FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`FILED: SUFFOLK COUNTY CLERK 09m2018 06:44 P l
`NYSC 3F DOC. NO.
`
`465
`NYSCEF DOC. NO. 465
`
`
` V3
`fiX NO.
`003655/20;
`INDEX NO. 003655/2012
`
`09/24/20;
` VYSCEF:
`
`
`
`
` *3
`
`RECEIVED NYSCEF: 09/24/2018
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)
`
`EXHIBIT A
`
`

`

`SUFFOLK
`COUNTY
`INDEX NO. 003655/2012
`CLERK
`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`|FILED:
`09
`/ 0 7 / 2 0 18
`0 2 : 2 9
`PM|
`NYSCEF DOC. NO. 465
`RECEIVED NYSCEF: 09/24/2018
`NYSCEF
`DOC.
`NO.
`460
`RECEIVED
`
`SHORT
`
`FORM ORDER
`
`INDEX
`
`NO.
`
`COMMERCIAL
`
`SUPREME
`DIVISION
`
`COURT
`
`- STATE
`PART
`
`IAS
`
`OF NEW YORK
`- SUFFOLK
`
`48
`
`COUNTY
`
`PRESENT:
`
`JERRY
`H_ON.
`SUPREME
`
`GARGUILO
`COURT
`JUSTICE
`
`DATE:
`
`ORIG.
`FINAL
`MOTION
`MOTION:
`
`RETURN
`SUBMITTED
`SE@015
`MG
`
`JOHN R. RICONDA,
`
`Plaintiff,
`
`- against
`
`-
`
`PLAINTIFF'S
`& CASE
`WHITE
`AVENUE
`NEW YORK,
`
`1221
`
`ATTORNEY:
`LLP
`OF THE AMERICAS
`NEW YORK
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.,
`
`Defendant-
`
`DEFENDANT'S
`D'AMATO
`LIBERTY
`225
`NEW YORK,
`
`ATTORNEY:
`& LYNCH
`STREET
`NEW YORK
`
`Defendant,
`
`Liberty
`
`Insurance
`
`set
`
`aside
`
`a matter
`
`the
`
`of
`
`Verdict
`
`against
`
`Underwriters,
`on May
`
`it
`
`Inc.
`
`("Liberty"),
`
`petitions
`
`2018
`
`and
`
`direct
`
`judgment
`
`4,
`
`or
`
`the
`
`Verdict.
`
`Plaintiff
`
`rendered
`a new
`
`for
`
`law;
`
`or
`
`trial;
`
`to
`
`reduce
`
`Jury
`
`application
`
`in
`
`all
`
`respects.
`
`In making
`
`its
`
`determination,
`
`the
`
`Court
`
`has
`
`considered
`
`the
`
`following
`
`1.
`
`2.
`
`3.
`
`of Motion
`
`To
`
`Set
`
`Aside
`
`The
`
`Verdict
`
`and
`
`To
`
`Liberty;
`
`Affirmation
`7 and A through
`
`A.
`of
`Peter
`Stroili
`BB and Memorandum
`
`Defendant's
`As A Matter
`
`Notice
`of Law
`
`inclusive
`
`of Exhibits
`
`1 through
`
`In
`
`Support;
`
`Plaintiff
`
`Defendant's
`
`s Memorandum
`
`of Law In
`
`Opposition;
`
`and
`
`Reply
`
`Affirmation
`
`of
`
`Peter
`
`A.
`
`Stroili
`
`with
`
`Exhibits
`
`

`

`CLERK
`COUNTY
`SUFFOLK
`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`: 29
`02
`/2018
`09/07
`FILED:
`PM|
`NYSCEF
`DOC.
`NO.
`460
`NYSCEF DOC. NO. 465
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`
`RECEIVED
`09/07/2018
`NYSCEF:
`RECEIVED NYSCEF: 09/24/2018
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE 2
`
`As
`
`is its
`
`Treatise
`
`Series,
`
`habit,
`David
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`the Court
`
`has
`
`consulted
`
`D.
`
`Siegel,
`
`West
`
`New York
`Practice,
`Professor
`Publishing.
`Siegel
`
`Fifth
`
`Edition
`
`Practitioner
`
`notes
`
`at section
`
`405:
`
`is authorized
`
`to
`
`grant
`
`judgment
`
`as a "matter
`
`of
`
`law"
`
`The
`
`only
`could
`
`judge
`when
`
`not
`
`[he/she]
`differ
`
`go.
`
`The
`
`whether
`
`difficulty
`reasonable
`
`believes
`
`that
`
`on this
`
`record
`
`reasonable
`
`minds
`
`and
`
`there
`
`is therefore
`
`is
`
`that
`
`reasonable
`
`minds
`
`that
`
`may
`inhabit
`
`differ,
`the
`
`only
`minds
`
`and
`
`the
`
`differ
`
`them
`
`If
`
`jury
`
`can
`
`about
`
`be
`
`trial
`
`the
`
`reasonable
`
`minds
`
`judgment
`
`for
`
`a side
`
`court
`
`letting
`with
`
`grants
`a jury
`the
`judges's
`
`therefore
`
`order
`
`trial
`
`court
`
`waits
`
`one way
`may
`among
`court.
`
`appellate
`CPLR
`
`under
`
`may
`the
`
`4401
`
`without
`
`pass
`
`on the
`
`action
`a new trial,
`a verdict
`until
`
`issues,
`has
`
`an appellate
`
`court
`
`that
`
`disagrees
`
`no
`
`verdict
`
`to
`
`reinstate
`
`and
`
`must
`
`wasting
`is in,
`
`the
`
`earlier
`
`one.
`
`saving
`
`its
`
`action
`
`the
`if
`But
`for CPLR
`
`4404
`
`and
`
`granting
`have
`found
`
`judgment
`
`the
`
`other
`
`a verdict
`
`to
`
`reinstate.
`
`thejury
`has
`
`notwithstanding
`a disagreeing
`is
`no
`small
`
`way),
`This
`
`accounts
`
`for
`
`the widespread
`
`practice
`
`among
`
`the
`
`verdict
`
`(should
`
`appellate
`
`court
`
`economy,
`judges
`of
`
`and
`
`it
`
`a
`
`for
`
`case
`
`go
`
`to
`
`the
`
`jury
`
`before
`
`ruling
`
`on
`
`letting
`a motion
`
`tried
`
`fully
`judgment.
`
`This
`
`Court
`
`allowed
`
`the
`
`case
`
`to
`
`be submitted
`
`to the
`
`jury.
`
`Defendant's
`
`application
`
`as
`
`(1)judgment
`
`as a matter
`
`of
`
`law;
`
`(2)
`
`hereinabove
`noted
`a new trial;
`
`or
`
`(3)
`
`seeks
`
`one
`
`of
`
`three
`
`remedies:
`
`to reduce
`
`the
`
`jury
`
`verdict.
`
`Preceding
`
`6, 2018,
`
`this
`
`trial,
`this
`Court
`
`March
`
`matter
`
`was
`
`the
`
`subject
`
`of
`
`comprehensive
`
`motion
`
`practice.
`
`On
`
`issued
`
`a Short
`
`Form
`
`Order
`
`which
`
`noted:
`
`This
`
`is an action
`
`to recover
`
`damages
`
`for
`
`breach
`
`of
`
`bad
`
`contract,
`fair
`
`and
`
`2008,
`
`the
`
`called
`
`to
`
`2007.
`
`policy
`
`July
`vehicle
`
`acquisition
`
`located
`
`at
`
`directors
`In May
`QSGI-CCSI,
`of Contemporary
`Knickerbocker
`200
`
`faith,
`based
`
`and
`
`breach
`
`of
`
`the
`
`covenant
`
`of
`
`good
`
`faith
`
`and
`
`upon
`
`the
`
`alleged
`
`improper
`
`denial
`
`of
`
`insurance
`
`dealing
`coverage
`
`to certain
`
`non
`
`parties
`
`defendant
`
`issued
`
`the
`
`by
`a director's
`
`defendant.
`
`It
`
`is undisputed
`
`that
`
`the
`
`and
`
`officer's
`
`liability
`
`insurance
`
`officers
`QSGI
`
`of
`
`nonparty
`created
`
`a
`
`QGSI,
`special
`
`Inc.
`
`in
`
`purpose
`
`Inc.
`
`in
`
`order
`
`to
`
`complete
`
`the
`
`Computer
`
`Services,
`
`Inc.
`
`Avenue,
`
`Bohemia,
`
`("CCSI"),
`New York
`
`2
`
`of
`
`13
`
`

`

`CLERK
`COUNTY
`SUF FOLK
`IF ILED
`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`0 9 /O 7¯7 2 0 18
`0 2 : 2 9
`:
`PM1
`NYSCEF
`DOC.
`NO.
`460
`NYSCEF DOC. NO. 465
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`RECEIVED
`NYSCEF:
`09/07/2018
`RECEIVED NYSCEF: 09/24/2018
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`3
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`11716.
`
`At
`
`that
`
`of CCSI.
`
`The
`
`time,
`Stock
`
`the
`
`plaintiff
`
`was
`
`the
`
`president
`
`and
`
`owner
`
`Purchase
`
`Agreement
`
`between
`
`QSGI-CCSI,
`
`Inc.
`
`and
`
`executed
`
`QSGI,
`all
`
`by
`
`as
`
`parties
`
`buyers,
`in May
`
`and
`
`the
`
`plaintiff,
`
`as
`
`seller,
`
`was
`
`of
`
`2008.
`
`Pursuant
`
`to
`
`an
`
`insurance
`
`renewal
`
`filed
`
`issued
`
`Directors
`
`application
`by QGSI,
`& Officers
`No.
`Policy
`New Jersey,
`of Hightstown,
`(the D&O policy)...
`After
`8, 2009
`CCSI
`ceased
`to
`
`the
`
`Inc.,
`D04N386075004
`
`defendant
`
`effective
`
`the
`
`July
`of
`
`Inc.
`
`to QSGI,
`8, 2008
`to July
`sale
`on
`the
`
`exist
`
`as
`
`closing
`a freestanding
`company
`After
`as CCSI.
`business
`
`the
`
`agreed
`
`compensation
`
`QGSI,
`for
`the
`
`July
`and
`
`7, 2008,
`became
`
`declared
`
`bankruptcy...
`
`(emphasis
`
`QSGI-CCSI,
`failed
`to
`
`pay
`of CCSI,
`
`Inc.,
`the
`
`doing
`plaintiff
`
`QGSI,
`
`Inc.
`
`Inc.
`
`purchase
`
`added)
`
`the
`
`plaintiff
`
`commenced
`
`an
`
`action
`
`against
`
`the
`
`and
`
`Supreme
`
`Thereafter,
`directors
`
`breach
`
`Court,
`action).
`
`insurer,
`
`and
`
`officers
`
`of
`
`fiduciary
`Suffolk
`
`Despite
`
`County,
`requests
`
`the
`
`defendant
`
`of QGSI,
`entitled
`
`duty
`
`Inc.
`
`for
`
`Riconda
`
`Index
`
`No.
`
`fraud,
`self-dealing
`v Sherman,
`(the
`11-6678
`
`the
`
`defendants
`
`by
`
`herein,
`
`disclaimed
`
`in said
`
`action,
`coverage.
`
`The
`
`underlying
`their
`
`settled
`
`other
`
`Edward
`
`underlying
`L. Cummings
`
`action
`
`was
`
`(Cummings),
`
`when,
`among
`officer
`a former
`
`things,
`of QSGI
`
`and
`
`a
`
`defendant
`
`judgment
`
`in the
`
`in
`
`underlying
`favor
`of
`
`the
`
`proceed
`
`against
`
`the
`
`defendant
`
`action,
`
`plaintiff,
`for
`
`of
`
`to
`
`him
`
`entered
`
`into
`
`a confession
`
`and
`
`assigned
`
`his
`
`right
`
`the
`
`failure
`
`to
`
`indemnify
`plaintiff.
`
`as an insured
`
`in the
`
`underlying
`
`action
`
`to the
`
`The
`
`instant
`
`action
`
`was
`
`commenced
`
`the
`
`plaintiff
`
`by
`
`against
`
`the
`
`defendant,
`breached
`has
`
`as Cumming's
`
`the
`
`contract
`
`to provide
`
`coverage
`
`assignee,
`insurance
`of
`to Cummings
`
`alleging
`and
`
`by
`
`in
`
`bad
`
`failing
`due
`
`under
`
`the
`
`confession
`
`and
`
`has
`
`breached
`
`its
`
`duty
`
`of
`
`of
`
`judgment,
`good
`faith
`
`defendant
`that
`the
`the D&O policy
`amount
`the
`to pay
`and
`acted
`
`has
`
`faith,
`
`and
`
`fair
`
`dealing.
`
`This
`
`Court's
`
`findings
`
`in the March
`
`presents
`
`findings
`
`of
`
`fact
`
`tantamount
`
`6, 2018
`law
`the
`
`to
`
`establishes
`
`Cummings,
`
`that
`
`Plaintiff,
`assignee
`as his
`
`John
`
`R. Riconda
`
`and
`
`thereafter
`
`("Riconda")
`prosecuted
`
`3 of
`
`13
`
`Short
`
`Form
`
`Order
`
`referenced
`
`hereinabove
`
`of
`
`the
`
`case.
`
`stepped
`
`That
`
`into
`
`history
`shoes
`
`of
`
`claims
`
`against
`
`Defendant,
`
`undeniably
`an
`
`insured,
`Liberty.
`
`In
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`SUFFOLK
`COUNTY
`CLERK
`FILED:
`0 9 / 0 7 / 2 018
`0 2 : 2 9
`PM|
`NYSCEF
`DOC.
`NO.
`460
`NYSCEF DOC. NO. 465
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE 4
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`essence,
`against
`
`Riconda
`
`as the
`
`claims
`
`brought
`
`assignee
`by Riconda.
`
`of
`
`an insured
`
`was
`
`suing
`
`the
`
`insurer
`
`to
`
`defend
`
`his
`
`assignor
`
`The
`
`history
`
`of
`
`this
`
`litigation,
`an action
`
`inclusive
`
`of
`
`for
`
`breach
`
`commenced
`
`It
`
`is
`
`apparent
`
`to
`
`the
`
`Court,
`of
`
`At
`
`that
`
`point
`
`in
`
`in
`
`time,
`the
`
`as a matter
`
`negotiation
`
`originally
`his
`company.
`
`Plaintiff
`
`sale
`
`of
`
`traction.
`
`change
`
`the
`
`of
`
`that
`
`underlying
`contract.
`
`litigation,
`contract
`
`That
`
`reveals
`
`involved
`
`that
`
`the
`
`case
`
`(the
`
`Riconda
`
`case)
`directions.
`
`lacked
`
`The
`
`for
`
`a
`
`direction
`
`led
`
`to
`
`covenant
`
`not
`
`to
`
`enforce
`
`a confession
`
`strategy,
`the
`assignment
`
`of
`
`underlying
`changed
`by Cummings
`negotiated
`and
`
`in
`
`return
`
`executed
`
`between
`
`prompted
`
`by
`
`the
`
`realization
`
`that
`
`the
`
`Cummings
`
`and Riconda.
`
`only
`
`entity
`
`with
`
`"deep
`
`That
`pockets"
`
`change
`
`was
`
`Defendant,
`
`of
`
`of
`
`judgment
`
`strategy
`
`duly
`was
`Liberty.1
`
`Throughoutthe
`
`pre-trial
`
`and
`
`coverage
`
`was
`
`found
`
`at
`
`section
`
`5.6
`
`trial,
`of
`
`the
`
`exclusion
`
`relied
`
`upon
`
`the
`
`policy
`
`(the
`
`insured
`
`by Defendant
`versus
`insured
`
`concerning
`exception).
`
`Section
`
`5 reads
`
`as follows:
`
`5.
`
`Exclusions:
`
`The
`
`insurer
`
`shall
`
`not
`
`be
`
`liable
`
`to make
`
`any
`
`in connection
`
`with
`
`claim:
`
`payment
`
`for
`
`loss
`
`any
`
`5.6
`
`brought
`
`or maintained
`
`organization
`
`to
`
`any
`
`insured
`
`by
`
`person,
`
`or
`
`on
`
`behalf
`
`of
`
`the
`
`insured
`
`in any
`
`capacity.
`
`(Directors
`
`8, 2008
`of
`5.6
`
`"insurer
`
`On
`
`about
`or
`& Officers
`through
`and
`
`the
`
`Policy
`shall
`not
`
`or maintained
`
`July
`
`8,
`
`Policy)
`
`including
`known
`also
`
`Liberty
`Inc.
`
`2008,
`to QSGI,
`8, 2009.
`the
`Insured
`
`July
`as
`
`issued
`
`a renewal
`
`executive
`
`advantage
`
`policy
`
`("QSGI")
`noted
`As
`
`versus
`
`for
`
`the
`
`above,
`Insured
`
`policy
`the
`
`period
`
`exclusion
`
`commencing
`found
`
`July
`at section
`
`Exclusion
`
`provided
`
`that
`
`the
`
`be
`
`liable
`
`to make
`
`payment
`
`person
`
`for
`
`loss
`
`in
`
`connection
`
`as
`
`an
`
`with
`
`any
`director
`
`or
`
`claim:
`
`of
`
`the
`
`brought
`
`insured
`
`organization,
`
`by...
`QSGI
`
`any
`or any
`
`any
`insured
`subsidiary."
`
`defined
`No party
`
`raised
`
`officer
`"ambiguity"
`
`as an
`
`issue.
`
`The
`
`evidence
`
`adduced
`
`at
`
`trial
`
`was
`
`that
`
`Plaintiff
`
`commenced
`
`negotiations
`
`with
`
`QSGI
`
`1. As
`
`insurer,
`resolve
`
`an aside,
`the Court
`
`throughout
`
`inquired
`
`the
`
`proceeding
`as to whether
`
`concerning
`Plaintiff
`or not
`
`the
`
`claim
`
`within
`
`the
`
`limits
`
`of
`
`available
`
`coverage.
`
`the
`
`issue
`
`of
`
`a bad-faith
`
`offered
`
`Liberty
`It became
`
`the
`
`apparent
`
`denial
`
`the
`
`by
`
`opportunity
`to the Court
`
`to
`
`that
`
`the
`
`traditional
`
`protocol,
`
`i.e.
`
`calling
`
`upon
`
`the
`
`insurer
`
`to
`
`tender
`
`its
`
`limits
`
`was
`
`never
`
`followed.
`
`4
`
`of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`COUNTY
`CLERK
`FILED:
`SUFFOLK
`: 29
`09/07/2018
`02
`PÑ]
`NYSCEF
`DOC.
`NO.
`460
`NYSCEF DOC. NO. 465
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`5
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`for
`
`the
`
`acquisition
`
`of
`
`his
`
`CCSI.
`
`Those
`
`company,
`The
`
`agreement
`
`stock
`
`purchase
`
`agreement.
`of CCSI
`
`shares
`
`(Plaintiff
`
`by QSGI-CCSI,
`In consideration
`
`outstanding
`
`wholly
`provided
`
`obligation
`
`million
`
`that Mr.
`
`owned
`
`subsidiary
`
`ofthe
`
`with
`
`to
`
`a $10 million,
`known
`an
`
`entity
`credit
`
`line.
`
`It
`
`provided
`s company)
`QSGI.
`insured,
`10% convertible
`as Victory
`is undisputed
`
`negotiations,
`for
`the
`
`resulted,
`purchase
`of all
`
`in May
`of
`the
`
`2008,
`issued
`
`of
`
`a
`
`and
`
`a
`
`Inc.
`
`("QSGI-CCSI"),
`thetransferPlaintiffwas
`
`for
`
`was
`
`Note.
`
`That
`
`Park.
`
`that
`
`Victory
`the
`
`Note
`
`Park
`
`subordinated
`QSGI
`
`provided
`
`to QSGI's
`
`with
`
`a $10
`
`Stock
`
`Purchase
`
`Agreement
`
`provided
`
`"would
`
`resign
`
`as Chief
`
`Executive
`
`Officer
`
`but
`
`he would
`
`remain
`
`revolving
`Riconda
`
`employed
`
`as president
`
`to run
`
`the
`
`day-to-day
`
`operations
`
`of
`
`the
`
`of CCSI,
`company."
`
`(emphasis
`
`added)
`
`Riconda
`documents"
`
`Additionally,
`Employment
`
`including
`transition
`
`Agreement
`
`employed
`
`by
`Furthermore,thetransition
`
`the
`
`company
`
`Worthy
`executed
`
`of mention
`
`is the
`
`fact
`
`that with
`
`the
`
`and
`
`entered
`
`into
`
`various
`
`7, 2008
`July
`documents
`
`closing
`referred
`
`of
`
`to
`
`the
`
`transaction,
`the
`"transition
`
`Mr.
`
`as
`INC
`
`d/b/a
`
`CCSI.
`
`an
`
`employment
`
`agreement
`
`documents
`
`were
`
`executed
`
`with
`
`QSGI-CCSI,
`
`Inc,
`
`Inc.,
`
`d/b/a
`
`d/b/a
`
`established
`
`as
`
`with
`
`at
`
`CCSI,
`
`QSGI-CCSI,
`the
`
`closing,
`that
`provided
`
`as president
`
`of
`
`the
`
`which
`
`included
`
`Riconda
`
`"will
`company."
`
`an
`
`be
`
`d/b/a
`
`CCSI
`
`"
`
`was
`
`Plaintiff
`
`[QSGI-CCSI,
`documents
`of QSGI
`
`clearly
`2
`as well
`
`CCSI]
`that QSGI-CCSI,
`a resignation
`
`letter,
`
`held
`
`as an
`
`officer
`
`of
`
`[CCSI]
`(emphasis
`
`his
`
`prior
`
`company
`
`added)
`
`whereby
`except
`
`for
`
`the
`
`a wholly
`resigned
`
`owned
`
`"from
`
`all
`
`subsidiary
`positions
`
`position
`
`of President
`
`effective
`
`immediately.
`
`It
`
`is undisputed
`
`that QSGI
`
`filed
`
`on
`
`the
`
`Securities
`
`Exchange
`
`Commission
`
`a result
`QSGI
`
`of
`Inc."
`
`the
`
`acquisition,
`
`John
`
`disclosing
`R. Riconda
`
`of
`
`the
`
`day
`the
`completed
`
`closing
`acquisition
`
`a schedule
`
`13D
`
`with
`
`the
`
`and
`
`confirming:"as
`
`has
`
`joined
`
`the
`
`executive
`
`management
`
`team
`
`of
`
`As
`
`alluded
`
`Plaintiff
`
`to earlier,
`commenced
`
`on June
`
`10, 2009
`a lawsuit
`
`approximately
`QSGI.
`against
`
`(defaulted
`
`in
`
`11 months
`
`after
`
`the
`
`In
`
`essence,
`payment).
`
`alleging
`pointed
`As
`
`7, 2008
`July
`that QSGI
`
`transaction,
`breached
`
`its
`
`obligations
`
`under
`
`the
`
`Note
`
`Defendant's
`
`submission,
`unequivocally:
`
`paragraph
`QSGI-C
`
`"The
`
`in
`out
`QSGI
`
`Complaint
`2008."
`
`7,
`
`against
`
`Plaintiffinthat
`
`seven
`
`of Plaintiffs
`
`Verified
`
`CSI
`
`transaction
`
`closedon
`
`July
`executed
`
`stated
`
`(prior)
`sale
`
`assert
`
`action
`
`sought
`
`of
`
`his
`
`that
`
`company
`the
`
`closing
`the
`
`to rescind
`to QSGI
`never
`
`the
`
`various
`
`documents
`
`he
`
`in connection
`
`with
`
`and QSGI-CCSI.
`
`Contrary
`
`to his
`
`position
`
`at
`
`trial,
`
`ownership
`QSGI
`
`was
`
`never
`
`transferred.
`
`should
`
`be
`
`compelled
`
`to
`
`pay
`
`for
`
`did
`he
`As noted
`
`occurred
`
`or
`
`that
`
`the
`
`not
`
`by
`the
`
`Defendant
`
`"to
`
`contrary,
`
`Plaintiff
`
`alleged:
`
`2. Exhibit
`
`C [Trial
`
`Exhibit
`
`58].
`
`5 of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`CLERK
`COUNTY
`SUFFOLK
`:29
`09/0772018
`IFILED:
`02
`PM1
`NYSCEF DOC. NO. 465
`NYSCEF
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`003655/2012
`INDEX
`NO.
`
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`09/07/2018
`NYSCEF:
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE 6
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`company
`
`rescinding
`
`(Cummings)
`confession
`
`bought..."
`
`it
`
`No
`
`court
`
`issued
`
`order
`
`any
`Riconda
`
`in
`
`connection
`
`negotiated
`
`with
`
`with
`
`the
`
`early
`a Defendant
`
`litigation
`
`therein
`
`and
`
`not
`
`into
`
`step
`to enforce.
`
`his
`
`shoes
`
`in
`
`exchange
`
`for
`
`a
`
`the
`
`transaction.
`
`to
`
`take
`
`an
`
`Instead,
`assignment
`
`of
`
`rights
`
`of
`
`judgment
`
`containing
`
`a covenant
`
`On or
`
`about
`
`Plaintiff
`
`brought
`
`an
`
`action
`
`against
`
`Mark
`
`Suffolk
`
`County.
`
`In
`
`paragraph
`
`Sherman,
`4 of
`
`his
`
`Edward
`
`complaint
`
`Riconda:
`
`25,
`in
`
`2011,
`Supreme
`
`D),
`
`Plaintiff
`
`Court,
`alleged:
`
`John
`
`Riconda
`
`consummated
`
`a transaction
`
`February
`et
`
`L. Cummings,
`in that
`action
`
`al,
`(Exhibit
`
`2008
`
`In July
`4.
`QSGI
`in which
`of CCSI
`100% of
`
`assets
`
`placed
`
`Riconda,
`to QSGI...
`
`as seller,
`To
`
`the
`
`capital
`
`stock
`
`agreed
`
`to
`
`sell
`
`the
`
`stock
`
`collateralize
`
`of CCSI,
`dated
`
`the
`
`Note,
`in escrow,
`7, 2008.
`
`July
`
`with
`
`and
`QSGI
`
`pursuant
`
`to
`
`a pledge
`
`and
`
`escrow
`
`agreement
`
`During
`
`the
`
`course
`
`of
`
`the
`
`trial
`
`(March
`
`28,
`
`2018)
`
`the
`
`following
`
`question
`
`was
`
`put
`
`to Mr.
`
`transaction
`
`on
`
`that
`
`date
`
`was
`
`correct?
`
`Q. So the
`
`consummated,
`
`A. Whatever
`
`that means.
`
`Furthermore,
`in turn
`
`ZZ],
`beneficial
`and
`[CCSI]."
`
`the
`that
`is undisputed
`that"consummation"
`
`provides
`
`owner
`
`of
`
`one
`
`hundred
`
`referenced
`
`Escrow
`
`and Pledge
`
`Agreement
`
`[Trial
`
`Exhibit
`
`means,
`percent
`
`Pledgor
`
`(100%)
`
`of
`
`[QSGI-CCSI]
`the
`capital
`
`will
`
`be the
`
`record
`
`stock
`
`of
`
`the Company
`
`forwarded
`
`to Defendant
`
`for
`
`consideration.
`
`This
`
`action
`
`(the
`
`Transaction
`
`documents
`
`D & O action)
`contemporaneous
`
`was
`
`with
`
`the
`
`the Defendant.
`
`Those
`
`documents
`
`report
`
`that
`
`Plaintiff
`
`of
`
`closing
`became
`
`the
`
`transaction
`
`were
`
`studied
`
`by
`
`the President
`
`of
`
`a subsidiary.
`
`Insured
`
`Versus
`
`Insured
`
`Exclusion
`
`found
`
`Eventually
`at exclusion
`
`Liberty
`5.6
`
`denied
`
`coverage
`
`based
`
`on
`
`the
`
`of
`
`the
`
`Policy.
`
`Liberty
`
`thereafter
`
`issued
`
`three
`
`coverage
`
`letters
`
`to
`
`consider
`
`additional
`
`information
`
`provided
`
`its
`
`insured's.
`
`by
`
`the
`
`litigation
`
`posture
`
`completely
`to QSGI-CCSI
`
`closed
`
`was
`
`not
`
`transferred
`
`taken
`
`and
`
`by Plaintiffin
`that
`the
`ownership
`a closing.
`
`the D & O
`his
`of
`
`This
`
`as a result
`
`of
`
`It should
`
`be noted
`
`at
`
`was
`
`that
`
`the
`
`original
`
`this
`
`point,
`never
`sale
`
`action,
`former
`
`despite
`
`company
`fact
`the
`
`[CCSI]
`as noted
`
`hereinabove,
`
`that
`
`in Plaintiff
`
`s verified
`
`pleadings,
`
`he alleged
`
`that
`
`the
`
`6 of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`CLERK
`COUNTY
`09 /07
`SUF FOLK
`IF ILED
`018
`/2
`02
`: 2 9
`:
`PM1
`NYSCEF
`DOC.
`NO.
`460
`NYSCEF DOC. NO. 465
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`
`RECEIVED
`09/07/2018
`NYSCEF:
`RECEIVED NYSCEF: 09/24/2018
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`7
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`"consummated"
`
`was
`
`closing
`a subsidiary.
`
`At
`
`the
`
`in
`
`accord
`
`with
`
`trial,
`his
`
`Plaintiff
`
`verified
`
`were
`
`transferred
`
`where
`
`he was
`
`to QSGI-CCSI;
`was
`employed
`
`and
`
`(iii)
`owned
`
`then
`
`pleadings:
`
`(i)
`
`and
`
`that
`
`ownership
`
`was
`
`transferred
`
`from
`
`CCSI
`
`to QSGI-CCSI,
`
`was
`
`confronted
`
`with
`
`his
`
`deposition
`
`testimony.
`
`Plaintiff
`
`swore
`
`shares
`
`CCSI's
`
`President
`
`and
`
`that
`
`the
`closing
`the Company
`that
`by QSGI-CCSI
`
`occurred;
`of which
`
`that
`
`(ii)
`he was
`
`to wit:
`
`ofthe
`
`owned
`
`Stock
`
`Purchase
`
`were
`
`transferred
`
`Agreement,
`to QSGI
`
`the
`
`or
`
`"At
`
`the
`
`shares
`
`QSGI-CCSI;
`
`ofthe
`time
`of CCSI
`is that
`
`closing
`that
`you
`
`correct?"...
`
`ANSWER:
`
`Right."
`
`3
`
`CCSI
`
`"QUESTION:
`
`Your
`
`became
`
`a subsidiary
`
`understanding
`of QSGI-CCSI?
`
`after
`4
`
`July
`
`7th
`
`2008
`
`ANSWER:
`
`Right.
`
`formed
`
`that,
`
`for
`
`that
`
`That's
`purpose."
`
`my
`
`recollection.
`
`That's
`
`why
`
`they
`
`"QUESTION:
`But
`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: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`SUFFOLK
`CLERK
`COUNTY
`FILED:
`09 / 07
`02
`/ 2 018
`: 2 9
`PM|
`NYSCEF DOC. NO. 465
`NYSCEF
`NO.
`DOC.
`460
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`V LIBERTY
`R1CONDA
`INDEX
`NO. 03655/2012
`PAGE 8
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`QUESTION:
`
`what
`
`entity?
`
`And
`
`CCSI,
`
`at
`
`that
`
`point
`
`in
`
`time,
`
`was
`
`owned
`
`by
`
`ANSWER:
`
`"I
`
`believe
`
`it was
`
`QSGI-CCSI."
`
`6
`
`It
`
`is a well
`
`settled
`
`principle
`
`of
`
`law
`
`in
`
`our
`
`state
`
`position
`
`assume
`
`in a legal
`a contrary
`circumstances
`
`proceeding
`position.
`
`a mockery
`
`lest
`
`not
`
`may
`Invocation
`
`thereafter,
`of
`the
`
`simply
`doctrine
`
`be made
`
`of
`
`the
`
`search
`
`for
`
`the
`
`truth.
`
`that
`
`a party
`because
`his
`
`who
`
`assumes
`
`a certain
`
`interests
`
`have
`
`ofjudicial
`
`estoppel
`
`is required
`
`changed,
`in such
`
`The
`
`doctrine
`
`ofjudicial
`
`estoppel
`
`precludes
`
`which
`
`is
`
`to
`
`that
`
`which
`
`a party
`she
`
`or
`
`from
`
`took
`
`taking
`a prior
`
`in
`
`a position
`
`in one
`
`legal
`
`proceeding,
`because
`
`his
`
`or
`
`her
`
`contrary
`interest
`
`have
`
`changed.
`
`Tedesco
`
`he
`
`v.
`
`Tedesco,
`doctrine
`
`proceeding,
`64 A.D.3d
`
`simply
`Supreme
`
`583,
`principle
`
`that
`
`a
`
`in
`
`one way
`otherwise
`
`Court,
`litigant
`
`another
`
`Concern
`
`is invoked
`
`"cannot
`
`Appellate
`
`Division
`
`Second
`
`Department.
`
`The
`
`rests
`
`upon
`
`the
`
`should
`
`not
`
`be
`
`permitted
`
`to
`
`lead
`
`a court
`
`to
`
`find
`
`a fact
`
`and
`
`then
`
`contend
`
`judicial
`
`that
`
`the
`
`same
`
`facts
`
`should
`
`be
`
`found
`
`proceeding
`v Larchwood
`Constr.
`to estop
`tolerate
`
`parties
`
`from
`
`this
`
`Corp.,
`
`101 A.D.2d
`
`591,
`
`adopting
`fast
`and
`
`such
`
`loose
`
`contrary
`with
`the
`
`594,
`positions
`courts."
`
`476 N.Y.S.2d
`
`because
`
`the judicial
`
`system
`
`Scarano
`
`v. Central
`
`R. Co.
`
`of
`
`In the
`
`case
`
`of Festinger
`
`32 A.D.3d
`
`(Environmental
`
`175.
`
`The
`
`doctrine
`
`203
`
`dicta
`
`F.2d
`
`5 10,
`indicates
`
`playing
`513
`[Third
`
`Circuit
`
`1953].
`
`that
`
`the
`
`doctrine
`
`of
`
`judicial
`
`estoppel
`
`warranted
`
`v Edrich,
`dismissal
`
`of Plaintiffs
`
`claiming
`sister's
`
`ownership
`purchase
`
`of
`
`interest
`
`in real
`
`and
`
`personal
`
`land
`
`and
`
`transferred
`
`cash
`
`and
`
`property
`personal
`
`on
`
`ground
`
`that
`
`he had
`
`funded
`
`N.J,
`
`412,
`suit
`
`his
`
`since
`
`plaintiff
`
`s claims
`
`were
`
`at odds
`
`with
`
`his
`
`proceeding,
`
`restitution,
`constituted
`
`for
`
`that
`
`violating
`he
`had
`
`such
`
`benefit
`
`no money
`for
`purposes
`the
`
`by
`or
`
`failing
`
`assets;
`of
`the
`
`manifestly
`probation
`
`property
`representations
`
`to her
`
`for
`
`safekeeping,
`
`in prior
`
`sentencing
`available
`
`for
`
`to
`
`report
`
`assets
`
`and
`
`income
`
`lenient
`
`sentence
`
`which
`
`Plaintiff
`
`received
`
`doctrine
`
`ofjudicial
`
`estoppel,
`
`and
`
`application
`
`and
`
`of
`
`of
`
`doctrine
`
`was
`
`essential
`
`to
`
`avoid
`
`fraud
`
`upon
`
`the
`
`court
`
`mockery
`
`function.
`
`The
`
`doctrine
`
`of
`
`judicial
`
`estoppel
`
`precludes
`
`legal
`
`because
`
`proceeding
`his
`
`which
`
`or
`
`her
`
`interest
`
`is contrary
`have
`
`to that
`
`which
`
`he or
`
`changed.
`
`Private
`
`Capital
`
`from
`
`a party
`she
`took
`
`truth-seeking
`a position
`in one
`
`taking
`in a prior
`LLC
`
`Group,
`Phase
`
`proceeding,
`v Hosseinipour,
`4, 79 A.D.3d
`
`simply
`
`86
`
`890
`
`888,
`
`A.D.
`
`3-D
`
`554,
`
`556
`
`[201
`
`l],
`
`quoting
`
`Matter
`
`ofNew
`
`Cr.
`
`Bluebelt,
`
`[2010].
`
`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
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`COUNTY
`CLERK
`IF ILED
`SUF FOLK
`0 9 / 0 7 / 2 0 18
`:
`0 2 : 2 9 ¯PM)
`NYSCEF
`NYSCEF DOC. NO. 465
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`V LIBERTY
`NO. 03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`9
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`invoked
`
`turn
`
`on whether
`
`or not
`
`the
`
`party
`
`against
`
`whom
`
`the
`
`doctrine
`
`is invoked
`
`received
`
`position.
`
`In
`
`the matter
`
`any
`at bar,
`
`Liberty
`in the
`action
`
`claim
`
`insured
`
`party
`not
`
`was
`
`against
`
`(Cummings)
`on the
`a party
`Cummings,
`
`agreed
`
`price
`
`for
`
`his
`
`company.
`
`form
`
`of
`
`benefit
`
`as a result
`
`of
`
`Plaintiffnegotiated
`
`a transaction
`
`taking
`and
`
`the
`
`prior
`
`resolution
`
`with
`
`to obtain
`
`that
`
`party's
`
`rights
`
`under
`
`the
`
`subject
`
`insurance
`
`prior
`
`action
`
`et.
`
`al. was
`
`and
`
`compellingly
`a breach
`of
`contract
`
`the
`
`heart
`
`in
`
`failing
`
`of Riconda's
`to pay
`
`the
`
`inconsistent
`an admittedly
`policy.
`
`Defendant
`
`correctly
`Why?
`
`asserts
`
`that
`
`the
`
`doctrine
`
`of
`
`judicial
`
`estoppel
`
`mandates
`
`this
`
`Court
`
`at
`
`the
`
`first
`
`Plaintiff
`
`contended
`
`that
`
`grant
`
`it
`
`relief.
`
`In
`
`simple
`
`specific
`
`conditions
`
`precedent
`
`terms,
`compelled
`
`essence,
`
`involving
`
`Plaintiff
`
`put
`
`forth
`
`a prosecution
`
`Defendant
`
`herein
`
`and
`
`said
`
`"never
`
`trial
`for
`a finding
`that
`looked
`mind."
`
`that
`
`the
`
`time,
`transaction
`
`never
`
`closed.
`
`back
`
`to the
`
`time
`
`of earlier
`
`litigation
`
`Defendant's
`
`submission
`
`accurately
`
`reflects
`
`that
`
`consistent
`
`with
`
`the
`
`aforementioned
`
`verified
`
`pleadings
`
`the
`
`during
`as well
`
`summary
`as
`deposition
`
`judgment
`
`In
`
`not
`
`stage,
`
`of CCSI
`
`was
`
`testimony,
`transferred
`
`to
`
`time
`
`of
`
`if
`sale."
`
`trial,
`true
`
`was
`
`not
`
`that
`
`the
`
`would
`
`neutralize
`
`was
`
`so
`
`Plaintiff
`
`admitted
`
`that
`
`the
`
`took
`
`place
`
`and
`
`that
`
`QSGI-CCSI.
`
`deal
`
`never
`
`It
`
`is accurate
`
`Plaintiff's
`
`and
`
`therefore
`
`he never
`
`position,
`became
`
`closing
`that
`
`ownership
`until
`the
`
`up
`
`president,
`that
`"after
`
`the
`
`exclusion
`
`closed,
`relied
`
`upon
`
`by
`
`the
`
`eclipsed
`
`that
`
`"he
`
`retained
`
`purely
`
`Defendant,
`ceremonial
`
`but
`
`which,
`the
`
`title
`
`of
`
`president
`
`after
`
`his
`
`the
`
`authority
`sale."
`
`(emphasis
`
`added)
`
`Once
`
`again
`
`at
`
`the
`
`summary
`
`judgment
`
`Plaintiff
`
`submitted
`
`another
`
`sworn
`
`which
`
`was
`
`into
`
`the
`
`record
`
`stage,
`read
`
`that
`
`time
`
`CCSI,
`
`Inc.
`
`at
`
`trial,
`ceased
`
`confirming:
`
`to
`
`exist
`
`as an
`
`affidavit,
`
`"ultimately,
`independent
`
`dated
`
`the
`
`legal
`
`17,
`July
`deal
`signed
`entity."
`
`2017,
`on
`
`July
`
`2019
`
`Short
`
`Form
`
`Order
`
`concerning
`
`closing
`became
`
`of
`
`the
`
`sale
`
`on
`
`July
`Inc.
`
`7,
`d/b/a
`
`2008
`CCSI."
`
`7, 2008.
`as noted
`
`At
`
`Furthermore,
`choice
`the
`CCSI
`
`hereinabove,
`question
`
`of
`
`law
`
`ceased
`
`to
`
`exist
`
`this
`
`Court
`
`on
`
`its March
`
`following:
`noted
`the
`as a freestanding
`
`"after
`
`company
`
`6,
`the
`
`and
`
`QSGI-CCSI,
`
`As
`
`an
`
`It
`
`aside,
`is apparent
`
`the
`
`Court's
`
`choice
`
`of
`
`law
`
`decision
`
`became
`
`a critical
`
`moment
`
`to
`
`the
`
`find
`
`that
`
`Florida
`
`law
`
`as opposed
`
`to
`
`the
`
`Court
`
`that
`
`Plaintiff
`to New
`
`was
`
`somewhat
`
`confident
`
`that
`
`the Court
`
`York
`
`law
`
`was
`
`applicable
`
`to
`
`this
`
`litigation.
`
`Plaintiff.
`
`would
`
`Under
`
`Florida
`
`law the
`
`admission
`
`that
`
`the
`
`transaction
`
`closed
`
`would
`
`irrelevant
`
`to the
`
`coverage
`
`issue
`
`and
`
`therefore
`
`Plaintiff
`
`could
`
`remain
`
`allegations
`
`and
`
`testimony
`
`alleged
`
`in the
`
`earlier
`
`(Cummings)
`
`suit.
`
`be grossly
`faithful
`
`immaterial
`
`and
`
`to
`
`his
`
`verified
`
`At
`
`trial,
`
`Plaintiff
`
`s memorandum
`
`of
`
`law
`
`(trial
`
`Exhibit
`
`FFFFF),
`
`noted
`
`at pages
`
`3-4:
`
`"as
`
`9 of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`SUFFOLK
`COUNTY
`CLERK
`FILED:
`0 9 / 0 7 / 2 0 18
`0 2 : 2 9
`PM)
`NYSCEF
`NYSCEF DOC. NO. 465
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`10
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`of
`
`the
`
`close
`
`of
`
`the
`
`d/b/a
`
`for
`
`QSGI-CCSI
`
`transaction,
`Inc."
`
`CCSI
`
`ceased
`
`to exist
`
`as a distinct
`
`legal
`
`Followed
`
`by
`
`a chart
`
`showing
`
`that
`
`"after
`
`entity,
`the
`
`and
`closing:"
`
`became
`
`a
`
`CCSI
`
`became
`
`QSGI-CCSI,
`
`d/b/a
`
`CCSI.
`
`As
`
`another
`
`aside
`
`the Court
`
`focused
`
`on Plaintiffs
`
`responses
`
`to Liberty's
`
`Commercial
`
`Division
`
`Rule
`
`19-a
`
`Statement
`
`of Material
`
`Facts
`
`(the
`
`aforementioned
`
`deposition
`
`That
`
`was
`
`the
`
`closing
`transferred
`
`took
`
`place,
`as a wholly-owned
`
`testimony
`that CCSI
`
`whereby
`ceased
`
`Plaintiff
`
`to exist
`
`"responses"),
`admitted
`that
`
`which
`
`mirrored
`
`the
`
`the
`
`closing
`
`took
`
`place.
`
`entity;
`
`and
`
`its
`
`stock
`
`as an independent
`When
`
`questioned
`
`of QSGI.
`
`to the
`
`import
`
`of
`
`the Rule
`
`subsidiary
`of Material
`19 a Statement
`
`Facts
`
`it was
`
`statement
`
`of material
`
`facts
`
`other
`
`than
`
`to
`
`by
`
`the Court
`
`as
`
`suggested
`
`by
`suggest
`
`counsel
`
`that
`
`that
`
`for
`
`the
`
`Plaintiff
`
`is not
`
`bound
`
`purposes
`
`of
`
`the motion
`
`his
`
`by
`those
`
`facts
`
`are
`
`only
`
`offered
`
`by
`question
`
`the
`
`deemed
`
`an admission
`
`hoped,
`irrelevant.
`
`counsel
`
`and
`
`upon
`
`However,
`by Defendant
`bars
`Plaintiff
`was
`
`essentially
`if
`the Court
`a closing
`admission
`the
`
`as a stipulation
`
`and
`
`not
`
`to be
`
`applied
`
`Florida
`
`law
`
`as Plaintiff
`
`s
`
`place
`
`would
`
`become
`
`immaterial
`
`is fatal
`
`took
`
`Plaintiff.
`
`under
`
`Essentially,
`or not
`of whether
`New York
`
`law,
`the Court
`
`coverage.
`
`Once
`
`made
`
`a determination
`
`to
`
`change
`
`the
`
`of
`
`his
`
`case
`
`and
`
`contest
`
`that
`
`"the
`
`law,
`closing"
`
`required
`
`took
`
`place.
`
`This
`
`despite
`
`the
`
`fact
`
`the
`
`prior
`
`failing
`
`litigation,
`the
`to pay
`
`the
`
`Plaintiff
`
`bargained
`
`for
`
`steadfastly
`consideration.
`
`theory
`throughout
`that
`
`the
`
`litigation
`
`prosecuted
`
`his
`
`claims
`
`for
`
`as the
`relied
`exclusion
`New York
`to apply
`the
`fact
`
`history,
`breach
`
`inclusive
`
`of
`
`contract
`
`of
`
`in
`
`argues
`
`that
`
`Plaintiff
`
`changed
`
`its
`
`course
`
`at
`
`trial.
`
`its
`
`counsel
`
`improperly
`objected
`
`Defendant
`
`as noted
`
`convincingly
`in Defendant's
`
`to put
`
`on
`
`a case
`
`at
`
`trial
`
`submissions,
`centered
`
`In fact,
`allowed
`"mirage"
`
`that
`
`never
`
`and
`
`a total
`
`contradiction
`
`to
`
`Plaintiffs
`
`around
`
`the
`
`proposition
`
`that
`
`the
`
`to Plaintiff
`
`s counsel
`
`being
`like
`
`a
`
`was
`
`judicial
`
`closing
`formal
`
`counsel
`
`noted
`
`in the
`
`absence
`
`of
`
`the
`
`following:
`
`admissions
`
`prior
`
`to trial.
`
`happened,
`Defendant's
`
`Mr.
`
`Riconda's
`
`trial,
`have
`
`to
`
`to
`
`try
`admitted....
`
`attorney
`in
`put
`And
`
`permitted,
`which
`
`is not
`
`evidence
`now he
`
`during
`is
`
`contrary
`court
`
`comes
`
`into
`
`the jury
`
`the
`
`course
`
`of
`
`this
`
`to what
`
`they
`
`and
`
`tries
`
`That
`
`this
`
`to
`
`say
`is all
`
`a
`
`to
`
`this
`
`mirage.
`
`jury,
`That
`
`this
`
`transaction
`
`this
`
`never
`
`went
`
`happened.
`never
`on. He never
`
`So they
`which
`
`are
`
`does
`
`basically
`not
`have
`
`trying
`basis
`
`to create
`
`in fact
`
`or
`
`imagery
`their
`
`sold
`
`his
`
`company....
`
`before
`
`this
`
`Court,
`
`own
`
`admissions.
`
`On
`
`least
`
`the
`
`record,
`eight
`times
`
`Plaintiff
`
`s counsel
`
`then
`
`proceeded
`
`to
`
`admit
`
`at
`
`that
`
`the
`
`closing
`
`occurred,
`
`noting:
`
`10
`
`of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`CLERK
`COUNTY
`SUF FOLK
`IF ILED
`0 9 / 0 7 / 2 018
`0 2 : 2 9
`:
`PM1
`NYSCEF DOC. NO. 465
`NYSCEF
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`INDEX
`003655/2012
`NO.
`
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`11
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`John
`
`is
`
`scheduled
`
`question
`
`not
`
`going
`a closing
`is what's
`
`to
`
`get
`
`and
`what'
`
`at
`
`the
`
`"If
`
`you
`
`closing.
`
`is what
`
`at
`the way
`look
`We don't
`the
`effect
`
`deny
`was."
`
`this
`
`that
`3
`
`there
`
`up
`that
`effect?"
`
`certain
`7
`
`and
`
`deny
`things
`
`that
`
`he
`
`happened.
`
`went,
`The
`
`is, Riconda
`was
`there
`
`was
`
`president
`
`a closing;
`
`what
`
`after
`we
`
`the
`
`deny
`
`"John
`
`will
`
`a closing.
`
`was
`
`the
`
`and
`admit,
`We traded
`All
`those
`
`date.
`
`he's
`
`right
`
`signature
`
`here,
`pages
`
`he will
`
`say,
`advance.
`
`Sure,
`This
`
`in
`
`blanks,
`
`everyone
`
`signed
`
`it. Both
`
`there
`
`was
`
`7th
`July
`sides."9
`
`"So we
`
`don't
`
`dispute
`
`that
`
`that
`
`John
`
`a closing,
`to give
`
`and we don't,
`to come
`time
`you
`
`in
`
`dispute
`
`fact,
`up with
`put
`to
`
`the money,
`shares
`the
`
`work
`
`together
`
`was
`there
`I'm going
`of hold
`
`said,
`kind
`
`let's
`
`this
`
`in abeyance,
`time.
`you
`
`give
`
`the money.
`
`in a vault,
`you
`while
`
`and
`
`come
`
`I'
`
`I'll
`up with
`
`"After
`
`the
`
`[sought]
`
`a
`
`closing
`rescission"
`
`of
`
`transaction.
`the
`- which
`
`Well,
`is patently
`
`it closed,
`false.11
`
`I'm going
`Let's
`lo
`
`try
`
`to
`
`but we saw
`
`"I'm
`
`was
`
`not
`going
`closing."
`
`a
`
`to deny,
`12
`
`and
`
`John
`
`is not
`
`going
`
`to
`
`deny
`
`that
`
`there
`
`"He
`
`will
`
`not
`
`deny
`
`that
`
`he was
`
`the
`
`president
`
`of CCSI
`
`after
`
`7. Ex.
`
`1, Tr.
`
`3/23,
`
`at 203:9-12.
`
`8.
`
`Id.
`
`at 204:8-11.
`
`9.
`
`Id.
`
`at 204:16-20.
`
`10.
`
`Id.
`
`at 205:3-12.
`
`11.
`
`Id.
`
`at 206:15-16.
`
`12.
`
`Id.
`
`at 206:23-24.
`
`11
`
`of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`CLERK
`COUNTY
`F ILED
`SUF FOLK
`0 9 / 0 7 / 2 018
`:
`0 2 : 2 9
`EM|
`NYSCEF DOC. NO. 465
`NYSCEF
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`INDEX
`NO.
`003655/2012
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`12
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`closing.
`
`Absolutely
`
`not."
`
`13
`
`Upon
`
`all
`
`parties
`
`resting,
`
`Liberty
`
`petitioned
`
`the Court
`
`for
`
`a directed
`
`verdict.
`
`To wit:
`
`Mr.
`
`Riconda
`
`was
`
`a president
`
`after
`
`the
`
`the
`
`stock
`
`of CCSI
`
`of
`sale
`CCSI
`
`after
`
`as,
`
`the
`
`July
`result
`
`7, 2008
`is
`the
`
`and
`
`that whether
`
`you
`
`call
`
`it
`
`the
`
`or
`
`you
`
`call
`
`it QSGI-CCSI
`
`same,
`president
`
`he was
`
`of
`
`doing
`admits
`he
`of QSGI
`
`company
`business
`
`he was
`
`president,
`
`and
`
`as
`
`after
`
`he
`
`is
`
`the
`
`the
`
`position
`
`of
`
`the
`
`president,
`a subsidiary
`that makes
`
`insured
`
`person
`
`with
`
`respect
`
`to the
`
`applicability
`
`of
`
`the
`
`7th,
`July
`insurance
`company
`correct."
`
`exclusion
`
`correctly
`the Court
`
`points
`
`asked
`
`out
`
`that
`
`Plaintiff
`
`during
`s counsel
`
`the
`
`argument
`
`on
`
`Liberty's
`
`Motion
`
`for
`
`a
`
`to
`
`"address
`
`the
`
`allegation
`
`that
`
`the
`
`deal
`
`Defendant
`
`Directed
`closed."
`
`Verdict,
`The
`Court
`
`posed
`
`the
`
`that
`
`if
`
`the
`
`precludes
`
`deal
`closed,
`recovery?"
`
`if
`
`following
`he
`it closed,
`Although
`
`question
`
`to Plaintiff
`
`s counsel
`
`"would
`
`you
`
`concede
`
`is an insured
`
`and
`
`the
`
`insured
`
`versus
`
`insured
`
`exclusion
`
`the Court
`
`was
`
`not
`
`provided
`
`with
`
`a concise
`
`answer
`
`closing
`been
`
`remarks,
`an insured
`
`Plaintiff
`
`s counsel
`
`conceded
`
`that
`
`if
`
`the
`
`person
`
`under
`
`the
`
`policy
`
`and
`
`the
`
`exclusion
`
`deal
`
`closed,
`would
`preclude
`
`Plaintiff
`
`during
`have
`
`would
`
`recovery:
`
`there's
`
`no
`
`dispute
`
`that
`
`if
`
`this
`
`would
`
`have
`
`been
`
`an
`
`insured.
`
`deal
`Of
`
`went
`
`course
`
`nominated
`He would
`
`as a Director
`
`of
`
`have
`
`become
`
`would
`
`have
`
`owned
`
`his
`
`Now,
`
`there's
`
`according
`he would
`
`to
`
`have.
`
`no
`
`dispute,
`John
`plan
`He would
`
`have
`
`been
`
`QSGI.
`
`That
`
`was
`
`supposed
`
`to
`
`the
`
`president
`
`company.
`
`That
`
`plan.
`
`happen.
`and QSGI
`
`The
`
`Court
`
`made
`
`an
`
`inquiry
`during
`a directed
`verdict:
`
`Liberty's
`closing?"
`
`the
`
`Petition
`
`for
`
`of QSGI-CCSI,
`the
`was
`
`the
`
`course
`
`of Plaintiff
`
`s counsel's
`
`argument
`
`on
`
`"Don't
`
`conditions
`
`precedent
`
`have
`
`to happen
`
`before
`
`In the Court's
`
`mind,
`
`what
`
`Plaintiff
`
`s counsel
`
`depicted
`
`as a failure
`
`of a condition
`
`precedent
`
`"There
`
`to
`
`closing
`is a difference
`
`was
`
`actually
`between
`
`an alleged
`
`breach.
`
`The
`
`Court
`
`noted
`
`"That's
`
`a closing
`
`and
`
`a breach
`
`of
`
`contract.
`
`It's
`
`clearly
`
`a breach"...
`here."
`
`a breach
`
`13.
`
`Id.
`
`at 207:10-1
`
`1).
`
`14.
`
`Ex.
`
`5, Tr.
`
`3/29,
`
`at
`
`160:23-161:6).
`
`12
`
`of
`
`13
`
`

`

`FILED: SUFFOLK COUNTY CLERK 09/24/2018 06:44 PM
`CLERK
`COUNTY
`SUF FOLK
`[F ILED
`0 9 / 0 7 / 2 0 18
`0 2 : 2 9
`:
`PMl
`NYSCEF DOC. NO. 465
`NYSCEF
`DOC.
`NO.
`460
`
`INDEX NO. 003655/2012
`INDEX
`003655/2012
`NO.
`
`RECEIVED NYSCEF: 09/24/2018
`RECEIVED
`NYSCEF:
`09/07/2018
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`13
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`Ultimately
`to the
`
`jurors.
`
`the jury
`The
`
`placed
`
`rendered
`
`a verdict
`
`in favor
`
`of
`
`Plaintiff
`
`pursuant
`
`to interrogatories
`
`jury
`
`awarded
`
`Plaintiff
`
`$2,282,000.
`
`T