Court Opinion

ID: 9952490
Source: CourtListenerOpinion
Date Created: 2024-03-19 20:10:04.015401+00
Date Added: 2024-06-11T14:39:43.836811
License: Public Domain

Beacon Sales Acquisition Inc. v Fitzcon Constr./Ren
                         Corp.
               2024 NY Slip Op 30828(U)
                     March 12, 2024
           Supreme Court, New York County
        Docket Number: Index No. 152878/2023
                  Judge: Louis L. Nock
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
                                                                                                                       INDEX NO. 152878/2023
  NYSCEF DOC. NO. 48                                                                                             RECEIVED NYSCEF: 03/15/2024

            152878/202             SUPREME COURT OF THE STATE OF NEW YORK
            3
                                             NEW YORK COUNTY
            PRESENT:             HON. LOUIS L. NOCK                                                PART                              38M
                                                                                      Justice
            ---------------------------------------------------------------------------------X     INDEX NO.          152878/2023
                BEACON SALES ACQUISITION INC.,
                                                                                                   MOTION DATE         11/16/2023
                                                         Plaintiff,
                                                                                                   MOTION SEQ. NO.         001
                                                 -v-
                FITZCON CONSTRUCTION/REN CORP., FITZCON
                CONSTRUCTION GC INC., LIAM O'SULLIVAN, MJM
                                                                                                     DECISION + ORDER ON
                ASSOCIATES CONSTRUCTION LLC, and
                WESTCHESTER FIRE INSURANCE COMPANY,                                                        MOTION

                                                         Defendants.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document numbers (Motion 001) 22, 23, 24, 25, 26,
            27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, and 44
            were read on this motion for                                                         DEFAULT JUDGMENT                    .

            LOUIS L. NOCK, J.S.C.

                      Upon the foregoing documents, the plaintiff’s motion seeking entry of a default judgment

            is granted, on default and without opposition, in accordance with the following memorandum

            decision.

            The Complaint:

                      Plaintiff Beacon Sales Acquisition Inc. d/b/a Beacon Building Products and Allied

            Building Products (“Beacon”) sued defendants Fitzcon Construction/Ren Corp. d/b/a Fitzcon

            Construction, Fitzcon Construction GC Inc., d/b/a Fitzcon Construction (collectively, “Fitzcon”)

            and Liam O’Sullivan (“O’Sullivan”)1 for foreclosure of a mechanics’ lien (first cause), breach of

            contract (second cause), goods sold and delivered (third cause), finance charges (fourth cause),

            attorneys’ fees (fifth cause), and account stated (sixth cause); and further sued O’Sullivan for

            1
              Defendants MJM Associates Construction LLC and Westchester Fire Insurance Company are no longer in the case
            (see, NYSCEF Doc. No. 45 [Stipulation of Discontinuance]).
                152878/2023 BEACON SALES ACQUISITION INC. vs. FITZCON CONSTRUCTION/REN CORP.                           Page 1 of 5
                ET AL
                Motion No. 001

                                                                           1 of 5
[* 1]
                                                                                                                 INDEX NO. 152878/2023
  NYSCEF DOC. NO. 48                                                                                    RECEIVED NYSCEF: 03/15/2024

            breach of a personal guaranty (seventh cause). An eighth cause of action is asserted against

            defendants for violation of Lien Law article 3-A (fraudulent diversion of trust funds). A ninth

            cause of action is asserted against defendants involving a bounced check.

                      Plaintiff now moves for a default judgment against Fitzcon and O’Sullivan on its

            aforesaid second through seventh causes of action.2

            Factual and Procedural Background:

                      On November 6, 2015, O’Sullivan, as principal of Fitzcon, executed a Credit Application

            and Agreement (the “Agreement”) for plaintiff’s sale and delivery of building materials to

            defendants, including a personal guaranty of the Agreement by O’Sullivan (Credit Application

            and Agreement, NYSCEF Doc. No. 27). As more fully set forth in the affidavit of Todd

            Strouman, regional credit manager of plaintiff, from January 8, 2020, to December 12, 2022,

            plaintiff sold and delivered building materials to Fitzcon, which Fitzcon accepted for use and

            incorporation into certain real estate properties (Strouman aff., NYSCEF Doc. No. 25, ¶¶ 4-8).

            On January 8, 2020, finance charges began accruing against defendants, and a balance of

            $35,867.47, plus $2,639.45 in late payment charges of 2% per month pursuant to the Agreement,

            remains due and owing to plaintiff (id. ¶¶ 8-12; statement and invoices, NYSCEF Doc. No. 28).

                      Plaintiff commenced this action on March 28, 2023 (summons and complaint, NYSCEF

            Doc. No. 1). Affidavits of service, regular on their face, attest to service on Fitzcon by service

            on the Secretary of State on April 5, 2023, pursuant to Business Corporations Law § 306(b)

            (NYSCEF Doc. No. 6, 7) and to service on O’Sullivan by delivery and mailing on April 3, 2023,

            2
              Instead of including the eighth and ninth causes of action in its motion for a default judgment, plaintiff asks the
            court to preserve those causes for continued litigation against the defaulting defendants – Fitzcon and O’Sullivan –
            without explaining why (see, Notice of Motion [NYSCEF Doc. Nos. 22, 38]; Attorney Affirmation [NYSCEF Doc.
            No. 23 ¶ 32]). Accordingly, the court holds that request (to sever and continue the eighth and ninth causes of action)
            in abeyance pending further, explanatory, affirmation submission, per the terms of the concluding decree herein.
                152878/2023 BEACON SALES ACQUISITION INC. vs. FITZCON CONSTRUCTION/REN CORP.                     Page 2 of 5
                ET AL
                Motion No. 001

                                                                  2 of 5
[* 2]
                                                                                                  INDEX NO. 152878/2023
  NYSCEF DOC. NO. 48                                                                        RECEIVED NYSCEF: 03/15/2024

            proof of which was filed on April 5, 2023 (NYSCEF Doc. No. 4). An affirmation of additional

            service filed in support of the motion attests to the requisite additional mailing on defendants

            pursuant to CPLR 3215(g)(3)(ii) and (4)(ii) on April 11, 2023, more than twenty days in advance

            of entry of judgment (NYSCEF Doc. No. 17). Defendants’ time to respond to the complaint has

            expired, and they have neither appeared or answered the complaint. Moreover, there is no

            opposition to the motion.

            Standard of Review:

                   A plaintiff that seeks entry of a default judgment for a defendant’s failure to answer must

            submit proof of service of the summons and complaint upon the defendant, proof of the facts

            constituting the claim, and proof of the defendant’s default (CPLR 3215[f]). “The standard of

            proof is not stringent, amounting only to some firsthand confirmation of the facts” (Feffer v

            Malpeso, 210 AD2d 60, 61 [1st Dept 1994]). “[D]efaulters are deemed to have admitted all

            factual allegations contained in the complaint and all reasonable inferences that flow from them”

            (Woodson v Mendon Leasing Corp., 100 NY2d 62, 71 [2003]). Nevertheless, “CPLR 3215 does

            not contemplate that default judgments are to be rubber-stamped once jurisdiction and a failure

            to appear have been shown. Some proof of liability is also required to satisfy the court as to the

            prima facie validity of the uncontested cause of action” (Guzetti v City of N.Y., 32 AD3d 234,

            235 [1st Dept 2006] [internal quotations and citations omitted]).

            Discussion:

                   Plaintiff has satisfied its burden on the motion by submission of the affidavits of service

            on defendants (NYSCEF Doc. No. 4, 6, 7), the affirmation of additional mailing on defendants

            (NYSCEF Doc. No. 17), the affirmation of plaintiff’s counsel Lisa A. Schwartz, Esq., attesting

            to defendants’ default (Schwartz aff., NYSCEF Doc. No. 23, ¶ 23), and Strouman’s affidavit,

             152878/2023 BEACON SALES ACQUISITION INC. vs. FITZCON CONSTRUCTION/REN CORP.         Page 3 of 5
             ET AL
             Motion No. 001

                                                          3 of 5
[* 3]
                                                                                                    INDEX NO. 152878/2023
  NYSCEF DOC. NO. 48                                                                        RECEIVED NYSCEF: 03/15/2024

            which attests to the facts alleged in the complaint and the amount of plaintiff’s damages

            (Strouman aff., NYSCEF Doc. No. 7, ¶¶ 3-7). Defendants have never appeared in the action, nor

            did they submit any opposition to the motion. The court concurs with the points raised in

            support of the motion and, therefore, grants the motion.

                   In addition, the Agreement contains an attorneys’ fees provision (see NYSCEF Doc. No.

            27, ¶ 4), and plaintiff’s counsel has submitted an affirmation in support of the motion setting

            forth attorneys’ fees and expenses of $4,418.75 (Schwartz aff., NYSCEF Doc. No. 24, ¶ 7; slip

            listing, NYSCEF Doc. No. 35). Based on this court’s application of the applicable standards for

            assessment of reasonableness of fees (see In re Freeman’s Estate, 34 NY2d 1 [1974]), that

            amount constitutes reasonably incurred legal fees in this matter.

                   Accordingly, it is

                   ORDERED that plaintiff’s motion for a default judgment against Fitzcon and O’Sullivan

            is granted as to plaintiff’s second through seventh causes of action; and, accordingly, it is

                   ORDERED that the Clerk of the Court is directed to enter judgment in favor of plaintiff

            Beacon Sales Acquisition Inc. d/b/a Beacon Building Products and Allied Building Products and

            against defendants Fitzcon Construction/Ren Corp. d/b/a Fitzcon Construction, and Fitzcon

            Construction GC Inc., d/b/a Fitzcon and Liam O’Sullivan, jointly and severally, in the principal

            amount of $38,506.92 ($35,867.47 plus $2,639.45 in late payment charges) (the “Principal

            Amount”), with interest on the Principal Amount at the statutory rate from January 8, 2020,

            through the date of entry of judgment, as calculated by the Clerk, and continuing to so accrue

            thereafter through the date of satisfaction of judgment, together with costs and disbursements as

            taxed by the Clerk upon submission of an appropriate bill of costs, and in the additional sum of

            $4,418.75 as plaintiff’s reasonable attorneys’ fees incurred in this action; and it is further

             152878/2023 BEACON SALES ACQUISITION INC. vs. FITZCON CONSTRUCTION/REN CORP.           Page 4 of 5
             ET AL
             Motion No. 001

                                                           4 of 5
[* 4]
                                                                                                      INDEX NO. 152878/2023
  NYSCEF DOC. NO. 48                                                                            RECEIVED NYSCEF: 03/15/2024

                    ORDERED that plaintiff’s application to sever and continue its eighth and ninth causes

            of action against defendants Fitzcon and O’Sullivan is denied pending submission by plaintiff’s

            counsel of a supplemental affirmation explaining the reasons for continued litigation of those

            causes of action against Fitzcon and O’Sullivan, to be filed no later than 21 days from the date of

            filing hereof and, in the absence of such supplementation, said causes of action will be deemed

            abandoned for failure to be included in the within motion for a default judgment; and it is further

                    ORDERED that the action is dismissed, as discontinued, as to defendants MJM

            Associates Construction LLC and Westchester Fire Insurance Company, per the stipulation of

            discontinuance filed by the parties (NYSCEF Doc. No. 45); and, accordingly, it is further

                    ORDERED that the plaintiff’s first cause of action (foreclosure of mechanic’s lien) is

            dismissed as moot, as to defendants MJM Associates Construction LLC and Westchester Fire

            Insurance Company, and further dismissed as abandoned, as to defendants Fitzcon and

            O’Sullivan.

                    This constitutes the decision and order of the court.

                                                                            ENTER:

                    3/12/2024                                                               $SIG$
                      DATE                                                           LOUIS L. NOCK, J.S.C.
             CHECK ONE:                   CASE DISPOSED                X    NON-FINAL DISPOSITION

             APPLICATION:
                                      X   GRANTED

                                          SETTLE ORDER
                                                              DENIED        GRANTED IN PART

                                                                            SUBMIT ORDER
                                                                                                     □   OTHER

             CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN        FIDUCIARY APPOINTMENT
                                                                                                     □   REFERENCE

             152878/2023 BEACON SALES ACQUISITION INC. vs. FITZCON CONSTRUCTION/REN CORP.             Page 5 of 5
             ET AL
             Motion No. 001

                                                           5 of 5
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