Opinion
14434-14434A Index No. 654792/17 Case No. 2020-04186, 2020-04188
10-21-2021
MONITRONICS INTERNATIONAL, INC., Plaintiff–Respondent–Appellant, v. NORTHSTAR ALARM SERVICES, LLC, Defendant–Appellant–Respondent.
Hoguet Newman Regal & Kenney, LLP, New York (Damian R. Cavaleri of counsel), and Ray, Quinney & Nebeker P.C., Salt Lake City, UT (Matthew N. Evans of the bar of the State of Utah, admitted pro hac vice, of counsel), for appellant-respondent. Rosenfeld & Kaplan, LLP, New York (Nicole E. Meyer of counsel), and Shook, Hardy & Bacon LLP, Kansas City, MO (David Brenton Dwerlkotte of the bar of the State of Missouri, admitted pro hac vice, of counsel), for respondent-appellant.
Hoguet Newman Regal & Kenney, LLP, New York (Damian R. Cavaleri of counsel), and Ray, Quinney & Nebeker P.C., Salt Lake City, UT (Matthew N. Evans of the bar of the State of Utah, admitted pro hac vice, of counsel), for appellant-respondent.
Rosenfeld & Kaplan, LLP, New York (Nicole E. Meyer of counsel), and Shook, Hardy & Bacon LLP, Kansas City, MO (David Brenton Dwerlkotte of the bar of the State of Missouri, admitted pro hac vice, of counsel), for respondent-appellant.
Acosta, P.J., Manzanet–Daniels, Kern, Oing, Kennedy, JJ.
Order, Supreme Court, New York County (O. Peter Sherwood, J.), entered September 30, 2020, which, to the extent appealed from as limited by the briefs, granted plaintiff's motion for summary judgment dismissing the first, second, and third counterclaims, unanimously affirmed, with costs. Plaintiff's appeal unanimously dismissed, without costs, as abandoned.
The first counterclaim alleges that plaintiff breached the parties' agreement by imposing a "cost recovery fee" on its customer contracts. However, defendant failed to identify any provision of the agreement that prohibited plaintiff from doing so. The second counterclaim alleges breach of the implied covenant of good faith and fair dealing under the agreement. However, the imposition of the fee did not work to prevent performance of the contract or withhold its benefits from defendant (see 511 W. 232nd Owners Corp. v. Jennifer Realty Co., 98 N.Y.2d 144, 153, 746 N.Y.S.2d 131, 773 N.E.2d 496 [2002] ; Sorenson v. Bridge Capital Corp., 52 A.D.3d 265, 267, 861 N.Y.S.2d 280 [1st Dept. 2008], lv dismissed 12 N.Y.3d 748, 876 N.Y.S.2d 699, 904 N.E.2d 836 [2009] ). Rather, the conduct to which defendant objects is plaintiff's reconveyance to it of purported "bad contracts" after the contracts' pricing was changed, which resulted in an inflated chargeback fee claimed by plaintiff. This claim survived plaintiff's motion. The third counterclaim alleges tortious interference with contract. However, at the time the "cost recovery fee" was imposed, defendant was not a party to a contract with a third-party customer; the customer contracts were between plaintiff and third parties (see Lama Holding Co. v. Smith Barney, 88 N.Y.2d 413, 424, 646 N.Y.S.2d 76, 668 N.E.2d 1370 [1996] ).