Vornado Realty Trust v. Marubeni Sustainable Energy, Inc.

987 F. Supp. 2d 267, 2013 WL 6670237, 2013 U.S. Dist. LEXIS 177923
CourtDistrict Court, E.D. New York
DecidedDecember 18, 2013
DocketNo. 08-CV-4823 (WFK)(JO)
StatusPublished
Cited by12 cases

This text of 987 F. Supp. 2d 267 (Vornado Realty Trust v. Marubeni Sustainable Energy, Inc.) 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
Vornado Realty Trust v. Marubeni Sustainable Energy, Inc., 987 F. Supp. 2d 267, 2013 WL 6670237, 2013 U.S. Dist. LEXIS 177923 (E.D.N.Y. 2013).

Opinion

DECISION AND ORDER

WILLIAM F. KUNTZ, II, District Judge.

Vornado Realty Trust (“Vornado”), Alexander’s Inc., Alexander’s of Brooklyn, Inc., Alexander’s Kings Plaza Center, Inc. (“AKPC”), and Commerce and Industry Company a/s/o Alexander’s Kings Plaza, LLC (“AKP”) (collectively, “Plaintiffs”), initiated this action for damages against the above-captioned defendants based on an oil leak discovered on July 6, 2006 at the Kings Plaza Shopping Center (“the Site”) in Brooklyn, New York. Plaintiffs seek to recover from the named defendants clean-up and remediation costs allegedly resulting from the leak. On September 30, 2011, the Court denied motions for summary judgment brought by Defendant IVI Environmental Inc. (“IVI”) and Defendant Castlton Environmental Contractors, LLC (“CEC”) (collectively, “Defendants”). On November 16, 2011, the Court denied Defendants’ respective motions for reconsideration. Before the Court are Defendants’ Renewed Motions for Summary Judgment pursuant to Federal Rule of Civil Procedure 54(b). For the reasons set forth below, the Court grants Defendants’ Renewed Motions for Summary Judgment and directs the Clerk of Court to enter judgment in favor of Defendants.

BACKGROUND

I. The State Court Action and the Release

Pursuant to a “Master Agreement” dated June 4, 1998, with Vornado, as agent for AKPC and AKP, IVI agreed to perform certain site investigation and remediation services at the Site, including the replacement of existing underground soil storage tanks (“USTs”) and the installation of new USTs. IVI 56.1 St. at ¶ 1. On May 3, 2002, Vornado terminated the Master Agreement and revoked all permission for IVI to access the Site. Id. at ¶ 2.

On July 23, 2002, IVI commenced an action in the Supreme Court of the State [271]*271of New York, County of Kings (“the State Court Action”), seeking to recover damages from Vornado and AKPC for breach of contract, unjust enrichment, and to foreclose its mechanic’s lien against the Kings Plaza Shopping Center. Id. at ¶ 3. AKPC and AKP interposed counterclaims against IVI based, in part, upon their allegation that IVI’s groundwater treatment system was designed and installed incorrectly. Id. at ¶ 4; Decl. of Joseph P. McNulty (“McNulty Decl.”), Ex. H.1 On July 21, 2003, the claims and counterclaims in the State Court Action were compromised and settled. IVI 56.1 St. at ¶ 5. AKPC and AKP executed a “Settlement Agreement and Mutual Releases” (the “Release”), and paid $90,000 to IVI. Id. at ¶ 6. Mario De Stefanis signed the release on behalf of IVI, and Joseph Macnow signed the Release on behalf of AKP and AKPC. McNulty Deck, Ex. F. A Stipulation of Discontinuance With Prejudice was filed in the Kings County Clerk’s Office on September 30, 2003. Id. at ¶ 7.

The Release states, in pertinent part: WHEREAS, on or about February 7, 2003, ALEXANDER’S KINGS PLAZA CENTER, INC. and ALEXANDER’S KINGS PLAZA, LLC served an answer and counterclaims to the second amended complaint by IVI ENVIRONMENTAL, INC., which counterclaims seek to recover damages for breach of contract, negligence, malpractice and conversion from IVI ENVIRONMENTAL, INC.; and
WHEREAS, IVI ENVIRONMENTAL, INC., ALEXANDER’S KINGS PLAZA CENTER, INC., ALEXANDER’S KINGS PLAZA, LLC and FIDELITY AND DEPOSIT COMPANY OF MARYLAND desire to settle the Kings Plaza Action, including' all counterclaims, and discharge and cancel the Bond.
3. ALEXANDER’S KINGS PLAZA CENTER, INC., ALEXANDER’S KINGS PLAZA, LLC and FIDELITY AND DEPOSIT COMPANY OF MARYLAND, for themselves and for their predecessors and successors in interest, affiliates, principals, directors, officers, shareholders, partners, members, managing members, agents, employees and assigns ... hereby releases and discharges IVI ENVIRONMENTAL, INC ... and [IVI’s] ... agents .... from all actions, causes of action, suits, debts, sums of money, accounts, reckonings, bills, bonds, specialties, contracts, covenants, controversies, agreements, promises, variances, trespasses, judgments, damages, executions, claims and demands whatsoever, in law, admiralty or equity, which against the RELEASEES, the RELEASOR, RELEASOR’S heirs, executors, administrators, successors, and assigns ever had, now have or hereafter can, shall or may, have for, upon, or by reason of any matter, cause or thing arising from or relating to services rendered by IVI ENVIRONMENTAL, INC. in connection with the Kings Plaza Shopping Center.
4. It is hereby mutually understood and agreed that this settlement is a compromise of disputed claims and is not to be construed or interpreted in any way as an admission of liability on the part of ALEXANDER’S [272]*272KINGS PLAZA CENTER, INC., ALEXANDER’S KINGS PLAZA, LLC and FIDELITY AND DEPOSIT COMPANY OF MARYLAND or by IVI ENVIRONMENTAL, INC. on the counterclaims, such liability and/or responsibility being hereby expressly denied.
6. This RELEASE is intended to, and does finally and fully terminate and dispose of all claims and demands which have been or may be asserted at law or equity arising from or relating to the services rendered by IVI ENVIRONMENTAL, INC. in connection with the Kings Plaza Shopping Center, including all attorneys’ fees and expenses that the parties may have incurred to date.
7. The signatories of this RELEASE hereby specifically state that they have executed this RELEASE voluntarily and are fully aware of the provisions of this RELEASE and the ramifications thereof.
8. This RELEASE may not be changed orally and contains the entire agreement between the parties hereto. The terms of this RELEASE are contractual and not a mere recital.

McNulty Decl., Ex. F.

II. CEC’s Involvement and the Bankruptcy Action 1

IVI subcontracted removal and replacement work to Castlton Excavating, Inc. d/b/a Castlton Environmental Contractors, Inc. (“Old Castlton”) at the Kings Plaza Shopping Center. CEC 56.1 St. at ¶ 1. Old Castlton was owned and operated by a parent company, commonly known as Invatech, Inc. (“Invatech”). Id. at ¶ 6. On or about September 30, 2003, Invatech filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), and the board of directors filed an application for Chapter 11 bankruptcy protection for Old Castlton. Id. at ¶¶ 7-8.

Environmental Acquisition Company, LLC (“EAC”) submitted bids to the Bankruptcy Court and, on April 16, 2004, the Bankruptcy Court issued an Order (“the Sale Order”), approving the sale of certain assets bid on by EAC. Id. at ¶ 9. The Bankruptcy Court ordered that the transfer of assets to EAC did not and would not subject it to any liability for claims against Old Castlton. Id. These assets were later transferred to Defendant CEC. Id. at ¶ 10.

III. The Present Action and Denial of Summary Judgment

On July 6, 2006, Plaintiffs discovered an oil leak at the Site. Second Am. Compl. at ¶ 34. An investigation determined that the oil leak was caused by a problem with the UST system, which had been installed by Old Castlton as subcontractor for IVI. Id.

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Bluebook (online)
987 F. Supp. 2d 267, 2013 WL 6670237, 2013 U.S. Dist. LEXIS 177923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vornado-realty-trust-v-marubeni-sustainable-energy-inc-nyed-2013.