Tobin v. Gluck

137 F. Supp. 3d 278, 2015 U.S. Dist. LEXIS 133812, 2015 WL 5793299
CourtDistrict Court, E.D. New York
DecidedSeptember 30, 2015
DocketNos. 07-CV-1605 (MKB), 11-CV-3985 (MKB)
StatusPublished
Cited by1 cases

This text of 137 F. Supp. 3d 278 (Tobin v. Gluck) 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
Tobin v. Gluck, 137 F. Supp. 3d 278, 2015 U.S. Dist. LEXIS 133812, 2015 WL 5793299 (E.D.N.Y. 2015).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

MARGO K. BRODIE, District Judge:

Plaintiff Helene K. Tobin commenced the above-captioned action against Defendants Ivan and Phyllis Gluck on April 18, 2007, pursuant to a guaranty from Defendants to Plaintiff in connection with the lease of a commercial property owned by Plaintiff (“Tobin I ”). Plaintiff’s Amended Complaint asserted' claims of fraud, unjust enrichment and breach of a guaranty, and sought damages and legal fees. On June 17, 2011, Defendants commenced an action in New York State Suprenie Court, Nassau County, to enforce a stipulation of settlement signed by the parties, resulting from a landlord and' tenant proceeding involving the property. The Nassau County action was removed to this Court on August 17, 2011 (“Tobin II ”)1 After granting Defendants’ motion for summary judgment and dismissing Plaintiff’s claims in Tobin I, and allowing Plaintiff to amend the Amended Complaint to assert a breach of contract claim based on the stipulation of settlement, on December 15, 2014, the Court held a consolidated bench trial of Tobin I and Tobin II. Defendants’ motion for partial summary judgment is also before the Court. As set forth below, the Court denies Defendants’ motion for parr tial summary judgment; finds that Defendants breached certain terms of the stipulation of settlement; and awards damages to Plaintiff in the amount of $604,500.00 less: (1) $17,421.02, which represents the value of the security 'deposit with interest as set forth in the Stipulation; and- (2) the value of any interest accrued to date on the $17,421.02 amount.

I. Procedural History

The Court assumes familiarity , with the long and tortured history of these proceedings, detailed in, the Court’s March 28, 2014 Memorandum and Order granting summary judgment to Defendants, dismissing Plaintiff’s claims and allowing Plaintiff to plead a breach of contract claim based on the stipulation of settlement between the parties. See generally Tobin v. Gluck, 11 F.Supp.3d 280 (E.D.N.Y.2014).

Defendants moved for'partial summary judgment prior to the commencement of trial. The Court declined to rule on the motion and instead proceeded to trial. Defendants argue that they are entitled to partial summary judgment dismissing: (1) Plaintiff’s environmental claim which alleges that Defendants contaminated the subsoil and groundwater of the Property in violation of paragraph 5 of the Stipulation; (2) Plaintiffs claim that Defendants violated paragraph 4 of the Stipulation by failing to maintain insurance on the Property; and (3) Plaintiffs claim that Defendants violated paragraph 2 of the Stipulation by seeking the entry of a judgment against Plaintiff in civil court for the return of the security deposit. (Defs. Not. of Mot. for Partial Summary Judgement, Docket En[284]*284try No. 138; Defs. Mem. in Support of Mot. for Partial Summary Judgement (“Defs. SJ Mem.”), Docket Entry No. 138-10.) As discussed below, the Court denies Defendants’ motion as to Plaintiff’s environmental claim pursuant to paragraph 5 of the Stipulation, as Plaintiff has proven this claim. The Court denies Defendants’ motion as to the other two claims as moot since the Court resolves these claims on the merits.

On December 15, 2014, the Court commenced a bench trial of Plaintiff’s breach of contract claim relating to the stipulation of settlement. Plaintiff presented the testimony of Gerald Tobin, manager of the property and Plaintiff’s husband,2 professional engineer Neil Schmelkin of Tauscher Cronacher Engineers, and hydrogeologist Mostafa El Sehamy of Hydro Tech Environmental Corp. Defendants presented the testimony of geologist James De-Martinis. At the conclusion of the trial, on December 16, 2014, the Court heard oral argument on Defendants’ pending motion for partial summary judgment. The parties subsequently submitted post-trial briefs.

The Court makes the following findings of facts and conclusions of law.

II. Findings of Fact

Plaintiff Helene K. Tobin is the owner of the lot located at 3480 Nostrand Avenue, Brooklyn, New York (the “Property”). (Tr. of Dec. 15, 2014 Bench Trial (“Tr.”) 14:7-18.) The Property consists of a building (the “Building”) and a surrounding outdoor space (the “Outdoor Space”). (Tr. 72:3-9; Ex. 1.) The Building is a two-story building with a full basement. (Ex. G at 2; Ex. J at 2; Ex. H at 2.) On July 1, 1997, Plaintiff leased the Property to tenant Clean-o-Rama, Inc., for a term of fifteen years. (Tr. 15:9-11; Lease, admitted as part of Ex. A.) On April 10, 2002, Plaintiff agreed to an assignment of the lease from Clean-o-Rama, Inc., to Beaaro, Inc. (“Beaaro”).3 (Tr. 15:15-20; Assignment of Lease, admitted as part of Ex. A.)

Pursuant to the lease, Beaaro paid Plaintiff a security deposit in the amount of $15,000.00. (Lease Modification Agreement, admitted as part of Ex. A at ¶ 6.) Plaintiff has retained the security deposit, including accrued interest, and has not returned it to Beaaro or Defendants. (Tr. 8:16-10:4.)

In or about February of 2005, Plaintiff commenced a holdover proceeding in New York Landlord/Tenant Court, Index No. L & T 06K070405, alleging a default under the Lease (the “L & T Action”). (Stipulation, Ex. B at 1; Tr. 73:8-13.) Plaintiff commenced the action against then-tenant Beaaro, several under-tenants identified only as John Does # 1-5, and UVW and XYZ Corps, (collectively, the “tenants”). (Stipulation 1.) Defendants were not named as parties in the L & T Action. However, in settlement of the L & T Action, on or about July 3, 2007, Plaintiff, Defendants, the tenants, and two individuals associated with the tenants—all of whom were represented by counsel—entered into a stipulation of settlement (the “Stipulation”) “to resolve and settle their disputes amicably.” (Id. at 2, 8.) The Stipulation was “So Ordered” by Judge Loren Baily Schiffman on July 19, 2007. (Id. at 9.)

[285]*285a. The Stipulation

The caption of the Stipulation states in pertinent part: “Premises Address: 3480 Nostrand Avenue, Brooklyn, New York.” (Id. at 1.) Pursuant to the Stipulation, Plaintiff obtained a judgment of possession and a warrant of eviction but agreed not to execute the warrant prior to August 2, 2007, if Defendants complied with the terms of the Stipulation. Paragraph 1 of the Stipulation provides:

A judgment of possession and warrant of eviction shall issue and shall be entered forthwith. Petitioner covenants and agrees that she shall not execute the warrant or cause it to be executed prior to August 2, 2007, so long -as there is due and timely compliance with the terms of this stipulation by the-respondent and its principals, agents, officers, employees, agents, successors or assigns. The warrant may be executed at any time after that date, unconditionally and without further notice and may be executed prior to that date if any of the terms and conditions of paragraphs 3 or 4 are not timely complied with, upon service of the requisite notice by a marshal, sheriff or other appropriate enforcement officer.

(Id. ¶ 1.) Pursuant to the Stipulation, Defendants agreed to surrender the Property on or before August 2, 2007. Paragraph 5 of the Stipulation provides in pertinent part:

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Related

Tobin v. Gluck
684 F. App'x 61 (Second Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
137 F. Supp. 3d 278, 2015 U.S. Dist. LEXIS 133812, 2015 WL 5793299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tobin-v-gluck-nyed-2015.