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  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
  • Michael Messina v. Morton Village Realty Inc., Phillips International Realty Inc. Tort document preview
						
                                

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FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NASSAU -------------------------------------------------------------------X MICHAEL MESSINA, Plaintiff, Index No: 604204/2014 --against-- MORTON VILLAGE REALTY INC. and PHILLIPS INTERNATIONAL REALTY INC. Defendants. -------------------------------------------------------------------X MORTON VILLAGE REALTY INC. and PHILLIPS INTERNATIONAL REALTY INC. Third-Party Plaintiffs, --against-- MR. JOE’S PIZZERIA & RESTAURANTE, RUAGO, LLC d/b/a PIZZA DELIGHT, INC., ANTO, INC., GUISEPPE FRANZELLA, JOSEPH LOGLISCI, MICHAEL RUGGIERO, DIG ENTERPRISE, INC., and PETE LAMARIANA. Third-Party Defendants. ------------------------------------------------------------------X MEMORANDUM OF LAW OF IN SUPPORT OF POST-TRIAL MOTION FOR JUDGMENT AS A MATTER OF LAW PURSUANT TO CPLR §4404, §4405, and §4406 BROOKS & BERNE, PLLC 570 Taxter Road, 5th Floor Elmsford, New York 10523 By: Candace Renee Johnson, Esq. Allan R. Mordkoff, Esq. Ariel Cox, Esq. 1 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 PRELIMINARY STATEMENT The facts and relevant procedural background on which this motion is based are set forth with particularity in the Affirmation of Candace Renee Johnson, dated February 9, 2023 (“Johnson Affirmation”), submitted in support of defendants/third-party plaintiffs, MORTON VILLAGE REALTY INC. (“Morton”) and PHILLIPS INTERNATIONAL REALTY INC. (“Phillips”) (hereinafter “Moving Defendants/Third-Party Plaintiffs”) post-trial motion for an Order (1) pursuant to CPLR §4404 1, §4405 2, and §4406 3, granting Moving Defendants/Third-Party Plaintiffs judgment as a matter of law on their remaining third-party claims for contractual indemnification, contribution, and breach of contract for failure to procure insurance against third- party defendants, MR. JOE’S PIZZERIA & RESTAURANTE, RUAGO, LLC d/b/a PIZZA DELIGHT, INC., and MICHAEL RUGGIERO (collectively hereinafter as “Ruago”), prior to the anticipated damages trial on March 13, 2023; and (2) for such other and further relief as this Honorable Court may deem just and proper. The material facts and procedural backgrounds are repeated only as necessary for elucidation of the legal arguments set forth herein. POINT I THIS COURT SHOULD ENTER POST-TRIAL JUDGMENT IN FAVOR OF MORTON AND PHILLIPS ON THEIR THIRD-PARTY CLAIM FOR CONTRACTUAL INDEMNIFICATION AGAINST RUAGO “The right to contractual indemnification depends upon the specific language of the contract.” Lesisz v. Salvation Army, 40 A.D.3d 1050, 1051 (2nd Dep’t 2007) (quoting Kader v. City 1 Pursuant to CPLR §4404(a), “…after a trial of a cause of action or issue triable of right by a jury, upon the motion of any party or on its own initiative, the court may set aside a verdict or any judgment entered thereon and direct that judgment be entered in favor of a party entitled to judgment as a matter of…in the interest of justice. Pursuant to CPLR §4404(b), “…after a trial not triable of right by a jury, upon the motion of any party or on its own initiative, the court may set aside its decision or any judgment entered thereon. It may make new findings of fact or conclusions of law…render a new decision and direct entry of judgment...” 2 Pursuant to CPLR §4405, “a motion under this article shall be made before the judge who presided at the trial within fifteen days after the decision, verdict or discharge of the jury…” 3 Pursuant to CPLR §4406, “…there shall be only one motion under this article with respect to any decision by a court, or to a verdict on issues triable of right by a jury; and each party shall raise by the motion…every ground for post-trial relief then available to him.” 2 2 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 of N.Y. Hous. Preserv. & Dev., 16 A.D.3d 461, 463 (2005)). Moreover, “a contract assuming [the duty to indemnity]...must be strictly construed to avoid reading into it a duty which the parties did not intend to be assumed.” Hooper Assoc. v. AGS Computers, 74 N.Y.2d 487, 491 (1989). The intention to indemnify can be “clearly implied from the language and purposes of the entire agreement, and the surrounding facts and circumstances.” Sherry v. Wal-Mart Stores E., L.P., 67 A.D.3d 992, 995 (2nd Dep’t 2009). Furthermore, an indemnity provision within a real property lease contract that exempts a lessor from liability for its own negligence does not violate General Obligations Law § 5-321 and will be enforced, as long as the parties allocated the risk of liability to third parties between themselves through the employment of insurance. Hogeland v. Sibley, Lindsay & Curr Co., 42 N.Y.2d 153, 161 (1977) 4; Jensen v. Chevron Corp. 5, 160 A.D.2d 767 (2nd Dep’t 1990); Castano v. Zee-Jay Realty Co., 55 A.D.3d 770, 772 (2nd Dep’t 2008) 6; Campisi v. Gambar Food Corp., 130 A.D.3d 854, 855 (2nd Dep’t 2015) 7; Spence v. Merrick Cent., LLC, 188 A.D.3d 940, 941 (2nd Dep’t 2020) 8; Schumacher v. Lutheran Cmty. Servs., Inc., 177 A.D.2d 568, 4In Hogeland, the trial court found a defendant shopping center owner and defendant store tenant jointly liable for actual negligence in the occurrence of plaintiff customer’s accident – as both defendants were responsible for the construction and care of the subject planter’s box as well as snow removal during the time period of said accident. As such, the Court of Appeals held that the defendant shopping center owner was entitled to indemnification from the defendant store tenant, arising from plaintiff customer’s accident, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 5 In Jenson, the Second Department held that a defendant/third-party plaintiff property owner was entitled to indemnification from a third-party defendant gas service station lessee, arising from plaintiff’s accident, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 6 In Castano, the trial court found a defendant property owner and a defendant commercial tenant jointly liable and “at fault in the happening” of plaintiff’s trip and fall. As such, the Second Department held that the defendant property owner was entitled to indemnification from the defendant commercial tenant, arising from plaintiff’s accident, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 7 In Campisi, the Second Department held that a defendant property owner was entitled to indemnification from a defendant commercial tenant, arising from plaintiff’s trip and fall, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 8 In Spence, the Second Department held that a defendant property owner was entitled to indemnification from a defendant commercial tenant, arising from plaintiff’s trip and fall, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 3 3 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 569 (2nd Dep’t 1991) 9, also see Glielmi v. Toys R Us, Inc., 94 A.D.2d 663, 664 (1st Dep’t 1984)10. (A copy of the Hogeland decision is annexed hereto as Exhibit “L”). Here, Ruago leased the subject premises from Morton and Phillips at the time of Plaintiff’s accident. See Exhibit “H”. At the outset, the subject leases were entered into by two sophisticated business entities, Morton and Ruago. In fact, Ruago’s owner, Michael Ruggiero, testified during the liability trial that he had an attorney review the leases prior to signing same. (A copy of the Trial Transcript dated January 23, 2023 is annexed hereto as Exhibit “M” | See pg. 372, Line #2, pg. 374, Line #18). Pursuant to case law, a lease or other contract entered into under such circumstances by parties so situated is no longer to be construed as not intending indemnification of a party for its own negligence unless that intention is set forth in specific and “unequivocal terms”. See Hogeland at 158, 159 (see also Thompson-Starrett Co. v. Otis Elevator Co., 271 NY 36, 41 (1936)). In such cases, the court must look to the “unmistakable intent of the parties” rather than the semantic stereotypes with which an agreement may be phrased. See Hogeland at 159 (see also Levine v. Shell Oil Co., 28 NY2d 205, 212 (1971)). Pursuant to the binding (and plainly worded) terms of Section 9.02H of the Lease Agreement, Ruago was mandated to “indemnify and hold harmless” Morton and Phillips for bodily injury claims, such as in this action. (See Johnson Aff. ¶¶13). Specifically, the subject lease states in Section 9.02H: 9In Schumacher, the Second Department held that a defendant property owner was entitled to indemnification from a defendant commercial tenant, arising from plaintiff’s fall, because the relevant lease agreement allocated the risk of liability to third parties by insurance. 10 In Glielmi, the trial court found a defendant construction company, defendant property owner, and defendant store tenant jointly liable for actual negligence in the occurrence of plaintiff employee’s accident – as all defendants “failed to furnish him with a safe place to work.” As such, the First Department held that the defendant store tenant was entitled to indemnification from the defendant construction company, arising from plaintiff employee’s accident, because the relevant indemnity agreement allocated the risk of liability to third parties by insurance. 4 4 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 Indemnification | Section 9.02(H) of the Lease Agreement Tenant, during the Term, shall indemnify, and hold harmless Landlord and any mortgagee of the Demised Premises or lessor under any ground lease thereof from and against any and all claims of any kind or nature arising from (i) the existence of or Tenant’s use or misuse of the Demised Premises or the conduct of Tenant’s business or any activity, work or things done, permitted or suffered by Tenant in, on or about the Demised Premises, (ii) any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any negligence or tortious act or omission of Tenant, or any of Tenant’s agents, invitees, contractors, subcontractors, licensees, servants, employees or sublessees, and (iii) all costs, attorney’s fees, expenses and liabilities incurred in the defense of any such claims or any action or proceeding brought thereon. See Exhibit “H” at pg. 23, ⁋H. Furthermore, according to Section 9.02(C), 9.02(E), and 9.02(F) of the Lease Agreement, Ruago was mandated to maintain for the “mutual benefit” of itself and Morton and Phillips, comprehensive general public liability insurance “against claims for bodily injury.” Insurance | Section 9.02(C) of the Lease Agreement Tenant shall, at its expense; maintain for the mutual benefit of Landlord and Tenant and naming Landlord, Landlord’s mortgagee, if required, and any managing agent as additional insureds, comprehensive general public liability insurance, including contractual liability insurance against the liability assumed under Section 9.02H of this lease and a liquor liability or rider or endorsement, against claims for bodily injury, death or property damage occurring in, on or about the Demised Premises, with a Two Million and 00/100 ($2,000,000.00) Dollars combined single limit for bodily injury, death or property damage. Id. at pg. 22, ⁋C. Insurance | Section 9.02(E) of the Lease Agreement If Tenant shall fail to procure and maintain any insurance required to be carried by this Article 9.02, Landlord may, but shall not be obligated to, procure and maintain the same, but at the expense of Tenant, and Tenant shall reimburse Landlord as Additional Rent for 5 5 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 the cost thereof on demand, together with interest thereon at the highest rate permitted by law. Id. at pgs. 22-23, ⁋E. Insurance | Section 9.02(F) of the Lease Agreement All insurance required pursuant to this Article shall be (i) written as ‘occurrence’ policies, (ii) written as primary policy coverage and not contributing with or in excess of any coverage which Landlord may carry…. Id. at pg. 23, ⁋F. We argue that the terms are clear, and based on case law, Morton and Phillips are owed full indemnity and reimbursement of defense costs by Ruago for this action. In Hogeland, a plaintiff customer of a defendant store tenant sustained personal injuries after falling over a concrete planter box, which was “obscured by unremoved snow and slush”, at a defendant shopping center owner’s premises. The Court of Appeals in Hogeland considered similar lease provisions, as the terms herein. Specifically, the lease terms in Hogeland state: Pursuant to Section 1 (Indemnity) of the Hogeland lease: The Tenant agrees to indemnify and save harmless the Landlord from and against all claims of whatever *157 nature arising from any act, omission or negligence of the Tenant, or Tenant's contractors, licensees, agents, servants or employees, or rising from any accident *** whatsoever caused to any person *** in or about the Tenant's demised premises, or *** occurring outside of the demised premises but within the Shopping Center development *** where such accident *** results *** from an act or omission on the part of Tenant *** This *** agreement shall include indemnity against all costs, expenses and liabilities incurred in or in connection with any such claim or proceeding brought thereon, and the defense thereof. Pursuant to Section 2 (Insurance) of the Hogeland lease: The Tenant agrees upon written request of the Landlord *** to maintain *** a policy of public liability and property damage insurance under which the Landlord *** and the Tenants are named 6 6 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 as insureds, and under which the insurer agrees to indemnify and hold the Landlord *** harmless from and against all cost, expense and/or liability arising out of or based upon any and all claims, accidents, injuries and damages mentioned in Section 1 of this ARTICLE IX Upon the conclusion of trial, the jury found that the defendant shopping center owner and defendant store tenant exhibited actual negligence – as both defendants were mutually responsible for the construction and care of the planter’s box as well as snow removal during the time period of plaintiff customer’s accident. Since the Hogeland trial court found both defendants jointly liable of actual negligence, the Court of Appeals held that the defendant shopping center owner was entitled to full indemnification from the defendant store tenant despite the limitations of General Obligations Law § 5-321 – as their lease required the tenant to carry insurance for the mutual benefit of both parties. The Court further opined that an indemnification provision in a commercial lease “negotiated at arm’s length between two sophisticated parties” will be enforced, when “it is coupled with an insurance procurement requirement.” Id. (see also Bacon v. 4042 Austin Blvd., LLC, 120 A.D.3d 727 (2nd Dep’t 2014)). Specifically, the Hogeland Court looked to the lease agreement and analyzed the language as it pertained to whether or not the tenant was responsible to indemnify the owner for its own negligence, when both parties were apportioned negligence. It is important to provide that analysis to Your Honor, in support of Morton/Phillips own claims of full indemnification and costs, as they are similarly situated. In Hogeland, the Court analyzed two provisions that referred only to indemnification of tenant’s own negligence, and the Court stated: [As] to the first and third parts of section 1 of the indemnification clauses, we note that, though those two subsections speak only of [tenant] Sibley’s negligence, neither expressly exempts [tenant] Sibley from its obligation to indemnify in the 7 7 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 event that its negligence is shared with that of [owner] Berenson. See Hogeland at 159. Although the Court did not make an ultimate decision as to this particular finding, it is quite clear where the Court’s support lay. Broad indemnification agreements which encompass more than negligence and extend to “any acts or omissions” and “any accidents” should be construed broadly consistent with the agreed-upon lease terms. Here, Morton/Ruago leases, also had one clause, Section 9.02(H)(ii), that spoke to Ruago’s own negligence: …any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any negligence or tortious act or omission of Tenant, or any of Tenant’s agents, invitees, contractors, subcontractors, licensees, servants, employees or sublessees… (See Johnson Aff. ¶¶13). However, as the Hogeland Court eluded to, this section does not expressly exempt Ruago from its obligation to indemnify in the event that its negligence is shared with that of owner and managing agent, Morton/Phillips. Id. As it is not set forth in specific and “unequivocal terms” (see Hogeland at 158), this Honorable Court should not rely on “semantic stereotypes with which an agreement may be phrased” and find that full indemnification is required under the subject leases. Importantly, in Hogeland, the Court interpreted broadly a clause without the delineation of “negligence” in the clause. In that particular clause, the Court found it significant that that part made no reference to negligence of the tenant or the owner. See Hogeland at 159. Similarly, the Court of Appeals has held that broad indemnification clauses purporting to apply to “any and all liability” should be construed as meaning what they say, by allowing them to cover “any and all” liability on the part of the person being indemnified. See Levine v. Shell Oil Co., 28 N.Y.2d 205, 8 8 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 321 N.Y.S.2d 81, 269 N.E.2d 799 (1971). Indemnification provisions are enforced, despite negligence on the part of the party being indemnified, where the provision state that they apply to “any and all claims, suits, loss, cost and liability.” Id. Indemnification agreements, regardless of negligence, are enforced where they apply to “any and all damage or injury of any kind.” See Margolin v. New York Life Ins. Co., 32 N.Y.2d 149, 153, 344 N.Y.S.2d 336, 297 N.E.2d 80 (1973). The Court sets aside “semantical distinctions without a difference. See Levine v. Shell Oil Co., 28 N.Y.2d 205, 269 N.Y.S.2d 799, 321 N.E.2d 81 (1971). It is even more evident that the parties intended that Morton and Phillips would be indemnified pursuant to the additional insurance provision, making Ruago’s policy primary and not contributing to or in excess with Morton/Phillip’s insurance. The Lease Agreement states: Insurance | Section 9.02(F) of the Lease Agreement All insurance required pursuant to this Article shall be (i) written as ‘occurrence’ policies, (ii) written as primary policy coverage and not contributing with or in excess of any coverage which Landlord may carry…. (See Johnson Aff. ¶¶14). As stated in Hogeland, “avoidance of duplicate insurance and the absorption of any additional premium therefor by the landlord almost indisputably proclaims a mutuality of intent to insure rather than to negate its payment if the occasion for indemnification….should arise.” See Hogeland at 160. Further, the Court states that “public policy is certainly not undermined by a frank recognition of such a perfectly common and acceptable business practice by which an entrepreneur may provide protection against its own fault.” Id. In the absence of unambiguous contractual language to the contrary, an additional insured enjoys the same protection as the named insured. See William Floyd School Dist. V. Maxner, 68 A.D.3d 982 (2nd Dep’t 2009). 9 9 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 Thus, as in Hogeland and other New York Court of Appeals cases, it was the “unmistakable intent of the parties” that Morton and Phillips would be indemnified by Ruago – irrespective of any negligence imputed onto Morton and Phillips. Although the jury delineated apportionments of actual negligence onto Morton and Phillips as well as Ruago, for the occurrence of Plaintiff’s accident, based on the arguments above, this Honorable Court should enter judgment in favor of Morton and Phillips on their claim against Ruago for contractual indemnification as to any monetary judgment that may be entered in this case, and reimbursement for all costs to defend this claim. Furthermore, the New York Court of Appeals, in Great Northern Insurance Co. v. Interior Construction Corp., 7 N.Y.3d 412, 420, 857 N.E.2d 60, 823 N.Y.S.2d 765 (2014), has expressly declined previous requests to overturn Hogeland and over thirty (30) years of precedent: Finally, we decline Depository's invitation to overrule Hogeland. Under the doctrine of stare decisis, we do not lightly depart from our precedents, particularly those involving contractual rights or statutory interpretation—both are at stake in this case (see Maxton Bldrs. v. Lo Galbo, 68 N.Y.2d 373, 381, 509 N.Y.S.2d 507, 502 N.E.2d 184 [1986]; Matter of Higby v. Mahoney, 48 N.Y.2d 15, 19, 421 N.Y.S.2d 35, 396 N.E.2d 183 [1979]). Commercial landlords and tenants have relied on Hogeland for close to 30 years in negotiating their contractual relationships and the Legislature has not seen fit to alter this rule. The time-tested holding of Hogeland and other New York Court of Appeals cases compel a finding that Morton and Phillips are entitled to judgment, as a matter of law, on its contractual indemnity claim concerning any monetary judgment and defense costs. POINT II THIS COURT SHOULD ENTER POST-TRIAL JUDGMENT IN FAVOR OF MORTON AND PHILLIPS ON THEIR THIRD-PARTY CLAIM FOR BREACH OF CONTRACT FOR FAILURE TO PROCURE INSURANCE To succeed on a claim for breach of contract, a party must demonstrate: (1) the existence of a contract; (2) performance of the contract by the injured party; (3) breach by the other party; 10 10 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 and (4) damages. Harris v. Seward Park House Corp., 79 A.D.3d 425, 426 (1st Dep’t 2010). Here, there exists a valid Lease Agreement. See Exhibit “H”. There is a well-settled distinction between an agreement to procure insurance and an agreement to indemnify or hold harmless. Kinney v. G.W. Lisk Co., 76 N.Y.2d 215, 219 (1990). Specifically, an indemnification agreement relieves the promise of liability and an insurance procurement agreement anticipates the promisee’s continued responsibility for its own negligence, for which the promisor is obligated to furnish insurance. Id. The Court of Appeals held that where a promisor fails to procure insurance on behalf of the promisee and the promise is covered by insurance, the promisee is entitled to recover for breach of contract for all out of pocket expenses associated with maintaining its own policy of insurance including the premiums, deductibles, co- payments and increased future premiums. Inchaustegui v. 666 5th Ave. Ltd. P'ship, 96 N.Y.2d 111 (2001). Although a liability trial was conducted, “a final determination of….liability for…. failure to procure insurance need not await a factual determination as to whose negligence, if anyone’s, caused the plaintiff’s injuries. See DiBuono v. Abbey, LLC, 83 A.D.3d 650 (2nd Dep’t 2011). As noted earlier, Section 9.02C of the Lease Agreement explicitly required Ruago to name both Morton and Phillips as “additional insureds” under a “comprehensive general public liability insurance” policy, covering the subject premises “against claims for bodily injury.” At the time of Plaintiff’s accident, Ruago maintained an Associated Mutual Insurance Cooperative (“AMIC”) insurance policy (“210059621”), effective December 9, 2013 to December 9, 2014, with bodily injury and property damage limits of $2,000,000 per occurrence. (See Johnson Aff. ¶15). Under said policy, Ruago listed Morton as an “additional insured.” Nonetheless, Ruago erroneously (and admittedly) failed to list Phillips as an “additional insured” underneath the policy. Since Ruago failed to procure insurance, on behalf of both Morton and Phillips, Morton and 11 11 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 Phillips were forced to utilize and maintain their own insurance policy, incurring substantial defense attorney’s fees/related costs stemming from the subject action. (See Johnson Aff. ¶16). Therefore, due to Ruago’s failure to comply with Section 9.02C of the Lease Agreement and expend payment to Morton and Phillips in adherence of Section 9.02E of the Lease Agreement, this Court should enter judgment in favor of Morton and Phillips on their claim for breach of contract for failure to procure insurance, and order damages be paid for all out of pocket expenses, including but not limited to “all costs, attorney’s fees, expenses and liabilities incurred” in the defense of the instant action. See Exhibit “H” at pg. 23, ⁋H(iii). It should be noted that the parties agreed in the Lease Agreement that Ruago would pay damages for failure to procure insurance under the Lease. Specifically, Section 9.02(E) of the Lease Agreement states: If Tenant shall fail to procure and maintain any insurance required to be carried by this Article 9.02, Landlord may, but shall not be obligated to, procure and maintain the same, but at the expense of Tenant, and Tenant shall reimburse Landlord as Additional Rent for the cost thereof on demand, together with interest thereon at the highest rate permitted by law. Id. at pgs. 22-23, ⁋E. Ruago is no longer a Tenant at said premises, so “additional rent” is not an appropriate remedy. As stated above, the appropriate remedy under the law is “all costs, attorney’s fees, expenses and liabilities incurred” in the defense of the instant action. Id. at pg. 23, ⁋H(iii). WHEREFORE, Moving Defendants/Third-Party Plaintiffs respectfully request that this Honorable Court enter post-trial judgment as a matter of law against Ruago for the remaining third- party claims for contractual indemnification, contribution, and breach of contract for failure to procure insurance, prior to the anticipated damages trial on March 13, 2023. 12 12 of 13 FILED: NASSAU COUNTY CLERK 02/09/2023 10:13 PM INDEX NO. 604204/2014 NYSCEF DOC. NO. 337 RECEIVED NYSCEF: 02/09/2023 Dated: Elmsford, New York February 9, 2023 Respectfully Submitted, BROOKS & BERNE PLLC /s/Candace Johnson By: _____________________________ Candace R. Johnson, Esq. Allan R. Mordkoff, Esq. Ariel S. Cox, Esq. Attorneys for Defendants/Third-Party Plaintiffs 570 Taxter Road, 5th Floor Elmsford, New York 10523 (914) 364-2691 13 13 of 13