Court Opinion

ID: 9958705
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:09:34.850401+00
Date Added: 2024-06-11T08:18:38.788367
License: Public Domain

Singh v Tribeca Kitchen LLC
               2024 NY Slip Op 31119(U)
                      April 3, 2024
           Supreme Court, New York County
        Docket Number: Index No. 160763/2020
                  Judge: Leslie A. Stroth
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. 160763/2020
  NYSCEF DOC. NO. 79                                                                          RECEIVED NYSCEF: 04/03/2024

                              SUPREME COURT OF THE STATE OF NEW YORK
                                        NEW YORK COUNTY
            PRESENT:        HON. LESLIE A. STROTH                                 PART                             12
                                                                      Justice
                 -------------------------------X
                                                                                  INDEX NO.         160763/2020
             AVIAN K. SINGH,
                                                                                  MOTION DATE       11/14/2023
                                                Plaintiff,
                                                                                  MOTION SEQ. NO.        002
                                        - V -

              TRIBECA KITCHEN LLC,85 W BROADWAY PROPCO LLC,
              HYATT CORPORATION, HYATT CORPORATION D/B/A                            DECISION + ORDER ON
              SMYTH THOMPSON HOTEL                                                         MOTION

                                                Defendant.
            ---------------------------------------------------------------X

             The following e-filed documents, listed by NYSCEF document number (Motion 002) 47, 48, 49, 50, 51,
             52, 53, 54, 55, 56, 57, 58, 59,60,61,62,63,64,65,66,67,68,69, 70, 71, 72, 74, 75, 76, 77, 78
            were read on this motion to/for                                    JUDGMENT-SUMMARY

                     Plaintiff Avian K. Singh (plaintiff) commenced this action to recover damages for personal

            injuries he allegedly sustained when he tripped and fell over a raised comer of a rug in the lounge

            portion of the premises, a hotel, at 85 West Broadway, New York, New York (the premises), on

            November 6, 2019. The premises is owned by defendant 85 W Broadway Propco LLC (Propco).

            The claims against defendant Hyatt Corporation, Hyatt Corporation D/B/A Smyth Thompson

            Hotel (collectively, Hyatt) were discontinued. Defendant Tribeca Kitchen LLC (Tribeca) was

            alleged to be the restaurant company to whom Propco leased the space.

                I.      Background

                     Mr. Singh allegedly tripped and fell over a raised comer of a rug inside the lounge area at

            the premises, while he was working as a front desk clerk on November 6, 2019. The C-2

            Employer's Report of Work-Related Injuries/Illness Form (See NYSCEF Doc. No. 64) and the

            Employer's Statement of Wage Earnings Form (Id.) show that at the time of the accident, Mr.

            Singh's general employer was SHK Management, Inc (SHK). Propco and AKA Management I,

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                               Page 1 of 6
             Motion No. 002

                                                             1 of 6
[* 1]
                                                                                                 INDEX NO. 160763/2020
  NYSCEF DOC. NO. 79                                                                     RECEIVED NYSCEF: 04/03/2024

            LLC (AKA), which is allegedly affiliated with SHK, entered into a Property Management

            Agreement, for the premises with each other, which was dated November 22, 2017. Plaintiff has

            collected worker's compensation for this accident. See NYSCEF Doc. No. 64, pp. 26-27.

                     Plaintiff filed a Summons and Complaint against Tribeca, Propco, and Hyatt, pleading

            causes of action for common law negligence, Labor Law § 200, Labor Law § 240 (1 ), and Labor

            Law § 241 (6). On March 8, 2021, a stipulation of discontinuance between plaintiff and Hyatt was

            filed, discontinuing all claims against the Hyatt defendants. An order granting plaintiff's motion

            for a default against Tribeca was granted on December 7, 2021.

                     Propco, the sole remaining defendant, now moves for summary judgment pursuant to

            CPLR 3212, dismissing plaintiff's claims against it, under two theories: (1) defendant as the out-

            of-possession landlord owed no duty to plaintiff; and (2) plaintiff is a special employee of

            defendant or defendant is an alter ego of the nonparty plaintiff's employer SHK.

               II.      Analysis

                     It is well-established that the "function of summary judgment is issue finding, not issue

            determination." Assaf v Ropog Cab Corp., 153 AD2d 520 (1st Dept 1989), quoting Sillman v

            Twentieth Century-Fox Film Corp., 3 NY2d 395, 404 (1957). As such, the proponent of a motion

            for summary judgment must tender sufficient evidence to show the absence of any material issue

            of fact and the right to entitlement to judgment as a matter oflaw. See Alvarez v Prospect Hospital,

            68 NY2d 320 (1986); Wine grad v New York University Medical Center, 64 NY2d 851 (1985). The

            party opposing a motion for summary judgment is entitled to all favorable inferences drawn from

            the evidence submitted. See Dauman Displays, Inc. v Masturzo, 168 AD2d 204 (1st Dept 1990),

            citing Assaf v Ropog Cab Corp., 153 AD2d 520, 521 (1st Dept 1989).

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                            Page 2 of 6
             Motion No. 002

                                                            2 of 6
[* 2]
                                                                                                   INDEX NO. 160763/2020
  NYSCEF DOC. NO. 79                                                                       RECEIVED NYSCEF: 04/03/2024

                   The defendant's first argument, that it owed no duty to plaintiff because it is an out of

            possession landlord, immediately fails since the premises are open to the public, and defendant

            bears a non-delegable responsibility to provide the public with reasonably safe premises. See

            Logiudice v. Silverstein Properties, Inc., 48 AD3d 286 (1st Dept 2008). At a minimum, plaintiff

            would be entitled to work in reasonably safe conditions at the premises. Furthermore, defendant's

            claim that the plaintiff was its "special employee," is not supported by any of the evidence

            submitted. Defendant has failed to establish a prima facie case demonstrating control over the

            plaintiffs work or any other substantial working relationship sufficient to deem the defendant as

            the plaintiffs employer. See Fung v Japan Airlines Co., Ltd., 9NY3d 3 51 (Court of Appeals 2007);

            Samuel v Fourth Ave. Assoc., LLC, 75 AD3d 594 (2nd Dept 2010); Gonzalez v. Lovett Assoc., 228

            AD2d 342 (1st Deptl 996).

                   This analysis centers primarily on the defendant's argument that it is an alter ego of

            plaintiff's employer, SHK, and therefore, plaintiff is not entitled to relief beyond workers

            compensation pursuant to Workers' Compensation Law §§ 11, 29 (6). It is well-settled that the

            sole and exclusive remedy of an employee against his employer for injuries sustained in the course

            of employment is to receive benefits under the Workers' Compensation Law. See Gonzales v

            Armac Ind, Ltd., 81 NY2d 1 (1993); Lane v Fisher Park Lane Co., 276 AD2d 136 (1st Dept 2000).

            The defense afforded to employers by the exclusivity provisions of the Workers' Compensation

            Law extends to suits brought against an entity, which is found to be the "alter ego" of the plaintiffs

            employee. Hageman v B & G Bldg. Servs., LLC, 33 AD3d 860 (2d Dept 2006); Ortega v Noxxen

            Realty Corp., 26 AD3d 361 (2d Dept 2006); Thompson v Bernard G. Janowitz Constr. Corp., 301

            AD2d 588 (2d Dept 2003).

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                              Page 3 of 6
             Motion No. 002

                                                            3 of 6
[* 3]
                                                                                                    INDEX NO. 160763/2020
  NYSCEF DOC. NO. 79                                                                        RECEIVED NYSCEF: 04/03/2024

                   A corporation is the "alter ego" of another where the corporations "function as one

            company." A defendant may establish itself as the alter ego of a plaintiffs employer by

            demonstrating that one of the entities controls the other or that the two operate as a single integrated

            entity. However, a mere showing that the entities are related is insufficient where a defendant

            cannot demonstrate that one of the entities controls the day-to-day operations of the other. See

            Samuel v Fourth Ave. Assoc., LLC, 75 AD3d 594 (2nd Dept 2010).

                   Whether an entity is considered an "alter ego" of another turns upon factors such as whether

            the entities share a common purpose, have integrated or commingled assets, share a tax return, are

            treated by the owners as a single entity, share the same insurance policies, and share managers or

            are owned by the same person. See Buchwald v 1307 Porterville Rd., LLC, 160 AD3d 1464 (4th

            Dept 2018). Additional factors include whether the alter ego has any employees; if the alter ego

            leases property pursuant to a written lease or pays rent to the plaintiffs employer; and if one entity

            pays the bills for the other, even if those bills are for the benefit of the nonpaying entity. Id.; see

            also Crespo v Pucciarelli, 21 AD3d 1048 (2d Dept 2005).

                   In the instant matter, defendant Propco asserts that it is the alter ego of plaintiffs employer.

            Defendant further asserts that: it is an ownership entity created solely to own the premises, it had

            no employees, and it had no functions regarding the operation of the premises. Instead, defendant

            claims that SHK, the plaintiffs employer, managed the premises through its own employees,

            including plaintiff. See NYSCEF Doc. No. 60, Para. 68. However, the Property Management

            Agreement provided by defendant shows that AKA was responsible for the operation,

            maintenance, and management of the premises. See NYSCEF Doc. No. 58. The court observes

            that defendant tends to interchange names and/or conflate the roles of the premises' manager,

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                               Page 4 of 6
             Motion No. 002

                                                            4 of 6
[* 4]
                                                                                                   INDEX NO. 160763/2020
  NYSCEF DOC. NO. 79                                                                       RECEIVED NYSCEF: 04/03/2024

            AKA, and plaintiffs employer, SHK, in its submissions. Furthermore, defendant Propco alleges

            that it, along with AKA and SHK, shared the same insurance policy pertaining to the premises.

                   However, the Court considers a variety of factors when evaluating whether an entity is an

            alter ego of another entity. See Buchwald v 1307 Porterville Rd., LLC, 160 AD3d 1464 (4th Dept

            2018); see also Crespo v Pucciarelli, 21 AD3d 1048 (2d Dept 2005). Given the equitable nature

            of this relief, the standard for assessing an alter ego defense should be stringent, necessitating the

            treatment of two legally distinct entities as one integrated entity. A key aspect in identifying an

            alter ego is the presence of a unity of interest among the entities involved. See Samuel v Fourth

            Ave. Assoc., LLC, 75 AD3d 594 (2nd Dept 2010).

                   In this case, defendant Propco has not produced prima facie evidence that it and the

            nonparty plaintiffs employer SHK operate as a single entity rather than merely having an

            affiliation, or a relationship whereby one of the entities controls the other. Instead, the defendant's

            submission primarily addresses the relationship between defendant and the premises' manager

            AKA. The defendant's arguments in support of its claim for alter ego status are insufficient to

            warrant such a finding.

                   It is worth noting that the formation of multiple entities within a business group for strategic

            or operational purposes is a common practice in the commercial realm. Mere affiliation among

            group companies, or shared resources such as a business insurance policy, does not automatically

            imply an alter ego relationship. As the Third Department held in Buchner v. Pines Hotel, 87 AD2d

            691 (3rd Dept 1982), "[t]he individual princip[als] in this business enterprise, for their own

            business and legal advantage, elected to operate that enterprise through separate corporate entities.

            The structure they created should not lightly be ignored at their behest, in order to shield one of

            the entities they created from common-law tort liability".

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                              Page 5 of 6
             Motion No. 002

                                                            5 of 6
[* 5]
                                                                                                        INDEX NO. 160763/2020
  NYSCEF DOC. NO. 79                                                                              RECEIVED NYSCEF: 04/03/2024

                       Here, defendant Propco hasn't provided sufficient evidence for this court to disregard the

            separate incorporation of itself and plaintiffs employer, and to deem Propco as an alter ego of

            plaintiffs employer.

                       For all of the foregoing reasons, and absent establishment of a prima facie alter-ego defense

            by Propco, there are triable issues of material fact that must be determined by a jury. Therefore,

            defendant's motion for summary judgment is denied.

                III.      Conclusion

                       Accordingly, it is hereby

                       ORDERED that defendant 85 W Broadway Propco LLC's motion for summary judgment

            is denied in its entirety.

                       The foregoing constitutes the Order and Decision of the Court.

                       4/3/2024
                         DATE

                                         ~                                 ~
             CHECK ONE:                      CASE DISPOSED                     NON-FINAL DISPOSITION

                                             GRANTED         0    DENIED       GRANTED IN PART         □ OTHER
             APPLICATION:                    SETTLE ORDER                      SUBMIT ORDER

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

             160763/2020 SINGH, AVIAN K. vs. TRIBECA KITCHEN LLC ET AL                                   Page 6 of 6
             Motion No. 002

                                                              6 of 6
[* 6]