OF THE
`COURT
`SUPREME
`OF SUFFOLK
`COUNTY
`-------------------------------------x
`
`JOHN
`
`R. RICONDA
`
`STATE
`
`OF NEW YORK
`
`:
`
`Index
`
`No.:
`
`003655/2012
`
`: Honorable
`
`Jerry
`
`Garguilo
`
`Plaintiff,
`
`vs.
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`-------------------------------------X
`
`Defendant.
`
`: NOTICE
`: ORDER
`.
`;
`
`.
`
`OF SETTLEMENT
`
`OF
`
`PLEASE
`
`TAKE
`
`NOTICE
`
`that
`
`in accordance
`
`with
`
`22 N.Y.C.R.R.
`
`202.48
`
`and
`
`the
`
`decision
`
`and Order
`
`rendered
`
`by Honorable
`
`Jerry
`
`Garguilo,
`
`Justice
`
`of
`
`the Supreme
`
`Court,
`
`Suffolk
`
`County,
`
`dated
`
`and
`
`entered
`
`in the
`
`office
`
`of
`
`the Clerk
`
`of
`
`the Supreme
`
`Court,
`
`Suffolk
`
`County
`
`on September
`
`7, 2018
`
`(NYSCEF
`
`Doc.
`
`No.
`
`460
`
`), Defendant
`
`Liberty
`
`Insurance
`
`Underwriters,
`
`Inc.
`
`will
`
`present
`
`for
`
`signature
`
`and
`
`the Court
`
`the
`
`annexed
`
`Proposed
`
`Order
`
`(and
`
`Judgment
`
`annexed
`
`as Ex. B
`
`entry
`
`by
`
`to the Proposed
`
`Order)
`
`on September
`
`26,
`
`2018
`
`at 9:30
`
`in the
`
`forenoon,
`
`or as soon
`
`thereafter
`
`as
`
`counsel
`
`may
`
`be
`
`heard,
`
`in Courtroom
`
`S-33
`
`at
`
`the
`
`John
`
`P. Cohalon
`
`Courthouse
`
`located
`
`at 400
`
`Carleton
`
`Avenue,
`
`Central
`
`Islip,
`
`New York
`
`11722.
`
`PLEASE
`
`TAKE
`
`NOTICE
`
`that
`
`in
`
`accordance
`
`with
`
`22 N.Y.C.R.R.
`
`202.48(c)(2),
`
`any
`
`proposed
`
`counter-order
`
`or
`
`judgment,
`
`together
`
`with
`
`a copy
`
`clearly
`
`marked
`
`to
`
`delineate
`
`each
`
`proposed
`
`change
`
`to the Order
`
`or
`
`Judgments
`
`to which
`
`objection
`
`is made,
`
`must
`
`be
`
`served
`
`on
`
`the
`
`undersigned
`
`within
`
`the
`
`time
`
`set by 22 NYCRR 202.48(c)(2).
`
`DATED:
`
`New York,
`September
`
`New York
`14, 2018
`
`#1703426vl
`
`D'AMATO
`
`& LYNCH,
`
`LLP
`
`By:
`
`Peter
`Thomas
`
`A. Stroili
`F. Breen
`
`

`

`10281
`
`225
`Street
`Liberty
`NY
`New York,
`Tel:
`269-0927
`212)
`Fax:
`269-3669
`(212)
`pstroili@damato-lynch.com
`
`Counsel
`Insurance
`
`for Defendant
`
`Underwriters,
`
`Liberty
`Inc.
`
`To:
`
`Counsel
`Joshua
`
`Plaintiff
`for
`Esq.
`A. Berman,
`Esq.
`A. Haviv,
`Kimberly
`Esq.
`R. Logsdon,
`Laura
`& CASE
`WHITE
`LLP
`of
`1221
`the Americas
`Avenue
`NY 10020
`New York,
`Tel:
`819-8547
`(212)
`Joshua.Berman@whitecase.com
`
`Co-Counsel
`Jacqueline
`KAUFMAN
`200
`Summit
`
`for Defendant
`Esq.
`Mandell,
`BORGEST
`Lake
`Drive
`NY 10595
`Valhalla,
`449-1000
`Tel.:
`(914)
`jmandell@krbrlaw.com
`
`& RYAN LLP
`
`#1703426v1
`
`2
`
`

`

`OF THE STATE
`COURT
`SUPREME
`COUNTY
`OF SUFFOLK
`-------------------------------------x
`
`OF NEW YORK
`
`JOHN R. RICONDA
`
`Plaintiff,
`
`vs.
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`-------------------------------------x
`
`Defendant.
`
`:
`
`Index
`
`No.:
`
`003655/2012
`
`: Honorable
`
`Jerry
`
`Garguilo
`
`[PROPOSED]
`
`ORDER
`
`:
`
`.
`
`..
`
`WHEREAS,
`
`Plaintiff
`
`John R. Riconda
`
`("Plaintiff")
`
`having
`
`commenced
`
`this
`
`civil
`
`action
`
`by
`
`summons
`
`and
`
`his
`
`original
`
`complaint
`
`on
`
`February
`
`2,
`
`2012,
`
`and
`
`Defendant
`
`Liberty
`
`Insurance
`
`Underwriters,
`
`Inc.
`
`("Defendant"
`
`or
`
`"Liberty")
`
`having
`
`answered
`
`the
`
`original
`
`complaint
`
`on March
`
`8, 2012;
`
`WHEREAS,
`
`this
`
`Court,
`
`on September
`
`22,
`
`2017,
`
`having
`
`granted
`
`Plaintiff
`
`leave
`
`to file
`
`an
`
`Amended
`
`Complaint
`
`(the
`
`"Complaint"),
`
`and
`
`Defendant
`
`having
`
`answered
`
`the
`
`Complaint
`
`on
`
`October
`
`20,
`
`2017;
`
`WHEREAS,
`
`on March
`
`23,
`
`26-30
`
`and April
`
`4, 2018
`
`trial
`
`by
`
`jury
`
`having
`
`been
`
`held
`
`in this
`
`action;
`
`WHEREAS,
`
`on April
`
`4,
`
`2018,
`
`the
`
`jury
`
`having
`
`returned
`
`a verdict
`
`in
`
`favor
`
`of Plaintiff
`
`pursuant
`
`to
`
`interrogatories
`
`placed
`
`to
`
`the
`
`jurors
`
`and
`
`having
`
`awarded
`
`Plaintiff
`
`$2,282,000;
`
`and
`
`whereas
`
`the Court
`
`having
`
`provided
`
`that motions
`
`addressed
`
`to the
`
`verdict
`
`be filed
`
`within
`
`thirty
`
`(30)
`
`days;
`
`WHEREAS,
`
`on May
`
`4,
`
`2018,
`
`Defendant
`
`having,
`
`pursuant
`
`to CPLR
`
`4404(a),
`
`moved
`
`(Motion
`
`Sequence
`
`No.
`
`15)
`
`by Notice
`
`of Motion
`
`To Set Aside
`
`The
`
`Verdict
`
`And
`
`Direct
`
`Jud gment
`
`As A Matter
`
`of Law To
`
`Liberty
`
`Or For A New Trial
`
`Or, Alternatively,
`
`To Reduce
`
`The
`
`Jury
`
`Verdict
`
`#1702678vl
`
`

`

`("the
`
`motion");
`
`and
`
`having
`
`filed
`
`the
`
`Affirmation
`
`of Peter
`
`A.
`
`Stroili
`
`in
`
`support
`
`of
`
`the motion,
`
`inclusive
`
`of Exhibits
`
`1 through
`
`7 and A through
`
`BB;
`
`and
`
`a Memorandum
`
`of Law in support
`
`of
`
`the
`
`motion
`
`(NYSCEF
`
`Nos.
`
`406-443);
`
`WHEREAS,
`
`on May
`
`23,
`
`2018,
`
`Plaintiff
`
`having
`
`filed
`
`his
`
`Memorandum
`
`of
`
`Law
`
`in
`
`opposition
`
`to the motion
`
`(NYSCEF
`
`No.
`
`446);
`
`WHEREAS,
`
`on
`
`June
`
`Defendant
`
`filed
`
`Affirmation
`
`of Peter
`
`A.
`
`Stroili,
`
`inclusive
`
`of Exhibits
`
`5, 2018,
`
`A through
`
`the motion
`
`(NYSCEF
`
`Nos.
`
`447-455);
`
`having
`
`the Reply
`
`G; and Reply
`
`Memorandum
`
`of Law in further
`
`support
`
`of
`
`WHEREAS,
`
`on
`
`June
`
`20,
`
`2018,
`
`the
`
`parties
`
`having
`
`appeared
`
`before
`
`the
`
`Court
`
`for
`
`oral
`
`argument
`
`on the motion;
`
`WHEREAS,
`
`on September
`
`7, 2018,
`
`this
`
`Court
`
`(Honorable
`
`Jerry
`
`Garguilo,
`
`Justice
`
`of
`
`the
`
`Supreme
`
`Court,
`
`Suffolk
`
`issued
`
`its Decision
`
`and Order
`
`("the
`
`Decision,"
`
`annexed
`
`County)
`
`having
`
`as Exhibit
`
`A)
`
`on the motion
`
`(Motion
`
`Sequence
`
`No.
`
`15),
`
`finding
`
`that
`
`the
`
`"verdict
`
`of
`
`the jury
`
`must
`
`be set aside
`
`as a matter
`
`of
`
`law,"
`
`and
`
`that
`
`"the
`
`doctrine
`
`of
`
`judicial
`
`estoppel
`
`compels
`
`the Court
`
`to
`
`GRANT
`
`Defendant's
`
`application
`
`in all
`
`respects"
`
`(Ex.
`
`A, NYSCEF
`
`No.
`
`460);
`
`NOW,
`
`therefore,
`
`based
`
`upon
`
`the Decision,
`
`and
`
`on the motion
`
`of Defendant,
`
`it
`
`is hereby
`
`of
`
`on April
`
`in this
`
`action
`
`ORDERED
`
`that
`
`the
`
`verdict
`
`the jury
`
`rendered
`
`4, 2018
`
`is set aside;
`
`and
`
`it
`
`is further
`
`ORDERED
`
`that
`
`Defendant's
`
`motion
`
`for
`
`judgment
`
`as a matter
`
`of
`
`law,
`
`pursuant
`
`to CPLR
`
`4404(a),
`
`in
`
`its
`
`favor
`
`is
`
`hereby
`
`GRANTED
`
`in
`
`its
`
`entirety,
`
`with
`
`costs
`
`and
`
`disbursements
`
`to
`
`Defendant;
`
`and
`
`it
`
`is further
`
`ORDERED
`
`that
`
`the Complaint
`
`in this
`
`action
`
`is dismissed
`
`in its entirety
`
`with
`
`prejudice;
`
`#1702678vl
`
`2
`
`

`

`The
`
`Clerk
`
`of
`
`the Court
`
`shall
`
`enter
`
`judgment
`
`dismissing
`
`the Complaint
`
`with
`
`prejudice
`
`in
`
`this
`
`action
`
`accordingly
`
`in the
`
`form
`
`set
`
`forth
`
`as Exhibit
`
`B.
`
`Dated:
`
`SO ORDERED.
`
`JSC
`
`# 1702678v I
`
`3
`
`

`

`A
`EXHIBIT
`EXHIBIT A
`
`#1700716v1
`#1700716v1
`
`

`

`(FILED:
`NYSCEF
`
`SUFFOLK
`DOC.
`NO.
`460
`
`COUNTY
`
`CLERK
`
`09/07/2018
`
`02
`
`: 29
`
`PMl
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`snorrFoRMORDER
`
`INDEX
`
`NO.
`
`3655/2012
`
`COMMERCIAL
`
`COURT - STATE
`SUPREME
`PART
`DIVISION
`IAS
`
`OF NEW YORK
`48 - SUFFOLK
`
`COUNTY
`
`PRESENT:
`
`HON.
`JERRY
`SUPREME
`
`GARGUILO
`COURT
`JUSTICE
`
`ORIG. RETURN
`FINAL
`SUBMITTED
`MOTION
`SEQ#015
`MG
`MOTION:
`
`DATE:
`5/23/t8
`6/20/18
`DATE:
`
`JOHN
`
`R. RICONDA,
`
`Plaintiff,
`
`- against
`
`-
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`'
`
`Defendant.
`
`PLAINTIFF'S
`& CASE
`WHITE
`1221 AVENUE
`NEW YORK,
`
`ATTORNEY:
`LLP
`OF THE AMERICAS
`NEW YORK 10020
`
`DEFENDANT'S
`D'AMATO
`225 LIBERTY
`NEW YORK,
`
`ATTORNEY:
`& LYNCH
`LLP
`STREET
`NEW YORK
`
`10281
`
`Defendant,
`the Verdict
`
`Insurance
`
`against
`
`or
`
`for
`
`("Liberty"),
`and
`direct
`Verdict.
`
`petitions
`
`the Court
`
`judgment
`Plaintiff
`
`favor
`
`in its
`opposes
`
`to
`as
`
`the
`
`set aside
`a matter
`application
`
`of
`
`law;
`in all
`
`Liberty
`rendered
`a new
`
`respects.
`
`Underwriters,
`it on May
`reduce
`or
`to
`
`Inc.
`4, 2018
`the
`
`Jury
`
`trial;
`
`In making
`
`its determination,
`
`the Court
`
`has
`
`considered
`
`the
`
`following
`
`submissions:
`
`1.
`
`2.
`
`3.
`
`of Motion
`Notice
`Defendant's
`As A Matter
`of Law To
`Liberty;
`1 through
`inclusive
`ofExhibits
`In Support;
`Plaintiffs
`
`Memorandum
`
`Defendant's
`Reply
`and Memorandum
`
`of Law In Opposition;
`A. Stroili
`of Peter
`Affirmation
`of Law In Reply.
`
`The
`
`To Set Aside
`Affirmation
`7 and A through
`
`Verdict
`
`and Direct
`A.
`Stroili
`of Peter
`BB and Memorandum
`
`Judgment
`In Support,
`ofLaw
`
`and
`
`with
`
`Exhibits
`
`A through
`
`G
`
`Practice
`
`The
`statutory
`Law and Rules
`and
`either
`it aside
`
`(2)
`
`order
`
`a new
`
`trial
`
`set
`
`or
`
`within
`which
`framework
`It provides
`§ 4404(a).
`judgment
`to which
`grant
`(1)
`on the
`
`that
`
`ground
`
`that
`
`the
`
`verdict
`
`found
`is
`relief
`the
`is rendered
`a verdict
`after
`of
`to it as a matter
`is entitled
`a party
`ofevidence".
`to the weight
`is "contrary
`
`at Civil
`can
`court
`
`law
`
`Defendant
`
`seeks
`
`1 of
`
`13
`
`

`

`|FILED:
`NYSCEF
`
`SUFFOLK
`NO.
`DOC.
`460
`
`COUNTY
`
`CLERK
`
`09/07/2018
`
`02
`
`: 2 9
`
`PM)
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`NO. 03655/2012
`INDEX
`PAGE 2
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`As
`
`is its habit,
`David
`Series,
`
`the Court
`D. Siegel,
`
`Treatise
`
`has
`
`consulted
`
`New York
`Practice,
`Publishing.
`Professor
`Siegel
`
`Fifth
`
`Edition
`
`Practitioner
`
`notes
`
`at section
`
`405:
`
`West
`
`judgment
`
`as a "matter
`
`of
`
`law"
`
`The
`
`judge
`
`is authorized
`
`only
`could
`go.
`
`when[he/she]
`differ
`not
`
`and
`
`The
`
`there
`
`is
`
`that
`
`to grant
`believes
`thatonthis
`is therefore
`reasonable
`
`minds
`reasonable
`record
`one way
`the jury
`differ
`may
`
`only
`minds
`
`and
`
`them
`
`can
`
`about
`be
`
`whether
`
`difficulty
`reasonable
`
`minds
`
`the
`
`reasonable
`
`minds
`
`that
`
`court
`
`letting
`with
`
`grants
`a jury
`judges's
`the
`
`pass
`
`may
`inhabit
`a side
`for
`judgment
`an appellate
`on the issues,
`action
`has
`
`differ,
`the
`under
`
`no
`
`verdict
`
`to
`
`among
`appellate
`court.
`CPLR
`court
`
`may
`the
`
`If
`
`trial
`
`without
`
`disagrees
`
`4401
`
`that
`reinstate
`
`and must
`if
`the
`But
`for CPLR
`its action
`the verdict(should
`appellate
`
`therefore
`
`trial
`
`court
`
`order
`
`waits
`
`a new
`
`until
`
`trial,
`a verdict
`
`wasting
`is in,
`
`the
`
`saving
`
`earlier
`
`one.
`
`4404
`
`thejury
`has
`
`andgrantingjudgmentnotwithstanding
`have
`the other
`found
`way),
`This
`practice
`
`a verdict
`for
`
`to
`
`a disagreeing
`small
`is no
`
`among
`
`court
`
`and
`
`economy,
`judges
`of
`
`letting
`a motion
`
`it
`
`a
`
`for
`
`reinstate.
`the widespread
`case
`to
`the
`
`go
`
`accounts
`tried
`
`fully
`judgment.
`
`jury
`
`before
`
`ruling
`
`on
`
`This
`
`Court
`
`allowed
`
`the
`
`case
`
`to be submitted
`
`to the jury.
`
`Defendant's
`as a matter
`
`(1)judgment
`
`application
`
`as
`
`noted
`
`hereinabove
`
`of
`
`law;
`
`(2)
`
`a new
`
`trial;
`
`or
`
`(3)
`
`seeks
`to reduce
`
`one
`the jury
`
`of
`
`three
`
`remedies:
`
`verdict.
`
`March
`
`Preceding
`6, 2018,
`
`trial,
`this
`Court
`
`this matter
`
`issued
`
`was
`a Short
`
`the
`
`subject
`
`of
`
`comprehensive
`
`motion
`
`practice.
`
`On
`
`Form
`
`Order
`
`which
`
`noted:
`
`bad
`
`the
`
`alleged
`
`non
`
`the
`
`faith,
`based
`upon
`to certain
`defendant
`
`to
`2007.
`
`policy
`
`July
`vehicle
`
`acquisition
`
`located
`
`at
`
`improper
`by the
`parties
`a director's
`issued
`directors
`and
`In May
`called
`QSGI-CCSI,
`of Contemporary
`Knickerbocker
`200
`
`This
`
`is an action
`breach
`and
`
`to recover
`covenant
`
`of
`
`the
`
`damages
`
`for
`
`breach
`
`of
`
`of good
`
`faith
`
`and
`
`contract,
`fair
`
`denial
`
`insurance
`of
`is undisputed
`
`It
`
`defendant.
`
`dealing
`coverage
`
`that
`
`the
`
`and
`
`officer's
`
`liability
`
`insurance
`
`2008,
`
`officers
`QSGI
`Inc.
`
`of
`
`in
`
`order
`
`QGSI,
`nonparty
`a special
`created
`complete
`to
`
`in
`
`Inc.
`purpose
`
`the
`
`Computer
`
`Avenue,
`
`Services,
`Bohemia,
`
`Inc.
`
`("CCSI"),
`New
`York
`
`2 of
`
`13
`
`

`

`|FILED:
`NYSCEF
`
`SUFFOLK
`NO.
`460
`DOC.
`
`COUNTY
`
`CLERK
`
`0 9 / 07
`
`/2
`
`018
`
`02
`
`: 2 9
`
`P1
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`NO. 03655/2012
`INDEX
`PAGE 3
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`the
`
`plaintiff
`
`was
`
`the
`
`president
`
`and
`
`owner
`
`11716.
`
`of CCSI.
`
`Inc.
`
`and
`
`executed
`
`At
`
`that
`The
`
`time,
`Stock
`
`Purchase
`
`QSGI,
`all
`
`by
`
`as
`
`parties
`
`buyers,
`in May
`
`Agreement
`the
`
`and
`of 2008.
`
`between
`
`QSGI-CCSI,
`
`plaintiff,
`
`as
`
`seller,
`
`was
`
`Pursuant
`
`to
`
`an
`
`insurance
`
`renewal
`
`filed
`
`defendant
`the
`Inc.,
`D04N386075004
`
`application
`by QGSI,
`& Officers
`Directors
`No.
`Policy
`New
`Inc.
`of Hightstown,
`(the D&O policy)...
`8, 2009
`ceased
`to exist
`CCSI
`7, 2008,
`became
`
`Jersey,
`Ailer
`
`as
`
`QSGI-CCSI,
`failed
`to pay
`of CCSI,
`
`Inc.
`purchase
`
`Inc.,
`doing
`the
`plaintiff
`
`QGSI,
`
`Inc.
`
`added)
`
`issued
`to QSGI,
`8, 2008
`to July
`the
`sale
`on July
`and
`
`effective
`
`July
`of
`
`the
`closing
`a freestanding
`company
`After
`business
`as CCSI.
`compensation
`
`the
`
`agreed
`
`declared
`
`bankruptcy...
`
`QGSI,
`for
`the
`(emphasis
`
`an
`
`action
`
`against
`
`Thereafter,
`directors
`breach
`
`Court,
`action).
`
`the
`
`plaintiff
`
`and
`
`officers
`
`of
`fiduciary
`Suffolk
`Despite
`
`duty
`County,
`requests
`
`commenced
`of QGSI,
`entitled
`
`for
`
`Inc.
`Riconda
`
`Index
`the
`
`No.
`
`defendants
`
`disclaimed
`
`the
`
`and
`
`The
`
`fraud,
`self-dealing
`Supreme
`v Sherman,
`11-6678
`(the
`underlying
`their
`in said
`action,
`coverage.
`
`other
`
`into
`
`things,
`of QSGI
`a confession
`assigned
`his
`right
`to indemnify
`plaintiff.
`
`Edward
`
`and
`
`a
`of
`
`to
`
`him
`
`against
`proceed
`as an insured
`
`the
`
`defendant
`
`in the
`
`underlying
`
`action
`
`failure
`
`to the
`
`by
`herein,
`settled
`
`insurer,
`
`the
`
`defendant
`
`underlying
`L. Cummings
`
`defendant
`
`judgment
`
`action
`
`was
`
`(Cummings),
`
`in the
`
`in
`
`underlying
`favor
`the
`of
`
`when,
`among
`officer
`a former
`entered
`
`action,
`
`and
`
`plaintiff,
`for
`
`the
`
`The
`
`instant
`
`commenced
`
`action
`was
`as Cumming's
`defendant,
`contract
`has breached
`the
`to provide
`the
`under
`
`failing
`due
`
`and
`
`has
`
`breached
`
`coverage
`
`confession
`its duty
`
`assignee,
`insurance
`of
`to Cummings
`
`of
`
`judgment,
`of good
`faith
`
`the
`
`by
`alleging
`and
`
`plaintiff
`
`the
`
`by
`
`against
`defendant
`that
`the
`the D&O policy
`amount
`the
`to pay
`and
`bad
`has
`acted
`
`in
`
`faith,
`
`and
`
`fair
`
`dealing.
`
`This
`
`Court's
`findings
`
`findings
`
`of
`
`fact
`
`presents
`
`establishes
`
`Cummings,
`
`that
`
`Plaintiff,
`assignee
`as his
`
`in the March
`tantamount
`to
`R. Riconda
`thereafter
`
`and
`
`John
`
`6, 2018
`law
`the
`
`Short
`
`Form
`
`Order
`
`referenced
`
`hereinabove
`
`of
`
`the
`
`case.
`
`stepped
`
`That
`
`into
`
`history
`shoes
`
`of
`
`claims
`
`against
`
`Defendant,
`
`undeniably
`an
`insured,
`Liberty.
`
`In
`
`("Riconda")
`prosecuted
`
`3 of
`
`13
`
`

`

`FILED
`NYSCEF
`
`SUFFOLK
`:
`DOC.
`NO.
`460
`
`COUNTY
`
`CLERK
`
`09/07
`
`/2018
`
`02
`
`: 29
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`INDEX
`NO, 03655/2012
`PAGE 4
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`essence,
`against
`
`Riconda
`claims
`
`as the
`brought
`
`assignee
`by Riconda.
`
`of an insured
`
`was
`
`suing
`
`the
`
`insurer
`
`to defend
`
`his
`
`assignor
`
`The
`
`history
`
`of
`
`this
`
`Plaintiff
`
`sale
`
`of
`
`traction.
`change
`
`covenant
`
`Cummings
`
`only
`
`entity
`
`originally
`his
`company.
`that
`point
`
`At
`
`in direction
`not
`to
`
`led
`
`enforce
`and Riconda.
`with
`
`"deep
`
`of
`breach
`commenced
`for
`the Court,
`is apparent
`It
`in time,
`of
`as a matter
`strategy,
`to the
`the
`assignment
`negotiation
`a confession
`of
`That
`change
`strategy
`pockets"
`was Defendant,
`
`inclusive
`
`litigation,
`an action
`to
`
`of
`
`of
`
`judgment
`
`the
`underlying
`of contract.
`that
`case
`underlying
`Riconda
`changed
`by Cummings
`negotiated
`and
`the
`
`duly
`was
`
`Liberty
`
`prompted
`I
`
`(the
`
`litigation,
`contract
`
`That
`
`reveals
`involved
`
`that
`
`the
`lacked
`
`The
`
`for
`
`a
`
`case)
`directions.
`in return
`executed
`between
`
`by
`
`realization
`
`that
`
`the
`
`Throughoutthe
`was
`
`5 reads
`
`coverage
`Section
`
`pre-trial
`
`at
`
`found
`as follows:
`
`section
`
`and trial,
`of
`5.6
`
`the exclusion
`
`relied
`
`upon
`
`the
`
`policy
`
`(the
`
`insured
`
`by Defendant
`versus
`insured
`
`concerning
`exception).
`
`shall
`
`not
`
`be
`
`liable
`claim:
`
`to make
`
`any
`
`5. Exclusions:
`payment
`for
`
`insurer
`The
`in connection
`
`loss
`
`with
`
`any
`
`5.6
`
`brought
`
`organization
`
`or maintained
`insured
`to any
`
`or
`
`by
`person,
`
`on
`behalf
`in any
`
`capacity.
`
`of
`
`the
`
`insured
`
`8,
`
`July
`Policy)
`
`including
`also
`known
`
`On
`
`about
`or
`& Officers
`and
`through
`
`the
`Policy
`shall
`not
`or maintained
`
`be
`
`organization,
`
`liable
`
`by...
`
`QSGI
`
`any
`or any
`
`2008,
`Liberty
`to QSGI,
`Inc.("QSGI")
`8, 2009.
`As
`July
`Insured
`as the
`to make
`any
`insured
`person
`subsidiary."
`
`issued
`
`a renewal
`
`executive
`
`advantage
`
`policy
`
`forthe
`
`above,
`Insured
`
`policy
`the
`
`period
`
`exclusion
`Exclusion
`
`noted
`
`versus
`
`payment
`
`for
`
`defined
`No party
`
`loss
`
`connection
`in
`officer
`as an
`"ambiguity"
`raised
`
`commencing
`July
`found
`at section
`that
`the
`claim:
`
`provided
`with
`
`or
`
`the
`
`any
`director
`of
`as an issue.
`
`The
`
`evidence
`
`adduced
`
`at
`
`trial
`
`was
`
`that
`
`Plaintiff
`
`commenced
`
`negotiations
`
`with
`
`QSGI
`
`(Directors
`8, 2008
`of
`5.6
`"insurer
`
`brought
`
`insured
`
`1. As
`
`insurer,
`resolve
`
`that
`
`the
`
`followed.
`
`an aside,
`the Court
`
`throughout
`
`inquired
`
`claim
`the
`traditional
`
`within
`
`the
`
`protocol,
`
`the
`concerning
`proceeding
`or not Plaintiff
`as to whether
`coverage.
`of available
`limits
`insurer
`upon
`
`the
`
`issue
`
`offered
`Liberty
`It became
`
`of a bad-faith
`the
`
`denial
`
`by the
`to
`
`opportunity
`to the Court
`was
`never
`
`apparent
`limits
`
`its
`
`i.e.
`
`calling
`
`the
`
`to
`
`tender
`
`4 of
`
`13
`
`

`

`|FILED
`NYSCEF
`
`SUF FOLK
`:
`DOC. NO.
`460
`
`COUNTY
`
`CLERK
`
`0 9 / 0 7 / 2 018
`
`0 2 : 2 9
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V L1BERTY
`RICONDA
`INDEX NO. 03655/2012
`PAGE 5
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`for
`
`the
`
`stock
`
`acquisition
`purchase
`
`of his
`agreement.
`shares
`
`of CCSI
`ofthe
`
`company,
`agreement
`The
`(Plaintiffs
`
`CCSI.
`
`Those
`
`provided
`
`company)
`QSGI.
`
`in May
`negotiations,
`resulted,
`for
`the purchase
`of all of
`the
`Inc.
`
`2008,
`issued
`
`of a
`and
`
`a
`
`was
`
`("QSGI-CCSI"),
`the transfer
`Plaintiff
`
`for
`
`by QSGI-CCSI,
`In consideration
`That
`Note
`Note.
`Park.
`
`provided
`Park
`Victory
`the Stock
`Purchase
`Officer
`of CCSI,
`company."
`
`that
`
`Executive
`
`operations
`
`of
`
`the
`
`was
`
`subordinated
`
`QSGI
`Agreement
`he would
`(emphasis
`
`but
`
`with
`
`to QSGI's
`a $10
`provided
`remain
`
`added)
`
`outstanding
`wholly
`owned
`with
`provided
`
`to
`
`obligation
`million
`that Mr.
`
`employed
`
`subsidiary
`a $10 million,
`an
`known
`entity
`credit
`
`insured,
`10% convertible
`as Victory
`is undisputed
`as Chief
`
`It
`
`the
`
`day-to-day
`
`line.
`resign
`to run
`
`revolving
`Riconda
`as president
`
`"would
`
`of mention
`Worthy
`executed
`and
`
`Riconda
`documents"
`
`Additionally,
`Employment
`
`including
`transition
`
`is the fact
`entered
`into
`employment
`
`an
`
`that withthe
`various
`
`7, 2008
`July
`documents
`agreement
`with
`
`closing
`referred
`
`ofthe
`
`to
`
`Mr.
`
`transaction,
`the
`"transition
`CCSI.
`
`as
`INC
`
`d/b/a
`
`documents
`
`were
`
`executed
`
`at
`
`with
`
`Inc,
`
`d/b/a
`
`CCSI,
`
`closing,
`that
`provided
`
`which
`
`included
`
`Riconda
`
`an
`
`be
`
`QSGI-CCSI,
`the
`
`Agreement
`the
`company
`thetransition
`
`employed
`
`by
`
`Furthermore,
`a wholly
`resigned
`position
`
`QSGI-CCSI,
`as president
`d/b/a
`[QSGI-CCSI,
`CCSI]
`established
`documents
`that QSGI-CCSI,
`clearly
`2
`as well
`of QSGI
`as a resignation
`letter,
`as an officer
`his
`immediately.
`
`owned
`"from
`all
`of President
`
`subsidiary
`positions
`effective
`
`held
`
`of
`[CCSI]
`(emphasis
`
`added)
`
`prior
`
`company
`
`Inc.,
`
`of
`
`the
`
`d/b/a
`
`"will
`company."
`" w
`CCSI
`Plaintiff
`
`whereby
`except
`
`for
`
`the
`
`13D
`
`with
`
`the
`
`that QSGI
`
`filed
`
`on the
`
`It
`
`is undisputed
`Exchange
`
`Commission
`
`the
`
`acquisition,
`
`John
`
`of
`Inc."
`
`Securities
`a result
`QSGI
`
`disclosing
`R. Riconda
`
`of
`
`the
`
`day
`the
`completed
`
`a schedule
`closing
`confirming:"as
`acquisition
`and
`management
`
`has
`
`joined
`
`the
`
`executive
`
`team of
`
`7, 2008
`the July
`that QSGI
`alleging
`out
`pointed
`As
`against
`Complaint
`2008."
`
`7,
`
`Plaintiff
`
`essence,
`payment).
`in
`Verified
`on July
`closed
`in connection
`he executed
`at
`to his
`position
`transferred.
`was
`never
`should
`be
`
`in
`
`QSGI
`in that
`with
`the
`he did
`not
`As noted
`for
`
`by
`the
`
`pay
`
`Contrary
`ownership
`QSGI
`
`trial,
`
`compelled
`
`to
`
`approximately
`against
`QSGI.
`
`In
`
`1 1 months
`
`after
`
`As alluded
`
`Plaintiff
`obligations
`
`its
`
`transaction,
`breached
`Defendant's
`submission,
`unequivocally:"The
`
`stated
`
`(prior)
`sale
`
`assert
`
`action
`of his
`that
`
`company
`the
`
`sought
`
`closing
`the
`
`on June
`to earlier,
`commenced
`
`10, 2009
`a lawsuit
`the
`Note
`seven
`
`under
`paragraph
`
`QSGI-C
`to rescind
`to QSGI
`never
`
`occurred
`
`various
`the
`and QSGI-CCSI.
`or
`
`that
`
`(defaulted
`of Plaintiffs
`CSItransaction
`documents
`
`Defendant
`
`"to
`
`contrary,
`
`Plaintiff
`
`alleged:
`
`2. Exhibit
`
`C [Trial
`
`Exhibit
`
`58].
`
`5 of
`
`13
`
`

`

`(FILED
`NYSCEF
`
`SUFFOLK
`:
`DOC. NO.
`460
`
`COUNTY
`
`CLERK
`
`09/
`
`07 /2
`
`018
`
`0 2 : 2 9
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`INDEX NO. 03655/2012
`PAGE 6
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`company
`
`rescinding
`(Cummings)
`confession
`
`bought..."
`
`it
`
`No
`
`court
`
`issued
`
`the
`
`transaction.
`
`to
`
`take
`
`an
`
`Instead,
`assignment
`
`of
`
`any
`Riconda
`rights
`
`of
`
`judgment
`
`containing
`
`a covenant
`
`order
`
`connection
`in
`negotiated
`
`with
`
`and
`not
`
`into
`
`step
`to enforce.
`
`his
`
`the
`with
`early
`a Defendant
`exchange
`shoes
`in
`
`litigation
`therein
`for
`
`a
`
`or about
`On
`L. Cummings,
`in that
`action
`
`February
`et al,
`(Exhibit
`
`Edward
`
`complaint
`
`2008
`4.
`In July
`QSGI
`in which
`of CCSI
`
`assets
`
`placed
`
`100%
`to a pledge
`
`of
`
`and
`
`Plaintiff
`
`2011,
`25,
`in Supreme
`Plaintiff
`
`D),
`
`Court,
`alleged:
`
`brought
`Suffolk
`
`an action
`
`County.
`
`Mark
`
`against
`paragraph
`
`In
`
`Sherman,
`4 of
`
`his
`
`consummated
`Riconda
`as seller,
`Riconda,
`to QSGI...
`To
`stock
`capital
`agreement
`
`John
`
`the
`escrow
`
`with
`and
`
`a transaction
`stock
`to sell
`the
`the Note,
`in escrow,
`7, 2008.
`July
`
`QSGI
`pursuant
`
`agreed
`collateralize
`of CCSI,
`dated
`
`ofthe
`
`trial
`
`(March
`
`the
`
`question
`
`was
`
`put
`
`to Mr.
`
`During
`
`the
`
`course
`
`Riconda:
`
`28,
`
`2018)
`
`following
`
`Q. So the
`
`transaction
`
`on that
`
`date was
`
`consummated,
`
`correct?
`
`A. Whatever
`
`that means.
`
`the referenced
`that
`is undisputed
`that"consummation"
`provides
`
`and Pledge
`Escrow
`Pledgor
`
`Agreement
`
`[QSGI-CCSI]
`capital
`the
`
`of
`
`will
`
`stock
`
`of
`
`Exhibit
`
`[Trial
`record
`be the
`the Company
`
`(100%)
`
`means,
`percent
`
`was
`
`with
`
`forwarded
`the closing
`became
`Plaintiff
`on the
`
`to Defendant
`ofthe
`transaction
`the President
`Versus
`
`for
`
`letters
`
`consideration.
`studied
`were
`of a subsidiary.
`found
`Exclusion
`to consider
`
`by
`
`Insured
`coverage
`
`Furthermore,
`in turn
`
`ZZ],
`beneficial
`and
`[CCSI]."
`
`This
`Transaction
`the Defendant.
`
`owner
`
`of
`
`one
`
`hundred
`
`action
`documents
`
`(the D & O action)
`contemporaneous
`
`Those
`
`documents
`
`Eventually
`at exclusion
`additional
`
`Liberty
`5.6
`
`of
`
`information
`
`coverage
`denied
`the Policy.
`provided
`
`Liberty
`its
`
`by
`
`that
`
`report
`based
`
`Insured
`
`thereafter
`insured's.
`
`issued
`
`three
`
`action,
`former
`
`despite
`
`It should
`that
`was
`
`be noted
`original
`the
`
`at
`
`company
`the
`fact
`
`{CCSI]
`as noted
`
`was
`
`transferred
`
`hereinabove,
`
`that
`
`this
`
`point,
`never
`sale
`not
`
`the
`
`litigation
`
`posture
`
`taken
`
`by Plaintiff
`the
`that
`and
`ownership
`a closing.
`of
`as a result
`he alleged
`
`in the D & O
`his
`of
`
`This
`the
`
`that
`
`pleadings,
`
`closed
`completely
`to QSGI-CCSI
`verified
`in Plaintiffs
`
`6 of
`
`13
`
`

`

`(F ILED
`NYSCEF
`
`SUFFOLK
`:
`DOC.
`NO.
`460
`
`COUNTY
`
`CLERK
`
`0 9 / 07 / 2 018
`
`0 2 : 2 9
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`NO, 03655/2012
`INDEX
`PAGE 7
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC,
`
`"consummated"
`
`was
`closing
`a subsidiary.
`
`and
`
`that
`
`ownership
`
`was
`
`transferred
`
`from
`
`CCSI
`
`to QSGI-CCSI,
`
`the
`
`At
`in accord
`were
`transferred
`
`with
`
`where
`
`he was
`
`Plaintiff
`
`verified
`
`trial,
`his
`to QSGl-CCSI;
`was
`employed
`
`was
`pleadings:
`
`confronted
`
`and
`
`(i)
`(iii)
`owned
`
`then
`
`that
`
`with
`the
`closing
`the Company
`that
`by QSGI-CCSI
`
`his
`
`deposition
`
`testimony.
`
`Plaintiff
`
`occurred;
`of which
`to wit:
`
`that
`(ii)
`he was
`
`CCSI's
`President
`
`swore
`
`shares
`
`and
`
`"At
`
`of
`the time
`of CCSI
`shares
`
`QSGI-CCSI;
`
`the closing
`that
`you
`correct?"...
`
`is that
`
`ofthe
`owned
`
`ANSWER:
`
`Right."
`
`3
`
`Stock
`
`Purchase
`
`were
`
`transferred
`
`Agreement,
`to QSGI
`
`the
`
`or
`
`Your
`"QUESTION:
`a subsidiary
`
`became
`
`understanding
`of QSGI-CCSI?
`
`after
`4
`
`July
`
`7th
`
`2008
`
`CCSI
`
`ANSWER:
`formed
`
`Right.
`
`that,
`
`for
`
`that
`
`That's
`purpose."
`
`my
`
`recollection.
`
`That's
`
`why
`
`they
`
`But
`"QUESTION:
`by QSGI-CCSI?
`
`owned
`
`the
`
`stock,
`
`the
`
`company
`
`itself,
`
`CCSI,
`
`was
`
`ANSWER:
`
`That's
`
`correct."5
`
`"QUESTION:
`
`What
`
`entity
`
`were
`
`you
`
`an employee
`
`of?
`
`...
`
`ANSWER:
`
`CCSI.
`
`3.
`
`(Ex.
`
`5, Tr.
`
`3/29,
`
`at 18,
`
`from p. 272
`
`of his deposition).
`
`4.
`
`(Id.
`
`at 22:9-13,
`
`reading
`
`from
`
`p.292
`
`of his
`
`deposition).
`
`5.
`
`(Tr.,
`
`3/29
`
`AM,
`
`at 29:6-8,
`
`reading
`
`from
`
`p.333
`
`of his
`
`deposition).
`
`7 of
`
`13
`
`

`

`[FILED
`NYSCEF
`
`SU F FÖLK
`;
`NO.
`DOC.
`460
`
`COUNTY
`
`CLERK
`
`09
`
`(07
`
`/2
`
`018
`
`02
`
`: 2 9
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`NO. 03655/2012
`INDEX
`PAGE 8
`
`INSURANCE
`
`UN DERWRITERS,
`
`INC.
`
`QUESTION:
`what
`entity?
`
`And
`
`CCSI,
`
`at
`
`that
`
`point
`
`in time,
`
`was
`
`owned
`
`by
`
`ANSWER:
`
`"I believe
`
`it was
`
`QSGI-CCSI."
`
`6
`
`It
`
`position
`
`assume
`
`is a well
`in a legal
`a contrary
`circumstances
`
`proceeding
`position.
`a mockery
`
`lest
`
`settled
`
`principle
`
`of
`
`law
`
`in our
`
`state
`
`that
`
`who
`
`assumes
`
`a certain
`
`not
`
`may
`Invocation
`
`thereafter,
`ofthe
`
`simply
`doctrine
`
`have
`
`interests
`is required
`
`estoppel
`
`changed,
`in such
`
`a party
`his
`because
`ofjudicial
`
`be made
`
`of
`
`the
`
`search
`
`for
`
`the
`
`truth.
`
`The
`
`doctrine
`which
`
`judicial
`of
`is contrary
`interest
`
`have
`
`or her
`his
`Appellate
`Division
`
`proceeding,
`because
`
`Court,
`litigant
`another
`
`estoppel
`to that
`which
`changed.
`Department.
`a court
`facts
`same
`101 A.D.2d
`
`Second
`be permitted
`
`not
`
`to lead
`
`that
`
`the
`
`Corp.,
`
`a position
`
`in one
`
`legal
`
`simply
`Supreme
`that
`
`and
`
`then
`
`contend
`
`a
`in
`
`The
`
`to find
`should
`
`591,
`
`from taking
`a party
`precludes
`in a prior
`he or
`took
`she
`proceeding,
`Tedesco
`v. Tedesco,
`64 A.D.3d
`583,
`doctrine
`the principle
`rests
`upon
`a fact
`one way
`otherwise
`be found
`476 N.Y.S.2d
`594,
`positions
`because
`courts."
`
`such
`loose
`
`adopting
`and
`fast
`Circuit
`
`contrary
`with
`the
`In the
`estoppel
`
`1953].
`judicial
`
`case
`
`Scarano
`of Festinger
`
`warranted
`
`(Environmental
`175.
`doctrine
`The
`the judicial
`v. Central
`v Edrich,
`dismissal
`
`of
`
`system
`R. Co.
`32 A.D.3d
`of Plaintiffs
`he had
`funded
`
`personal
`property
`and personal
`property
`his
`with
`representations
`to
`and
`assets
`sentence
`
`and
`
`cash
`
`at odds
`
`failing
`assets;
`the
`of
`
`report
`
`lenient
`
`doctrine
`
`which
`
`on ground
`for
`to her
`in prior
`
`that
`
`income
`
`ofjudicial
`estoppel,
`and mockery
`from
`taking
`in a prior
`proceeding,
`LLC v Hosseinipour,
`Group,
`Phase
`4, 79 A.D.3d
`
`safekeeping,
`
`sentencing
`available
`received
`
`for
`
`application
`
`Plaintiff
`and
`
`of
`
`truth-seeking
`in one
`a position
`
`simply
`
`86
`
`890
`
`888,
`
`interest
`
`of
`
`doctrine
`in real
`and transferred
`
`should
`judicial
`proceeding
`Constr.
`v Larchwood
`to estop
`tolerate
`
`parties
`
`from
`
`this
`
`Concern
`is invoked
`"cannot
`
`playing
`513
`[Third
`that
`the
`
`203
`dicta
`
`F.2d
`510,
`indicates
`
`N.J.,
`412,
`suit
`
`claiming
`sister's
`his
`since
`plaintiff
`
`land
`were
`
`ownership
`purchase
`of
`s claims
`for
`
`violating
`he
`had
`
`benefit
`essential
`
`that
`such
`
`was
`
`proceeding,
`
`restitution,
`constituted
`doctrine
`of
`function.
`
`A.D.
`[2010].
`
`which
`legal
`proceeding
`because
`or her
`his
`3-D 554,
`556
`
`The
`
`doctrine
`
`of
`judicial
`is contrary
`have
`interest
`
`[2011],
`
`quoting
`
`manifestly
`probation
`no money
`for
`the purposes
`to
`
`by
`or
`
`avoid
`
`upon
`
`the
`
`court
`fraud
`estoppel
`a party
`precludes
`to that which
`he or she took
`Capital
`changed.
`Private
`Matter
`of New Cr. Bluebelt,
`
`Many
`
`of
`
`the
`
`cases
`
`where
`
`the
`
`doctrine
`
`of
`
`judicial
`
`estoppel
`
`has
`
`been
`
`successfully
`
`6.
`
`(Tr.,
`
`3/29 AM,
`
`at 23:14-21,
`
`reading
`
`from
`
`p.327
`
`of his
`
`deposition).
`
`8 of
`
`13
`
`

`

`D:
`
`SUFFOLK
`DOC.
`NO.
`460
`
`NYSCEF
`
`COUNTY
`
`CLERK
`
`0 9 / 07
`
`/2
`
`018
`
`02
`
`: 2 9
`
`PM)
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`INDEX NO. 03655/2012
`PAGE 9
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`invoked
`form
`
`turn
`of benefit
`
`Plaintiffnegotiated
`to obtain
`that
`action
`prior
`et. al. was
`
`on whether
`or not
`of
`as a result
`a transaction
`under
`
`rights
`
`party's
`and
`
`compellingly
`a breach
`of
`contract
`
`against
`
`the party
`the
`prior
`taking
`and resolution
`with
`the subject
`insurance
`the heart
`of Riconda's
`to pay
`in failing
`the
`
`agreed
`
`whom the
`doctrine
`position.
`inconsistent
`an admittedly
`policy.
`claim
`
`is invoked
`received
`In
`the matter
`
`insured
`was
`
`party
`not
`
`Liberty
`in the
`action
`his
`
`price
`
`for
`
`against
`company.
`
`any
`at bar,
`(Cummings)
`on the
`a party
`Cummings,
`
`Defendant
`
`grant
`
`it
`
`that
`
`the
`
`doctrine
`
`of
`
`at
`
`judicial
`first
`
`estoppel
`
`mandates
`
`this Court
`
`Plaintiff
`
`that
`
`relief.
`
`correctly
`Why?
`In
`
`asserts
`simple
`
`terms,
`compelled
`a prosecution
`and
`said
`
`trial
`for
`a finding
`that
`looked
`mind."
`
`"never
`
`the
`that
`
`back
`
`time,
`transaction
`the
`to the time
`
`contended
`
`never
`of earlier
`
`closed.
`litigation
`
`In
`not
`
`specific
`
`conditions
`
`essence,
`
`involving
`
`Plaintiff
`Defendant
`
`precedent
`forth
`
`put
`
`herein
`
`Defendant's
`
`submission
`
`consistent
`Plaintiff
`
`QSGI-CCSI.
`deal
`never
`
`the
`
`exclusion
`
`with
`
`the
`
`aforementioned
`
`admitted
`
`It
`
`closed,
`relied
`
`upon
`
`reflects
`
`accurately
`verified
`
`that
`
`the
`
`during
`as well
`
`summary
`as
`deposition
`
`judgment
`
`stage,
`
`place
`
`position,
`became
`but
`
`of
`
`if
`which,
`sale,"
`the
`
`testimony,
`transferred
`not
`that
`neutralize
`
`to
`the
`
`was
`
`so
`
`was
`
`was
`trial,
`true would
`his
`
`authority
`sale."
`
`took
`the
`that
`closing
`that Plaintiffs
`is accurate
`and
`therefore
`he never
`the Defendant,
`ceremonial
`
`"he
`
`retained
`
`by
`purely
`
`eclipsed
`
`that
`
`added)
`
`pleadings
`and that
`of CCSI
`ownership
`the time
`up until
`president,
`that
`"after
`president
`
`title
`
`of
`
`after
`
`the
`
`Once
`
`again
`
`at
`
`the
`
`affidavit,
`
`"ultimately,
`independent
`
`dated
`
`the
`legal
`
`17,
`July
`deal
`signed
`entity."
`
`2019
`
`Short
`of
`
`Form
`the
`
`Order
`
`sale
`
`on
`
`summary
`which
`was
`2017,
`7, 2008.
`on July
`as noted
`Furthermore,
`the choice
`of
`
`concerning
`7, 2008
`July
`CCSI."
`Inc.
`d/b/a
`
`CCSI
`
`ceased
`
`judgment
`
`stage,
`read
`
`Plaintiff
`
`into
`
`the
`
`At
`
`that
`
`time
`
`submitted
`at
`
`trial,
`ceased
`
`record
`Inc.
`
`CCSI,
`
`hereinabove,
`law question
`to exist
`
`this
`
`on
`Court
`following:
`noted
`the
`as a freestanding
`
`(emphasis
`
`another
`
`sworn
`
`confirming:
`to exist
`as an
`its March
`"after
`
`6,
`the
`
`company
`
`and
`
`that
`
`Court's
`choice
`to the Court
`as opposed
`law
`admission
`
`that
`
`issue
`
`and
`
`of
`
`law
`
`decision
`
`became
`
`somewhat
`law
`was
`
`would
`
`closed
`could
`
`Plaintiff
`
`was
`Plaintiff
`to New York
`the transaction
`therefore
`
`a critical
`confident
`
`applicable
`be grossly
`faithful
`
`the Court
`
`to
`
`moment
`that
`to this
`litigation.
`immaterial
`
`the
`
`and
`
`to his
`
`verified
`
`remain
`suit.
`
`closing
`became
`
`Plaintiff.
`would
`Under
`
`QSGI-CCSI,
`
`As
`
`an
`
`It
`
`find
`Florida
`
`irrelevant
`
`allegations
`
`the
`aside,
`is apparent
`that
`Florida
`law the
`to the
`coverage
`and
`
`testimony
`
`alleged
`
`in the
`
`earlier
`
`(Cummings)
`
`At
`
`trial,
`
`Plaintiff
`
`s memorandum
`
`of
`
`law (trial
`
`Exhibit
`
`FFFFF),
`
`noted
`
`at pages
`
`3-4:
`
`"as
`
`9 of
`
`13
`
`

`

`FILED
`NYSCEF
`
`SUF FOLK
`:
`DOC.
`460
`NO.
`
`COUNTY
`
`CLERK
`
`09/07
`
`/2
`
`018
`
`02
`
`: 2 9
`
`Pl‡
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIBERTY
`RICONDA
`INDEX NO. 03655/2012
`PAGE 10
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`of
`the
`d/b/a
`
`of
`close
`the
`for QSGI-CCSI
`
`transaction.
`Inc."
`
`became
`
`QSGl-CCSI,
`
`d/b/a
`
`CCSI
`
`ceased
`
`Followed
`CCSL
`
`by
`
`to exist
`a chart
`
`as a distinct
`that
`
`showing
`
`legal
`"after
`
`entity,
`the
`
`and
`closing:"
`
`a
`
`became
`CCSI
`
`As
`
`another
`
`Division
`
`Rule
`
`the Court
`aside
`Statement
`
`19-a
`
`focused
`
`of Material
`
`on Plaintiffs
`.Facts
`
`(the
`
`responses
`
`aforementioned
`That
`the closing
`was
`transferred
`
`deposition
`
`took
`
`whereby
`ceased
`
`"responses"),
`admitted
`that
`
`to Liberty's
`which
`the closing
`entity;
`
`questioned
`
`by
`
`of
`
`import
`is not
`
`the Rule
`bound
`
`Facts
`facts
`
`than
`
`suggested
`by
`to suggest
`as a stipulation
`applied
`place
`
`offered
`
`essentially
`Court
`
`made
`
`his
`
`ifthe
`took
`a closing
`admission
`is fatal
`the
`law,
`the Court
`a determination
`the
`case
`and
`
`Florida
`would
`
`the
`not
`to be
`and
`law as Plaintiff
`become
`immaterial
`as the
`exclusion
`relied
`New York
`to apply
`the
`fact
`that
`"the
`inclusive
`of
`
`Plaintiff
`testimony
`that CCSI
`as an independent
`to exist
`place,
`When
`of QSGI.
`as a wholly-owned
`subsidiary
`19 a Statement
`of Material
`it was
`other
`statement
`of material
`his
`by
`facts
`of
`are only
`those
`the motion
`an admission
`by Plaintiff.
`Essentially,
`the question
`of whether
`or not
`New York
`under
`Once
`
`to the
`Plaintiff
`
`purposes
`deemed
`
`counsel
`and
`
`upon
`
`hoped,
`irrelevant.
`However,
`by Defendant
`bars
`Plaintiff
`was
`law,
`closing"
`
`coverage.
`
`required
`
`to
`
`change
`
`despite
`
`the
`
`fact
`
`Commercial
`mirrored
`
`took
`
`the
`place.
`its stock
`and
`the Court
`as
`that
`
`counsel
`
`that
`
`for
`
`s
`
`took
`
`place.
`
`This
`
`the
`
`prior
`
`failing
`
`litigation,
`the
`to pay
`
`the Plaintiff
`
`bargained
`
`for
`
`steadfastly
`consideration.
`
`of
`theory
`throughout
`that
`prosecuted
`
`contest
`litigation
`the
`claims
`for
`
`history,
`breach
`
`his
`
`of
`
`contract
`
`in
`
`In fact,
`allowed
`"mirage"
`
`Defendant
`
`as noted
`
`to put
`
`that
`
`admissions
`
`prior
`
`convincingly
`in Defendant's
`at
`on a case
`
`argues
`
`that
`
`submissions,
`centered
`
`trial
`
`Plaintiff
`its counsel
`around
`the
`
`improperly
`objected
`
`proposition
`
`changed
`to Plaintiffs
`that
`the
`
`never
`happened,
`to trial.
`Defendant's
`
`and
`
`a total
`
`counsel
`
`contradiction
`in the
`
`noted
`
`to
`
`absence
`
`its
`
`course
`
`at
`
`trial.
`
`closing
`formal
`the
`
`Plaintiffs
`of
`the jury
`
`counsel
`
`being
`like
`was
`judicial
`
`a
`
`following:
`
`Mr. Riconda's
`
`trial,
`have
`
`to
`
`try
`admitted....
`
`during
`is contrary
`into
`court
`
`is not permitted,
`attorney
`evidence
`which
`to put
`in
`now he comes
`And
`never
`happened.
`transaction
`on. He never
`to create
`in fact
`or
`
`to this
`mirage.
`So they
`which
`
`this
`
`jury,
`this
`That
`are basically
`does
`have
`not
`
`never
`
`went
`
`the course
`
`ofthis
`
`to what
`
`and
`
`tries
`
`That
`
`they
`to say
`is all
`a
`
`this
`company....
`this Court,
`admissions.
`
`his
`before
`
`sold
`
`trying
`basis
`
`imagery
`their
`own
`
`On the
`record,
`eight
`times
`least
`
`Plaintiffs
`
`counsel
`
`then
`
`that
`
`the
`
`closing
`
`occurred,
`
`proceeded
`noting:
`
`to
`
`admit
`
`at
`
`10
`
`of
`
`13
`
`

`

`KLED :
`SUFFOLK
`NYSCEF
`DOC.
`NO.
`460
`
`COUNTY
`
`CLERK
`
`0 9 / 07 / 2 0 f8
`
`02
`
`: 2 9
`
`PM|
`
`INDEX
`
`NO.
`
`003655/2012
`
`RECEIVED
`
`NYSCEF:
`
`09/07/2018
`
`V LIB ERTY INSURANCE
`RICONDA
`INDEX NO. 03655/2012
`PAGE 11
`
`UNDERWRITERS,1NC.
`
`is
`John
`scheduled
`
`question
`
`not
`
`going
`a closing
`is what's
`
`get
`
`to
`and
`what'
`
`"If
`
`you
`
`closing.
`is what
`
`the way
`at
`look
`We don't
`deny
`was."
`effect
`the
`
`up
`that
`effect?"
`
`there
`certain
`7
`
`and
`
`deny
`things
`
`he went,
`that
`The
`happened.
`
`is, Riconda
`there
`was
`
`president
`was
`a closing;
`
`what
`
`the
`after
`we deny
`
`at
`
`the
`
`this
`
`that
`8
`
`will
`"John
`a closing.
`the
`was
`
`and he's
`righthere,
`admit,
`We traded
`signature
`pages
`everyone
`those
`All
`date.
`
`he will
`say, Sure,
`This
`in advance.
`it. Both
`signed
`
`there
`
`was
`
`7th
`July
`sides."9
`
`blanks,
`
`don't
`
`dispute
`
`that
`
`John
`
`there
`was
`I'm going
`ofhold
`
`and
`
`and we don't,
`a