Judge Holds Defendant in Criminal, Civil Contempt
New York, NY – December 16, 2013 – (RealEstateRama) — New York State Supreme Court Justice Melvin L. Schweitzer has issued two rulings in favor of landlord Getty Properties Corp. in a gas station holdover dispute, holding the defendants in criminal and civil contempt. Defendants in the case consist of 19 limited liability companies (the LLCs), Robert Del Gadio, who is the principal of, and the attorney for, the LLCs, and Frank Mascolo. The landlord was represented in the proceedings by Rosenberg & Estis, P.C. founding partner Warren A. Estis and partner Howard W. Kingsley.
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“This was a long and frustrating battle in which frivolous conduct by the defendants caused tremendous expense for our client,” said Estis. “We were pleased that the court ruled in the favor of our client and that it enabled our client to receive attorney’s fees.”
The landlord had leased more than 800 properties to its tenant, Getty Petroleum Marketing Inc. (GPMI), pursuant to a master lease. GPMI, in turn, subleased many properties to the LLCs. GPMI filed for bankruptcy, and the leases and subleases to the LLCs were terminated therein. GPMI and the LLCs were to vacate the premises by April 30, 2012. The dispute arose in May 2012 when the LLCs failed to turn over possession of the sites. Landlord sued to have the LLCs ejected and for money damages, including use and occupancy of the sites.
In June 2012, the landlord sought, and the court issued, a temporary restraining order requiring the LLCs to place into court all monies that the LLCs had collected for rent from the sites’ gas station operators from May 1, 2013. The court awarded landlord a judgment in the total amount of approximately $500,000. However, the LLCs failed to comply with the order and filed an appeal. The LLCs lost the appeal.
Following those rulings, Del Gadio continually failed to comply with multiple court orders. According to the ruling, he also inundated the court with a “plethora of motions, claims and arguments with no legitimate basis in fact or law which has simply served to clog the court’s calendar.”
This caused the court, on July 23, 2013, to issue an injunction enjoining Del Gadio and the other defendants “from making any motions or commencing any action in this or any other court relating the subject matter of his action without the prior approval of the court.”
Justice Schweitzer, who presided over the case, found that all the defendants willfully violated the injunction by continuing to make frivolous motions without prior court approval due to the actions of attorney Del Gadio.
The judge ordered Del Gadio to be imprisoned for three consecutive days, fined defendants $2,000 for the two criminal contempt charges, and ordered defendants to pay the landlord’s attorney’s fees and costs. The order of contempt and arrest may be purged if, within seven business days of the order, Del Gadio provides a sincere apology to the court in person; sends a sincere letter of apology to landlord’s counsel, which must be e-filed with the court; presents a certified check for $2,000 to the county clerk of New York County to pay the fine; and presents a certified check for $10,000 to the plaintiff’s counsel, which will be held in escrow and applied towards the full amount of attorney’s fees and costs due.
Founded in 1979, Rosenberg & Estis, P.C. is widely recognized as one of New York City’s pre-eminent real estate law firms. Rosenberg & Estis, P.C. represents clients in all aspects of real estate development, transactions, financing, litigation, rent regulation and governmental affairs.
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