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Rona-Tech Corp. v. LeaRonal, Inc.
Citations: 254 A.D.2d 473; 680 N.Y.S.2d 264; 1998 N.Y. App. Div. LEXIS 11306
Court: Appellate Division of the Supreme Court of the State of New York; October 25, 1998; New York; State Appellate Court
LeaRonal, Inc. appeals a Supreme Court order that denied its motion for partial summary judgment regarding its first counterclaim for possession of collateral and its sixth counterclaim for an account stated amounting to $477,100.10. The appellate court reverses the order, granting LeaRonal’s motion for partial summary judgment. LeaRonal established its right to judgment on the sixth counterclaim by demonstrating that it sent invoices to Rona-Tech Corp. for goods sold, which Rona-Tech retained without objection, resulting in an unpaid balance. Rona-Tech failed to provide sufficient evidence to support its assertion of non-default, as its claims of a modified payment schedule were unsubstantiated. The evidence indicated Rona-Tech typically paid invoices late, and the president’s claims about payment being contingent on a meeting were not backed by evidence. Additionally, under the parties' security agreement, LeaRonal is entitled to immediate possession of Rona-Tech’s accounts receivable due to non-payment. The court finds that Rona-Tech’s claims against LeaRonal, including those for unpaid commissions and breach of a distributorship agreement, are distinct and can be severed from LeaRonal’s counterclaims. There is no indication of financial instability on LeaRonal's part, and Rona-Tech would not face prejudice from the judgment in favor of LeaRonal. Consequently, the judgment on LeaRonal’s counterclaims will not be delayed pending the resolution of Rona-Tech’s claims. Rona-Tech's additional arguments are deemed without merit.