Preview
FILED: NEW YORK COUNTY CLERK 09/08/2022 01:57 PM INDEX NO. 155973/2017
NYSCEF DOC. NO. 150 RECEIVED NYSCEF: 09/08/2022
EXHIBIT A
FILED: NEW YORK COUNTY CLERK 09/08/2022 01:57 PM INDEX NO. 155973/2017
NYSCEF DOC. NO. 150 RECEIVED NYSCEF: 09/08/2022
FILED: NEW YORK COUNTY CLERK 09/08/2022 01:57 PM INDEX NO. 155973/2017
NYSCEF DOC. NO. 150 RECEIVED NYSCEF: 09/08/2022
FILED: NEW YORK COUNTY CLERK 07/11/2022
09/08/2022 04:01
01:57 PM INDEX NO. 155973/2017
NYSCEF DOC. NO. 130
150 RECEIVED NYSCEF: 07/11/2022
09/08/2022
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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IAN MACDONALD, JAMES ROBERTS and BETH ANN
CASSIDY-ROBERTS, Index No.: 155973/2017
Plaintiffs,
-against- AFFIRMATION IN
OPPOSITION TO
TURNER CONSTRUCTION COMPANY and THE NEW DEFENDANTS’ MOTION
YORK AND PRESBYTERIAN HOSPITAL a.k.a. THE FOR JUDGMENT ON
SOCIETY OF THE NEW YORK HOSPITAL, THEIR ATTORNEYS FEES
Defendants.
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TURNER CONSTRUCTION COMPANY and THE NEW
YORK AND PRESBYTERIAN HOSPITAL, Index No.: 595317/2019
Third-Party Plaintiffs,
-against-
PORT MORRIS TILE & MARBLE CORP.,
Third-Party Defendant.
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PORT MORRIS TILE & MARBLE CORP., Index No.: 595549/2019
Second Third-Party Plaintiff
-against-
TEXRON COMMERCIAL AUTO BODY WORKS, INC.,
Second Third-Party Defendant.
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HOWARD B. ALTMAN, an attorney duly admitted to practice law before the Courts of the
State of New York, affirms the following to be true under penalties of perjury:
1. I am associated with the law firm of CASCONE & KLUEPFEL, LLP, attorneys for
Third-Party Defendant/Second-Third-Party Plaintiff, PORT MORRIS TILE & MARBLE
CORP., (“Port Morris”) and as such, I am fully familiar with the facts and circumstances of this
matter.
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2. I respectfully submit this affirmation in opposition to Defendants/Third-Party
Plaintiffs TURNER CONSTRUCTION COMPANY’s (“Turner”) and NEW YORK AND
PRESBYTERIAN HOSPITAL (“NYP”) (collectively, “Defendants”) motion for a judgment on
their claim for attorneys’ fees.
Summary of Argument
3. Defendants seek entry of judgment in the amount of nearly $150,000 from
Port Morris for attorneys’ fees Defendants allegedly incurred in defending against this Labor
Law action that has not even gone to trial.
4. There are a host of fatal flaws in Defendants’ argument, any one of which taken
alone require that their motion be denied.
5. First, Defendants did not establish that they incurred any attorneys’ fees in
defending this action. The invoices attached to Defendants’ motion were issued to Zurich
American Insurance Company. Defendants adduced no evidence that they incurred or paid any
fees, and Defendants do not make Zurich a party plaintiff or otherwise indicate that Zurich is
seeking to recover fees it may have paid. This requires that Defendants’ motion be denied. See
Weinroth v. Swid, 267 A.D.2d 159, 163, 700 N.Y.S.2d 439, 443 (1st Dept. 1999)(Citibank itself
did not incur attorneys' fees, thus, it is not entitled to recoup attorneys’ fees).
6. Second, Defendants do not submit an affidavit from a party with personal
knowledge from Turner/NYP or even from Zurich as to what any of them may have paid out of
what was allegedly billed. Defendants submit only an attorneys’ affirmation asserting that
Cullen Dykman billed nearly $150,000. Cullen Dykman could have billed $10,000,000, it would
not mean that Defendants (or Zurich) paid this amount. For this reason, too, Defendants motion
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should be denied. Schwartz v. 170 W. End Owners Corp., 161 A.D.3d 693, 79 N.Y.S.3d 13 (1st
Dept. 2018) (Attorney’s affirmation cannot establish a party’s entitlement to judgment).
7. Third, in Defendants’ initial motion for summary judgment, the granting of which
forms the basis for their current motion, Defendants sought only indemnification for any
damages they may owe to Plaintiff. Defendants did not seek reimbursement of attorneys’ fees in
that motion, and thus cannot seek ‘judgment’ on their alleged fees here. Malcolm Shabazz Dev.
Corp. v. Wu, 71 Misc. 3d 900, 907, 146 N.Y.S.3d 416, 422 (N.Y. Sup. Ct. 2021)(plaintiff is not
entitled to claim as damages the attorney fees incurred in bringing and litigating this CPLR 3213
motion-action, because fees were not sought in plaintiff's original notice of motion).
8. Fourth, Defendants’ motion tells only part of the story. While Defendants assert
that Port Morris’s insurance carrier, National Casualty Company (“NCC”) agreed to defend
Defendants under a reservation of rights then failed to pay Defendants’ attorneys’ fees,
Defendants omit the fact that NCC withdrew the reservation of rights four years ago, in July
2018, agreed to afford Defendants a full defense, then asked Defendants to transfer the file to
NCC’s counsel so that NCC could afford Defendants a complete defense at no cost. (See
Exhibit C. infra). Although Defendants’ coverage dispute is not before this Court, Defendants’
refusal to permit NCC to insulate them (or Zurich) from paying defense costs, a failure to
mitigate damages at the very least, should not be rewarded with a windfall.
9. Finally, the invoices Defendants submit are just redacted not in part (e.g., to
redact privileged information) but are blacked out in their entirety. Port Morris – and the Court –
have no way of determining which entries pertain to defense and which pertain to Defendants’
pursuit of indemnification. While Defendants append a spreadsheet listing amounts counsel
allegedly deducted for fees relating to Defendants’ coverage dispute with NCC, neither Port
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Morris nor the Court have any way of knowing whether this calculation is accurate, and
moreover, even if Defendants’ calculation is accurate, Defendants failed to deduct fees incurred
in prosecuting their third-party action against Port Morris, which fees are not recoverable under
the indemnification agreement. In re New York City Asbestos Litig., 142 A.D.3d 408, 39
N.Y.S.3d 125 (1st Dept. 2016) (Fees incurred in pursuing third-party action are not recoverable
on a contractual indemnification claim).
10. Based upon the foregoing, and for the reasons set forth below, Defendants’
motion should be denied.
Statement of Facts
A. Port Morris’s Contract and Defendants’ Motion for Summary Judgment
11. Defendants moved for summary judgment on or about September 25, 2020. Their
motion sought only (a) dismissal of Plaintiff’s claims against them; and (b) indemnification for
any damages that may be awarded to Plaintiff. (See EFC Docs 64-66). An additional of
Defendants’ motion is attached, without exhibits, as Exhibit A.
12. The contract between Turner and Port Morris Defendants relied upon in their
motion for summary judgment (EFC Doc 81), an additional copy of which is attached as Exhibit
B, provides:
The Subcontractor agrees to indemnify and save harmless the Indemnified Party
from and against any and all such claims and further from and against any and
all loss, cost, expense, liability, damage, penalties, fines or injury, including
legal fees and disbursements, that the Indemnified Party may directly or
indirectly sustain, suffer or incur as a result thereof and the Subcontractor
agrees to and does hereby assume, on behalf of the Indemnified Party, the defense
of any action at law or in equity which may be brought against the Indemnified
Party upon or by reason of such claims and to pay on behalf of the Indemnified
Party, upon demand, the amount of any judgment that may be entered against
the Indemnified Party in any such action.
(Ex B, Art. XXIV)
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B. Defendants’ Coverage with National Casualty
13. Turner and NYPH tendered their defense and indemnification to Port Morris’s
insurer carrier, National Casualty Company (“NCC”).
14. By letter dated November 7, 2017, NCC accepted the tender of defense of
Defendants subject to a reservation of rights.
15. Defendants disputed the reservation of rights, and by letter dated July 13, 2018,
NCC withdrew its reservation of rights, advised Defendants it would fully defend and indemnify
them against this action, and requested that Defendants transfer the file to Callahan & Fusco,
LLC so that Defendants may be afforded a complete defense by NCC at no cost to Defendants. A
copy of this letter is attached as Exhibit C. 1
. 16. Cullen & Dykman refused to transfer the file or permit NCC/its counsel assume
Defendants’ defense.
17. Upon information and belief, Defendants continue to refuse to permit NCC/its
counsel to assume their defense.
Argument
Defendants Motion Should be Denied
A. Defendants Did Not Meet Their Burden of Proof
18. It is well-settled that an attorney’s affirmation is insufficient to entitle a party to
judgment in its favor. Schwartz v. 170 W. End Owners Corp., 161 A.D.3d 693, 79 N.Y.S.3d 13
(1st Dept. 2018)(Attorney’s affirmation cannot establish a party’s entitlement to judgment). See
1
It is well-settled that an insurer has the right and duty to control the defense of an additional
insured as long as no conflict of interest exists. See Ottaviano v. Generx Co-op, Inc., 15 A.D.3d
924 (4th Dept. 2005).
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United Specialty Ins. v. Columbia Cas. Co., 186 A.D.3d 650, 651, 129 N.Y.S.3d 510, 512 (2d
Dept. 2020)(We disagree with the Supreme Court's award of summary judgment in CCC's favor
as CCC failed to meet its prima facie burden of establishing its entitlement to judgment as a
matter of law. The affirmation of CCC's attorney was not based upon personal knowledge and,
thus, was of no probative or evidentiary significance); Blair v. Otto Brehm, Inc., 54 A.D.3d 702,
863 N.Y.S.2d 751 (Dept. 2008)(affirmation from employer's attorney and supporting exhibits
were insufficient to support its cross motion for summary judgment); Jeune v. O.T. Trans Mix
Corp., 29 A.D.3d 635, 815 N.Y.S.2d 182 (2d Dept.
2006)(attorney's affirmation was insufficient to meet defendants' initial burden on motion for
summary judgment).
19. Here, Defendants do not submit an affidavit from a party with personal
knowledge from Turner/NYP or even from Zurich as to what any of them may have paid.
Defendants submit only an attorneys’ affirmation asserting how much Cullen Dykman billed.
20. As Defendants failed to submit an affidavit from a party with personal knowledge
as to what was paid, Defendants motion should be denied.
C. Defendants Did Not Prove that *They* Incurred any Attorneys’ Fees
21. For similar reasons, Defendants’ motion should be denied because Defendants did
not establish that they incurred any attorneys’ fees in defending this action. The invoices attached
to Defendants’ motion were sent to Zurich American Insurance Company. Defendants adduced
no evidence that they incurred or paid any fees, and Defendants do not name Zurich or otherwise
indicate that Zurich is seeking to recover fees it may have paid. This requires that their motion be
denied. See Weinroth v. Swid, 267 A.D.2d 159, 163, 700 N.Y.S.2d 439, 443 (1st Dept.
1999)(Citibank itself did not incur attorneys' fees, thus, it is not entitled to recoup attorneys’ fees);
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Lincoln Plaza Assocs. v. Various Tenants, 134 Misc. 2d 791, 797, 512 N.Y.S.2d 330, 333–34
(Civ. Ct. 1987), aff'd as modified sub nom. Lincoln Plaza Assocs. v. Andrews, 142 Misc. 2d 207,
539 N.Y.S.2d 612 (App. Term 1989)(Beyond a failure of adequate notice there is also a question
as to whether this fee paid by the sponsor is out of line compared to the work performed).
22. Central to any claim for damages is proof that they party seeking damages
demonstrably incurred an expense. Absent such proof, a claim for damages fails. Engelke v.
Brown Rudnick Berlack Israels LLP, 111 A.D.3d 444, 975 N.Y.S.2d 12 (1st Dept.
2013)(client did not incur any damages attributable to firm's alleged breach of duty, and firm thus
was not liable for legal malpractice); Jenkin v. Cadore, 185 A.D.3d 558, 126 N.Y.S.3d 202 (2d
Dept. 2020)(vendors did not sustain actual and ascertainable damages as result of any alleged
breach and thus could not recover).
23. As such, a party may not sue to recover fees it never incurred. Ovitz v. Bloomberg
L.P., 18 N.Y.3d 753, 967 N.E.2d 1170 (2012)(Even assuming that General Obligations Law's
lease renewal provisions supported implied private right of action, lessee of financial information
services and equipment did not suffer harm as result of lessor's automatic renewal of lease
following expiration of its two-year term where lessee did not pay any service
termination fees and did not pay for services he did not receive.) See Fertico Belgium S.A. v.
Phosphate Chemicals Exp. Ass'n, Inc., 120 A.D.2d 401, 404, 501 N.Y.S.2d 867, 870 (1st Dept.
1986), aff'd as modified, 70 N.Y.2d 76, 510 N.E.2d 334 (1987)(Fertico's characterization of these
profits as costs is misleading. It did not incur any such costs. Phoschem should not be required to
reimburse these costs since the obligation to which they relate was nonexistent at the time of
defendant's breach.). See also Falk v. Nassau Cnty., 175 A.D.3d 607, 106 N.Y.S.3d 347
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(2019)(home buyer did not pay fees to obtain tax map certification letters from county clerk under
duress or due to a mistake of fact, as required to recover the fees)
24. Here, Defendants Turner and NYP did not adduce any evidence (let alone from a
party with personal knowledge) that they paid any attorney’ fees. Movants assert only that Cullen
and Dykman billed nearly $150,000 that may or may not have been paid by Zurich Insurance Co.
This failure to establish that Defendants incurred any expenses, much less $150,000, requires that
their motion be denied.
D. Defendants Are Seeking to ‘Recover’ Fees Another Party Already Paid
25. It is likewise settled that a party seeking to ‘recover’ fees or costs cannot ‘recover’
costs that were paid by a third party. To hold otherwise, would permit a windfall. Gottlieb v.
Michael Gottlieb, 138 A.D.3d 575, 576, 30 N.Y.S.3d 65, 67 (1st Dept. 2016) (even if a party is
entitled to recoup attorneys’ fees, such recovery will not be permitted where it would amount to
double recovery).
26. Thus, in Singh v. New York City Transit Auth., 17 A.D.3d 262, 263–64, 793
N.Y.S.2d 408, 410 (1st Dept. 2005), the First Department ruled that although the Transit
Authority had sought contractual indemnification on summary judgment under
the contract's indemnification provision, the motion court erred in awarding kit
attorneys' fees where the general contractor’s carrier had voluntary assumed its defense. The
Court noted that the carriers were not parties to the action, and that the court thus erred in
directing the contractor to reimburse Transit Authority for attorneys’ fees allegedly
owed/assumed by the contractor’s insurance carrier.
27. In Leidner v. Kevin & Stephen Corp., 26 Misc. 3d 1220(A), 907 N.Y.S.2d 101
(Sup. Ct. 2009), the Court, relying upon the First Department’s ruling in Diaz v. Lexington
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Exclusive Corp., 59 AD3d 341 (1st Dept. 2009), ruled that a putative indemnitee was not entitled
to ‘reimbursement’ of attorneys’ fees that had already been paid by its insurance carrier.
28. In Andrezzi v. Sprint Spectrum L.P., No. 503175/16, 2021 WL 5206290, at *5–6
(N.Y. Sup. Ct. Nov. 09, 2021), the Court likewise ruled that an owner and general contractor
could not obtain ‘reimbursement’ of attorneys’ fees from a subcontractor where the owner and
general contractor were already being defended by the subcontractor’s insurance carrier.
29. Here, Port Morris’s carrier, NCC agreed to defend and indemnify Defendants
against this action and to afford them a full defense at no cost. Defendants' refusal to accept the
defense should not entitle them to a windfall from Port Morris.
E. Defendants Never Sought Attorney’s Fees in Their Prior Motion
30. Defendants’ motion fails for the additional reason that they are seeking sum
certain judgment on a claim they never previously pursued.
31. It is settled law that a party cannot seek to ‘enter judgment’ on a claim it did not
pursue previously.
32. In Tappan Wire & Cable, Inc. v. Solitron Devices, Inc., 147 A.D.2d 555, 537
N.Y.S.2d 851 (2d Dept. 1989), the Appellate Division ruled that a although the law permits a
prevailing tenant in a landlord-tenant dispute to recoup its attorneys’ fees, the tenant there was
not entitled to summary judgment on a claim for recovery of attorneys' fees, as
it never sought summary judgment on that claim and parties did not address that issue in papers
submitted on summary judgment motion.
33. In Malcolm Shabazz Dev. Corp. v. Wu, 71 Misc. 3d 900, 907, 146 N.Y.S.3d 416,
422 (N.Y. Sup. Ct. 2021), the Court ruled that the plaintiff was not entitled to claim as damages
the attorney fees incurred because fees were not sought in plaintiff's original notice of motion.
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34. Defendants’ initial motion for summary judgment here sought only
indemnification for any damages they may owe to Plaintiff. Defendants did not seek attorneys’
fees in that motion, and thus cannot seek ‘judgment’ on its alleged fees here.
F. Movants Failed to Prove the $150,000 was Related to Their Defense
35. Defendants’ motion should be denied for the additional reason that they provide
no proof as to how much of the $150,000 they demand is actually recoverable defense fees.
36. Under New York Law, which adopts the ‘American Rule, “attorney's fees are
incidents of litigation and a prevailing party may not collect them from the loser unless an award
is authorized by agreement between the parties, statute or court rule.” Hooper Associates, Ltd. v.
AGS Computers, Inc., 74 N.Y.2d 487, 548 N.E.2d 903 (1989). See Baker v. Health Mgmt. Sys.,
Inc., 98 N.Y.2d 80, 88, 772 N.E.2d 1099, 1104 (2002) citing Buckhannon Bd. & Care Home,
Inc. v. West Virginia Dept. of Health & Human Resources, 532 U.S. 598, 602, 121 S.Ct. 1835,
149 L.Ed.2d 855 (2001) (quoted case omitted) West 56th Street Assoc. v. Greater N.Y. Mut. Ins.
Co., 250 A.D.2d 109, 681 N.Y.S.2d 523 (1st Dept., 1998) (denying attorneys' fees, as it was
plaintiffs, the insureds, that cast the insurer in a defensive posture by commencing a declaratory
judgment action). Dechbery v. Cassano, 157 A.D.3d 499, 69 N.Y.S.3d 22 (1st Dept.
2018)(prevailing party may not collect attorneys' fees from the loser unless an award is
authorized by agreement between the parties or by statute or by court rule.); 333 E. 49th
Partners, L.P. v. Flamm, 107 A.D.3d 584, 967 N.Y.S.2d 719 (1st Dept. 2013)(Landlord
was not entitled to recover from former tenant the attorney's fees that landlord allegedly incurred
in a holdover licensee proceeding brought solely against former subtenant).
37. Here, Defendants failed to submit any evidence that Port Morris agreed to
reimburse Defendants for attorneys’ fees incurred in pursuit of their indemnification claim
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against Port Morris, and failed to advise how much of the $150,000 Defendants are demanding
was incurred in pursuit of their indemnification claim.
38. Defendants submit bills which are redacted not in part (e.g., to redact privileged
information) but are blacked out in their entirety. Port Morris – and the Court – have no way of
determining which entries pertain to defense and which pertain to Defendants’ pursuit of
indemnification. While Defendants append a spreadsheet listing total monies counsel allegedly
deducted for fees relating to Defendants’ coverage dispute with NCC, the Court has no way of
knowing whether this calculation is accurate, and moreover, even if Defendants’ calculation is
accurate, Defendants failed to deduct fees incurred in prosecuting their third-part action against
Port Morris, which fees are not recoverable under the indemnification agreement.
39. In In re New York City Asbestos Litig., 142 A.D.3d 408, 39 N.Y.S.3d 125 (1st
Dept. 2016), the First Department ruled that a general contractor was entitled
to attorneys' fees that were incurred in defending against action brought by subcontractor's
employee, although general contractor was not entitled to attorneys' fees incurred
in prosecuting indemnification claim against subcontractor.
40. In Hernandez v. Ten Ten Co., 102 A.D.3d 431, 433, 959 N.Y.S.2d 128, 131 (1st
Dept. 2013), the First Department ruled that “pursuant to the contract between Schmergel and
Roland's, Prudential is entitled to attorneys' fees. With respect to Prudential's common-
law indemnification claim against Roland's, the court should have awarded attorneys' fees for
Prudential's defense of the main action. Prudential, however, is not entitled to recover fees
incurred in prosecuting the indemnification claim”. See
Van Deventer v. CS SCF Mgmt. Ltd., 47 A.D.3d 503, 503, 850 N.Y.S.2d 73, 74 (1st Dept. 2008)
(defendants-respondents are not required to indemnify plaintiffs for costs and expenses,
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including reasonable attorneys' fees, incurred in plaintiffs' prosecution of its defense/indemnity
claim).
41. In Adesso Cafe Bar & Grill, Inc. v. Burton, 74 A.D.3d 1253, 1254, 904 N.Y.S.2d
490, 491 (2d Dept. 2010), the Appellate Division rejected the claim for attorneys' fees, finding
that the agreement was not unmistakably clear that the defendants agreed to indemnify the
plaintiffs for counsel fees “incurred in prosecuting this action to obtain indemnification on the
damages”
42. In Nat'l Cold Storage Co. v. Tiya Caviar Co., 52 Misc. 2d 289, 276 N.Y.S.2d 57
(Sup. Ct. 1966), the Court ruled that the costs, expenses and legal fees related to an interpleader
action were not recoverable in attorney’s fees claim. See Madison Park Dev. Assocs. LLC v.
Febbraro, 159 A.D.3d 569, 74 N.Y.S.3d 13 (1st Dept. 2018), (an indemnification clause did not
require developer to reimburse cooperative building for attorneys' fees in developer's action
asserting defamation, against the owners); Mount Vernon City Sch. Dist. v. Nova Cas. Co., 30
Misc. 3d 1233(A), 926 N.Y.S.2d 345 (Sup. Ct. 2009), aff'd, 78 A.D.3d 1028, 912 N.Y.S.2d 98
(2010), aff'd, 19 N.Y.3d 28, 968 N.E.2d 439 (2012)(Plaintiff is only entitled to the attorneys' fees
expended in finishing DJH's performance of the work under indemnity clause, and was not
entitled to recover fees incurred in prosecuting its action against DJH ); Juhasz v. Juhasz, 92
A.D.3d 1209, 1213, 939 N.Y.S.2d 675, 680 (4th Dept. 2012)(To the extent that plaintiff
sought attorneys' fees for work unrelated to the motion, we conclude that the court did not abuse
its discretion in denying that relief.); Archstone v. Tocci Bldg. Corp. of New Jersey Inc., 37
Misc. 3d 1220(A), 964 N.Y.S.2d 57 (Sup. Ct. 2012)(It is hereby ordered that the motion is
granted to the extent that the first, third and fourth causes of action, to the extent that they
seek attorneys' fees incurred in the prosecution of the within action, based on the
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contractual indemnification provision contained in the relevant contract, are dismissed insofar as
asserted against Tocci. It is further ordered that the cross motion is granted to the extent that the
sixth cause of action is dismissed to the extent that it seeks attorneys' fees incurred in
the prosecution of the within action based on the contractual indemnification provision contained
in the relevant contract. In all other respects, the motion and cross motion are denied).
WHEREFORE, it is respectfully requested that Defendants’ motion be denied, and that the
Court grant Port Morris other and further relief as this Court deems just and proper.
Dated: Farmingdale, New York
July 11 2020
___________________________
HOWARD B. ALTMAN
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CERTIFICATION
It is hereby certified pursuant to 22 NYCRR § 202.8-b that the total number of words
in the Affirmation and exclusive of the caption, table of contents, table of authorities, and
signature block is 3.526.
Dated: Farmingdale, New York
July 11, 2022
________________________
Howard B. Altman
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EXHIBIT A
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