FILED: SUFFOLK COUNTY CLERK 07/13/2020 11:09 AM
`NYSCEF DOC. NO. 2
`.
`.
`
`INDEX NO. 608729/2020
`
`RECEIVED NYSCEF: 07/13/2020
`
`SUPREME
`COUNTY
`-..-
`
`OF THE STATE
`COURT
`OF SUFFOLK
`-----------------------X
`
`OF NEW YORK
`
`MEDFORD
`
`EQUITIES,
`
`LLC,
`
`Plaintiff,
`
`-against-
`
`MICHAELS
`
`STORES
`
`INC.,
`
`a/k/a MICHAELS
`
`COMPANIES,
`
`Defendant.
`
`Index
`
`No.:
`
`2020-
`
`COMPLAINT
`
`--------------------------------X
`MEDFORD
`
`Plaintift
`
`EQUITIES,
`
`LLC,
`
`by its attorneys,
`
`Rosenberg
`
`Calica
`
`& Birney
`
`LLP,
`
`as and for
`
`their
`
`Complaint
`
`herein,
`
`alleges:
`
`1.
`
`At
`
`all pertinent
`
`times
`
`alleged
`
`herein,
`
`plaintiff
`
`Medford
`
`Equities,
`
`LLC
`
`("Medford
`
`Equities")
`
`was
`
`and is a duly
`
`orgañized
`
`New York
`
`limited
`
`liability
`
`company
`
`and is the owner
`
`of a
`
`shopping
`
`center
`
`comprising
`
`approximately
`
`111,000
`
`square
`
`feet
`
`of
`
`retail
`
`space
`
`ocepied
`
`by
`
`multiple
`
`tenants
`
`located
`
`on Route
`
`112 in Medford,
`
`New York
`
`(the
`
`"Center").
`
`times
`
`Michãels
`
`Inc.
`
`2.
`
`At
`
`all pertinent
`
`alleged
`
`herein,
`
`defendant
`
`Stores
`
`a/k/a
`
`Michaels
`
`Companies
`
`was
`
`and is a Delaware
`
`corporâ‡ioñ
`
`duly
`
`authorized
`
`to conduct
`
`business
`
`in
`
`the State
`
`of New York
`
`with
`
`its principal
`
`offices
`
`at 8000 Bent
`
`Branch
`
`Drive,
`
`Irving,
`
`Texas,
`
`75063
`
`("Michaels").
`
`3.
`
`Michaels
`
`occupics
`
`an approximately
`
`23,000
`
`square
`
`foot
`
`(inclusive
`
`of
`
`the
`
`mezzanine)
`
`retail
`
`store
`
`premises
`
`in the Center
`
`(the
`
`"Michaels
`
`Premises")
`
`at 2799 Route
`
`112,
`
`Medford,
`
`New York
`
`(Store
`
`7774)
`
`pursuant
`
`to a Lease
`
`executed
`
`on Sepicaher
`
`5, 2006,
`
`as
`
`amended
`
`(the
`
`"Lease").
`
`4.
`
`Pursuañt
`
`to the Lease, Michaels
`
`is currently
`
`required
`
`to pay Miñimum
`
`Rent
`
`and
`
`Additional
`
`Rent
`
`in the amount
`
`of $36,029.95
`
`per month.
`
`{00342949-4}
`
`1 of 5
`
`

`

`FILED: SUFFOLK COUNTY CLERK 07/13/2020 11:09 AM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 608729/2020
`
`RECEIVED NYSCEF: 07/13/2020
`
`5.
`
`Michaels
`
`has breached
`
`the Lease
`
`by
`
`failing
`
`to pay Minimum
`
`Rent
`
`and Additional
`
`Rent
`
`for
`
`the months
`
`of April
`
`2020
`
`and May
`
`2020
`
`for
`
`a total
`
`of $72,059.90
`
`(the
`
`"Unpaid
`
`Rent").
`
`cured.
`
`6.
`
`7.
`
`Due written
`
`Notice
`
`of Default
`
`was
`
`given
`
`to Michaels
`
`on June
`
`24, 2020,
`
`but not
`
`Michaels
`
`purports
`
`to justify
`
`its failure
`
`to pay
`
`the Unpaid
`
`Rent
`
`upon
`
`"the COVID-
`
`19 pandemic,
`
`and in response
`
`to landlord
`
`orders
`
`and government
`
`mañdstes
`
`in certain
`
`locaticas
`
`that
`
`tenant
`
`has been
`
`forced
`
`to close
`
`its store"
`
`for
`
`limited
`
`periods
`
`which
`
`included
`
`the months
`
`of
`
`April
`
`and May
`
`2020
`
`(the
`
`"COVID-19
`
`Event").
`
`Event
`
`not
`
`the Unpaid
`
`Rent
`
`because
`
`8.
`
`The COVID-19
`
`does
`
`justify
`
`the failure
`
`to pay
`
`the Lease
`
`contains
`
`an express
`
`and limitad
`
`Force
`
`Majeure
`
`provision
`
`in Section
`
`17.17 which
`
`provides:
`
`provides:
`
`in the Lease,
`to the contrary
`contained
`anyfaing
`"Notwithstanding
`or
`(i) excuse
`be construed
`to:
`this Section
`shall
`in no event
`17.17
`the performance
`of a monetary
`by either
`obligation
`party,
`of all Mi±=m
`the timely
`payment
`by Tenant
`Rent
`Rent."
`items
`of Additional
`
`delay
`including
`all other
`
`and
`
`9.
`
`Further,
`
`Section
`
`17.17
`
`of
`
`the Lease
`
`further
`
`provides
`
`that:
`
`"The
`financial
`be construed
`
`of a party
`ability
`as an 'Uncontrollable
`
`to perform
`Event'".
`
`an obligation
`
`shall
`
`not
`
`10.
`
`Further,
`
`Section
`
`17.6
`
`of
`
`the Lease
`
`entitled
`
`"Implications
`
`As To
`
`Operation"
`
`in this
`"Nothing
`open
`or operate
`made
`manner
`
`concerning
`in which
`
`Lease
`a business
`the
`use
`rent
`is paid
`
`to obligate
`be iñtcipicted
`shall
`in the Premises.
`implication
`No
`the Premises
`or
`operation
`of
`of
`rent
`from the amounts
`
`or
`
`Tenant
`will
`from
`paid."
`
`to
`be
`the
`
`11.
`
`By
`
`reason
`
`of
`
`the express
`
`provisiõñs
`
`the parties'
`
`of
`
`Lease
`
`quoted
`
`above,
`
`and
`
`otherwise
`
`as a matter
`
`of
`
`law,
`
`neither
`
`the COVID-19
`
`Event,
`
`nor principles
`
`of Force
`
`Majeure,
`
`{00342949-4}
`
`2
`
`2 of 5
`
`

`

`FILED: SUFFOLK COUNTY CLERK 07/13/2020 11:09 AM
`NYSCEF DOC. NO. 2
`.
`.
`
`INDEX NO. 608729/2020
`
`RECEIVED NYSCEF: 07/13/2020
`
`impossibility
`
`of performance,
`
`frustration
`
`of purpose
`
`nor
`
`any
`
`other
`
`circmustence
`
`or principle
`
`of
`
`law justify
`
`the non-payment
`
`of
`
`the Unpaid
`
`Rent.
`
`12.
`
`By
`
`reason
`
`of
`
`the foregoing,
`
`Michaels
`
`is indebted
`
`to Medford
`
`Equities
`
`for Unpaid
`
`Rent
`
`in the amount
`
`of $72,059.90,
`
`demand
`
`for payment
`
`of which
`
`is made
`
`hereby,
`
`together
`
`with
`
`recovery
`
`of Medford
`
`Equities'
`
`"Litigation,
`
`Court
`
`Costs
`
`and Attorneys'
`
`Fees"
`
`pursuant
`
`to §14.5
`
`of
`
`the Lease.
`
`WHEREFORE,
`
`plaintiff
`
`dcmañds
`
`judgmat
`
`against
`
`Michaels
`
`Stores
`
`Inc.,
`
`a/k/a Michaels
`
`Companies
`
`Inc.
`
`as follows:
`
`a.
`
`Awarding
`
`plaintifF
`
`the sum of $72,059.90;
`
`b.
`
`Awarding
`
`plaintiff
`
`all
`
`"Litigation,
`
`Court
`
`Costs
`
`and Counsel
`
`Fees"
`
`incurred
`
`in prosecuting
`
`this
`
`action
`
`in accordañce
`
`with
`
`§14.5
`
`of
`
`the Lease;
`
`c.
`
`Awarding
`
`plaintiff
`
`interest
`
`at
`
`the statutory
`
`rate
`
`from the earliest
`
`ascertainable
`
`rate
`
`pursuant
`
`to CPLR 5001
`
`and 5004;
`
`and
`
`d.
`
`Granting
`
`plaintiff
`
`such
`
`other
`
`and further
`
`relief
`
`as to the Court may
`
`deem
`
`appropriate,
`
`together
`
`with
`
`the costs
`
`and disbursements
`
`hereof.
`
`Dated:
`
`Garden
`
`July
`
`City, New York
`10, 2020
`
`CALICA
`
`& BIRNEY
`
`LLP
`
`Plaintly
`
`ROSENBERG
`Attorneys
`for
`
`By:
`
`. Calica
`
`R
`100 Garden
`Plaza,
`City
`City, New York
`Garden
`747-7400
`
`(516)
`
`408
`
`Suite
`11530
`
`{00342949-4}
`
`3
`
`3 of 5
`
`

`

`FILED: SUFFOLK COUNTY CLERK 07/13/2020 11:09 AM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 608729/2020
`
`RECEIVED NYSCEF: 07/13/2020
`
`TO:
`
`Stores
`Michaels
`8000
`Branch
`Bent
`75063
`Texas
`
`Irving,
`
`a/k/a
`Inc.
`Drive
`
`The Michaels
`
`Companies
`
`{00342949-4}
`
`4
`
`4 of 5
`
`

`

`FILED: SUFFOLK COUNTY CLERK 07/13/2020 11:09 AM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 608729/2020
`
`RECEIVED NYSCEF: 07/13/2020
`
`VERIFICATION
`
`ss:
`
`) )
`
`)
`
`STATE
`
`OF NEW YORK
`
`COUNTY
`
`OF SUFFOLK
`
`ANTHONY
`
`GITTO,
`
`being
`
`duly
`
`sworn
`
`deposes
`
`and says:
`
`I am the Manager
`
`of Plaintiff,
`
`Medford
`
`Equities
`
`LLC.
`
`I have
`the foregoing
`read
`Complaint,
`therein
`those matters
`stated
`to be alleged
`believe
`them to be true.
`
`and the same
`upon
`information
`
`is true
`an
`
`of own
`b
`e
`
`as to
`except
`knowledge,
`I
`nd as to those matters,
`
`A19
`
`NY GITTO
`
`to before
`Sworn
`J_Q. day of July,
`
`me this
`2020
`
`N tar
`
`blic
`
`JACQUELINE
`
`MONETTE
`
`NOTARY PUBUC, STATE OF NEW YORK
`REG NO
`01MO6081358
`QUAUF!ED
`IN SUFFOLK COUNTY
`COMM!SS30N WIRES
`OCTOBER 07,2031
`
`{00342951-1}
`
`5 of 5
`
`