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Green Hills (USA), LLC v. Marjam of Rewe St., Inc.

Citation: 2022 NY Slip Op 05153Docket: 2019-02455

Court: Appellate Division of the Supreme Court of the State of New York; September 14, 2022; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves an action for declaratory judgment regarding the ownership of Rewe Street and Ivy Hill Road, located within an industrial park, and associated easement rights. The plaintiff sought to affirm Reckson Associates' ownership of the streets and claimed interference by Marjam entities with easement rights. The Supreme Court of Kings County granted summary judgment in favor of the plaintiff, confirming Reckson Associates' ownership and Marjam's interference. On appeal, the Appellate Division modified the lower court's decision, recognizing Rewe Park, LLC as the rightful owner based on conveyance through quitclaim deeds. The appellate court also granted summary judgment to the defendants on their counterclaims, declaring Rewe Park, LLC's ownership and identifying breaches of easement maintenance obligations by certain lot owners. Marjam was found to have obstructed the easement by storing equipment, but the appellants' quantum meruit claim for costs prior to 2016 was dismissed due to lack of evidence. The matter was remitted to the Supreme Court for judgment entry in accordance with the appellate decision, without costs or disbursements.

Legal Issues Addressed

Breach of Easement Maintenance Obligations

Application: The court determined that 1 Rewe Street, LLC, West Terminal, LLC, and 15 Rewe Street, LLC, breached the easement terms by failing to contribute to maintenance costs.

Reasoning: The case will be returned to the Supreme Court in Kings County to issue a judgment declaring...that 1 Rewe Street, LLC, West Terminal, LLC, and 15 Rewe Street, LLC, breached the easement terms by not contributing their share of maintenance costs to Rewe Park, LLC.

Interference with Easement Rights

Application: Marjam was found to have interfered with the easement on Rewe Street by obstructing it with materials and vehicles, thus violating the terms of the easement.

Reasoning: Marjam was found to have interfered with the easement on Rewe Street by storing materials and vehicles, which obstructed traffic flow.

Ownership of Rewe Street and Ivy Hill Road

Application: The appellate court declared Rewe Park, LLC as the owner of Rewe Street and Ivy Hill Road, reversing the lower court's decision that Reckson Associates held ownership.

Reasoning: The appellate court modified the original order by denying the motions for summary judgment that declared Reckson Associates as the owner of Rewe Street and Ivy Hill Road.

Quantum Meruit for Unpaid Services

Application: The appellants failed to establish a prima facie case for quantum meruit claims for costs incurred prior to 2016, as they did not provide evidence of service acceptance by other lot owners.

Reasoning: The court correctly found that the appellants did not establish a prima facie case for the counterclaims seeking restitution for costs incurred by Marjam prior to 2016 based on quantum meruit.

Summary Judgment in Declaratory Judgment Actions

Application: The court granted the defendants' motion for summary judgment on their counterclaims, declaring Rewe Park, LLC as the rightful owner of the contested properties.

Reasoning: Additionally, the court granted the defendants' motion for summary judgment on their counterclaims, declaring Rewe Park, LLC as the owner of Rewe Street and Ivy Hill Road.