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  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
  • Fifth Partners Llc v. Punch House Flatiron Llc, Joseph W. Foley, Nada VasilijevicReal Property - Other (Breach of Lease) document preview
						
                                

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FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 FILED: NEW YORK CIVIL COURT - L&T 04/19/2023 10:29 AMINDEX NO. LT-305005-22/NY NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 04/19/2023 CIVIL COURT OF THE CITY OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL PART 52 -----------------------------------------------------------------X 50 l FIFTH A VENUE COMP A Y LLC, Index No.: LT-305005-22/NY Petitioner-Landlord, DECISION/ORDER -against- JEFFREY COHN, ESQ. Room 2008 In The Building Known As 501 Fifth Avenue, New York, New York 10017, Respondent-Tenant, "JOHN DOE" and "JANE DOE" Respondents-U ndertenants. -----------------------------------------------------------------X HON. AIJA TINGLING Recitation as Required by CPLR §22 l 9(a): The following papers were read on this Application for Attorneys' Fees: Papers Numbered Petitioner's Application for Attorney 's Fees and Exhibit ...................... .. ............ . Upon the foregoing cited papers, the Decision/Order in this motion is as follows: Petitioner, 501 Fifth Avenue Company, LLC, commenced this action on or about April 11 , 2022, by filing Notice of Petition and Petition against Respondents, Jeffrey Cohen, Esq. and John Doe and Jane Doe. Petitioner was granted summary judgment and reasonable attorneys ' fees by decision/order dated February 15, 2023. The issue of attorneys' fees will be addressed on submission, uncontested by Respondent. Courts have long held that lease provisions for recovery of attorney's fees are valid and enforceable, where a landlord prevails in a summary proceeding brought because of a tenant's breach of the lease. Cier Indus. Co. v. Hessen, 136 A.D.2d 145,526 N.Y.S.2d 77 (1 st Dept. 1988). In the instant matter, clause 1 19 of the lease agreement between the parties specifically provides for recovery of legal fees incurred to enforce the lease. " An award of reasonable counsel fees is within the sound discretion of the trial court, based upon factors such as the time and labor required, the difficulty of the questions involved, the skill required to handle the matter, and the attorneys' experience, ability, and reputation." Ebrahimian v. Long Island R.R. , 269 A.D.2d 488, 703 N.Y .S.2d 731 (2d Dep' t 2000). To determine if the amount of fees sought is reasonable, the court uses the " lodestar" method, by which the court determines the reasonable hourly rate and multipli es it by the reasonable number 1 of 2 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 INDEX FILED: NEW YORK CIVIL COURT - L&T 04/19/2023 10:29 AM NO. LT-305005-22/NY NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 04/19/2023 of hours expended, then adjusts the fee based upon certain subjective criteria. See Flemming v. Barnwell Nursing Home and Health Facilities, Inc., 56 A.D.3d 162,865 .Y.S.2d 706 (3d Dept 2008). In determining what is reasonable, the First Department has held "The reasonableness of plaintiffs fees can be determined only after consideration of the difficulty of the issues and the skill required to resolve them; the lawyers' experience, ability and reputation; the time and labor required; the amount involved and benefit resulting to the client from the services; the customary fee charged for similar services; the contingency or certainty of compensation; the results obtained and the responsibility involved." Morgan & Finnegan v. Howe Chem. Co., 210 A.D.2d 62, 619 N. Y.S.2d 719 (1 st Dep't 1994 ). In consideration of the Affidavit of David B. Rosenbaum, Esq. and the time records submitted, the court finds Petitioner's attorneys' fees and expenses to be reasonable. Three attorneys were assigned to this matter: David Rosenbaum , Nicole Meyer and Joshua Nadelbach. While the three attorneys all worked on the same matter, none of the entries were duplicative. The description of work in the billing entries demonstrate how the matter was handled step by step from inception to end. Considering skill and experience and the customary rate for similar services in Manhattan, the court finds Meyer's hourly rate of $385/$407, Nadelbach's hourly rate of $364 and Rosenbaum's hourly rate of$425, to be reasonable. Based on the above, it is hereby, ORDERED that Petitioner is awarded $14,131.09 in attorneys' fees, and disbursements. ORDERED that a copy of this decision with Notice of Entry be served upon Respondent with 30 days of receipt of this decision. This constitutes the Decision and Order of the Court. Dated: ~tit O 5, ZJJL,s N: r~k, New York Hon. Aija Tingling, J.C.C f"hil Court c·•, ,.of ti I l\ Page 2 of2 2 of 2 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 [FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PMI INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 SUPREME COURT OF THE STATE OF NEWYORK NEW YORK COUNTY JEREMY R. FEINBERG PRESENT: SPECIAL REFEREE PART 5'-{f<_ Index Number: 1601021.2017 INDEX NO. _ _ _ __ EMPIRE LLC vs. MOTION DATE _ _ __ ARMIN A. MEIZLIK CO. INC. MOTJONSEQ.NO. _ __ SEQUENCE NUMBER : 002 HEAR ANO REPORT Tne following papers, numbered 1 to _ _ , were re:ad on this mMion tolfor _ _ _ _ _ _ _ _ _ _ _ _ _~ Notice of Motion/Order to Show Cause- Affidavits - Exhibits I No{s). _ _ _ _ __ Answering Affidavits- Exhibits _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ !No{s). _ _ _ _ __ Replying Affidavits _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ I No{s). _ _ _ _ __ Upon the foregoing papers, it is ordered that this m ~ . ~ i e . . . IS ,u,olJ I'-\ 0.((0.1~ ;J/LJt ~J__ tl{Cu~'f•') ~1),-J-- tVl;W {€M},~ilhU!'.-tldu1 PAPERS RECEtVED NOV 12 2019 NYS SUrlREME COURT • ClVll ORDf.R Ss:l ION: ~ RM 119A ( '0 ·w NON-FINAL DISPosmoN 1. CHECK ONEc ..............,...................................................... 2. CHECK AS APPROPRIATE: _______.,,OTION IS: [)GRANTED CASE DISPOSED □ DENIED = GRANTED IN PART O OTHER ~- C-HfCK JF APPRO?RfATE: ................ ~.............................. O SETTLE ORDER O 'suBMIT ORDER [j DO NOT POST O FIDUCIARY APPOINTMENT O REFERENCE 1 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 !FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PM) INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 11/12/2019 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: PART 84R ------------------------------------------x EMPIRE LLC, Plaintiff, Index No.: 160102/17 -against- Referee Report and Recommendation ARMIN A. MEIZLIK CO. INC. AND HAROLD WEISS, PAPERS RECEIVED NOV 12 2019 Defendants. NYS SUPREME COURT - CVlL ORDER SE:-rJON - RM 119A ------------------------------------------x TO THE HONORABLE .ANTHONY CANNATARO, PART 41: By decision and order dated March 1 1 2019 (the "March 2019 Order")·, t:he Honorable Anthony Canr.'1.ataro referred this matter to the Special Referee Part for assignment to a referee to he·a.r and repoit o!l the amount of reasonable attorneys' fees d'..le to Plaintiff from Defendants. Following one adjournment, the matter was assigned to me on September 18, 2019 and I held the hearing on that date_ Plaintiff was represented by David B. Rosenbaum, Esq_ of Borah, Goldstein, .;_ltschuler, Schwartz, Nahins & Goidel P.C. ·(''Borah Goldstein"), Defendant:s were represented by David Binson, Esq., a solo practitioner. Mr. Rosenbaum was the only witnessi he testifieC. in the narrative form about the amount and nature. of ser,rices his firm provided Plaintiff and was cross-examined. l 2 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFILED: NEW YORK COUNTY CLERK 11/12/2019 03 :47 PMI INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 At the conclusion of_ the proceeding, because there were legal issues as to which the parties sharply differed, I perm.itted each to file a post-hearing brief: Defendants' brief on October 24, 2019 and Plaintiff's brief on November 4, 2019. I received the transcript (referred to as "'Tr._" herein), and the briefing on the dates scheduled, fully submitting the matter before me. In addition to the testimony and exhibits, where appropriate, I have taken judicial notice of the uncontroverted matters that are contained in the county clerk file and the court's computerized records (Leary v. Bendow~ 161 .AD3d 420, 421 [1st Dept 2018]) BACKGROUND ?his litigation arises from a dispute over ·a commercial lease, Plaintiff commenced the action by summons and complaint on November 13, 2017, and following extensions of tin1e, Defendants answered on January 15 r 2013. Shortly after issue was joined, Plaintiff moved for summary judgment pursuant to CPLR 321.2, and Defendants cross-moved to dismiss the complaint and to add a counterclaim. Following adjournments, the Court issued a Decision and Order dated ,January 4 1 2019· (the "Ja..11.uary 2019 Order") which, as pertinent here, granted Plaintiff's motion; awarded Pla~ntiff certain sums due under the lease; and, directed the parties to appear for a hearing o:i at::orneys' fees. Instead 2 3 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PM) INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 of that heari~1.g., the court. issued the March 20l9 Order. This reference followed·. THE HEARING Mr. Rosenbaum testified as to his education and work background 1 including joining Boiah Goldstein in 1997 as a junior part:ner, leaving to start his own practice, and returning in 2003 as a senior partner. He supervises the firm's commer_cial landlord-tenant divisio!l and shares responsibility tor overseeing its Supreme Court division. His c·"1rrent billing rate :i.s $450 per hour, but because Plaintiff is a long-standing client, he currently bills at a reduced rate of $398 per hour {Tr. 4-6). He later added testimony about the background and experience of the other timekeepers on the bill, although he did not do so in the same level of detail he did for his cwn (Tr. 22). Mr. Rosenbaum described Borah Goldstein's time keeping practices and how bills are generated. He introduced invoices for the time spent in furtherance of this action which I ad:mitted into evidence over Defendants' objection (Pl. Ex. l; Tr. 6-14}.-"' He then described the work performed int.he underlying lawsuitr from preparation of the summons and complaint to the summary Mr. Rosenbaum conceded an accidental over-billing of $92 due to a typographical error in a colleague's· billing rater and that the amount sought should be $20r385.21 {Tr. 24). 3 4 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 !FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 P@ INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 judgment. motion and response_ to Defenda.nt.s' crass-motion. He also described the work an associate and a junior partner performed on the matter, noting that he had not charged the client for some of the work perfo:nued. by the associate which was not of satisfactory quality (Tr. 15-18) .' 1'1r. Rosenba.urn testified about the January 2019 Order g.rant.ing Plaintiff's motion fo:r summary judgment and awarding $77,399.76 in damages plus sta:.',J.tory interest, the amount sought. He addressed the steps taken to file a. notice of entry and to seek to enforce the judgment, including taking a deposition. :?inally he testified to the work a junior partner and an associate performed to prepare f9r the hearing on attorney fees (Tr. 19-21, 23). He also noted that the client had paid all of the bills it had been ·sent (Tr. 21) On cross-examination 1 Mr. Rosenbaum indicated that this was not the first time he had litigated a case invclving unpaid sums under a commercial lease - he had handled something between 30-50 such cases previously. He had also filed summary judgment motions in many such cases. He has used forms and previously- The parties .la.ter stipulated to admission 0£ Plaintiff's retainer agreement witl1 Borah Goldstein {Pl. Ex. 3; Tr. 32-33}. They also stipulated on the record that I could consider the language of the lease and the guaranty between the parties, to the extent each document had been appended to prior pleadings and ruled upon by the Court in issuing the January 20l9 and March 2019 Orders {Tr. 37-38). 4 5 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 !FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 Pij INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCE_F, 11/12/2019 filed pleadings as models for his papersi in this case, -he admitted to using such a model to prepare the complaint in this action .but that it still took several hours cf time to update the prior pleading (Tr. 25-27). On re-direct, he clarified that because Borah Goldstein had brought other cases for Plaintiff', it was both expected and appropriate tl'lat t:he firm would use prior papers as models for current ones (Tr. 38-39). DISCUSSION I report and recommend that Mr. Rosenbaum was a credible witness. Whatever interest: he may have in procuring a higher fee av;ard for ·Plaintiff did not, in my view, diminish the believability of his testimony. Indeed, I found that he testified in a straightforwaY-d and forthright mar1-ner. I report and recommend that this Court should make similar credibility findiags (Herman v. Gill, 6l AD3d 433 [1st Dept 2009]). Based on the parties' brie£ing 1 it appears that Plaintiff has further reduced the fees and costs it is seeking to $19 1 518.96. 3 To determine reasonable attorneys' fees, I must . .,eigh the number of hours reasonably expended on the litigation 3 Plaintiff conceded in its brief that there was a 'c.y-pographical error in one bill resulting· in 2. 5 hours billed by Nr Rosenbaum at $385 per hour rather than 0.25 hours at that ra e. This results in a decrease cf $866.25 to the amount sought (P. Br. 1; Pl. Ex. 1 fJan. 2019 Invoice]) 5 6 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PM) INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 multiplied by a reasonable hourly rate or what is generally referred to as the "lodestarr' method. (Hensley v Eckerhart, 461 US 424, 430 [1982]). I am also to consider, (1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the skill requisite to p'erform the legal service properly; {4) the preclusion- of employment by the attorney due to acceptance of the case; {5) the customary fee; (6} whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstancesi {8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the uundf!sirability 11 of the case; (11) the nature and length of. the professional relationShip with the client; and {12) awards in similar cases. {Id. at 430 n.3; see also Matter of Freeman, 34 NY2d l [1974]; Sachs· v. Adeli( 121 AD3d 490 [1st Dept 2014} [affirming Special Referee 1 s award of attorneys' fees]} l. Reasonable Hourly Rates Borah Goldstein appears to charge rates ranging from Mr. Rose!lbaum's reduced rate of $398 per ho.ur in the most recent bills to lesser amounts for other partners and associates. On their face, each of these rates appears to be reasonable, and I report and recommend that they be left undisturbed. I note that Mr. Rosenbaum's credible testimony that all bills have been paid further supports the reasonableness of the rates charged .. 2. Reasonable Hours Expended Defern;lants argue that there is pervasive block billing in the Borah Goldstein invoic-es and that a ·aeduction is warranted 6 7 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 INDEX NO. 160102/2017 !FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PM) NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 for that reason {Def. Br. 2). Plaintiff is correct that block billing does not render the attorneys' fees 1u~reasonable p~r se (J. Re:mora Maintenar1ce v. Efro1uovich 1 103 AD3d 501., 503 [1st Dept 2013]). Here,_ the block billing did not create any difficulty for me in revie~ving the underlyi~1g billing entries. •i As suchf I report and recommend that no deduction on this basis is necessary (cf. Silverstein v. Goodznan., 113 AD3d 539 [1st Dept 2014] [affirming Special Referee's deduction of ten percent from fees otherwise awarded due to block billing]). Similarly, I report and recommend that Defendants' contentions about how long Borah Goldstein worked on parts -of the case are without merit, Applying my own kno·wledge a;.1.d experience to assess how long certain tasks should take, I do not detect any reason to adjust the amount billed on this basis either (Sc.l1oenau v. Lek, 283 AD2d 200 [1st Dept 2001]) _:a, .I:1 reaching· t11is recommendation, I credit Mr. Rosenbaum 1 s testimonyr supported by the bills, that Borah Goldstein wrote off a substantial amount .of 4 Plaintiff urges that because. there was no difficulty .i.n the attorney-client relationship caused by block billing, no reduction is necessary. I specifically reject this argument, which was in any event not supported by any testimony, but reach the conclusion that no block-billing deduction is necessary for ~he reasons stated. Having considered the other factors in the lodesta.r analysis, including· the success that Plaintiff had on the merits (Hernandez v. Kaisman, 139 AD3d 406 [1st Dept 2016)), I further report and.recommend that no additional adjustment of the fees sought is warranted. 7 B of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 !FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 PM! INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 time for work by an associate that was not useable. 3. Fees on Fees The parties also disagree as to so-called "fee:S on fees" - the time spent preparing for and conducting the fee hearing. in front: of me. The First Department has made clear that such fees are only available when based on a statute or an agreement th.at, is unmistakably clear in calling for such fees (Batsidis v. Vlallack Mgt. Co., Inc. 1 126 J:>..D3d 551 [1st Dept 2015] [citing Sage v. Proskauer, 288 AD2d 14 [1st Dept 2001]). Following the parties' stipulation that I may review ::.he relevant language of ths guaranty and lease (Tr. 37-38}, I report and recommend that there is no such contractual or statutory authorization here. Review of the invoices starting 1.rith March 3l,1 2019 reveals the following time that could be ct,_aracterized as fees on fees: 0.6 hours of Craig Notte 1 s time at $350 per hour ($2l0); 1.5 hours of Mark Krassner's time at $350 per hour ($525}; and 1.5 hours of Joshua Nadelbach 1 s time at $285 per hour ($427.50). I thus report and recommend that $l 1 162.50 of Borah Goldstein's fees should be deducted as fees on fees. 4. Disbursements There does not appear to be any dispute as to the inclusion of disbursements sought which are separately listed in the Borah Goldstein billing material. Counsel did not, ho\,1ever, divide the 8 9 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 P@ INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF, 11/12/2019 total amount sought between attorneys' fees and costs. I have therefore analyzed the invoices one by one, arriving at the figure of $994.61 for costs a.~d $18,524.35 in fees. I report and recommend that the costs, which are otherwise reasonable, should be awarded in full (Ri'1P Capital Corp. v. Victory Jet LLC, 20l3 :t,,i"Y Slip Op. 5l543 (U) [Sup Ct, Suf.folk County 2013]). 5. Summary· of Fee Award I report and recommend that from the $18 1 524.35 sought in legal fees, there should be a deduction of $1,162.50 for fees on fees, leaving $17,361.85. I further report and recommend an: award of the entirety of disbursements sought: $994.61. CONCLUSION I hereby report my findings as indicated above, and recommend that the honorable court, upon submission of this report and a motion pursuant to CPLR 4403, confirm the report vdth respect to its findings. The parties have been sent a copy of this report (by e-filing). In accordance with CPLR 4•103 and 22 :N""lCRR 202. 44 {a), following the filing of the report and notice to each party of the filing of the re.port, Plaintiff shall move to confirm or reject all or part of the report within fifteen (15) days after notice of the filing of the report. If Plaintiff fails to do so, then Defendants shall so move within thirty (30) days after notice is given (See Gould v Venus Bridal Gown and }1.ccessories Corp., 148 Misc2d 589 [Sup Ct NY County 1990]). 9 10 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023 10:54 AM INDEX NO. 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 [FILED: NEW YORK COUNTY CLERK 11/12/2019 03:47 Pij INDEX NO. 160102/2017 NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 11/12/2019 If neither side files .a motion, I report and recommen_4 that the court sua sponte confirm the findings set forth above. Dated: November 12, 2019 Respectfuliy Submitted: 10 11 of 11 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFJ:LED: NEW YORK COUNTY CLERK 08/20/2020 09:11 AM! _ INDEX NO. ::.54249/2018 NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 08/20/2020 SUPREME COURT OF THE STATE OF NEW YORE'. COUNTY OF NEW YOR.K IAS P-ART 86 --------------------~------~-----------------x FIFTY EAST FORTY SECOND CO_MP~..NY LLC. ~ Plaintiff.,. INDEX NO. 154249/18 SEQ. NO.: 002 -aga.ipst;- R.EFER:EE•S DECISXON AND OBDER DR. ILYA AKSELR0D and D~- MIKHAIL AKSELRUD, Defendants. --- .------------- ------ ~-------------------·X FR.OM THE SUPREME coumr NEW YORK COUNTY IAS PAR'l 8 By decisio;J. and order u,,J.der motion sequence nlli7lber 0-01 of the Honorabl-e Ly-nn ::c Kotler; dated November 13, 2018, ·arid filed i::::hereafter on Novemher 21, 2018, wherein the court granted the plaintiff Fifty Ea·st E'Orty Second Comp-any LLC, ("Fifty East") su.Tu-rtary judgment. purs-uant to CPLR §3212 against the defe:::tdant Dr. Mi'khail Akselrud ( "P...k. selrud-") on liability a~d dair:.ages fo:!' unpaid rent .undScr a com..-:i.ercial lease a:-.d for an award of reasonable attorneys' :fees 3.nd by a compan.:..on order cf re£erence., dated November 13, 2-0:s, and filed thereafter on Novernber 21, 2018, tt:e issue of the amot:.nt of what attO.rneys' fe:es t:le plaintiff i.s enti"t:led to reco~.rer £rem the- 1 2 of 12 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54 NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: !NDEX NC.05/04/2023 [FH.ED: NEW YORK COUNTY CLERK 08/20/2020 09:11 AMl 154249/2015 .NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 08/20/2020 defendant in ins ti t".iting and prose·cuting this· action.r was referred for a.ssignmeht to a Special Ref-eree or J;..:.dici.al Reaiing Of,ficer { "C:""10'') to hear and report witr: recommendations. Tbe final detemination of that branch of the underlyi?:;.g motion as to the amount of attorneys.r fees :w:as othe-rlifise held in abeyance by the refer:::ing court. pending receipt of the Special Referee's or JB.o~s report and recomme:ndatior:.s and a :motior.. to confirm and/a::::- ciisaffir:m such repo::::t pursuant to CPLR §"4403, or receipt of the de::.ermination of the Special 3.eferee or JE.O upor.. a stipulation c:o hear and ·determine pursuant to CPLR §4317. This matter :was assigned to the unde=sign-ed Special Re·feree for hearing o_rc: Jam.:.ary 29,. 20-19. The plaintiff and th_e defendanc: both appeared by tt-ei':~- ~espe:::::t:ive counsel o·f:. re::.o;:d. On January 29., 2019, a wr.itter. stipulation was executed. by both sides whereby this re·ferenced f::::-amed issue·h:ea.-rir:.g w-as char:ged from a hear and report with recomm-endations to a hear and determine in accordance. with CPLR §4317 (b} to determine the £:tamed referenced issue and the remainder of the un.derlying motion held in abeya::,ce o~ the arr.aunt of attorneys' fees due i:he plaintiff from the defendant. T:1.is stipulation was duly so o.c:-dered and filed by the undersigned Special Re£eree en that same said date_ This referenced matter was t:hereafte.r ad~ou1:ned to February 20, 2019 for hearing. ':'he framed inquest bee.ring as an assessment of dama·ges a.s to the amcunt of attorneys' fees to be paid by the defendant to 2 3 of 12 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 IFILED: NEW YORK COUNTY CLERK 08/20/2020 09: 11 AMI INDEX ~0- 154249/2013 °NYSCEF DOC. NO. 55 RECEiv'ED NYSCEF: 08/20/2020 t.he plaintiff was conduc:'..ed anG concl.uded on February 20, 2019. At the hearing botr_ attorneys opted to waive opening statements and, not.withstanding th1c:;ir stipulation of January 29, 2019 to hear and determine, also waived- the .filing of the transcript of the "1linutes of the hearing :Otherwise required by CPLR §4320 (b). Bot..l1 counsel presented sI':ort closing argu,...-i.ents on the record and waived t.he oppcrtu...'1.ity to present post-hearing memoranda- of law. 'l'he attorneys p:r:o£f.-ered the·ir respective cases on the amount: due for damages as attcrneys' fees on the record through wic::ness testi:mony and documentary e·xhibits marked in evidence. All exhibits: :mark-ed as Plaintiff's land 2 and Defenda:1trs A, B, C and D, were submitted in evidence and fiied herewith. Oniy the plair~tiff offered witness teSti:mony. That wfi:.ness was David B. Rcsenba-um, Esq., the repr.esentative attor:hey for the plai::tiff ar~ this litigated matte:::. Th·e defe"rrdant offered no test:imonial witnesses and essentially rested on the plaintiff's case p.re·s-ented, subject only to cross examination and the defe'nde.nt' s documentary exhibi-ts prese::-atect. at trial. The underlying action. by the plainti£f sought recovery against the_ def-er;i.¢.ant, based upon a breach of ·cont.::::act cf a- commercial l.e.a.se by the -defe.:r-~dant, for ;J_npaid rent and additional rent due through the· end of the leas·e· terrr.. 7he plaintiff was a;.;a::::cj.ed summary judgment in it's favor and ag.ains:t the defendant with a :m:oney judgment for s.aid unpaid reiht ih the- S1.:Jrt of $301 1 5 99 . .93. The amount of reccverable attorney's £ees by plaintiff agairrst the defendant was 3 4 of 12 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 (FILED: NEW YORK COUNTY CLERK 08/20/2020 09: ll AM) INDEX NO. 154249/2018 NYSCEF DOC. NO. 55 RECEIVED NYSCEF; 0S/20/2020 referred· for a framed issue referenced hearing- to detemine the extent and -::he arnount of darrcages,. :..n the form of attorneyr s fees, to which the plainti::f is entitled tc, reco-ver from defer,dant. The subject referenced issue pertains tc· the ass-essment cf the arci.o"...m:: of re.asonab:e attorney .fees reirri.bursable to plai:.1.tiff for instituting and prosecuting the c1r.C.e:::'.'lyi~g breach of contra.ct case, The plaintiff speci::ically cla.i..rn.ed principal damages against the -defehdar:t for outstanding and ,.mpaid reht in the sum cf $301,..599. 93 plus inte-rest from Feb.r:1..:J.ary 1, 2018, together with coses and disbursements. A -tot:al amount of $15r578.19 is claimed by plaintiffr inclusive of attorneys 1 f.ees of $15,349.34 and costs a.nd disbursements of $228.-8-S" Th-e defendant maintained .that the p2.aint.iff' s demand for costs and attorneys' fees in the amount of $15,578.19 was excessive .antj unreasonable. The defendants' .assert ·that the le-gal fees are .inaccurate and out of proportio:h wit:h the legal services reasm1ably needed in a proc:e.ed±ng for surru:rtary judgm.ent. T~e plaintiff presented only one witness in suppcrt of its claims .for dama-ges due for fees -and co.sts. The- plc:.intiff offe:::-ed the testimony of David 3.. Rose:nbaumr Esq., a member of -::he law :firm Borah Golds~ein Altschuler Nahins & Goidel, P.C., as to the legal serv-ices rendered- in connectt.On with the col:Z.ection on 'the lease breach by 'the defeni;iants o.r:i. behalf of the plaintiff. 4 5 of 12 FILED: NEW YORK COUNTY CLERK 05/04/2023INDEX 10:54NO. AM 161105/2021 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 05/04/2023 JEILED: NEW YORK COUNTY CLERK 08/20/2020 09:1.l AMI INDEX NO. 154249/2018 NYSCEF DOC. NO. 55 RECEIVED NYSCEF: 08/20/202D M:t. Rbsenba·c.UD. tes".::.ified that the amount that -;.,.,as due and cwing for '.lnpaid rer:t 's:;y the defendant under the -::::-0:mmercial lease obligation, :withoU:"i: collection cos::.s, to be a total amount. $301, 599.. 93. Mr. Rosenbaum recited that the -::ota.l amounc:: of collection cosi:s, ir:clusi.:ve of attor:ceys fees, clair1.Ied by the plainti:ff was $15 1 578.19, a."ld that t:l'le legal services and costs were all necessa~y and ieasonable as provided. by counsel in securing the. plair.tiff' s rights and inte-rests. It was noted -::hat def.endant did not challeng:e the ir.dividual billing rates of the att-or::ieys who performed the legal services or: beha-lf of the plai:1tiff and -not b-si.:ig ccm:.ested can be deemed on their face reasona,ble. The plaintiff proffered that ;.t had establi~hed' its e:rtit.lement., on the procf presented, ~o the attorneys' fees and costs sought on this app.licatio:').. The defend.a.nt cffe:red no witnesses at the hearing, factual or exper.:, a.nd rested on the hea::.-ing record in- regard tc the pla.intiff 's claims fer deterinin.ation an.6 reirr-..bu::-sement. of attorneys' fees and cos"::s. While the defendant rested its case without offering any wi,::nessces, it was nonetheless argued t:lat the proof.presented by the plaintiff on this record could not be objective::.y ascertaineC to any degree from the pr5Jof proffered by plaintiff and should therefore be substantially ,adjusted and reduced. 'I'he defendant. argued that the plai'r.tiffts fee de:nand w.as excessive on its face 1 and ~ot reasonably related to the amcu~t and type of work necessary