West Vernon Petroleum Corp. v. Singer Holding Corp.

103 A.D.3d 623, 961 N.Y.S.2d 207
Appellate Division of the Supreme Court of the State of New York·Decided February 6, 2013·Published·Cited by 6 cases

Opinion

In an action to recover damages for breach of contract, the plaintiff appeals, as limited by its notice of appeal and brief, from so much of an order of the Supreme Court, Westchester County (Colabella, J.), entered April 5, 2010, as denied those branches of its motion which were for summary judgment on the sixth, seventh, and eighth causes of action of the amended complaint and dismissing subpart (b) of the fourth counterclaim of the defendants Almeida Oil Co., Inc., West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida, and the defendants Almeida Oil Co., Inc., West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida cross-appeal, as limited by their brief, from so much of the same order as granted those branches of the plaintiff’s motion which were for summary judgment on the fifth cause of action of the amended complaint, dismissing their tenth counterclaim, and on the plaintiffs request for an award of an attorney’s fee to the extent of determining that the plaintiff is entitled to the award of a reasonable attorney’s fee and directing a hearing to determine the appropriate amount.

Ordered that the cross appeal from so much of the order as granted those branches of the plaintiffs motion which were for summary judgment on the fifth cause of action of the amended complaint and dismissing the tenth counterclaim of the defendants Almeida Oil Co., Inc., West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida is dismissed; and it is further,

Ordered that the order is affirmed insofar as appealed from; and it is further,

Ordered that the order is reversed insofar as reviewed on the [624] cross appeal, and that branch of the plaintiffs motion which was for summary judgment on its request for an award of an attorney’s fee is denied; and it is further,

Ordered that one bill of costs is awarded to the defendants Almeida Oil Co., Inc., West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida.

The cross appeal from so much of the order as granted those branches of the plaintiffs motion which were for summary judgment on the fifth cause of action of the amended complaint and dismissing the tenth counterclaim of the defendants Almeida Oil Co., Inc., West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida must be dismissed because the right of direct appeal therefrom terminated with the entry of judgment in the action on November 5, 2010 (see Matter of Aho, 39 NY2d 241, 248 [1976]), which, among other things, severed the sixth, seventh, and eighth causes of action of the amended complaint, the plaintiff’s request for an award of an attorney’s fee, and subpart (b) of the fourth counterclaim of those defendants. The issues raised on the cross appeal from those portions of the order are brought up for review and have been considered on a related appeal from the judgment entered November 5, 2010 (see CPLR 5501 [a] [1]; West Vernon Petroleum Corp. v Singer Holding Corp., 103 AD3d 627 [2013] [decided herewith]).

The plaintiff owns an onshore oil terminal in Mount Vernon, New York, licensed by the New York State Department of Environmental Conservation (hereinafter the DEC) as a major petroleum facility. Effective May 7, 2001, the plaintiff entered into a license agreement with the defendant Almeida Oil Co., Inc. (hereinafter Almeida Oil), whereby Almeida Oil licensed an interest in the terminal from the plaintiff in exchange for the payment of certain licensing fees. The defendants Robert F. Almeida and Robert B. Almeida executed a guaranty of payment for sums due from Almeida Oil under the agreement. By letter agreement dated May 7, 2001, Almeida Oil designated the defendant West Vernon Energy Corp. to be the corporate entity which would be the licensee under the license agreement, as well as the operator of the terminal.

In February 2004, the plaintiff sent Almeida Oil a notice of default under the license agreement. It then commenced this action to recover damages for breach of contract against, among others, Almeida Oil, West Vernon Energy Corp., Robert F. Almeida, and Robert B. Almeida (hereinafter collectively the Almeida defendants). Insofar as relevant here, the amended complaint asserts causes of action to recover certain licensing [625] fees, costs and expenses of insurance premiums, and costs and expenses of repair work allegedly necessitated by the Almeida defendants’ failure to properly maintain the licensed premises, and also sought the award of an attorney’s fee. The Almeida defendants asserted numerous counterclaims, including subpart (b) of the fourth counterclaim, which was to recover insurance payments for a repair to the boiler, and the tenth counterclaim, which was for reformation, on the ground of mutual mistake, of a provision of the license agreement related to additional licensing fees.

The plaintiff moved for summary judgment (a) on the fifth cause of action in the amount of $603,727.19, plus interest; (b) on the sixth, seventh, and eighth causes of action in the amount of $742,546.71 plus interest; (c) dismissing the Almeida defendants’ counterclaims; and (d) awarding an attorney’s fee in an amount to determined at a hearing. The Supreme Court granted those branches of the plaintiff’s motion which were for summary judgment on the fifth cause of action, dismissing the counterclaims other than subpart (b) of the fourth counterclaim, and on the plaintiffs request for an award of an attorney’s fee to the extent of determining that the plaintiff is entitled to an award of a reasonable attorney’s fee and directing a hearing to determine the appropriate amount of those fees. The plaintiff appeals, and the Almeida defendants cross-appeal, from stated portions of the order.

The Supreme Court properly denied those branches of the plaintiffs motion which were for summary judgment on the sixth and seventh causes of action of the amended complaint. The plaintiff established its prima facie entitlement to judgment as a matter of law by demonstrating that the license agreement, as modified by a stipulation of the parties, obligated the Almeida defendants to pay a percentage of the costs and expenses of “proper insurance,” and the amounts paid for insurance on the licensed premises during the relevant periods of time. In opposition, the Almeida defendants raised triable issues of fact as to what types of insurance constituted “proper insurance” under the license agreement, and as to whether the plaintiff frustrated their attempts to procure property insurance in accordance with the license agreement and the stipulation.

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West Vernon Petroleum Corp. v. Singer Holding Corp., 103 A.D.3d 623, 961 N.Y.S.2d 207 (N.Y. Ct. App. 2013).

103 A.D.3d 623 (West Vernon Petroleum Corp. v. Singer Holding Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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