Vic's Parking Corp. v. Nash

26 Misc. 3d 413
CourtNew York Supreme Court
DecidedOctober 13, 2009
StatusPublished

This text of 26 Misc. 3d 413 (Vic's Parking Corp. v. Nash) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vic's Parking Corp. v. Nash, 26 Misc. 3d 413 (N.Y. Super. Ct. 2009).

Opinion

OPINION OF THE COURT

Shirley Werner Kornreich, J.

[414]*414In this action for breach of a contract to sell a leasehold, the plaintiff seller moves, pursuant to CPLR 3212, for summary-judgment and dismissal of defendants’ affirmative defenses. Defendants cross-move, pursuant to CPLR 3212, for summary judgment dismissing the complaint.

The complaint contains a single cause of action for breach of contract. It alleges that the purchasers, defendants Nash and Hazan, breached the contract by stopping payment on their deposit checks. The answer contains five affirmative defenses: (1) retention of the $225,000 deposit is an unenforceable penalty; (2) liquidated damages are limited to $75,000 pursuant to a termination clause in the contract; (3) there was no contract formed prior to breach; (4) plaintiff did not have permission from the landlord to convey the lease; and (5) lack of consideration.

For the reasons that follow, plaintiffs motion for summary judgment is denied and defendants’ cross motion is granted.

Background

Plaintiff, Vic’s Parking Corporation, is the lessee of the premises 416, 418, 420, 426 and 428, Albee Square, Brooklyn, New York 11201. It is undisputed that on January 17, 2008, by overnight mail, defendants’ attorney, Zalman Schochet, sent a contract to sell plaintiff’s leasehold, signed by defendants, together with defendant Nash’s check in the amount of $112,500, to plaintiffs attorney, Barry Levine, the escrowee designated in the contract. Mr. Schochet’s cover letter recited that a second check from defendant Hazan in the same amount was enclosed. Mr. Levine disputes it. He says that he received defendant Kazan’s check five days later, on January 22, 2008.

The purchase price was $2,250,000. The contract defined $225,000, 10% of the purchase price, as the “First Deposit,” payable by the purchasers upon their execution of the agreement. The contract provided that it was binding when it was properly executed and delivered by the seller to the purchasers. (Contract § 10.5.) It further provided that it could be cancelled upon written notice from the purchasers on or before February 18, 2008 and, in that event, the escrowee was to pay $75,000 to the seller and $150,000 to the purchasers. (Contract § 2.2.) Section 10.1 provided that the contract and any of its provisions could only be waived, modified or amended by a writing signed by the party against whom enforcement of such waiver, modification or amendment was sought. Mr. Levine’s moving af[415]*415fidavit makes the following allegations. Mr. Levine went to his bank on January 18 with defendant Nash’s check,

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Bluebook (online)
26 Misc. 3d 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vics-parking-corp-v-nash-nysupct-2009.