Wax NJ-2, LLC v. JFB Construction & Development

111 F. Supp. 3d 434, 2015 WL 3605986
CourtDistrict Court, S.D. New York
DecidedJune 9, 2015
DocketNo. 13-cv-4537 (AJN)
StatusPublished
Cited by5 cases

This text of 111 F. Supp. 3d 434 (Wax NJ-2, LLC v. JFB Construction & Development) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wax NJ-2, LLC v. JFB Construction & Development, 111 F. Supp. 3d 434, 2015 WL 3605986 (S.D.N.Y. 2015).

Opinion

OPINION

ALISON J. NATHAN, District Judge:

Plaintiff Wax NJ-2, LLC (“Wax” or “Plaintiff’) is a franchisee of European Wax Center, a nationwide chain of body-[437]*437waxing salons. Wax owns and operates a European Wax Center location in the Forest Hills neighborhood of Queens, New York, and this lawsuit arises out of a dispute over the construction of that store. Invoking the Court’s diversity jurisdiction under 28 U.S.C. § 1332, Wax brings suit against the architectural firm responsible for designing and inspecting the construction of the store, GF 55 Partners (“GF55” or “Defendant”), alleging that GF55 committed architectural malpractice by failing to measure, design, and inspect the construction of the Forest Hills store with an acceptable degree of professional care. Wax also named as a defendant the contractor responsible for construction at the Forest Hills site, JFB Construction & Development (“JFB”), but that entity has opted not to defend itself since its counsel withdrew on September 23, 2014, see Dkt. No. 108, and failed to respond to an order to show cause why default judgment should not be entered, returnable November 4, 2014, see Dkt. No. 114. Accordingly, this matter came before the Court for a two-day bench trial held on October 20-21, 2014, involving only Wax’s claims against GF55.

Under the Court’s standard practice for nonjury trials, the parties submitted affidavits containing the direct testimony of witnesses under their control in advance of trial, as well as affidavits containing the responsive and rebuttal testimony of those witnesses, if any. The Court received from Plaintiff declarations from Wax’s sole member, Daniel T. Perlman, along with Plaintiffs witness Gregg Genovese and Plaintiffs expert witness Philip Charles Gavosto; Perlman submitted a rebuttal declaration as well. From Defendant, the Court received affidavits of direct and rebuttal testimony from GF55 founding partner David Gross, and from Defendant’s expert witness Anthony DiProperzio. At trial, the parties conducted live cross — and redirect examination of Perlman, Genovese, Gavosto, Gross, and DiProperzio, and read into the record deposition testimony from Swayne Shu, a representative of Wax’s landlord at the Forest Hills site. The parties stipulated to the admissibility of all exhibits submitted in advance of trial by both parties, see Tr. 2:6-10; Ct. Ex. 1, which included Plaintiffs Exhibits 1-145 and Defendant’s Exhibits 1-16, and which the Court admitted into evidence, see Tr. 23:17-19. Also introduced and admitted into evidence during trial were Plaintiffs Exhibits 146-50, and Defendant’s exhibits 17-20.

The parties submitted a Joint Pre-Trial Statement on May 23, 2014, Dkt. No. 67, and pretrial proposed findings of fact and conclusions of law on August 22, 2014, Dkt. Nos. 94 & 95. In November 2014 the parties submitted amended findings of fact and conclusions of law reflecting the evidence submitted at trial, Dkt. Nos. 118 & 119, as well as post-trial memoranda of law, Dkt. Nos. 120-22.

With the trial and post-trial briefing now concluded, this opinion details the Court’s findings of facts and conclusions of law, as required by Federal Rule of Civil Procedure 52(a)(1).

I. Findings of Fact

In light of the evidence presented at trial, the Court’s assessment of the witnesses’ credibility (based on both the content of their testimony and the witnesses’ demeanor), and the inferences reasonably to be drawn from the evidence, the Court makes the following findings of fact. The findings are not exclusive, insofar as additional findings of fact are contained in the next section as well, as necessary.

A. Selection of the Austin Hills Site and the Preliminary Assessment

On December 29, 2010, Daniel Perlman obtained from European Wax Center’s [438]*438corporate office the rights to open a European Wax Center in the Forest Hills neighborhood of Queens, New York. Perl-man Decl. ¶¶ 1, 3. To that end, Perlman began negotiations with Sawyen, LLC (“Sawyen”), the landlord of 70-10 Austin Street in Forest Hills, for a commercial lease. Perlman Decl. ¶¶4, 13. Sawyen’s representative in the relevant negotiations was Swayne Shu, and the entity was represented in the negotiations by Howard Hua. Tr. 15:8-16. At the time that Perlman and Shu first began negotiations, the space that Wax would eventually occupy was comprised, at least in part, of two stores. Pl. Ex. 2; Perlman Decl. ¶ 4. Shu informed Perlman that Wax could take either existing store in its entirety, and add portions of the other store by moving the demising wall1 between them, as long as the store not used by Wax maintained an area of at least 600 square feet. Pl. Ex. 2; Perlman Decl. ¶¶ 4, 9-10.

In September 2012, Perlman contacted' David Gross, a founding partner at GF55, for the purpose of getting a preliminary measurement of the available space. Perl-man and Gross had worked together previously on a European Wax Center in Rutherford, New Jersey. Perlman Decl. ¶ 5; Gross Decl. ¶ 5. A September 21, 2012 email from Perlman to Gross indicates that GF55 agreed to take a look at the space on the morning of September 24, 2012, and to provide Wax with an initial concept and layout for the store. Pl. Ex. 2; Perlman Decl. ¶ 7; Gross Decl. ¶ 9. At the time, an existing tenant was still in at least one of the stores, and Perlman indicated to Gross that the evaluation would have to be conducted early in the day because the existing tenant did not want his workers to know that the tenant was being evicted. Pl. Ex. 2; Gross Decl. ¶ 9. Perlman’s email also told Gross that “[t]he $/sf is very high, so the less space I need for the waiting area and 6 wax rooms, the better.” Pl. Ex. 2. Gross anticipated that the pair would be able to “poke around” from 8:30 to 9 a.m. Pl. Ex. 2.

Gross emailed his initial plan to Perlman on the same day that he made his first visit to the site. See Pl. Ex. 2; Perlman Decl. ¶ 7. This drawing indicated that the area of the proposed European Wax Center was 1914 square feet, which compared to a measurement of 1775 square feet for the same area in an older drawing of the same space provided to Perlman by Saw-yen. Pl. Ex. 2; Perlman Decl. ¶ 7. Gross replied to Perlman that square footage is a “legal fiction,” and that he did not know how the landlord calculated the square footage. Pl. Ex. 2; Perlman Decl. ¶ 7. Gross’s figures represented a calculation of the “gross square footage,” which when used throughout this opinion refers to a measurement from the exterior of each external wall (that is, the front and back walls of the store), and the midpoint of each demising wall. A measurement of net square footage, by comparison, refers only to the usable interior space measured from the inside faces of all walls.

B. The October 9, 2012 Plan and the Lease Negotiations

The site plan went through several revisions in the weeks after September 24, 2012, although it was always contemplated that Wax’s store would use all of the existing space as well as part of the adjacent space. Gross Decl. ¶ 12; Perlman Decl. ¶¶ 9-10. On October 9, 2012, GF55 provided Wax with a preliminary floor plan that Perlman found satisfactory, and began to use as the basis of his negotiations with Sawyen. Perlman Decl. ¶ 11.

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111 F. Supp. 3d 434, 2015 WL 3605986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wax-nj-2-llc-v-jfb-construction-development-nysd-2015.