sought any field notes or other background documentation from plaintiff that they believed would have been generated by the contractor. The contractor reported, however, that it had retained its files associated with the project for seven years and then destroyed them as part of its record retention policy. Supreme Court (Teresi, J.), in denying defendants’ motion for dismissal of the complaint, concluded that defendants failed to establish the existence of any specific documents or that plaintiffs conduct was in bad faith, willful or contumacious. On appeal, defendants do not allege bad faith. Instead, they claim that plaintiff should have imposed a litigation hold on its contractor to preserve any documents produced in connection with its response to the oil spills, arguing that plaintiff should have anticipated that the documents would be needed by them in connection with the litigation. Defendants assert that they were, at a minimum, entitled to an adverse inference charge at trial.

The decision to impose sanctions for the spoliation of evidence is within the sound discretion of the trial court and will not be disturbed absent a clear abuse of discretion (see Merrill v Elmira Hgts. Cent. School Dist., 77 AD3d 1165, 1166 [2010]; Miller v Weyerhaeuser Co., 3 AD3d 627, 628 [2004], lv dismissed 3 NY3d 701 [2004], appeal dismissed 5 NY3d 822 [2005]). "[C]ourts will look to the extent that the spoliation of evidence may prejudice a party and whether a dismissal will be necessary as a matter of elementary fairness” (Miller v Weyerhaeuser Co., 3 AD3d at 628 [internal quotation marks and citations omitted]). An adverse inference charge is not warranted in the absence of a showing that the documents in question ever actually existed, that they were under the opposing party’s control [1296]*1296and that there is no reasonable explanation for failing to produce them (see Jean-Pierre v Touro Coll., 40 AD3d 819, 820 [2007]; Wilkie v New York City Health & Hosps. Corp., 274 AD2d 474, 474 [2000], lv denied 96 NY2d 705 [2000]).

Here, we find no abuse of discretion in the denial of defendants’ motion for summary judgment, inasmuch as defendants failed to establish that they were prejudiced to the extent that they were unable to defend the case (see Merrill v Elmira Hgts. Cent. School Dist, 77 AD3d at 1166-1167; Hartford Fire Ins. Co. v Regenerative Bldg. Constr., 271 AD2d 862, 864 [2000]). Moreover, even assuming that there were additional documents that should have been preserved, the failure to give an adverse inference charge was harmless as defendants were allowed to question plaintiff’s witnesses about the apparent lack of background documentation for some of the laboratory reports that they relied on and, as part of defendants’ summation, to suggest to the jury that they could infer that any missing documents would benefit the defense (see Gallo v Ricci, 28 AD3d 1110, 1111 [2006], lv denied 7 NY3d 807 [2006]).

Defendants also contend that Supreme Court (O’Connor, J.) erred by admitting the reports issued by plaintiffs contractors into evidence. Defendants argue that the reports do not qualify as business records because they were not prepared by plaintiff and their admission into evidence improperly allowed plaintiffs experts to base their opinions on hearsay. While we agree that the mere filing of papers received from other entities is insufficient to qualify the documents as business records, such records may be admitted into evidence if the recipient can establish personal knowledge of the maker’s business practices and procedures, or that the records provided by the maker were incorporated into the recipient’s own records or routinely relied upon by the recipient in its business (see People v Cratsley, 86 NY2d 81, 90-91 [1995]; Matter of Carothers v GEICO Indem. Co., 79 AD3d 864, 865 [2010]; People v DiSalvo, 284 AD2d 547, 548-549 [2001]).

Here, plaintiff established that the lab reports, test results and monitoring logs produced by the contractors were incorporated into DEC’s own records and routinely relied on by DEC to perform its tasks of remediating the spill and investigating the source of the oil. A DEC representative testified that, while the agency is statutorily charged with responding to oil spills (see Navigation Law § 176), it does not have the resources to find the source and perform the clean-up operations. DEC therefore hires outside contractors to perform the work and it directs all aspects of the contractors’ activities, including which samples to [1297]*1297obtain, test and record. According to plaintiff, the records at issue were generated by the contractors at DEC’S direction and DEC was their primary custodian. DEC’S representative confirmed that the laboratory test report samples were taken and sent to a state-certified lab at his direction, he chose the type of test to be performed on the samples and he was familiar with the test.

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Bluebook (online)
100 A.D.3d 1293, 956 N.Y.S.2d 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-158th-street-riverside-drive-housing-co-nyappdiv-2012.