Preview
FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF KINGS
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CT STEEL, INC., : Index No.:
:
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Plaintiff, : SUMMONS
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-against- :
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DESALES MEDIA GROUP, INC. and LIBERTY :
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MUTUAL INSURANCE COMPANY, :
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Defendants. :
:
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YOU ARE HEREBY SUMMONED and required to serve upon the plaintiff’s attorneys
an answer to the annexed complaint within twenty (20) days after service thereof, exclusive of the
day of service, or within (30) days after service is complete if service is made by any other method
other than personal delivery to you within the State of New York.
In case of your failure to answer, judgment will be taken against you by default for the
relief demanded in the annexed Complaint.
Dated: New York, New York
February 24, 2021
Respectfully Submitted,
GORDON REES SCULLY MANSUKHANI, LLP
Suleman Malik, Esq.
Todd Regan, Esq.
1 Battery Park Plaza, 28th Floor
New York, New York 10004
Office: 212-269-5500 | Cell Phone: 631-617-3457
Email: tregan@grsm.com | smalik@grsm.com
Attorneys for Plaintiff
CT STEEL, INC.
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TO: DESALES MEDIA GROUP, INC.
1712 Tenth Avenue,
Brooklyn, New York, 11215.
LIBERTY MUTUAL INSURANCE COMPANY
175 Berkeley Street,
Boston, Massachusetts, 02116
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF KINGS
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CT STEEL, INC., : Index No.:
:
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Plaintiff, : VERIFIED COMPLAINT
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-against- :
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DESALES MEDIA GROUP, INC. and LIBERTY :
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MUTUAL INSURANCE COMPANY, :
:
Defendants. :
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Plaintiff, CT STEEL, INC., (“CT Steel”), by and through its attorneys, GORDON REES
SCULLY MANSUKHANI, LLP, for its complaint herein, alleges;
1. This Court has jurisdiction over this matter pursuant to CPLR 301 and CPLR 302
(a)(1).
PARTIES
2. CT Steel is a corporation with its principal place of business at 72 Geraldine Circle,
Trumbull, Connecticut. It is engaged in the fabrication, installation and design of structural steel
to be used in construction projects.
3. Defendant, DeSales Media Group, Inc., (“DeSales”), is, upon information and
belief, a New York non-profit corporation with an address at 1712 Tenth Avenue, Brooklyn, New
York, 11215.
4. Defendant, Liberty Mutual Insurance Company (“Liberty”), is, upon information
and belief, a Massachusetts company with an address at 175 Berkeley Street, Boston,
Massachusetts, 02116. Based on information and belief, Liberty is engaged in the insurance
business, and is authorized to transact all business in New York State as well as being qualified to
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be a surety or guarantor of bonds as permitted by law.
VENUE
5. Pursuant to CPLR § 503(a) venue is properly situated in Kings County because that
is where a substantial part of the events giving rise to the claims occurred.
COUNT ONE (ACTION ON BOND DISCHARGING MECHANIC’S LIEN)
(As to DeSales and Liberty)
Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth
herein.
6. Upon information and belief, St. Joseph’s Roman Catholic Church of Brooklyn,
(“St. Joseph’s”) is the Owner of the real property located at 860 Pacific Street, Brooklyn, New
York (the “Property”).
7. Upon information and belief, J.A. Jennings, Inc. (“J.A. Jennings”), is a New York
corporation with an address at 211 East 43rd Street, Suite 1400, New York, New York, 10017.
Upon information and belief, J.A. Jennings is engaged in the business of construction and
construction management.
8. Upon information and belief, DeSales entered into an agreement with St. Joseph’s
to lease the Property, and at all times material hereto, DeSales was a tenant in the Property and
had a leasehold interest in the Property.
9. Upon information and belief, on or about February 28, 2017, J.A. Jennings entered
into an agreement with DeSales, as Project Owner, pursuant to which J.A. Jennings agreed to serve
as the construction manager for the construction of a project known as “JAJ # 17-0003 DeSales
Media Group,” located at the Property (the “Project”).
10. On or about November 28, 2017, CT Steel entered into a subcontract with J.A.
Jennings (the “Contract”), as Construction Manager as Agent for Owner, which provided that CT
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Steel would supply structural steel, miscellaneous steel, all labor, all materials, equipment and
services, and related materials to J.A. Jennings for use on the Project, in exchange for payment in
the original Sum of One Million Eight Hundred Ninety Thousand Dollars and Zero Cents
($1,890,000.00), subject to additions and deductions as provided in the Trade Contract Documents.
11. The original sum to be paid to CT Steel pursuant to the Contract was subsequently
increased by change orders totaling two hundred eight five thousand six hundred twenty three
dollars ($285,623.00), for a revised Contract price of two million one hundred seventy five
thousand six hundred twenty three dollars ($2,175,623.00).
12. Despite having performed as required per the Contract, J.A. Jennings and DeSales,
failed and/or refused to make payment in full to CT Steel for its work under the Subcontract, and
CT Steel is owed an amount not less than two hundred thirteen thousand nine hundred sixty four
dollars and seventy cents ($213,964.70), exclusive of interest, costs, and attorneys’ fees, due and
owing.
13. At all times hereinafter mentioned, CT Steel has performed all conditions required
under the Contract and is not in default of same.
14. All of the aforesaid labor, materials and services furnished by CT Steel to J.A.
Jennings and DeSales were for the construction of improvements on the Property and were
furnished with the knowledge and consent of J.A. Jennings, DeSales, and St. Joseph’s, as well as
pursuant to the Contract.
15. By reason of the foregoing, there became due and owing from J.A. Jennings and
DeSales to CT Steel, for work, labor and services performed by CT Steel a sum in excess of
$213,964.70, no part of which has been paid, although duly demanded.
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16. The first item of the labor and materials was furnished by CT Steel on or about June
16, 2017.
17. The last item of labor and materials was furnished on or about March 13, 2020.
18. On or about November 12, 2020, and within eight (8) months of the performance
of the last item of work and/or the supply of the last item of material to the Project as aforesaid
described, CT Steel, pursuant to the Lien Law of the State of New York, caused to be duly filed in
the Office of the Clerk of Kings County, a Notice Under Mechanic’s Lien Law (the “Lien”)
19. The Lien was docketed by the Clerk of the Court in the New York Supreme Court,
Kings County, on November 12, 2020.
20. Pursuant to the New York Lien Law, on or about November 20, 2020, CT Steel
served a copy of the Lien on St. Joseph’s, located at 856 Pacific Street, Brooklyn, NY; on DeSales,
located at 1712 Tenth Avenue, Brooklyn, NY; and on J.A. Jennings, located at 211 East 43rd Street,
Ste. 1400, New York, NY, in accordance with the requirements of the New York State Lien Law.
Pursuant to the New York State Lien Law, service of the Lien was made within 30 days after the
Lien was filed.
21. By reason of the foregoing, and by filing and docketing of the aforementioned
Notice of Lien, and service of the Lien, CT Steel acquired a good, valid and subsisting lien on the
Property.
22. The Lien claims a mechanic’s lien against the Property as to both the fee simple
interest of St. Joseph’s and the leasehold interest of DeSales in the sum of $213,964.70, which was
due and owing before the Lien was filed.
23. The Lien contained all the statements required by, and in all respects duly complied
with, the statutes of the State of New York.
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24. On December 1, 2020, Liberty, as surety, and DeSales, as principal, issued and filed
a Release of Mechanic’s Lien Bond, Bond No. 999079031, in the penal sum of $235,362.00, with
the Kings County Court Clerk. The Release of Mechanic’s Lien Bond identifies CT Steel as the
obligee.
25. Liberty and DeSales’ filing of the Release of Mechanic’s Lien Bond discharged the
Lien pursuant to New York Lien Law Section 19, and this is a cause of action on the bond pursuant
to New York Lien Law Section 24.
COUNT TWO (BREACH OF CONTRACT)
(As to DeSales)
Paragraphs 1 through 15 are incorporated herein by reference as if more fully set forth
herein.
26. J.A. Jennings was the construction manager on the Project, as agent for the Owner.
27. CT Steel agreed to perform its work pursuant to the Contract in exchange for the
payment of monthly invoices as provided and agreed upon in the Contract.
28. According to paragraph 11.1 of the Contract, J.A. Jennings, as DeSales’ agent, was
required to pay CT Steel monthly, based upon applications for payment submitted by CT Steel.
29. According to paragraph 11.3 of the Contract, J.A. Jennings’ payment to CT Steel,
as DeSales’ agent, was due within seven (7) working days of DeSales’ payment to J.A. Jennings.
30. CT Steel completed its performance and furnished labor, structural steel, and
related material according to the terms and conditions of the Contract, and otherwise performed
all of its obligations under the Contract.
31. J.A. Jennings and DeSales failed to make all payments due and payable to CT Steel
under the Contract and pursuant to CT Steel’s applications for payment, and the sum of
$213,964.70, plus accruing interest, collection costs, and attorney’s fees is presently due and
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outstanding.
32. CT Steel has demanded payment, but J.A. Jennings and DeSales have failed and
refused to pay CT Steel the outstanding amounts due, in breach of the Contract.
33. By reason of the foregoing, CT Steel has been damaged by DeSales in the amount
of $213,964.70, plus accruing interest, collections costs, and attorney’s fees, no part of which has
been paid although duly demanded.
COUNT THREE (VIOLATION OF NEW YORK’S PROMPT PAYMENT ACT)
(As to DeSales)
Paragraphs 1 through 15 and 26 through 33 are incorporated herein by reference as if more
fully set forth herein.
34. The failure of DeSales and JA Jennings as DeSale’s agent to tender the outstanding
payments due and owing on the Project to CT Steel is in violation of New York’s Prompt Payment
Act, N.Y. Bus. Law § 756 et seq. (the “Prompt Payment Act”).
35. The Prompt Payment Act requires prompt payment after receipt of CT Steel’s
request for payment.
36. Pursuant to the Prompt Payment Act, CT Steel provided invoices to and requested
payment from JA Jennings as agent for DeSales for the work it performed under the Contract in
relation to the Project.
37. DeSales accepted the work and did not disapprove the invoices and
requests/application for payment submitted by CT Steel.
38. DeSales breached the provisions of the Prompt Payment Act by not paying for
accepted billing in accordance with the agreed to billing cycle.
39. By reason of the foregoing, CT Steel is entitled to recover and should be awarded
a judgment against DeSales in the sum of $213,964.70 with statutory interest at a rate of 1% per
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month from together with the costs and disbursements of this action and awarding such additional
relief to CT Steel as the Court deems just and proper.
COUNT FOUR (QUANTUM MERUIT)
(As to DeSales)
Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth
herein.
40. CT Steel provided certain labor, materials and equipment, as aforesaid, in good
faith, to J.A. Jennings as Agent for DeSales at its request for the Project.
41. CT Steel supplied structural steel, miscellaneous steel, all labor, all materials,
equipment and services, and related materials to J.A. Jennings as agent for Desales for DeSales’
use on a construction project owned by DeSales.
42. J.A. Jennings and DeSales accepted and received the benefits of same.
43. CT Steel had a reasonable expectation of compensation from J.A. Jennings as agent
for Desales and from DeSales for the labor, materials, and equipment it furnished in connection
with the Project.
44. The fair, reasonable, and agreed-upon value of the labor, materials, and equipment
CT Steel provided to J.A. Jennings as agent for DeSales and DeSales at the Project, and for which
payment has not been made is at least $213,964.70, exclusive of interest.
45. By reason of the foregoing, as an alternative, CT Steel is entitled to recover from
DeSales the sum of $213,964.70, plus accruing interest, collections costs, and attorney’s fees.
COUNT FIVE (UNJUST ENRICHMENT)
(As to DeSales)
Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth
herein.
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46. CT Steel provided certain labor, materials, and equipment, as aforesaid, in good
faith, to J.A. Jennings as agent for DeSales at its request, at the Project, and J.A. Jennings and
Deales accepted and received the benefits of same.
47. CT Steel supplied structural steel, miscellaneous steel, all labor, all materials,
equipment and services, and related materials to J.A. Jennings as agent for DeSales for J.A.
Jennings’ and DeSales’ use on a construction project owned by DeSales.
48. The fair, reasonable and agreed-upon value of the labor, materials, and equipment
CT Steel provided to J.A. Jennings as agent for DeDale and to DeSales at the Project, and for
which payment has not been made, is at least $213,964.70.
49. J.A. Jennings and DeSales have been unjustly enriched in the amount of
$213,964.70, by retaining the benefits of the labor performed and material and equipment
furnished by CT Steel, without having paid for said labor, materials, and equipment.
50. By reason of the foregoing, as an alternative, CT Steel is entitled to recover from
DeSales the sum of $213,964.70, plus accruing interest, collections costs, and attorney’s fees.
WHEREFORE, CT Steel demands judgment as follows:
1. Money damages;
2. Costs;
3. Pre- and Post-Judgment Interest pursuant to CPLR 5001 et seq.;
4. Interest pursuant to § 756-b and § 756-c of the N.Y. General Business Law at the
rate of one percent per month;
5. Attorneys’ fees;
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6. That CT Steel be determined and adjudged to have a valid and subsisting Lien upon
the interest of the Owner in the Property above-described and the leasehold interest above
described;
7. That the amount due upon CT Steel’s Lien and claim be ascertained and adjudged;
8. That CT Steel have judgment for the enforcement of said Lien against the Property,
in form only for the purpose of satisfying the condition of said Release of Mechanic’s Lien Bond;
9. Directing the Defendant, DeSales to pay over to CT Steel the amount adjudicated
as the amount of its Lien and claim herein, and its claim against the Bond, with interest and
granting to CT Steel judgment for any deficiency therein together with the costs and disbursements
of this action;
10. Directing the Defendant, Liberty, to pay over to CT Steel the amount adjudicated
as the amount of its Lien and claim herein against the Release of Mechanic’s Lien Bond, with
interest and granting to CT Steel judgment for any deficiency therein together with the costs and
disbursements of this action;
11. Such other or further relief as this Court deems just and equitable.
Dated: New York, New York
February 24, 2021
Respectfully Submitted,
GORDON REES SCULLY MANSUKHANI, LLP
Suleman Malik, Esq.
Todd Regan, Esq.
1 Battery Park Plaza, 28th Floor
New York, New York 10004
Office: 212-269-5500 | Cell Phone: 631-617-3457
Email: tregan@grsm.com | smalik@grsm.com
Attorneys for Plaintiff
CT STEEL, INC.
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TO: DESALES MEDIA GROUP, INC.
1712 Tenth Avenue,
Brooklyn, New York, 11215.
LIBERTY MUTUAL INSURANCE COMPANY
175 Berkeley Street,
Boston, Massachusetts, 02116
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ATTORNEY’S VERIFICATION
SULEMAN MALIK, an attorney duly admitted to practice in the State of New York, states
the following under the penalties of perjury:
That I am an Associate at the law the firm of GORDON REES SCULLY MANSUKHANI,
LLP, the attorneys of record for Plaintiff in this action; that I have read the foregoing VERIFIED
COMPLAINT and know the contents thereof; that the same is true to my knowledge except as to
the matters therein stated to be alleged upon information and belief, and as to those matters I
believe them to be true.
That the reason that this verification is made by me and not by Plaintiff is that such party
maintains its principal office outside of the County of New York where I maintain my law office.
All matters herein stated upon information and belief are based upon materials contained
within affirmant’s legal file and/or correspondence or conversations with the Plaintiff.
Dated: New York, New York
February 24, 2021
Respectfully Submitted,
GORDON REES SCULLY MANSUKHANI, LLP
Suleman Malik, Esq.
Todd Regan, Esq.
1 Battery Park Plaza, 28th Floor
New York, New York 10004
Office: 212-269-5500 | Cell Phone: 631-617-3457
Email: tregan@grsm.com | smalik@grsm.com
Attorneys for Plaintiff
CT STEEL, INC.
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Preview
FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS ----------------------------------------------------------------- x CT STEEL, INC., : Index No.: : : Plaintiff, : SUMMONS : -against- : : DESALES MEDIA GROUP, INC. and LIBERTY : : MUTUAL INSURANCE COMPANY, : : Defendants. : : ----------------------------------------------------------------- x YOU ARE HEREBY SUMMONED and required to serve upon the plaintiff’s attorneys an answer to the annexed complaint within twenty (20) days after service thereof, exclusive of the day of service, or within (30) days after service is complete if service is made by any other method other than personal delivery to you within the State of New York. In case of your failure to answer, judgment will be taken against you by default for the relief demanded in the annexed Complaint. Dated: New York, New York February 24, 2021 Respectfully Submitted, GORDON REES SCULLY MANSUKHANI, LLP Suleman Malik, Esq. Todd Regan, Esq. 1 Battery Park Plaza, 28th Floor New York, New York 10004 Office: 212-269-5500 | Cell Phone: 631-617-3457 Email: tregan@grsm.com | smalik@grsm.com Attorneys for Plaintiff CT STEEL, INC. 1 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 TO: DESALES MEDIA GROUP, INC. 1712 Tenth Avenue, Brooklyn, New York, 11215. LIBERTY MUTUAL INSURANCE COMPANY 175 Berkeley Street, Boston, Massachusetts, 02116 2 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS ----------------------------------------------------------------- x CT STEEL, INC., : Index No.: : : Plaintiff, : VERIFIED COMPLAINT : -against- : : DESALES MEDIA GROUP, INC. and LIBERTY : : MUTUAL INSURANCE COMPANY, : : Defendants. : : ----------------------------------------------------------------- x Plaintiff, CT STEEL, INC., (“CT Steel”), by and through its attorneys, GORDON REES SCULLY MANSUKHANI, LLP, for its complaint herein, alleges; 1. This Court has jurisdiction over this matter pursuant to CPLR 301 and CPLR 302 (a)(1). PARTIES 2. CT Steel is a corporation with its principal place of business at 72 Geraldine Circle, Trumbull, Connecticut. It is engaged in the fabrication, installation and design of structural steel to be used in construction projects. 3. Defendant, DeSales Media Group, Inc., (“DeSales”), is, upon information and belief, a New York non-profit corporation with an address at 1712 Tenth Avenue, Brooklyn, New York, 11215. 4. Defendant, Liberty Mutual Insurance Company (“Liberty”), is, upon information and belief, a Massachusetts company with an address at 175 Berkeley Street, Boston, Massachusetts, 02116. Based on information and belief, Liberty is engaged in the insurance business, and is authorized to transact all business in New York State as well as being qualified to 1 3 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 be a surety or guarantor of bonds as permitted by law. VENUE 5. Pursuant to CPLR § 503(a) venue is properly situated in Kings County because that is where a substantial part of the events giving rise to the claims occurred. COUNT ONE (ACTION ON BOND DISCHARGING MECHANIC’S LIEN) (As to DeSales and Liberty) Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth herein. 6. Upon information and belief, St. Joseph’s Roman Catholic Church of Brooklyn, (“St. Joseph’s”) is the Owner of the real property located at 860 Pacific Street, Brooklyn, New York (the “Property”). 7. Upon information and belief, J.A. Jennings, Inc. (“J.A. Jennings”), is a New York corporation with an address at 211 East 43rd Street, Suite 1400, New York, New York, 10017. Upon information and belief, J.A. Jennings is engaged in the business of construction and construction management. 8. Upon information and belief, DeSales entered into an agreement with St. Joseph’s to lease the Property, and at all times material hereto, DeSales was a tenant in the Property and had a leasehold interest in the Property. 9. Upon information and belief, on or about February 28, 2017, J.A. Jennings entered into an agreement with DeSales, as Project Owner, pursuant to which J.A. Jennings agreed to serve as the construction manager for the construction of a project known as “JAJ # 17-0003 DeSales Media Group,” located at the Property (the “Project”). 10. On or about November 28, 2017, CT Steel entered into a subcontract with J.A. Jennings (the “Contract”), as Construction Manager as Agent for Owner, which provided that CT 2 4 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 Steel would supply structural steel, miscellaneous steel, all labor, all materials, equipment and services, and related materials to J.A. Jennings for use on the Project, in exchange for payment in the original Sum of One Million Eight Hundred Ninety Thousand Dollars and Zero Cents ($1,890,000.00), subject to additions and deductions as provided in the Trade Contract Documents. 11. The original sum to be paid to CT Steel pursuant to the Contract was subsequently increased by change orders totaling two hundred eight five thousand six hundred twenty three dollars ($285,623.00), for a revised Contract price of two million one hundred seventy five thousand six hundred twenty three dollars ($2,175,623.00). 12. Despite having performed as required per the Contract, J.A. Jennings and DeSales, failed and/or refused to make payment in full to CT Steel for its work under the Subcontract, and CT Steel is owed an amount not less than two hundred thirteen thousand nine hundred sixty four dollars and seventy cents ($213,964.70), exclusive of interest, costs, and attorneys’ fees, due and owing. 13. At all times hereinafter mentioned, CT Steel has performed all conditions required under the Contract and is not in default of same. 14. All of the aforesaid labor, materials and services furnished by CT Steel to J.A. Jennings and DeSales were for the construction of improvements on the Property and were furnished with the knowledge and consent of J.A. Jennings, DeSales, and St. Joseph’s, as well as pursuant to the Contract. 15. By reason of the foregoing, there became due and owing from J.A. Jennings and DeSales to CT Steel, for work, labor and services performed by CT Steel a sum in excess of $213,964.70, no part of which has been paid, although duly demanded. 3 5 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 16. The first item of the labor and materials was furnished by CT Steel on or about June 16, 2017. 17. The last item of labor and materials was furnished on or about March 13, 2020. 18. On or about November 12, 2020, and within eight (8) months of the performance of the last item of work and/or the supply of the last item of material to the Project as aforesaid described, CT Steel, pursuant to the Lien Law of the State of New York, caused to be duly filed in the Office of the Clerk of Kings County, a Notice Under Mechanic’s Lien Law (the “Lien”) 19. The Lien was docketed by the Clerk of the Court in the New York Supreme Court, Kings County, on November 12, 2020. 20. Pursuant to the New York Lien Law, on or about November 20, 2020, CT Steel served a copy of the Lien on St. Joseph’s, located at 856 Pacific Street, Brooklyn, NY; on DeSales, located at 1712 Tenth Avenue, Brooklyn, NY; and on J.A. Jennings, located at 211 East 43rd Street, Ste. 1400, New York, NY, in accordance with the requirements of the New York State Lien Law. Pursuant to the New York State Lien Law, service of the Lien was made within 30 days after the Lien was filed. 21. By reason of the foregoing, and by filing and docketing of the aforementioned Notice of Lien, and service of the Lien, CT Steel acquired a good, valid and subsisting lien on the Property. 22. The Lien claims a mechanic’s lien against the Property as to both the fee simple interest of St. Joseph’s and the leasehold interest of DeSales in the sum of $213,964.70, which was due and owing before the Lien was filed. 23. The Lien contained all the statements required by, and in all respects duly complied with, the statutes of the State of New York. 4 6 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 24. On December 1, 2020, Liberty, as surety, and DeSales, as principal, issued and filed a Release of Mechanic’s Lien Bond, Bond No. 999079031, in the penal sum of $235,362.00, with the Kings County Court Clerk. The Release of Mechanic’s Lien Bond identifies CT Steel as the obligee. 25. Liberty and DeSales’ filing of the Release of Mechanic’s Lien Bond discharged the Lien pursuant to New York Lien Law Section 19, and this is a cause of action on the bond pursuant to New York Lien Law Section 24. COUNT TWO (BREACH OF CONTRACT) (As to DeSales) Paragraphs 1 through 15 are incorporated herein by reference as if more fully set forth herein. 26. J.A. Jennings was the construction manager on the Project, as agent for the Owner. 27. CT Steel agreed to perform its work pursuant to the Contract in exchange for the payment of monthly invoices as provided and agreed upon in the Contract. 28. According to paragraph 11.1 of the Contract, J.A. Jennings, as DeSales’ agent, was required to pay CT Steel monthly, based upon applications for payment submitted by CT Steel. 29. According to paragraph 11.3 of the Contract, J.A. Jennings’ payment to CT Steel, as DeSales’ agent, was due within seven (7) working days of DeSales’ payment to J.A. Jennings. 30. CT Steel completed its performance and furnished labor, structural steel, and related material according to the terms and conditions of the Contract, and otherwise performed all of its obligations under the Contract. 31. J.A. Jennings and DeSales failed to make all payments due and payable to CT Steel under the Contract and pursuant to CT Steel’s applications for payment, and the sum of $213,964.70, plus accruing interest, collection costs, and attorney’s fees is presently due and 5 7 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 outstanding. 32. CT Steel has demanded payment, but J.A. Jennings and DeSales have failed and refused to pay CT Steel the outstanding amounts due, in breach of the Contract. 33. By reason of the foregoing, CT Steel has been damaged by DeSales in the amount of $213,964.70, plus accruing interest, collections costs, and attorney’s fees, no part of which has been paid although duly demanded. COUNT THREE (VIOLATION OF NEW YORK’S PROMPT PAYMENT ACT) (As to DeSales) Paragraphs 1 through 15 and 26 through 33 are incorporated herein by reference as if more fully set forth herein. 34. The failure of DeSales and JA Jennings as DeSale’s agent to tender the outstanding payments due and owing on the Project to CT Steel is in violation of New York’s Prompt Payment Act, N.Y. Bus. Law § 756 et seq. (the “Prompt Payment Act”). 35. The Prompt Payment Act requires prompt payment after receipt of CT Steel’s request for payment. 36. Pursuant to the Prompt Payment Act, CT Steel provided invoices to and requested payment from JA Jennings as agent for DeSales for the work it performed under the Contract in relation to the Project. 37. DeSales accepted the work and did not disapprove the invoices and requests/application for payment submitted by CT Steel. 38. DeSales breached the provisions of the Prompt Payment Act by not paying for accepted billing in accordance with the agreed to billing cycle. 39. By reason of the foregoing, CT Steel is entitled to recover and should be awarded a judgment against DeSales in the sum of $213,964.70 with statutory interest at a rate of 1% per 6 8 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 month from together with the costs and disbursements of this action and awarding such additional relief to CT Steel as the Court deems just and proper. COUNT FOUR (QUANTUM MERUIT) (As to DeSales) Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth herein. 40. CT Steel provided certain labor, materials and equipment, as aforesaid, in good faith, to J.A. Jennings as Agent for DeSales at its request for the Project. 41. CT Steel supplied structural steel, miscellaneous steel, all labor, all materials, equipment and services, and related materials to J.A. Jennings as agent for Desales for DeSales’ use on a construction project owned by DeSales. 42. J.A. Jennings and DeSales accepted and received the benefits of same. 43. CT Steel had a reasonable expectation of compensation from J.A. Jennings as agent for Desales and from DeSales for the labor, materials, and equipment it furnished in connection with the Project. 44. The fair, reasonable, and agreed-upon value of the labor, materials, and equipment CT Steel provided to J.A. Jennings as agent for DeSales and DeSales at the Project, and for which payment has not been made is at least $213,964.70, exclusive of interest. 45. By reason of the foregoing, as an alternative, CT Steel is entitled to recover from DeSales the sum of $213,964.70, plus accruing interest, collections costs, and attorney’s fees. COUNT FIVE (UNJUST ENRICHMENT) (As to DeSales) Paragraphs 1 through 5 are incorporated herein by reference as if more fully set forth herein. 7 9 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 46. CT Steel provided certain labor, materials, and equipment, as aforesaid, in good faith, to J.A. Jennings as agent for DeSales at its request, at the Project, and J.A. Jennings and Deales accepted and received the benefits of same. 47. CT Steel supplied structural steel, miscellaneous steel, all labor, all materials, equipment and services, and related materials to J.A. Jennings as agent for DeSales for J.A. Jennings’ and DeSales’ use on a construction project owned by DeSales. 48. The fair, reasonable and agreed-upon value of the labor, materials, and equipment CT Steel provided to J.A. Jennings as agent for DeDale and to DeSales at the Project, and for which payment has not been made, is at least $213,964.70. 49. J.A. Jennings and DeSales have been unjustly enriched in the amount of $213,964.70, by retaining the benefits of the labor performed and material and equipment furnished by CT Steel, without having paid for said labor, materials, and equipment. 50. By reason of the foregoing, as an alternative, CT Steel is entitled to recover from DeSales the sum of $213,964.70, plus accruing interest, collections costs, and attorney’s fees. WHEREFORE, CT Steel demands judgment as follows: 1. Money damages; 2. Costs; 3. Pre- and Post-Judgment Interest pursuant to CPLR 5001 et seq.; 4. Interest pursuant to § 756-b and § 756-c of the N.Y. General Business Law at the rate of one percent per month; 5. Attorneys’ fees; 8 10 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 6. That CT Steel be determined and adjudged to have a valid and subsisting Lien upon the interest of the Owner in the Property above-described and the leasehold interest above described; 7. That the amount due upon CT Steel’s Lien and claim be ascertained and adjudged; 8. That CT Steel have judgment for the enforcement of said Lien against the Property, in form only for the purpose of satisfying the condition of said Release of Mechanic’s Lien Bond; 9. Directing the Defendant, DeSales to pay over to CT Steel the amount adjudicated as the amount of its Lien and claim herein, and its claim against the Bond, with interest and granting to CT Steel judgment for any deficiency therein together with the costs and disbursements of this action; 10. Directing the Defendant, Liberty, to pay over to CT Steel the amount adjudicated as the amount of its Lien and claim herein against the Release of Mechanic’s Lien Bond, with interest and granting to CT Steel judgment for any deficiency therein together with the costs and disbursements of this action; 11. Such other or further relief as this Court deems just and equitable. Dated: New York, New York February 24, 2021 Respectfully Submitted, GORDON REES SCULLY MANSUKHANI, LLP Suleman Malik, Esq. Todd Regan, Esq. 1 Battery Park Plaza, 28th Floor New York, New York 10004 Office: 212-269-5500 | Cell Phone: 631-617-3457 Email: tregan@grsm.com | smalik@grsm.com Attorneys for Plaintiff CT STEEL, INC. 9 11 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 TO: DESALES MEDIA GROUP, INC. 1712 Tenth Avenue, Brooklyn, New York, 11215. LIBERTY MUTUAL INSURANCE COMPANY 175 Berkeley Street, Boston, Massachusetts, 02116 10 12 of 13 FILED: KINGS COUNTY CLERK 02/24/2021 10:07 AM INDEX NO. 504407/2021 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/24/2021 ATTORNEY’S VERIFICATION SULEMAN MALIK, an attorney duly admitted to practice in the State of New York, states the following under the penalties of perjury: That I am an Associate at the law the firm of GORDON REES SCULLY MANSUKHANI, LLP, the attorneys of record for Plaintiff in this action; that I have read the foregoing VERIFIED COMPLAINT and know the contents thereof; that the same is true to my knowledge except as to the matters therein stated to be alleged upon information and belief, and as to those matters I believe them to be true. That the reason that this verification is made by me and not by Plaintiff is that such party maintains its principal office outside of the County of New York where I maintain my law office. All matters herein stated upon information and belief are based upon materials contained within affirmant’s legal file and/or correspondence or conversations with the Plaintiff. Dated: New York, New York February 24, 2021 Respectfully Submitted, GORDON REES SCULLY MANSUKHANI, LLP Suleman Malik, Esq. Todd Regan, Esq. 1 Battery Park Plaza, 28th Floor New York, New York 10004 Office: 212-269-5500 | Cell Phone: 631-617-3457 Email: tregan@grsm.com | smalik@grsm.com Attorneys for Plaintiff CT STEEL, INC. 11 13 of 13