Columbia Greene Media Rent Suit

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO.

E012021017326
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 10/01/2021

SUPREME COURT STATE OF NEW YORK


COUNTY OF COLUMBIA

EIGHT IRON BUILDINGS, INC,

Plaintiff, SUMMONS

-against-

Index No.:
HUDSON-CATSKILL NEWSPAPER CORP., JOHNSON
NEWSPAPER CORPORATION and COLUMBIA GREENE
MEDIA CORP.,

Defendants.

TO THE ABOVE-NAMED DEFENDANTS:

YOU ARE HEREBY SUMMONED and required to serve upon Plaintiff's attorney an

answer to the complaiñt in this action within twenty (20) days after the service of this summons,

exclusive of the day of service, or within thirty (30) days after service is complete if this summons

is not personally delivered 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 complaint.

The basis of venue designated above is CPLR §§ 503(a) and (c) and 507.

Dated: October 1, 2021 WHITEMAN OSTERMAN & HANNA LLP


Albany, New York

By:
William S. Nolan, Esq.
Gabriella R. Levine, Esq.
Attorneys for Plaintiff
One Commerce Plaza

Albany, New York 12260


Telephone: (518) 487-7600
wnolan@woh.com
glevine@who.com

4837-0907-0077,

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 10/01/2021

SUPREME COURT STATE OF NEW YORK


COUNTY OF COLUMBIA

EIGHT IRON BUILDINGS, INC,

Plaintiff, VERIFIED COMPLAINT

-against-

Index No.:
HUDSON-CATSKILL NEWSPAPER CORP., JOHNSON
NEWSPAPER CORPORATION and COLUMBIA GREENE
MEDIA CORP.,

Defendants.

Plaintiff Eight Iron Buildings, Inc. ("Plaintiff"), by and through its attorneys, Whiteman

Osterman & Hanna LLP, as and for its Verified Complaint against Defendants Hudson-Catskill

Newspaper Corp., Johnson Newspaper Corporation and Columbia Greene Media Corp.

(collectively, "Defendants") respectfully alleges as follows:

PARTIES AND VENUE

1. Plaintiff is a New York corporation duly registered to do business in the State of

New York with a business address at One Hudson City Centre, Hudson, NY 12534.

2. Plaintiff is the owner of certain real property consisting of office space located at

One Hudson City Center, Hudson, NY 12534 (the "Premises").

3. Upon information and belief, Defendant Hudson-Catskill Newspaper Corp.

("Hudson-Catskill") is a New York corporation with an office located in Columbia County, New

York at 346 Warren Street in Hudson, NY 12534.

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NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 10/01/2021

4. Upon information and belief, Defendant Hudson-Catskill has or does operate under

the name Columbia Green Media Corp.

5. Upon information and belief, Columbia Greene Media Corp. is a subsidiary or

affiliate of Defendant Johnson Newspaper Corporation, with a business address located at 260

Washington Street, Watertown, New York 13601.

6. Upon information and belief, Defendant Johnson Newspaper Corporation is a New

York corporation duly registered to do business in the State of New York with an office located at

13601.1
260 Washington Street, Watertown, New York

7. Upon information and belief, Defendant Johnson Newspaper Corporation remitted

payments due under the Lease to Landlord.

8. Upon information and belief, Defendant Johnson Newspaper Corporation,

Defendants Hudson-Catskill and Columbia Greene Media Corp. are a conglomerate or

combination of entities controlled, owned and managed together as one unit or alter egos of one

another.

Defendants'
9. Venue is proper in this Court because this action concerns obligations

under the Lease and the subject Premises are situated within Columbia County, New York.

STATEMENT OF FACTS

10. By Lease Agreement dated June 1, 2012 (the "Lease"), Plaintiff, as landlord, leased

the Premises to Hudson-Catskill, as tenant, for the lease of 4,136 sq. feet of office space at the

1
Plaintiff is unaware whether an assigilliiciit of the lessee's interests in the Lease to Defendant Johnson
Newspaper Corporation or Defendant Celüinbia Greene Media Corp. was ever executed. For ease of
"Defendant"
reference and for the purposes of this Cailiplailit, shall mean the tenant(s) occupying the
Premises and responsible for payment of the sums set forth herein.

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Premises, with the Lease commencing on June 1, 2012 and terminating on May 31, 2022. A copy

of the Lease is attached hereto as Exhibit A.

11. Plaintiff and Hudson-Catskill entered into an addendum to the Lease, effective

September 1, 2012, for an additional 686 square feet of office space in the Premises. A copy of the

Addendum is attached hereto as Exhibit B. The Lease and the Addendum are collectively referred

Lease."
to as "the

12. Upon information and belief, Hudson-Catskill never assigned its interest in the

Lease to any other entity, but underwent a name change on or about July 9, 2013 to Columbia

Greene Media Corp.

13. Pursuant to the Lease, Hudson-Catskill was required to pay $6,000 in monthly rent,

on the first day of each month.

14. Pursuant to Section 6 of the Lease, Hudson-Catskill agreed to pay a late charge

equal to 4.00% of the required monthly payment for each payment not paid within 10 days after

the due date for such payment.

15. Pursuant to Section 10 of the Lease, Hudson-Catskill agreed to pay its proportionate

share of common area maintenance charges, including, but not limited to, actual expenses incurred

by Landlord for overall building insurance, real estate taxes, electricity and gas, public water

supply, cleaning and repairs and maintenance.

16. Pursuant to Section 5 of the Lease, Hudson-Catskill remitted a security deposit to

Plaintiff in the amount of $5,860.00 and agreed that it was entitled to return of the security deposit

at the termination of the lease, only in the event Hudson-Catskill performed all obligations

thereunder.

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17. Pursuant to Section 9 of the Lease, Hudson-Catskill agreed to be responsible for

the cost of "repair of damage caused by the act or omission of Tenant, his employees, agents,

licensees."
contractors, customers, invitees and

18. Pursuant to Section 18 of the Lease, Landlord and Hudson-Catskill agreed that the

Lease could not be orally modified under any circumstance.

19. Instead, Section 18 of the Lease provided that it could only "be modified or

amendment."
amended in writing, if the writing is signed by the party obligated under the

20. Beginning in 2020, Hudson-Catskill breached its obligations under the Lease by

failing to timely pay rent due thereunder.

21. Specifically, Hudson-Catskill failed to remit timely rent payments for the months

of February, March, April and July of 2020.

22. Beginning in August of 2020, Hudson-Catskill continued in its failure to timely pay

its rent and also failed to make full rent payments. Instead, Hudson-Catskill began remitting partial

rent payments, in the amount of $3,000.00 on a monthly basis.

23. In November and December of Hudson-


August, September, October, 2020,

Catskill remitted payments of $3,000 on a monthly basis, more than 10 days after rent was due on

each occasion.

24. In January 2021, Hudson-Catskill again remitted a payment in the amount of

$3,000, more than ten days after rent was due.

25. Hudson-Catskill's January 2021 late and partial payment of rent was the last

payment of any kind that it made under the Lease.

26. The parties never executed a written agreemcñt to modify the amount of rent

Hudson-Catskill was required to pay under the Lease, as required by Section 18 thereunder.

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27. Landlord made clear that Hudson-Catskill remained liable for the full rental

payments due.

28. When Hudson-Catskill failed to remit timely and pull rent payments beginning in

August 2020, Landlord undertook substantial efforts to explore a solution with Hudson-Catskill to

alleviate any financial pressures felt by its business during the ongoing COVID-19 pandemic.

29. Among other things, Landlord offered to rent alternative, smaller spaces to Hudson-

Catskill within the same building of the Premises, with a reduced footprint and rental rate, for the

remainder of the Lease term.

30. Notwithstanding Landlord's efforts, Hudson-Catskill advised Landlord in writing

on or about September 28, 2020 of its intent to abandon and vacate the Premises by January 1,

2021, one year and four months prior to the conclusion of the Lease term in May 2022.

31. In response to Hudson Catskill's September 28, 2020 letter, Landlord advised

Hudson-Catskill by letter dated October 16, 2020 that Hudson-Catskill's intention to vacate and

abandon the Premises prior to the conclusion of the Lease term would constitute a breach of the

Lease.

32. By correspondence dated December 10, 2020, Hudson-Catskill again stated its

intention to vacate and abandon the Premises prior to the conclusion of the Lease term.

33. In that same correspondence, Hudson-Catskill disclosed that it was renting a new

space on Warren Street, located in the City of Hudson, New York, with a new lease commencing

as of January 1, 2021.

34. On or about December 22, 2020, Landlord transmitted a final demand letter to

Hudson-Catskill, outlining its defaults, including the current outstanding amount of overdue rent

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 10/01/2021

arrears, demanding that Hudson-Catskill cure such defaults and reserving all rights and remedies

available by operation of law.

35. Hudson-Catskill failed to pay the outstanding and overdue rent arrears or otherwise

cure its defaults.

36. In or around February 2021, Hudson-Catskill vacated and abandoned the Premises

and returned the keys to Landlord.

37. Upon inspection after Hudson-Catskill's abandonment, Landlord discovered that

Hudson-Catskill substantiany and materially damaged the Premises.

38. In addition to abandoning the Premises, Hudson-Catskill abandoned personal

property contained therein, and informed Landlord that it had no intent to retrieve or obtain such

personal property.

39. Hudson-Catskill's personal property included office furniture, waste and debris.

40. Landlord was forced to incur expenses in removing Hudson-Catskill's abañdoñed

personal property from the Premises.

41. Landlord was further forced to incur expeñses in repairing the Premises, in light of

the damage caused by Hudson-Catskill.

42. To date, Hudson-Catskill has failed to cure its breach of the Lease by remitting

payment for the total outstanding arrears due thereunder.

43. To date, Hudson-Catskill has not returned to the Premises.

44. Upon information and belief, Hudson-Catskill has been leasing new office space in

the City of Hudson since January 2021.

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
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AS AND FOR A FIRST CAUSE OF ACTION

(Breach of Contract - Failure to Pay Rent)

45. Plaintiff repeats and realleges each and every allegation set forth above with the

same force and effect as if the same were fully set forth herein.

46. The Lease is a binding and enforceable contract between Plaintiff and Hudson-

Catskill.

47. At all relevant times, Plaintiff has performed its obligations under the Lease.

48. The Lease requires Hudson-Catskill to pay rent in the amount of $6,000, "payable

month"
in advance, on the FIRST day of each (Lease, ¶ 4 and Addendum).

49. The Lease further provides that Plaintiff is entitled to a late charge "equal to 4.00%

of the required monthly payment for each payment that is not paid within 10 days after the due

payment"
date for such late (Lease, ¶ 6).

50. The Lease requires Hudson-Catskill to pay its proportionate share of common area

maintenance charges (Lease, ¶ 10).

51. Hudson-Catskill breached the Lease by failing to timely pay its total outstanding

rent arrears.

52. To date, Hudson-Catskill owes $69,720.00 in past due rent, including late fees.

53. Hudson-Catskill owes approximately $48,000 in future rent payments due under

the Lease for October 2021-May 2022, not including late fees.

54. Accordingly, Hudson-Catskill and/or defendants are liable for breach of contract

and Plaintiff is entitled to monetary damages for all outstanding arrears, including rent, common

area charges and late fees owed under the Lease to date, plus rent payments that might become

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
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due and owing following commencement of this action, including all late fees owed pursuant to

the Lease, together with all costs and expenses incurred in this action.

AS AND FOR A SECOND CAUSE OF ACTION

(Breach of Contract - Abs:f::::nt of Premises Before Condasi6ñ of Lease Term)

55. Plaintiff repeats and realleges each and every allegation set forth above with the

same force and effect as if the same were fully set forth herein.

56. At all relevant times, Plaintiff has performed its obligations under the Lease.

57. Pursuant to Section 2 of the Lease, the lease term was June 1, 2012 through May

31, 2022.

58. Pursuant to Section 18 of the Lease, the parties agreed that any modification to the

Lease was required to be in writing and signed by the party to be bound.

59. The parties never modified the term of the Lease.

60. Pursuant to the Lease, Hudson-Catskill further agreed to be responsible for

repairing the Premises in the event it, or its agents or employees, caused damage to the Premises.

61. Hudson-Catskill breached the Lease by abandoning and vacating the Premises

before the conclusion of its term, making clear its intention to never return.

62. Hudson-Catskill has failed to pay any of the remaining future rent due under the

Lease, to the conclusion of its term.

63. In vacating and abandoning the Premises, Hudson-Catskill forced Landlord to incur

additional monetary damages by substantiaHy and materially damaging the Premises, leaving the

Premises in a state of disrepair and waste, and failing to remove its personal property from the

Premises.

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
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64. Accordingly, Hudson-Catskill and/or Defendants are liable for breach of contract

in an amount to be determined at trial.

judgment·
WHEREFORE, Plaintiff prays for

a. On the First Cause of Action, awarding Plaintiff monetary damages in an amount

to be determined at trial;

b. On the Second Cause of Action, awarding Plaintiff monetary damages in an amount

to be determined at trial.

c. Awarding Plaintiff such other and further relief as this Court may deem just and

proper.

Dated: October 1, 2021


Albany, New York

WHITEMAN OSTERMAN & HANNA LLP

By:
William S. Nolan, Esq.
Gabriella R. Levine, Esq.
Attorneys for Plaintiff
One Commerce Plaza

Albany, New York 12260

(518) 487-7600

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FILED: COLUMBIA COUNTY CLERK 10/01/2021 03:45 PM INDEX NO. E012021017326
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 10/01/2021

VERIFICATION

STATE OF NEW YORK )


) ss.:
COUNTY OF ALBANY )

Gabriella R. Levine, being duly sworn, deposes and says:

1. I am an attorney with Whiteman Osterman & Hanna LLP, attorneys for Petitioner

in this matter.

2. I have read the foregoing Verified Complaint and the same is true to my own

knowledge, except those matters stated to be upon information and belief, and as to those matters,

I believe them to be true. The basis of my belief is my review of the pertinent documents and

information provided by my client.

3. This verification is made by me, rather than my client, pursuant to CPLR 3020,

because my client is not located within the same county as my office.

..

GABRIELLA LEVINE

Sworn to me this
1st
day of October, 2021

Notary Public
Lisa D. Rice
New York
Notary Public, State of
Qualified in Columbia County

Commiss on p s May 1, 20

4822-1199-7693,

10

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