FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`SUPREME
`COUNTY
`
`OF THE
`COURT
`OF SUFFOLK
`
`STATE
`
`OF NEW YORK
`
`JOHN
`
`R. RICONDA
`
`Plaintiff,
`
`v.
`
`Index
`
`No.
`
`3655/2012
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`(Hon.
`
`Jerry
`
`Garguilo)
`
`INC.,
`
`Defendant.
`
`NOTICE
`
`OF APPEAL
`
`PLEASE
`
`TAKE
`
`NOTICE,
`
`that
`
`Plaintiff
`
`John
`
`R.
`
`Riconda
`
`appeals
`
`to
`
`Division
`
`of
`
`the
`
`Suy1o-1e
`
`Court
`
`of
`
`the
`
`State
`
`of New York,
`
`Second
`
`Judicial
`
`Department,
`
`the
`
`Decision
`
`of
`
`the
`
`Honorable
`
`Judge
`
`Garguile,
`
`dated
`
`September
`
`7,
`
`2018,
`
`and
`
`the
`
`Honorable
`
`Judge
`
`Garguilo,
`
`dated
`
`October
`
`4,
`
`2018,
`
`that
`
`was
`
`entered
`
`in
`
`the
`
`office
`
`of
`
`the
`
`Court,
`
`Suffolk
`
`County,
`
`on October
`
`2018.
`
`5,
`
`Dated:
`
`November
`
`1, 2018
`
`1 of 27
`
`Jo
`
`ua A. Berman
`
`Kimberly
`Laura
`WHITE
`
`A. Haviv
`
`R.
`
`Logsdon
`& CASE
`
`LLP
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`Esq.
`
`F. Breen,
`To: Thomas
`Peter
`Esq.
`Stroili,
`& LYNCH
`D'AMATO
`2 World
`Financial
`Center
`Street
`225
`Liberty
`New York, NY 10281
`212-909-2024
`Tel:
`TBreen@damato-lynch.com
`
`LLP
`
`& RYAN
`
`LLP
`
`Esq.
`Jacqueline
`Mandell,
`BORGEEST
`KAUFMAN
`Lake Drive
`200 Summit
`NY 10595
`Valhalla,
`Tel:
`914-449-1000
`jmandell@krbrlaw.com
`
`Counsel
`
`for Defendant
`
`2
`
`2 of 27
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`9npreme
`
`Gourt
`
`of
`
`t1e
`
`9tate
`
`of New Worlt
`
`Appellate
`
`Biniøion:
`
`Second
`
`hthicial
`
`Bepartment
`
`Informational
`
`Statement
`
`(Pursuant
`
`to 22 NYCRR
`
`1250.3
`
`- Civil
`
`[a])
`
`JOHN
`
`R. RICONDA
`
`Plaintiff,
`
`- against
`
`-
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.,
`
`Defendant.
`
`Case Type
`
`Civil Action
`
`CPLR article 75 Arbitration
`
`O CPLR article 78 Proceeding
`O Special Proceeding Other
`O Habeas Corpus Proceeding
`
`For Court of Original
`
`Instance
`
`Date Notice of Appeal Filed
`
`For Appellate Division
`
`Appeal
`O Original
`Proceedings
`O CPLR Article 78
`O Eminent Domain
`Labor Law 220 or 220-b
`Public Officers Law § 36
`Real Property Tax Law § 1278
`
`Transferred
`Proceeding
`O CPLR Article 78
`Executive Law § 298
`CPLR 5704 Review
`
`Review
`
`Judgment
`
`O Administrative
`O Declaratory
`O Family
`Court
`O Real
`(other
`
`Property
`than
`foreclosure)
`
`O Business
`O Domestic
`O Mortgage
`O Statutory
`
`Relationships
`
`Relations
`
`Foreclosure
`
`E Commercial
`O Election
`Law
`O Miscellaneous
`O Taxation
`
`M Contracts
`O Estate Matters
`O Prisoner
`Discipline
`O Torts
`
`& Parole
`
`Informational
`
`Statement
`
`- Civil
`
`3 of 27
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`Paper Appealed
`
`From (Check
`
`one only):
`
`Decree
`Judgement
`Order
`
`O Amended
`O Amended
`O Amended
`O Decision
`O Decree
`
`O Determination
`O Finding
`O Interlocutory
`O Interlocutory
`O Judgment
`
`Decree
`Judgment
`
`or
`
`one order
`than
`from more
`has been taken
`please
`of
`this notice
`of appeal,
`by the filing
`the below information
`for each such order
`or
`from on a separate
`of paper.
`appealed
`sheet
`O Resettled
`Order
`O Ruling
`O Other
`
`If an appeal
`judgment
`indicate
`judgment
`O Order
`M Order & Judgment
`O Partial Decree
`O Resettled
`Decree
`O Resettled
`Judgment
`
`(specify):
`
`Court:
`Dated:
`udge
`Stage:
`
`Court
`
`Supreme
`10/04/2018
`Jerry Garguilo
`in full):
`(name
`M Final O Post-Final
`O Interlocutory
`Prior Unperfected
`
`Suffolk
`
`County:
`Entered:10/05/2018
`Index No.: 3655/2012
`iiii Yes O No
`Trial:
`and Related Case Information
`
`Appeal
`
`If Yes:
`
`iiiil Jury O Non-Jury
`
`Are any appea!s
`If Yes, please
`set
`
`arising
`forth
`
`in the same
`the Appellate
`
`or proceeding
`action
`Division
`Case Number
`
`currently
`assigned
`
`in the court?
`pending
`to each such appeal
`
`O Yes B No
`
`whether
`indicate
`Where
`appropriate,
`and if so,
`the status
`of
`jurisdiction,
`
`there
`the case:
`
`is any related
`
`action
`
`or proceeding
`
`now in any court
`
`of
`
`this or any other
`
`Commenced
`Statute
`
`by: O Order
`to Show Cause O Notice
`of Petition
`commencement
`in the Appellate
`of proceeding
`authorizing
`
`O Writ
`Division:
`
`of Habeas Corpus
`
`Date Filed:
`
`Court:
`Judge
`
`Court:
`Judge
`
`Choose
`
`Court
`
`(name
`
`in full):
`
`Choose
`
`Court
`
`(name
`
`in full):
`
`Choose
`
`County
`
`of Transfer
`
`Date:
`
`Choose
`
`County
`
`County:
`Order
`
`County:
`Dated:
`
`is from an order,
`specify
`in this
`commenced
`under CPLR 5704,
`
`the relief
`court
`or
`transferred
`describe
`the
`
`briefly
`
`Insurance
`Defendant
`verdict.
`Subsequently,
`Liberty
`the trial court
`to CPLR 4404. On October
`4, 2018,
`from that Order.
`verdict.
`This
`is an appeal
`Appellant
`
`issued
`is
`
`If an appeal,
`Description:
`If the appeal
`from.
`appealed
`the paper
`describe
`briefly
`and whether
`If an original
`the motion
`was granted
`or denied.
`requested
`proceeding
`to CPLR 7804(g),
`describe
`the object
`of proceeding.
`If an application
`pursuant
`briefly
`to be reviewed.
`order
`the ex parte
`of
`nature
`On April 4, 2018 Plaintiff
`an animous
`John Riconda
`recieved
`jury
`Inc.
`filed a Motion
`to Set Aside
`the Verdict
`pursuant
`Underwriters,
`an order
`motion
`Defendant's
`and setting
`aside
`the jury
`granting
`reinstatement
`of
`the jury's
`verdict.
`seeking
`
`Informational
`
`Statement
`
`- Civil
`
`4 of 27
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`Issues:
`or application
`on the appeal,
`the issues proposed
`to be raised
`proceeding,
`Specify
`or modification
`for
`on appeal.
`relief
`to be advanced
`and the specific
`sought
`reversal,
`Whether the trial court erred in overturning a unanimous jury verdict after a two-week trial in substituting its own view of the credibility of the plaintiff's statements for
`that of the jury's under the guise of the principle of judicial estoppel;
`
`the grounds
`
`for CPLR 5704
`
`review,
`
`Whether the trial court erred in overturning a unanimous jury verdict after a two-week trial in applying judicial estoppel on a CPLR 4404 motion;
`
`Whether the trial court erred in overturning a unanimous jury verdict after a two-week trial in finding that deposition testimony that was used for impeachment at trial
`gave rise to judicial estoppel;
`
`Whether the trial court erred in ove-turning a unanimous jury verdict after a two-week trial in finding that an ambiguous statement made in a different lawsuit, that
`was settled before an answer was filed or a judge was assigned, and in which neither party prevailed, constituted judicial estoppel;
`Whether the trial court erred in overturning a unanimous jury verdict after a two-week trial in applying the doctrine of judicial estoppel when Liberty failed to raise
`such argument at trial and therefore waived any objection to the verdict on that basis;
`
`Whether the trial court erred in overturning a unanimous jury verdict after a two-week trial in entering an order in favor of Liberty without making any finding on the
`merits, including as to whether Liberty met its burden of proving that an exclusion to the insurance policy applied, and without ordering a new trial.
`
`Party
`
`Information
`
`Fill
`
`in the
`Instructions:
`to the
`of each
`name
`party
`in the court
`of
`the party
`the status
`indicate
`appeal,
`form is to be filed
`for a proceeding
`commêñced
`court.
`
`for an
`form is to be filed
`If this
`line.
`per
`name
`one
`or proceeding,
`action
`if any.
`If this
`in this court,
`of original
`its status
`and his, her, or
`instance
`in this
`fill
`in only
`and his, her, or
`its status
`in this
`the
`party's
`name
`court,
`
`Party Name
`
`Original
`
`Status
`
`John R. Riconda
`Liberty Insurance Undcreer|tcis,
`
`Inc.
`
`Plaintiff
`Defendant
`
`Division
`
`Status
`
`Appellate
`Appellant
`Respondent
`
`___.___
`
`.
`
`. .
`
`No.
`1
`2
`
`3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`
`Informational
`
`Statement
`
`- Civil
`
`5 of 27
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`Instructions:
`or
`of
`in the names
`Fill
`the attorneys
`or order
`notice
`of petition
`to show cause by which
`of
`the name
`the attorney
`for
`the petitioner
`only
`Se"
`the box marked
`"Pro
`must
`be checked
`himself,
`in the spaces
`provided.
`
`for
`firms
`a special
`proceeding
`need be provided.
`and the apprüpriate
`
`the
`If this form is to be filed with
`parties.
`the respective
`is to be commêñced
`in the Appellate
`Division,
`herself
`or
`In the event
`represents
`that
`a litigant
`information
`be supplied
`for
`that
`litigant must
`
`Zip: 10020
`
`O Government
`from table
`above):
`
`| Zip: 10281
`
`TBieei
`
`O Assigned
`
`O Governmêñt
`from table
`above):
`
`| State:
`jmandell@kbrlaw.com
`M Retained
`(set
`forth
`
`Name:
`
`NY
`
`Zip: 10595
`
`O Assigned
`
`party
`
`ñümbêr(s)
`
`O Government
`above):
`from table
`
`State:
`
`Zip:
`
`O Retained
`forth
`(set
`
`O Assigned
`
`party
`
`number(s)
`
`O Government
`from table
`above):
`
`Joshua A. Berman / White & Case LLP
`Name:
`Attorney/Firm
`1221 Avenue of the Americas
`Address:
`NY
`City: New York
`State:
`cease.com
`Joshua.Berman
`E-mail Address:
`E Retained
`O Assigned
`Type:
`Attorney
`Party or Parties Represented
`forth
`(set
`number(s)
`party
`Attorney/Firm
`Name:
`Thomas F. Breen / D'Amato & Lynch LLP
`2 World Financial Center, 225 Liberty Street
`Address:
`City: New York
`NY
`State:
`damato-lynch.com
`E-mail Address:
`M Retained
`Type:
`Attorney
`or Parties Represented
`forth
`(set
`Party
`number(s)
`party
`Jacqt!e!!ne Mandell / Kaufman Borgeest & Ryan LLP
`Name:
`Attorney/Firm
`200 Summit Lake Drive
`Address:
`City: Valhalla
`E-mail Address:
`Type:
`Attorney
`or Parties Represented
`Party
`] Attorney/Firm
`Address:
`City:
`E-mail Address:
`Type:
`Attorney
`or Parties Represented
`Party
`Attorney/Firm
`dress:
`City:
`E-mail Address:
`Type:
`Attorney
`or Parties Represented
`Party
`Attorney/Firm
`Address:
`City:
`E-mail Address:
`Type:
`Attorney
`or Parties Represented
`Party
`
`Name:
`
`Name:
`
`State:
`
`Zip:
`
`O Retained
`forth
`(set
`
`O Assigned
`
`party
`
`number(s)
`
`O GGvernmêñt
`above):
`from table
`
`State:
`
`Zip:
`
`O Retained
`forth
`(set
`
`O Assigned
`party
`numbêr(s)
`
`O Government
`from table
`above):
`
`Informational
`
`Statement
`
`- Civil
`
`6 of 27
`
`| Telephone
`
`No: 212-819-8547
`
`O Pro Se
`1
`
`O Pro Hac Vice
`
`| Te|êphGñé
`
`No: 212-909-2024
`
`O Pro Se
`2
`
`O Pro Hac Vice
`
`Telephone
`
`No: 914-449-1000
`
`O Pro Se
`2
`
`O Pro Hac Vice
`
`Telephone
`
`No
`
`O Pro Se
`
`O Pro Hac Vice
`
`| Telephañê
`
`No:
`
`O Pro Se
`
`O Pro Hac Vice
`
`| Telephone
`
`No:
`
`O Pro Se
`
`O Pro Hac Vice
`
`

`

`CLERK
`COUNTY
`SUFFOLK
`: 59
`12
`018
`10 /05
`|FILED:
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`/2
`PM|
`NYSCEF
`471
`DOC.
`NO.
`NYSCEF DOC. NO. 473
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`RECEIVED
`NYSCEF:
`10/05/2018
`RECEIVED NYSCEF: 11/01/2018
`
`STATE
`
`OF NEW YORK
`
`SUPREME
`OF THE
`COURT
`COUNTY
`OF SUFFOLK
`-------------------------------------X
`
`JOHN
`
`R. RICONDA
`
`:
`:
`
`.
`
`:
`
`Index
`
`No.:
`
`003655/2012
`
`Honorable
`
`Jerry
`
`Garguilo
`
`NOTICE
`
`OF ENTRY
`
`Plaintiff,
`
`vs.
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`--------
`
`-----------------------------x
`
`Defendant.
`
`PLEASE
`
`TAKE
`
`NOTICE
`
`that
`
`annexed
`
`hereto
`
`is a true
`
`and
`
`correct
`
`copy
`
`of an Order
`
`entered
`
`in this
`
`action
`
`in the Office
`
`of
`
`the Clerk
`
`of
`
`the Supreme
`
`Court,
`
`Suffolk
`
`County
`
`on the
`
`4th
`
`day
`
`of October,
`
`2018.
`
`Dated:
`
`October
`5, 2018
`New York,
`New York
`
`To:Counsel
`Joshua
`
`for
`Plaintiff
`A. Berman,
`Esq.
`A. Haviv,
`Esq.
`Kimberly
`Laura
`R. Logsdon,
`Esq.
`& CASE
`WHITE
`LLP
`1221
`Avenue
`of
`the Americas
`NY 10020
`New York,
`Tel:
`819-8547
`(212)
`Joshua.Berman@whitecase.com
`
`#1709930y l
`
`Yours,
`
`etc.,
`
`D'AMATO
`
`& LYNCH,
`
`LLP
`
`By:
`
`Peter
`
`Thomas
`Attorneys
`
`A. Stroili
`F. Breen
`for Defendant
`Insurance
`Liberty
`Two World
`Financial
`NY 10281
`New York,
`909-2093
`(212)
`
`Underwriters,
`Center
`
`Inc.
`
`1 o f
`5
`7 of 27
`
`

`

`CLERK
`COUNTY
`SUFFOLK
`: 59
`12
`018
`10 /05
`|FILED:
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`/2
`PMI
`NYSCEF
`471
`DOC.
`NO.
`NYSCEF DOC. NO. 473
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`RECEIVED
`NYSCEF:
`10/05/2018
`RECEIVED NYSCEF: 11/01/2018
`
`Co-Counsel
`Jacqueline
`KAUFMAN
`Summit
`200
`
`Valhalla,
`Tel.:
`(914)
`jmandell
`
`for
`
`Defendant
`Esq.
`Mandell,
`BORGEST
`Lake
`Drive
`NY 10595
`449-1000
`krbrlaw.com
`
`& RYAN LLP
`
`#I709930v1
`
`2
`5
`of
`8 of 27
`
`

`

`10/05/2018
`CLERK
`COUNTY
`SUFFOLK
`12:59
`|FILED:
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`PM|
`AM]¯
`COUNTY
`CLERK
`10/05/2018
`10:02
`N†]piEhE
`SjPEF0faK
`rr
`NYSCEF DOC. NO. 473
`.
`NYSCEF
`DOC.
`NO.
`462
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`SCÊÊ36
`/
`1
`RECE
`22018
`RECEIVED NYSCEF: 11/01/2018
`RECEIVED
`NYSCEF:
`10/05/2018
`
`E-FILE
`
`SUPREME
`COL !NTY
`---
`- - ----
`
`COURT
`OF THl?
`OF SUFFOLK
`- - - - ---
`
`--
`
`STATE
`
`OF NEW YORK
`
`- - - - --
`
`- - - -------
`
`- --x
`
`( nurt
`of
`the state
`.md lm the(
`ount
`New York
`on the
`
`of New York
`hus
`dq o
`
`held
`
`JOHN
`
`R. RICONDA
`
`Plaintiff,
`
`vs.
`
`:
`
`Index
`
`No.:
`
`003655/2012
`
`: Honorable
`
`Jerry Garguilo
`
`ORDER
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`-
`
`- - - - - --
`
`- ---
`
`- -
`
`-
`
`--
`
`-
`
`--
`
`- -------------
`
`--
`
`-x
`
`Defendant.
`
`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
`
`Defendant
`
`"Complaint"),
`
`and
`
`having
`
`answered
`
`the
`
`Complaint
`
`on
`
`ctober
`
`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
`
`Judgment
`
`As A Matter
`
`ofI
`
`aw To Liberty
`
`Or For A New Trial
`
`Or, Alternatively,
`
`To Reduce
`
`The
`
`Jury Verdict
`
`#1702678vl
`
`1 of
`
`3
`
`of
`5
`3
`9 of 27
`
`

`

`CLERK
`COUNTY
`10 /05
`018
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`P
`:59
`lFTT.RD
`:
`STTFFOT.K
`/2
`_12
`Y CLEKK
`.½pyF
`K COUNT
`10:02
`10/05/'201ti
`N
`NYSCEF DOC. NO. 473
`DOC.
`NYSCEF
`NO.
`462
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`0Ó018
`NYSCE
`RECE
`:
`RECEIVED NYSCEF: 11/01/2018
`10/05/2018
`NYSCEF:
`RECEIVED
`
`("the
`
`motion");
`
`and
`
`having
`
`filed
`
`the Affirmation
`
`of Peter
`
`A. Stroili
`
`in support
`
`of
`
`the motion,
`
`inclusive
`
`of Exhibits
`
`1 through
`
`7 andAthrough
`
`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
`
`5, 2018,
`
`Defendant
`
`having
`
`filed
`
`Affirmation
`
`of Peter A.
`
`the Reply
`
`Stroili,
`
`inclusive
`
`of Exhibits
`
`A through
`
`G; and Reply
`
`Memorandum
`
`of Law
`
`in further
`
`support
`
`of
`
`the motion
`
`(NYSCEF
`
`Nos.
`
`447-455);
`
`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
`
`County)
`
`issued
`
`its Decision
`
`and Order
`
`("the
`
`Decision,"
`
`annexed
`
`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
`
`ORDERED
`
`of
`
`rendered
`
`on April
`
`in this
`
`action
`
`that
`
`the verdict
`
`the jury
`
`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
`
`2 of
`
`3
`
`of
`4
`5
`10 of 27
`
`

`

`CLERK
`COUNTY
`SUFFOLK
`12
`57 2 018
`10 /0
`[FILED:
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`: 5 9
`PM|
`COUNTY
`CLERK
`10/05/2018
`N†EBEEEDOC.SUF.FGTE
`02
`10:
`NYSCEF DOC. NO. 473
`AMI
`NYSCEF
`DOC.
`NO.
`469;
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`/
`C p361
`RECE
`122018
`RECEIVED NYSCEF: 11/01/2018
`10/05/2018
`RECEIVED
`NYSCEF:
`
`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.
`
`GRANTED
`
`OCT
`
`0 4 2018
`
`JudRhA.
`SERKOFSUFFOLK
`
`Pascale
`
`OCUM
`
`SO ORDERED.
`
`HO
`
`JE
`
`GARGUIL
`
`O
`
`#1702678vl
`
`3
`
`3 of
`
`3
`
`5 of
`5
`11 of 27
`
`

`

`COUNTY
`CLERK
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`ILED
`SUF FOLK
`0 9 /10
`/ 2 018
`:
`[F
`NYSCEF DOC. NO. 473
`NYSCEF
`DOC.
`NO.
`
`461
`
`INDEX NO. 003655/2012
`0 8 : 16
`PM|
`RECEIVED NYSCEF: 11/01/2018
`RECEIVED
`
`SUPREME
`COUNTY
`
`OF THE STATE
`COURT
`OF SUFFOLK
`
`OF NEW YORK
`
`JOHN
`
`R. RICONDA
`
`Plaintiff,
`
`v.
`
`Index
`
`No.
`
`3655/2012
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`(Hon.
`
`Jerry
`
`Garguilo)
`
`INC.,
`
`Defendant.
`
`NOTICE
`
`OF ENTRY
`
`PLEASE
`
`TAKE
`
`NOTICE
`
`that
`
`the
`
`*
`
`A.-d
`
`is
`
`a
`
`true
`
`copy
`
`of
`
`an Order
`
`that
`
`was
`
`entered
`
`in
`
`the
`
`office
`
`of
`
`the
`
`Clerk
`
`of
`
`the
`
`Supreme
`
`Court,
`
`Suffolk
`
`County,
`
`day
`
`of
`
`September,
`
`2018.
`
`Dated:
`
`September
`
`10,
`
`2018
`
`Jo
`
`ua A. Berman
`
`A. Haviv
`
`Kimberly
`Laura
`WHITE
`
`R.
`
`Logsdon
`& CASE
`Avenue
`of
`1221
`the
`NY 10020
`New York,
`212-819-8547
`Tel:
`
`LLP
`
`Americas
`
`12 of 27
`
`Joshua.Berman@whitccase.com
`
`Counsel
`
`for
`
`Plaintry
`
`

`

`CLERK
`COUNTY
`SUFFOLK
`08
`09/10/2018
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`: 16
`(FILED:
`PM)
`461
`NYSCEF
`NO.
`DOC.
`NYSCEF DOC. NO. 473
`
`003655/2012
`INDEX
`NO.
`INDEX NO. 003655/2012
`RECEIVED
`NYSCEF:
`09/10/2018
`RECEIVED NYSCEF: 11/01/2018
`
`& RYAN
`
`LLP
`
`Mandell
`Jacqueline
`BORGEEST
`KAUFMAN
`Lake
`Drive
`200 Summit
`NY 10595
`Valhalla,
`Tel:
`914-449-1000
`jmandell@krbrlaw.com
`
`Counsel
`
`for Defendant
`
`2
`
`of
`2
`15
`13 of 27
`
`

`

`manar
`CGENET
`SUFP0EK
`agfag#2018
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`@8::329
`550
`C.. sp.. MD
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`9
`RE©itIrci
`&
`WK%tW::
`RECEIVED NYSCEF: 11/01/2018
`
`SHORT FORM ORDER
`
`INDEX
`
`NO.
`
`3655/2012
`
`COMMERCIAL
`
`SUPREME
`DIVISION
`
`COURT
`
`IAS
`
`- STATE
`PART
`
`OF NEW YORK
`- SUFFOLK
`48
`
`COUNTY
`
`PRESENT:
`
`JERRY
`IION.
`SUPREME
`
`GARGUILO
`COURT
`JUSTICE
`
`ORIG.
`FINAL
`MOTION
`MOTION:
`
`RETURN
`SUBMITTED
`SE@l5
`MG
`
`5/23/18
`DATE:
`DATE:
`6/20/18
`
`JOHN R. RICONDA,
`
`Plaintiff,
`
`- against
`
`-
`
`LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.,
`
`Defendant.
`
`ATTORNEY:
`PLAINTIFF'S
`WHITE
`& CASE LLP
`1221 AVENUE
`OF THE AMERICAS
`NEW YORK,
`NEW YORK
`10020
`
`DEFENDANT'S
`ATTORNEY:
`& LYNCH
`D'AMATO
`LLP
`225 LIBERTY
`STREET
`NEW YORK,
`NEW YORK
`
`10281
`
`Defendant,
`the
`Verdict
`
`set
`
`aside
`
`a matter
`
`of
`
`application
`
`law;
`in all
`
`Liberty
`against
`rendered
`a new trial;
`
`or
`
`for
`
`Insurance
`
`Underwriters,
`it on May
`or
`to
`reduce
`
`Inc.
`
`4, 2018
`the
`
`("Liberty"),
`and
`direct
`
`Jury
`
`Verdict.
`
`petitions
`
`the Court
`
`judgment
`
`in its
`
`favor
`
`to
`
`as
`
`Plaintiff
`
`opposes
`
`the
`
`respects.
`
`In making
`
`its
`
`determination,
`
`the Court
`
`has
`
`considered
`
`the
`
`following
`
`submissions:
`
`1.
`
`2.
`
`3.
`
`Defendant's
`As A Matter
`of Exhibits
`inclusive
`
`Notice
`of Law
`
`of Motion
`To Liberty;
`1 through
`
`To Set Aside
`
`The
`
`Verdict
`
`and Direct
`
`Judgment
`
`Affirmation
`7 and A through
`
`Stroili
`of Peter
`A.
`BB and Memorandum
`
`In Support,
`of Law
`
`In Support;
`Plaintiff
`
`s Memorandum
`
`Defendant's
`Reply
`and Memorandum
`
`of Law
`
`In Opposition;
`A.
`of Peter
`Affirmation
`of Law In Reply.
`
`and
`
`Stroili
`
`with
`
`Exhibits
`
`A through
`
`G
`
`The
`Law
`
`statutory
`and
`
`Rules
`
`Practice
`
`set
`
`it aside
`
`or
`
`(2)
`
`order
`
`either
`and
`a new trial
`
`(1)
`on
`
`framework
`§ 4404(a).
`judgment
`grant
`
`within
`
`which
`
`Defendant
`
`seeks
`
`relief
`
`is
`
`found
`
`at Civil
`
`It provides
`
`that
`
`after
`
`a verdict
`
`to which
`
`the
`
`ground
`
`that
`
`the
`
`verdict
`
`is entitled
`
`a party
`is "contrary
`
`is rendered
`it as a matter
`
`the
`
`to
`
`court
`
`of
`
`can
`
`law
`
`to the weight
`
`of evidence".
`
`a etE n
`14 of 27
`
`

`

`SUFFOLK
`COUNTY
`CLERK
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`09/B0
`IFILED:
`/2
`NYSCEF DOC. NO. 473
`NYSCEF
`DOC.
`NO.
`
`460
`
`018
`
`INDEX NO. 003655/2012
`08
`: 29
`PM|
`RECEIVED NYSCEF: 11/01/2018
`RECEIVED
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`2
`
`As
`
`is
`
`its
`
`Treatise
`
`Series,
`
`habit,
`David
`
`the
`
`Court
`
`has
`
`consulted
`
`New York
`
`Practice,
`
`Fifth
`
`Edition
`
`D.
`
`Siegel,
`
`West
`
`Publishing.
`
`Professor
`
`Siegel
`
`notes
`
`The
`
`judge
`
`is
`
`authorized
`
`to
`
`grant
`
`judgment
`
`as
`
`a "matter
`
`when
`
`[he/she]
`
`believes
`
`that
`
`on this
`
`record
`
`reasonable
`
`law"
`
`of
`
`minds
`
`only
`
`could
`
`not
`
`differ
`
`and
`
`there
`
`is
`
`therefore
`
`only
`minds
`
`the
`
`differ
`
`jury
`
`can
`
`about
`
`go.
`
`The
`
`whether
`
`difficulty
`
`reasonable
`
`is
`
`that
`
`reasonable
`
`one way
`may
`
`minds
`
`may
`
`differ,
`
`and
`
`among
`
`them
`
`may
`
`the
`
`reasonable
`
`minds
`
`that
`
`inhabit
`
`the
`
`appellate
`
`court.
`
`If
`
`the
`
`trial
`
`grants
`
`judgment
`
`for
`
`a
`
`side
`
`under
`
`CPLR
`
`4401
`
`without
`
`a jury
`
`pass
`
`on
`
`the
`
`issues,
`
`an
`
`appellate
`
`court
`
`that
`
`disagrees
`
`court
`
`letting
`
`with
`
`the
`
`judges's
`
`action
`
`has
`
`no
`
`verdict
`
`to
`
`reinstate
`
`therefore
`
`order
`
`a new
`
`the
`
`earlier
`
`one.
`
`must
`
`and
`
`But
`
`trial
`
`court
`
`waits
`
`until
`
`a verdict
`
`is
`
`in,
`
`saving
`
`its
`
`action
`
`for
`
`trial,
`
`wasting
`
`the
`if
`CPLR
`
`4404
`
`and
`
`jury
`
`the
`
`has
`
`a
`
`verdict
`
`to
`
`reinstate.
`
`granting
`have
`found
`
`the
`
`other
`
`judgmentnotwithstanding
`
`the
`
`verdict
`
`(should
`
`way),
`
`This
`
`a disagreeing
`no
`small
`
`is
`
`appellate
`
`economy,
`
`court
`
`and
`
`accounts
`
`for
`
`the
`
`widespread
`
`practice
`
`among
`
`tried
`
`case
`
`go
`
`to
`
`the
`
`jury
`
`before
`
`ruling
`
`fully
`judgment.
`
`judges
`
`on
`
`of
`
`letting
`a motion
`
`for
`
`Court
`
`allowed
`
`case
`
`be
`
`submitted
`
`to
`
`the
`
`jury.
`
`This
`
`the
`
`to
`
`Defendant's
`
`application
`
`as
`
`noted
`
`hereinabove
`
`seeks
`
`one
`
`of
`
`(1)judgment
`
`as
`
`a matter
`
`of
`
`law;
`
`(2)
`
`a new
`
`trial;
`
`or
`
`(3)
`
`to
`
`reduce
`
`the
`
`jury
`
`verdict.
`
`March
`
`Preceding
`
`6,
`
`2018,
`
`trial,
`
`this
`
`matter
`
`was
`
`the
`
`subject
`
`of
`
`comprehensive
`
`motion
`
`this
`
`Court
`
`issued
`
`a Short
`
`Form
`
`Order
`
`which
`
`noted:
`
`This
`
`is an
`
`and
`
`recover
`action
`to
`15 of 27
`of
`
`breach
`
`the
`
`damages
`
`for
`
`breach
`
`of
`
`contract,
`
`bad
`
`covenant
`
`of
`
`good
`
`faith
`
`and
`
`fair
`
`

`

`CLERK
`COUNTY
`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`ILED
`SUF FOLK
`09/EU
`/2018
`:
`IF
`NYSCEF DOC. NO. 473
`NYSCEF
`DOC.
`NO.
`
`460
`
`INDEX NO. 003655/2012
`08
`: 2 9
`PM|
`RECEIVED NYSCEF: 11/01/2018
`RECEIVED
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`3
`
`11716.
`
`At
`
`that
`
`time,
`
`the
`
`plaintiff
`
`was
`
`the
`
`president
`
`and
`
`owner
`
`of CCSI.
`
`The
`
`Stock
`
`Purchase
`
`Agreement
`
`between
`
`QSGI-CCSI,
`
`Inc.
`
`and
`
`QSGI,
`
`as
`
`executed
`
`by
`
`all
`
`parties
`
`buyers,
`in May
`
`and
`
`the
`
`plaintiff,
`
`as
`
`seller,
`
`was
`
`of
`
`2008.
`
`Pursuant
`
`to
`
`an
`
`insurance
`
`renewal
`
`the
`
`defendant
`
`issued
`
`Directors
`
`application
`& Officers
`
`filed
`
`by
`
`QGSI,
`
`No.
`
`Inc.,
`D04N386075004
`
`effective
`
`the
`
`a
`
`closing
`
`freestanding
`
`business
`
`July
`
`8,
`
`the
`
`of
`
`sale
`
`on
`
`company
`as CCSL
`
`After
`
`to
`
`QSGI,
`
`2008
`
`to
`
`July
`
`Inc.
`
`8,
`
`of
`
`2009
`
`Policy
`New
`Hightstown,
`D&O policy)...
`CCSI
`
`ceased
`
`to
`
`(the
`
`Jersey,
`
`After
`
`exist
`
`QSGI-CCSI,
`
`Inc.,
`
`doing
`
`2008,
`
`July
`7,
`and
`became
`QG SI,
`the
`
`Inc.
`
`failed
`
`to
`
`pay
`of CCSI,
`
`the
`
`plaintiff
`
`QGSI,
`
`Inc.
`
`the
`
`agreed
`
`compensation
`
`for
`
`purchase
`
`declared
`
`bankruptcy...
`
`(emphasis
`
`added)
`
`plaintiff
`
`commenced
`
`an
`
`action
`
`against
`
`the
`
`Thereafter,
`
`the
`
`directors
`
`breach
`
`Court,
`
`action).
`
`insurer,
`
`and
`
`officers
`
`of QGSI,
`
`Inc.
`
`for
`
`fraud,
`
`self-dealing
`
`and
`
`of
`
`fiduciary
`
`duty
`
`entitled
`
`Riconda
`
`Suffolk
`
`County,
`
`Index
`
`No.
`
`v Sherman,
`11-6678
`
`(the
`
`Supreme
`
`underlying
`
`Despite
`
`requests
`
`by
`
`the
`
`defendants
`
`in
`
`said
`
`action,
`
`the
`
`defendant
`
`herein,
`
`disclaimed
`
`coverage.
`
`their
`
`The
`
`underlying
`Cummings
`
`L.
`
`action
`
`was
`
`settled
`
`when,
`
`among
`
`other
`
`(Cummings),
`
`a
`
`former
`
`officer
`
`things,
`of QSGI
`
`Edward
`
`and
`
`entered
`
`a confession
`
`defendant
`
`judgment
`
`in
`
`in
`
`the
`
`favor
`
`underlying
`of
`
`action,
`
`the
`
`plaintiff,
`
`into
`
`and
`
`assigned
`
`his
`
`right
`
`proceed
`
`against
`
`as
`
`an
`
`insured
`
`in
`
`the
`
`the
`
`defendant
`
`for
`
`the
`
`failure
`
`to
`
`indemnify
`
`him
`
`underlying
`
`action
`
`to
`
`the
`
`plaintiff.
`
`The
`
`instant
`
`action
`
`was
`
`commenced
`
`by
`
`the
`
`plaintiff
`
`against
`
`the
`
`defendant,
`
`as Cumming's
`16 of 27
`
`has
`
`breached
`
`the
`
`contract
`
`assignee,
`
`of
`
`insurance
`
`alleging
`and
`
`that
`
`the
`
`defendant
`
`the D&O policy
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`PTTRDt
`SUF5%TX
`camps
`CUQRWT
`ns
`/
`//It;
`NYSCEF DOC. NO. 473
`NESCEF
`EO©..
`N©..
`
`4106©
`
`4t ua
`
`INDEX NO. 003655/2012
`
`n
`RECEIVED NYSCEF: 11/01/2018
`
`nm a n pp
`
`M1% WE!fdifY:
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`4
`
`essence,
`
`Riconda
`
`as
`
`the
`
`assignee
`
`of
`
`an
`
`insured
`
`was
`
`suing
`
`the
`
`insurer
`
`to
`
`defend
`
`against
`
`claims
`
`brought
`
`by
`
`Riconda.
`
`The
`
`history
`
`Plaintiff
`
`sale
`
`of
`
`originally
`company.
`
`his
`
`of
`
`this
`commenced
`
`litigation,
`
`inclusive
`
`of
`
`an
`
`action
`
`for
`
`breach
`
`the
`
`of
`
`It
`
`is
`
`apparent
`
`to
`
`the
`
`underlying
`
`litigation,
`
`That
`
`contract
`
`contract.
`
`case
`
`traction.
`
`change
`
`At
`
`that
`
`point
`
`in
`
`time,
`
`as
`
`a matter
`
`of
`
`strategy,
`
`in
`
`direction
`
`led
`
`to
`
`the
`
`negotiation
`
`of
`
`the
`
`assignment
`
`Court,
`
`that
`
`covenant
`
`not
`
`to
`
`enforce
`
`a
`
`confession
`
`Cummings
`
`and
`
`Riconda.
`
`only
`
`entity
`
`with
`
`"deep
`
`That
`pockets"
`
`change
`
`was
`
`of
`
`of
`
`judgment
`
`strategy
`
`Defendant,
`
`duly
`was
`Liberty.'
`
`(the
`
`Riconda
`
`underlying
`changed
`by Cummings
`and
`negotiated
`
`executed
`
`prompted
`
`by
`
`the
`
`realization
`
`Throughout
`
`the
`
`pre-trial
`
`and
`
`the
`
`exclusion
`
`relied
`
`upon
`
`coverage
`
`was
`
`found
`
`at
`
`section
`
`5.6
`
`trial,
`of
`
`the
`
`policy
`
`(the
`
`insured
`
`by Defendant
`versus
`insured
`
`Section
`
`5
`
`reads
`
`as
`
`follows:
`
`5.
`
`Exclusions:
`
`The
`
`insurer
`
`shall
`
`not
`
`be
`
`liable
`
`to make
`
`any
`
`payment
`
`for
`
`loss
`
`in
`
`connection
`
`with
`
`any
`
`claim:
`
`5.6
`
`brought
`
`organization
`
`or
`
`to
`
`maintained
`
`by
`
`or
`
`on
`
`behalf
`
`of
`
`the
`
`insured
`
`any
`
`insured
`
`person,
`
`in
`
`any
`
`capacity.
`
`On
`
`July
`
`8,
`
`2008,
`
`Liberty
`
`issued
`
`a
`
`renewal
`
`executive
`
`advantage
`
`period
`
`or
`about
`& Officers
`and
`
`through
`
`(Directors
`
`2008
`
`8,
`
`5.6
`
`also
`
`be
`
`of
`
`the
`
`Policy
`
`"insurer
`
`brought
`
`insured
`
`shall
`
`not
`
`or maintained
`
`organization,
`
`Policy)
`
`to QSGI,
`
`including
`known
`
`July
`
`8,
`
`Inc.
`
`2009.
`
`("QSGI")
`As
`
`noted
`
`as
`
`the
`
`Insured
`
`versus
`
`for
`
`the
`
`policy
`
`commencing
`
`above,
`
`Insured
`
`the
`
`exclusion
`
`Exclusion
`
`provided
`
`liable
`
`by...
`
`QSGI
`
`to make
`
`any
`
`payment
`
`for
`
`loss
`
`in
`
`connection
`
`any
`
`or
`
`any
`17 of 27
`
`insured
`subsidiary."
`
`person
`
`defined
`No party
`
`as
`
`an
`
`raised
`
`officer
`"ambiguity"
`
`or
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`5
`
`for
`
`the
`
`acquisition
`
`of
`
`his
`
`company,
`
`CCSI.
`
`Those
`
`negotiations,
`
`resulted,
`
`stock
`
`purchase
`
`agreement.
`
`The
`
`agreement
`
`provided
`
`for
`
`the
`
`purchase
`
`of
`
`all
`
`in May
`of
`
`outstanding
`
`wholly
`
`provided
`
`owned
`
`with
`
`shares
`
`of CCSI
`
`(Plaintiff
`
`of
`
`subsidiary
`a $10
`
`million,
`
`the
`insured,
`10% convertible
`
`s company)
`QSGI.
`
`by QSGI-CCSI,
`
`Inc.
`
`("QSGI-CCSI"),
`
`In
`
`consideration
`
`for
`
`the
`
`transfer
`
`Note.
`
`That
`
`Note
`
`was
`
`subordinated
`
`obligation
`
`to
`
`an
`
`known
`
`Park
`
`QSGI
`
`entity
`
`as
`
`Victory
`
`Park.
`
`Victory
`
`provided
`
`credit
`
`line.
`
`It
`
`is
`
`undisputed
`
`that
`
`the
`
`Stock
`
`Purchase
`
`Agreement
`
`"would
`
`resign
`
`as Chief
`
`Executive
`
`Officer
`
`as
`
`president
`
`to
`
`run
`
`the
`
`day-to-day
`
`operations
`
`of
`
`the
`
`of CCSI,
`company."
`
`but
`
`he would
`
`(emphasis
`
`revolving
`Riconda
`
`million
`
`that
`
`Mr.
`
`employed
`
`Riconda
`documents"
`
`Worthy
`
`of mention
`
`is
`
`the
`
`fact
`
`that
`
`with
`
`the
`
`executed
`
`and
`
`entered
`
`into
`
`various
`
`July
`7,
`documents
`
`2008
`
`closing
`
`referred
`
`an
`
`employment
`
`agreement
`
`with
`
`of
`
`to
`
`the
`
`as
`INC
`
`Additionally,
`
`Employment
`
`employed
`
`Furthermore,
`
`a wholly
`
`resigned
`
`including
`
`transition
`
`Agreement
`
`documents
`
`were
`
`executed
`
`at
`
`the
`
`closing,
`
`which
`
`QSGI-CCSI,
`
`with
`
`QSGI-CCSI,
`
`that
`
`provided
`
`Riconda
`
`by
`
`the
`
`the
`
`company
`
`transition
`
`owned
`
`subsidiary
`
`[QSGI-CCSI,
`
`documents
`
`of QSGI
`
`clearly
`2
`
`as
`
`Inc,
`
`d/b/a
`
`Inc.,
`
`d/b/a
`
`CCSI,
`
`CCSI]
`
`as
`
`president
`
`established
`
`that
`
`QSGI-CCSI,
`
`of
`
`d/b/a
`
`well
`
`as
`
`a
`
`resignation
`
`letter,
`
`whereby
`
`"from
`
`all
`
`positions
`
`held
`
`as
`
`an
`
`officer
`
`of
`
`[CCSI]
`
`his
`
`prior
`
`company
`
`position
`
`of
`
`President
`
`effective
`
`immediately.
`
`(emphasis
`
`added)
`
`It
`
`is
`
`undisputed
`
`that
`
`QSGI
`
`filed
`
`on
`
`the
`
`Securities
`
`a result
`
`QSGI
`
`of
`Inc."
`
`Exchange
`
`Commission
`
`the
`
`acquisition,
`
`John
`
`disclosing
`R. Riconda
`
`the
`
`of
`
`day
`completed
`
`the
`
`closing
`
`a
`
`schedule
`
`acquisition
`
`and
`
`has
`
`joined
`
`the
`
`executive
`
`management
`
`As
`
`alluded
`
`to
`
`Plaintiff
`
`on
`
`earlier,
`commenced
`
`June
`
`2009
`
`10,
`
`a lawsuit
`
`approximately
`QSGI.
`
`against
`
`11 months
`
`after
`
`In
`
`essence,
`
`its
`
`obligations
`
`under
`18 of 27
`the
`
`Note
`
`(defaulted
`
`in
`
`payment).
`
`alleging
`As
`
`transaction,
`
`breached
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`6
`
`company
`
`rescinding
`
`(Cummings)
`
`confession
`
`bought..."
`
`it
`
`No
`
`court
`
`issued
`
`the
`
`transaction.
`
`Instead,
`
`any
`Riconda
`
`order
`
`in
`
`connection
`
`with
`
`the
`
`negotiated
`
`with
`
`a
`
`Defendant
`
`to
`
`take
`
`an
`
`assignment
`
`of
`
`rights
`
`and
`
`step
`
`into
`
`his
`
`shoes
`
`in
`
`of
`
`judgment
`
`containing
`
`a covenant
`
`not
`
`to
`
`enforce.
`
`On or
`
`about
`
`February
`
`Edward
`
`complaint
`
`L.
`
`Cummings,
`
`in
`
`that
`
`action
`
`et
`
`al,
`
`(Exhibit
`
`25,
`
`in
`
`2011,
`
`Plaintiff
`
`Supreme
`
`Court,
`
`brought
`
`an
`
`action
`
`against
`
`Suffolk
`
`County.
`
`In
`
`paragraph
`
`D),
`
`Plaintiff
`
`alleged:
`
`In
`4.
`QSGI
`
`2008
`
`July
`in which
`
`Riconda,
`
`as
`
`CCSI
`
`QSGI...
`
`John
`
`Riconda
`
`consummated
`
`a transaction
`
`seller,
`To
`
`agreed
`
`to
`
`sell
`
`the
`
`stock
`
`the
`
`with
`
`and
`
`QSGI
`
`assets
`
`placed
`
`of
`
`100%
`
`of
`
`to
`
`the
`
`collateralize
`
`Note,
`
`capital
`
`stock
`
`of CCSI,
`
`in
`
`escrow,
`
`pursuant
`
`to
`
`a pledge
`
`and
`
`escrow
`
`agreement
`
`dated
`
`July
`
`7,
`
`2008.
`
`During
`
`the
`
`course
`
`ofthe
`
`trial
`
`(March
`
`28,
`
`2018)
`
`the
`
`following
`
`question
`
`Riconda:
`
`Q.
`
`So
`
`the
`
`transaction
`
`on
`
`that
`
`date
`
`was
`
`consummated,
`
`correct?
`
`A. Whatever
`
`that
`
`means.
`
`Escrow
`
`and
`
`Agreement
`
`Furthermore,
`
`is
`
`undisputed
`
`in
`
`turn
`
`provides
`
`the
`that
`that"consummation"
`
`referenced
`
`Pledge
`
`means,
`
`Pledgor
`
`[QSGI-CCSI]
`
`will
`
`beneficial
`
`owner
`
`of
`
`one
`
`hundred
`
`percent
`
`(100%)
`
`of
`
`the
`
`capital
`
`stock
`
`ZZ],
`
`and
`[CCSI]."
`
`This
`
`action
`
`(the
`
`Transaction
`
`documents
`
`D & O action)
`contemporaneous
`
`was
`
`with
`
`forwarded
`
`to
`
`Defendant
`
`for
`
`the
`
`ofthe
`
`closing
`became
`
`transaction
`
`the
`
`President
`
`the
`
`Defendant.
`
`Those
`
`19 of 27
`documents
`
`report
`
`that
`
`Plaintiff
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`48
`NY§CEF
`N0,
`DOC,
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`INDER
`003655/2012
`NO
`
`RECEIVED NYSCEF: 11/01/2018
`RECRIVRD
`NY8CEFt
`09/M/2010
`
`RICONDA
`INDEX
`PAGE
`
`V LIBERTY
`NO. 03655/2012
`7
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC.
`
`and
`
`that
`
`ownership
`
`was
`
`transferred
`
`from
`
`CCSI
`
`to QSGI-CCSI,
`
`was
`
`confronted
`
`with
`
`his
`
`deposition
`
`testimony.
`
`Plaintiff
`
`swore
`
`shares
`
`CCSI's
`
`President
`
`and
`
`"consummated"
`
`was
`
`closing
`a subsidiary.
`
`At
`
`the
`
`with
`
`trial,
`his
`
`Plaintiff
`
`verified
`
`in
`
`accord
`
`were
`
`transferred
`
`where
`
`he was
`
`to QSGI-CCSI;
`employed
`was
`
`and
`
`(iii)
`owned
`
`then
`
`pleadings:
`
`(i)
`
`that
`
`the
`
`closing
`that
`the Company
`by QSGI-CCSI
`
`occurred;
`of which
`
`that
`
`(ii)
`he was
`
`to wit:
`
`"At
`
`the
`
`shares
`
`time
`ofthe
`of CCSI
`
`closing
`that
`you
`
`ofthe
`
`Stock
`
`Purchase
`
`owned
`
`were
`
`transferred
`
`Agreement,
`to QSGI
`
`the
`
`or
`
`QSGI-CCSI;
`
`is that
`
`correct?"...
`
`Right."
`
`3
`
`ANSWER:
`
`"QUESTION:
`
`Your
`
`became
`
`a subsidiary
`
`understanding
`of QSGI-CCSI?
`
`after
`4
`
`July
`
`7th
`
`2008
`
`CCSI
`
`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).
`
`9 o f
`18
`20 of 27
`
`

`

`FILED: SUFFOLK COUNTY CLERK 11/01/2018 05:09 PM
`NYSCEF DOC. NO. 473
`
`INDEX NO. 003655/2012
`
`RECEIVED NYSCEF: 11/01/2018
`
`V LIBERTY
`
`INSURANCE
`
`UNDERWRITERS,
`
`INC
`
`NO.
`
`03655/2012
`
`RICONDA
`INDEX
`PAGE
`
`8
`
`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
`
`may
`
`not
`
`thereafter,
`
`simply
`
`that
`
`a party
`because
`
`his
`
`who
`
`assumes
`
`a
`
`certain
`
`interests
`
`have
`
`changed,
`
`position
`
`assume
`
`in
`
`a legal
`
`a contrary
`
`proceeding
`
`position.
`
`circumstances
`
`lest
`
`a mockery
`
`Invocation
`be made
`
`ofthe
`
`doctrine
`
`ofjudicial
`
`estoppel
`
`is
`
`requir