Preview
FILED: WESTCHESTER COUNTY CLERK 07/23/2018 09:32 AM INDEX NO. 57831/2018
NYSCEF DOC.
To NO. the
commence 15statutory time RECEIVED NYSCEF: 07/20/2018
period of appeals as of right
(CPLR 5513121), you are advised
to serve a copy of this order,
with notice of entry, upon all
parties.
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF WESTCHESTER
COMMERCIAL DIVISION
Present: HON. GRETCHEN WALSH, J.S.C.
X
UNITED GALAXY ASSOCIATES, L.L.C.,
Index No. 57831/2018
Petitioner, Motion Seq. # 1
Motion Date: 6/8/18
-against—
DECISION & ORDER
ESTATE MOTORS, INC. and CHARLES BUONANNO,
Respondents.
X
WALSH, J:
Petitioner United Galaxy Associates, L.L.C. ("Petitioner") petitions this Court pursuant
to CPLR 7510 to: (1) confirm the arbitration award dated April 24, 2018 (the "Award"); and (2) grant a
judgment in favor of Petitioner in accordance with the Award in the amount of $2,483,600, together with
interest and costs. Respondents Estate Motors, Inc. and Charles Buonanno ("Respondents") have
submitted an answer to the Petition.
PROCEDURAL BACKGROUND
The present proceeding was commenced by the filing of a Notice of Petition and a
Petition, together with the exhibits annexed thereto, on May 15, 2018. Respondents filed their answer to
the Petition on May 29,2018 and Petitioner filed its reply on June 4,2018.
DISCUSSION
Based on a review of the Petition, Answer and Reply, Respondents do not dispute and in
fact join in the request that the Award be confirmed (Answer at 6). The only disputed issue is whether
Petitioner is entitled to its costs in connection with this proceeding to confirm the Award and interest on
the Award from April 24, 2018 to the date of any judgment entered in this proceeding. In support of their
contention that Petitioner should not be awarded its costs or interest, Respondents point out that the
Arbitrator specifically denied Petitioner's request in the arbitration for an award of pre-judgment
interest, legal fees and costs based on his ruling that neither party was found to be the prevailing party
(Answer at 115, 31).
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In response to Respondents' objection to an award of interest and costs, Petitioner argues
that with regard to an award of interest, it is only seeking interest from the date of the Award to the date
of the entry of the judgment in this proceeding. Therefore, the Arbitrator's decision to deny an award of
interest from the date of the breach to the date of the Award has no bearing on Petitioner's right to
interest to the limited extent requested in this proceeding (Affirmation of Jeffrey I. Carton, Esq. in Reply
to Respondents' Answer and Objections to Petition to Confirm Arbitration Award dated June 4, 2018
rCarton Reply Aff."1 at ¶ 9-10). According to Petitioner, it is entitled to an award of post-arbitration
interest from the date of the Award as a matter of right pursuant to CPLR 5002 (L e. , 9% from April 24,
2018 through the date of judgment) (id. at IT 6, 11). In support of its request for an award of its costs,
Petitioner argues that courts routinely award petitioners their costs in connection with proceedings to
confirm arbitration awards and that "pre- and post-arbitration award costs are two distinct and separate
matters"(id at ¶ 14). Thus, it is Petitioner's contention that because it has been forced to continue to
litigate to obtain the monies to which it is entitled, Petitioner should be permitted to recover its costs (id
at ¶17).
LEGAL ANALYSIS
An arbitration award will be confirmed upon application of a party made within one year
after its delivery, "unless the award is vacated or modified upon a ground specified in section 7511"
(CPLR 7510). "The purpose of arbitration is to allow final, binding resolution of parties' claims without
resorting to the courts. The scope of review of an arbitration decision is extremely limited. As a result,
great deference is given to any arbitration award" (In re Broadcast Music Inc., 2006 NY Slip Op
52043[U], 13 Misc 3d 1228 [A] [Sup Ct NY County 2005]).
Here, the Petition reflects that the Award was delivered to the parties on April 24, 2018;
that the Award has not been vacated or modified; and that this proceeding was commenced on May 15,
2018, which is within one year after delivery of the Award. Respondents join in Petitioner's request that
the Award be confirmed. Accordingly, the Court shall grant Petitioner's request to confirm the
arbitration award.
With regard to Petitioner's requests for its costs and interest from the date of the Award
to the date of the Judgment, the Court agrees that the Arbitrator's decision to deny interest and costs as a
part of the Award is irrelevant to whether this Court should grant Petitioner's request for interest and
costs in this proceeding. Accordingly, the Court shall award Petitioner statutory interest from the date of
the Award to the entry of the Judgment in this proceeding. The Court shall also grant Petitioner the right
to submit a bill of costs in accordance with the CPLR as part of its submission of the judgment in this
proceeding.
CONCLUSION
The Court has considered the following papers in connection with this motion:
1) Notice of Petition dated December 21, 2015; and
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2) Verified Petition dated December 21, 2015 together with the exhibits annexed
thereto.
Accordingly, for the reasons stated and based upon the papers aforesaid, it is hereby
ORDERED that the petition of United Galaxy Associates L.L.C. ("Petitioner") made
pursuant to CPLR 7510 to confirm the arbitration award dated April 24, 2018 (the "Award") and to
award Petitioner: (1) its costs; and (2) interest on the Award from April 24,2018 to the date of entry of
any judgment, is granted; and it is further
ORDERED that the arbitration award dated April 24, 2018 is confirmed; and it is further
ORDERED that Petitioner shall, pursuant to the provisions of 22 N.Y.C.R.R. § 202.48,
submit a proposed judgment with blanks left for an award of interest and costs, in accordance with the
provisions of this Decision and Order, together with any bill of costs, to this Court (and not the Clerk of
the Court) (no appearances required) for settlement by not later than August 17, 2018.
The foregoing constitutes the Decision and Order of this Court.
Dated: White Plains, New York
July.20 2018
ENTER:
Gretchen Walsh
Justice of the Supreme Court
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APPEARANCES:
DENLEA & CARTON, LLP
By: Jeffrey I. Carton, Esq.
Myles K. Bartley, Esq.
Attorneys for Petitioner
2 Westchester Park Drive, Suite 410
White Plains, NY 10604
BASHIAN & FARBER, LLP
By: James L. Hyer, Esq.
Attorneys for Respondents
235 Main Street
White Plains, NY 10601
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Preview
FILED: WESTCHESTER COUNTY CLERK 07/23/2018 09:32 AM INDEX NO. 57831/2018 NYSCEF DOC. To NO. the commence 15statutory time RECEIVED NYSCEF: 07/20/2018 period of appeals as of right (CPLR 5513121), you are advised to serve a copy of this order, with notice of entry, upon all parties. SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF WESTCHESTER COMMERCIAL DIVISION Present: HON. GRETCHEN WALSH, J.S.C. X UNITED GALAXY ASSOCIATES, L.L.C., Index No. 57831/2018 Petitioner, Motion Seq. # 1 Motion Date: 6/8/18 -against— DECISION & ORDER ESTATE MOTORS, INC. and CHARLES BUONANNO, Respondents. X WALSH, J: Petitioner United Galaxy Associates, L.L.C. ("Petitioner") petitions this Court pursuant to CPLR 7510 to: (1) confirm the arbitration award dated April 24, 2018 (the "Award"); and (2) grant a judgment in favor of Petitioner in accordance with the Award in the amount of $2,483,600, together with interest and costs. Respondents Estate Motors, Inc. and Charles Buonanno ("Respondents") have submitted an answer to the Petition. PROCEDURAL BACKGROUND The present proceeding was commenced by the filing of a Notice of Petition and a Petition, together with the exhibits annexed thereto, on May 15, 2018. Respondents filed their answer to the Petition on May 29,2018 and Petitioner filed its reply on June 4,2018. DISCUSSION Based on a review of the Petition, Answer and Reply, Respondents do not dispute and in fact join in the request that the Award be confirmed (Answer at 6). The only disputed issue is whether Petitioner is entitled to its costs in connection with this proceeding to confirm the Award and interest on the Award from April 24, 2018 to the date of any judgment entered in this proceeding. In support of their contention that Petitioner should not be awarded its costs or interest, Respondents point out that the Arbitrator specifically denied Petitioner's request in the arbitration for an award of pre-judgment interest, legal fees and costs based on his ruling that neither party was found to be the prevailing party (Answer at 115, 31). 1 of 4 FILED: WESTCHESTER COUNTY CLERK 07/23/2018 09:32 AM INDEX NO. 57831/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 07/20/2018 United Galaxy Associates, L.L.C. v Estate Motors, Inc., et aL Page 2 In response to Respondents' objection to an award of interest and costs, Petitioner argues that with regard to an award of interest, it is only seeking interest from the date of the Award to the date of the entry of the judgment in this proceeding. Therefore, the Arbitrator's decision to deny an award of interest from the date of the breach to the date of the Award has no bearing on Petitioner's right to interest to the limited extent requested in this proceeding (Affirmation of Jeffrey I. Carton, Esq. in Reply to Respondents' Answer and Objections to Petition to Confirm Arbitration Award dated June 4, 2018 rCarton Reply Aff."1 at ¶ 9-10). According to Petitioner, it is entitled to an award of post-arbitration interest from the date of the Award as a matter of right pursuant to CPLR 5002 (L e. , 9% from April 24, 2018 through the date of judgment) (id. at IT 6, 11). In support of its request for an award of its costs, Petitioner argues that courts routinely award petitioners their costs in connection with proceedings to confirm arbitration awards and that "pre- and post-arbitration award costs are two distinct and separate matters"(id at ¶ 14). Thus, it is Petitioner's contention that because it has been forced to continue to litigate to obtain the monies to which it is entitled, Petitioner should be permitted to recover its costs (id at ¶17). LEGAL ANALYSIS An arbitration award will be confirmed upon application of a party made within one year after its delivery, "unless the award is vacated or modified upon a ground specified in section 7511" (CPLR 7510). "The purpose of arbitration is to allow final, binding resolution of parties' claims without resorting to the courts. The scope of review of an arbitration decision is extremely limited. As a result, great deference is given to any arbitration award" (In re Broadcast Music Inc., 2006 NY Slip Op 52043[U], 13 Misc 3d 1228 [A] [Sup Ct NY County 2005]). Here, the Petition reflects that the Award was delivered to the parties on April 24, 2018; that the Award has not been vacated or modified; and that this proceeding was commenced on May 15, 2018, which is within one year after delivery of the Award. Respondents join in Petitioner's request that the Award be confirmed. Accordingly, the Court shall grant Petitioner's request to confirm the arbitration award. With regard to Petitioner's requests for its costs and interest from the date of the Award to the date of the Judgment, the Court agrees that the Arbitrator's decision to deny interest and costs as a part of the Award is irrelevant to whether this Court should grant Petitioner's request for interest and costs in this proceeding. Accordingly, the Court shall award Petitioner statutory interest from the date of the Award to the entry of the Judgment in this proceeding. The Court shall also grant Petitioner the right to submit a bill of costs in accordance with the CPLR as part of its submission of the judgment in this proceeding. CONCLUSION The Court has considered the following papers in connection with this motion: 1) Notice of Petition dated December 21, 2015; and 2 of 4 FILED: WESTCHESTER COUNTY CLERK 07/23/2018 09:32 AM INDEX NO. 57831/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 07/20/2018 United Galaxy Associates, L.L.C. v Estate Motors, Inc., et at Page 3 2) Verified Petition dated December 21, 2015 together with the exhibits annexed thereto. Accordingly, for the reasons stated and based upon the papers aforesaid, it is hereby ORDERED that the petition of United Galaxy Associates L.L.C. ("Petitioner") made pursuant to CPLR 7510 to confirm the arbitration award dated April 24, 2018 (the "Award") and to award Petitioner: (1) its costs; and (2) interest on the Award from April 24,2018 to the date of entry of any judgment, is granted; and it is further ORDERED that the arbitration award dated April 24, 2018 is confirmed; and it is further ORDERED that Petitioner shall, pursuant to the provisions of 22 N.Y.C.R.R. § 202.48, submit a proposed judgment with blanks left for an award of interest and costs, in accordance with the provisions of this Decision and Order, together with any bill of costs, to this Court (and not the Clerk of the Court) (no appearances required) for settlement by not later than August 17, 2018. The foregoing constitutes the Decision and Order of this Court. Dated: White Plains, New York July.20 2018 ENTER: Gretchen Walsh Justice of the Supreme Court 3 of 4 FILED: WESTCHESTER COUNTY CLERK 07/23/2018 09:32 AM INDEX NO. 57831/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 07/20/2018 United Galaxy Associates, L.L.C. v Estate Motors, Inc., et al. Page 4 APPEARANCES: DENLEA & CARTON, LLP By: Jeffrey I. Carton, Esq. Myles K. Bartley, Esq. Attorneys for Petitioner 2 Westchester Park Drive, Suite 410 White Plains, NY 10604 BASHIAN & FARBER, LLP By: James L. Hyer, Esq. Attorneys for Respondents 235 Main Street White Plains, NY 10601 4 of 4