Court Opinion

ID: 9958708
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:09:38.303682+00
Date Added: 2024-06-11T08:18:38.801357
License: Public Domain

New Second Ave. Owner LLC v Grill on 2nd LLC
               2024 NY Slip Op 31139(U)
                      April 3, 2024
           Supreme Court, New York County
        Docket Number: Index No. 156493/2022
                  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. 156493/2022
  NYSCEF DOC. NO. 31                                                                                           RECEIVED NYSCEF: 04/05/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. LOUIS L. NOCK                                              PART                              38M
                                                                                      Justice
            ---------------------------------------------------------------------------------X   INDEX NO.          156493/2022
             NEW SECOND AVENUE OWNER LLC and 355 REALTY
             CO., n/k/a BRAUSE SECOND AVENUE HOLDINGS LLC,                                       MOTION DATE         05/10/2023

                                                         Plaintiffs,                             MOTION SEQ. NO.         001

                                                 -v-
                                                                                                   DECISION + ORDER ON
             GRILL ON 2ND LLC and GARRETT P. DOYLE,
                                                                                                         MOTION
                                                         Defendants.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document numbers (Motion 001) 9, 10, 11, 12, 13,
            14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 29
                                                                    SUMMARY JUDGMENT (and cross-motion by
            were read on this motion by plaintiffs for                         defendants to dismiss)       .

            LOUIS L. NOCK, J.S.C.

                      Plaintiffs have each moved for summary judgment by one unified notice of motion. As

            will be treated in detail hereinbelow, the court denies the motion, as moved by plaintiff New

            Second Avenue Owner LLC (“New Owner”), but grants the motion, as moved by plaintiff 355

            Realty Co., n/k/a Brause Second Avenue Holdings LLC (“Prior Owner”). Defendants’ cross-

            motion seeking dismissal of the complaint is granted as to claims asserted by New Owner, but is

            denied with regard to claims asserted by Prior Owner. Consequently, New Owner’s claims are

            severed and dismissed.

                      It is undisputed that the parties to the lease and guaranty at the center of this action were

            between defendants and Prior Owner (Lease, NYSCEF Doc. No. 13; guaranty, NYSCEF Doc.

            No. 14). It is also undisputed that the lease terminated on May 31, 2022 (notice of termination,

            NYSCEF Doc. No. 15), prior to the sale of the premises to new owner (deed, NYSCEF Doc. No.

            11). Neither the lease or the guaranty provides for its enforcement by a stranger to the agreement

             156493/2022 NEW SECOND AVENUE OWNER LLC ET AL vs. GRILL ON 2ND LLC ET AL                                Page 1 of 4
             Motion No. 001

                                                                           1 of 4
[* 1]
                                                                                                  INDEX NO. 156493/2022
  NYSCEF DOC. NO. 31                                                                      RECEIVED NYSCEF: 04/05/2024

            after both agreements have expired, and plaintiffs have submitted no evidence that Prior Owner

            ever assigned its claims under the agreements to New Owner.

                   The motion is granted as to Prior Owner, and, consequently, the defendants’ cross-motion

            seeking to dismiss Prior Owner’s claims is denied. Prior owner has established prima facie

            entitlement to summary judgment by “the existence of the lease . . . the tenant's failure to pay the

            rent, the amount of the underpayment, and the calculation of the amounts due under the lease”

            (Thor Gallery at S. Dekalb, LLC v Reliance Mediaworks (USA) Inc., 143 AD3d 498 [1st Dept

            2016]). Plaintiff has also established prima facie entitlement to summary judgment against

            defendant Garrett P. Doyle (“Doyle”), by submission of the executed guarantee and proof of

            defendant’ failure to pay sums owed thereunder (Gard Entertainment, Inc. v Country in New

            York, LLC, 96 AD3d 683, 683 [1st Dept 2012] [“Here, plaintiff established its entitlement to

            summary judgment as against Block by demonstrating proof of the guarantee he made in

            connection with a note executed by Country and his failure to make payments called for by its

            terms”]).

                   In opposition, defendants fail to raise a material issue of fact requiring trial (Kershaw v

            Hospital for Special Surgery, 114 AD3d 75, 82 [1st Dept 2013]). Nor do defendants establish

            that facts relevant to the action “essential to justify opposition may exist but cannot [now] be

            stated” (CPLR 3212[f]; Morales v Amar, 145 AD3d 1000, 1003 [2d Dept 2016] [The “mere hope

            or speculation that evidence sufficient to defeat a motion for summary judgment may be

            uncovered during the discovery process is an insufficient basis for denying the motion”]).

            Defendant Doyle asserts that summary judgment specifically against him is improper because

            certain of the rent arrears arose during a period covered by Administrative Code of the City of

            New York § 22-1005, often referred to as the “guaranty law.” Serious doubts have been raised

             156493/2022 NEW SECOND AVENUE OWNER LLC ET AL vs. GRILL ON 2ND LLC ET AL              Page 2 of 4
             Motion No. 001

                                                          2 of 4
[* 2]
                                                                                                            INDEX NO. 156493/2022
  NYSCEF DOC. NO. 31                                                                                RECEIVED NYSCEF: 04/05/2024

            as to the continuing viability of Section 22-1005 (513 W. 26th Realty LLC v George Billis

            Galleries, Inc., 220 AD3d 525, 525 [1st Dept 2023]; Dongqi 79 Alumni, Inc v United Pos Inc.,

            2023 NY Slip Op 32225[U], *6 [Sup Ct, New York County 2023]), and the court thus denies its

            invocation here.

                      Accordingly, it is hereby

                      ORDERED that the motion for summary judgment, as moved by plaintiff New Second

            Avenue Owner LLC, is denied, and the cross-motion by defendants to dismiss that plaintiff’s

            claims is granted; and it is further

                      ORDERED that the complaint, insofar as it is brought by plaintiff New Second Avenue

            Owner LLC, is severed and dismissed; and it is further

                      ORDERED that the motion for summary judgment, as moved by plaintiff 355 Realty Co.,

            now known as Brause Second Avenue Holdings LLC, is granted, and the cross-motion by

            defendants to dismiss that plaintiff’s claims is denied; and it is further

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

            Brause Second Avenue Holdings LLC, formerly known as 355 Realty Co., and against

            defendants, jointly and severally, in the amount of $330,463.37, with interest thereon at the

            statutory rate from February 4, 2021,1 through entry of judgment, as calculated by the Clerk,

            together with costs and disbursements as taxed by the Clerk upon submission of an appropriate

            bill of costs; and it is further

                      ORDERED that plaintiff Brause Second Avenue Holdings LLC, formerly known as 355

            Realty Co., is entitled to its reasonable attorneys’ fees pursuant to the lease and guaranty, and the

            1
             “Where such damages were incurred at various times, interest shall be computed upon each item from the date it
            was incurred or upon all of the damages from a single reasonable intermediate date” (CPLR 5001[b]; Kachkovskiy v
            Khlebopros, 164 AD3d 568, 572 [2d Dept 2018]).
                156493/2022 NEW SECOND AVENUE OWNER LLC ET AL vs. GRILL ON 2ND LLC ET AL                     Page 3 of 4
                Motion No. 001

                                                                3 of 4
[* 3]
                                                                                                       INDEX NO. 156493/2022
  NYSCEF DOC. NO. 31                                                                             RECEIVED NYSCEF: 04/05/2024

            issue of the amount of such fees is severed and set down for a further hearing before the

            undersigned; and it is further

                    ORDERED that plaintiff Brause Second Avenue Holdings LLC, formerly known as 355

            Realty Co., and the defendants may appear for said hearing in Room 1166, 111 Centre Street,

            New York, New York, on June 4, 2024, at 10:00 AM; and it is further

                    ORDERED that plaintiff Brause Second Avenue Holdings LLC, formerly known as 355

            Realty Co., shall submit the documentation it intends to proffer in support of its fee application

            to defendant and the court on or before May 21, 2024.

                    This constitutes the decision and order of the court.

                                                                       ENTER:

                     4/3/2024                                                                $SIG$
                      DATE                                                            LOUIS L. NOCK, J.S.C.
             CHECK ONE:               X   CASE DISPOSED                      NON-FINAL DISPOSITION

             APPLICATION:
                                          GRANTED

                                          SETTLE ORDER
                                                              DENIED     X   GRANTED IN PART

                                                                             SUBMIT ORDER
                                                                                                      □   OTHER

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

             156493/2022 NEW SECOND AVENUE OWNER LLC ET AL vs. GRILL ON 2ND LLC ET AL                  Page 4 of 4
             Motion No. 001

                                                           4 of 4
[* 4]