Underhill Venture, LLC v. Sarang

Appellate Division of the Supreme Court of the State of New York·Decided August 12, 2026·No. 2025-02245·Published·Wan

Opinion

Underhill Venture, LLC v Sarang

2026 NY Slip Op 04976

August 12, 2026

Appellate Division, Second Department

Wan

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This decision is uncorrected and subject to revision before publication in the Official Reports.

Underhill Venture, LLC, appellant,

v

Hansneet Sarang, et al., respondents.

Supreme Court of the State of New York, Appellate Division, Second Judicial Department

Decided on August 12, 2026

2025-02245, (Index No. 604830/23)

Valerie Brathwaite Nelson, J.P.

Lillian Wan

Laurence L. Love

Elena Goldberg Velazquez, JJ.

Ezio Scaldaferri, Esq., P.C. Glen Cove, NY, for appellant.

Esagoff Law Group, P.C., Great Neck, NY (Janet Nina Esagoff of counsel), for respondents.

APPEAL by the plaintiff, in an action, inter alia, for declaratory relief, from an order and judgment (one paper) of the Supreme Court (Felice J. Muraca, J.), dated January 22, 2025, and entered in Nassau County. The order and judgment, insofar as appealed from, granted those branches of the defendants' motion which were pursuant to CPLR 5015(a) to vacate so much of a judgment of the same court entered November 12, 2024, as awarded the plaintiff disbursements for printing expenses in the sum of $6,135.34 and disbursements for fees incurred to cancel a certain notice of pendency in the sum of $300.

Wan, J. [*1]

OPINION & ORDER

This appeal presents this Court with the opportunity to consider whether, under CPLR 8301(a)(6), a party to whom costs are awarded on an appeal is entitled to tax, as a necessary disbursement, those reasonable expenses incurred by that party in connection with the assembly and submission of a digital record and briefs on the appeal. We answer this question in the affirmative.

Factual & Procedural Background

The following facts are taken from this Court's decision and order on a prior appeal (see Underhill Venture, LLC v Sarang, 231 AD3d 996). The plaintiff entered into a residential contract of sale (hereinafter the contract) to build a house on certain land located in Oyster Bay and to sell the land and the house to the defendants (see id. at 997). Alleging that the defendants defaulted on their obligation to pay for certain upgrades (or "extras") to the house that they requested, the plaintiff commenced this action to declare the contract null and void and to retain the defendants' down payment (see id.). The defendants counterclaimed for damages and filed a notice of pendency against the property (see id.).

The plaintiff moved to cancel the notice of pendency, for an award of costs, and to impose sanctions upon the defendants for filing the notice of pendency (see id.). In an order dated September 21, 2023, the Supreme Court, inter alia, denied the motion (see id.). The plaintiff then moved, among other things, for leave to renew and reargue its prior motion (see id.). In an order entered December 18, 2023, the court, inter alia, denied the plaintiff's motion, among other things, for leave to renew and reargue its prior motion (see id.).

The plaintiff appealed from both orders, and in a decision and order dated October 16, 2024, this Court determined, inter alia, that "the Supreme Court erred in denying that branch of the plaintiff's motion which was to cancel the notice of pendency," since "the parties agreed in a [*2]rider to the contract that 'the right to file a Lis Pendens in any action is hereby waived irrevocably'" (id.). This Court further determined that "[c]ontrary to the plaintiff's contention, however, the plaintiff is not entitled to an award of costs pursuant to CPLR 6514(c) because the notice of pendency was not cancelled pursuant to CPLR 6514(a) or (b)" (id. at 998, citing Delidimitropoulos v Karantinidis, 142 AD3d 1038, 1039-1040). This Court also concluded that "[u]nder the circumstances of [the prior appeal], sanctions are not warranted pursuant to 22 NYCRR 130-1.1" (id.).

Based upon the foregoing, this Court, among other things, modified the order dated September 21, 2023, "by deleting the provision thereof denying that branch of the plaintiff's motion which was to cancel the defendants' notice of pendency, and substituting therefor a provision granting that branch of the motion" (id. at 996). This Court also "[o]rdered that one bill of costs is awarded to the plaintiff" (id. at 997).

After this Court issued the decision and order on the prior appeal, the plaintiff submitted a proposed judgment with a bill of costs, wherein the plaintiff requested costs pursuant to CPLR 8203(a) in the sum of $250, disbursements for printing expenses in the sum of $6,135.54, and disbursements for fees incurred to cancel the notice of pendency in the sum of $300. On November 12, 2024, the Supreme Court entered a judgment in favor of the plaintiff and against the defendants in the sum of $6,685.54, which included all costs and disbursements sought by the plaintiff.

Thereafter, the defendants moved, inter alia, pursuant to CPLR 5015(a) to vacate so much of the judgment as awarded the plaintiff disbursements for printing expenses in the sum of $6,135.34 and disbursements for fees incurred to cancel the notice of pendency in the sum of $300. The defendants argued that the plaintiff failed to establish its entitlement to printing expenses since it did not explain why the filing of hard copies of appellate papers was necessary. The defendants also argued that the plaintiff "electively opted" to use an appellate printer and that the defendants should not be burdened with such costs.

In opposition, the plaintiff acknowledged that it did not file hard copies of the briefs and record on the prior appeal. Instead, according to the plaintiff's counsel, Printing House Press, the appellate printing company utilized by the plaintiff in connection with the preparation and submission of the record and briefs on the prior appeal, only invoiced the plaintiff for "electronic bookmarks," "electronic links," "digital files conversion(s)," and "uploads." The plaintiff argued that the "mere fact that documents can be e-filed did not prohibit the use of an appellate printer that specializes in the intricacies of preparation and filing of the record on appeal and briefs," since the "Appellate Division requires that briefs and records contain electronic hyperlinks" and that "costs from a printer have been consistently awarded after the Second Department began mandating e-filing" (emphasis omitted). The plaintiff argued that "it is commonplace, and economical, to use a printer."

In an order dated January 22, 2025, the Supreme Court, among other things, granted those branches of the defendants' motion which were pursuant to pursuant to CPLR 5015(a) to vacate so much of the judgment as awarded the plaintiff disbursements for printing expenses in the sum of $6,135.34 and disbursements for fees incurred to cancel the notice of pendency in the sum of $300. The Supreme Court determined, inter alia, that this Court's award to the plaintiff of "one bill of costs" did not include an award of disbursements and that the plaintiff was only entitled to recover costs pursuant to CPLR 8203(a) in the sum of $250.

The plaintiff appeals.

Analysis

Initially, the plaintiff contends that the Supreme Court incorrectly determined that this Court's award of "one bill of costs" in connection with the prior appeal did not include an award of disbursements. CPLR 8301(a) states that "[a] party to whom costs are awarded in an action or on appeal is entitled to

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