[*1]
hibu Inc. v Melfi Group Contr. Corp.
2014 NY Slip Op 51741(U) [45 Misc 3d 1227(A)]
Decided on December 15, 2014
District Court Of Nassau County, First District
Fairgrieve, J.
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and will not be published in the printed Official Reports.


Decided on December 15, 2014
District Court of Nassau County, First District


hibu Inc. f/k/a Yellowbook Inc. f/k/a Yellow Book Sales and Distribution Company, Inc., Plaintiff(s)

against

Melfi Group Contracting Corp., Dominick Melfi, Defendant(s)




CV-029173-13



Smith Carroad Levy & Wan, P.C., Attorneys for Plaintiff, 5036 Jericho Turnpike, Commack, New York 11725, 631-499-5400;



John L. Maccarone, Esq., Attorneys for Defendant, 41 Forest Avenue, Glen Cove, New York 11542, 516-674-6782.


Scott Fairgrieve, J.

Plaintiff moves for summary judgment. Plaintiff commenced this action against defendants to recover the sum of $5,299.87 plus interest at the rate of 18% and attorney fees of $1,324.97. Defendants deny liability for the debt through the affidavit of Dominick Melfi, officer and sole shareholder of the corporate defendant.

Plaintiff submits the affidavit of Christina Caubert who is a paralegal for plaintiff. Plaintiff attaches the two contracts which defendant allegedly signed in 2010 and 2011, to advertise in Yellow Book.

The 2010 contract, attached as Exhibit C, does not show that the contract was executed by defendant. However, defendants do not deny signing the 2010 contract, see paragraph 8 of Dominick Melfi's affidavit, dated November 21, 2014. Defendants question that the 2010 contract does not have a signature, but don't deny signing the agreement. Also as noted herein, plaintiff made payments on this contract.

The December 28, 2011 contract was executed by Dominick Melfi, for plaintiff, to publish defendants' print ads for the Oyster Bay 2013 publication, the Manhasset 2013 publication, the Glen Cove 2013 publication, the Nassau County 2013 publication and the Port Washington 2013 publication.

The 2010 contract provides for print ads for the Manhasset 2012 publication and the Nassau County 2012 publication.

Plaintiff states that the 2010 contract is a document maintained by plaintiff in the regular course of business. It is the procedure of plaintiff upon execution of each contract to have the original imaged into its database. Upon execution of each contract the salesperson submits the contract to the sales department who enters it into the system, creating an electronic file. The contracts are stamped with the received date and imaged date. The contract is scanned into the imaging system with unalterable electronic document format.

Ms. Caubert states that one of her duties is to maintain the scanned document repository for the account. She transmits the electronic copy of the contract to the attorney for litigation purposes.

Both the 2010 and 2011 contracts have similar provisions. The signature line reads as follows:



Authorized Signature Individually and for the Customer

(Read paragraph 15 of the terms and conditions)

Paragraph 15 reads as follows:



Authority: Persons Obligated: Signer Obligated.



The signer agrees that he/she has the authority and is signing this agreement (1) in his/her individual capacity; (2) as a representative of the Customer, and (3) as a representative of the entity identified in the advertisement or for whose benefit the [*2]advertisement is being purchased (if the entity identified in the advertisement is not the same as the Customer or the Signer). By his/her execution of this agreement, the signer personally and individually undertakes and assumes jointly and severally with the Customer, the full performance of this agreement, including payment of amounts due hereunder.

Other pertinent provisions are as follows:



Paragraph 8



Cancellation/Notices to Publisher:



With respect to print services, Customer may cancel this agreement, upon written notice to Publisher given prior to the fourteenth (14th) day after Customer signs this agreement.



Paragraph 14:



Miscellaneous:



A. The individual signing this agreement on behalf of Customer represents and warrants that he or she is authorized to sign as an owner, officer, partner, or employee of Customer and that he or she is empowered to bind Customer to the term and conditions contained herein. B. This agreement shall be governed by, and interpreted in accordance with the laws of the state in which Customer maintains its principal place of business. C. Rates include Sales Tax where applicable. D. If any provision of this agreement is held to be unenforceable, such holding shall in no way invalidate any other provision hereof, and this agreement shall remain in full force and effect. E. This agreement may be executed and delivered in any number of counterparts, and all such counterparts shall constitute the same instrument. Customer understands and agrees that an authentic copy or electronic reproduction of this agreement shall have same force and effect as an original counterpart. F. This agreement supersedes any other verbal or written agreement between Customer and Publisher. This agreement may not be changed except by a writing signed by an authorized signatory of Customer and Publisher. G. IN ANY LEGAL PROCEEDINGS RELATING TO THIS AGREEMENT, PUBLISHER AND CUSTOMER HEREBY AGREE TO WAIVE ANY RIGHTS THEY MAY HAVE TO PARTICIPATE IN ANY CLASS, GROUP OR REPRESENTATIVE PROCEEDING, AND PUBLISHER AND CUSTOMER HEREBY AGREE TO WAIVE ANY RIGHT THEY MAY HAVE TO TRIAL BY JURY.

Paragraph 8 provides that the agreement can only be cancelled in writing given within 14 [*3]days after the agreement is executed.

Paragraph 14 is relevant because it provides that:

(1)An authentic copy or electronic reproduction of the agreement shall have the same effect as an original contact.

(2)The agreement supersedes all other verbal or written agreements.

(3)The agreement may not be changed except by a writing signed by an authorized signature of Yellow Book and the Customer.

Paragraph 15 provides for liability of the individual.

Above the signature line appears the following clause on both contracts:



By signing this agreement Customer agrees that an electronic record of this agreement can be provided to the Customer as the sole copy of the agreement Customer receives from Yellow Book.

The statement of account dated August 19, 2013 demonstrates that $7,480.08 was billed for the two contracts and $2,180.21 was paid, leaving a balance of $5,299.87.

Defendants made the following payments on the 2010 contract:



$146.20



$146.40



$183.48



$476.08

Defendants made the following payments on the 2011 contract:



$177.98



$484.60



$480.51



$561.04

Defendants claim that they don't owe the money claimed because "numerous payments over the years" were made. Defendants offer no specific proof on what was paid.

Decision

The controlling case on this subject is Yellow Book of NY, Inc. v. Shelley, 74 AD3d 1333, [*4]904 NYS2d 216 (2nd Dept 2010). In Yellow Book, the defendant Jack Shelley, President of 2 Shell Interiors, Inc., signed an advertising contract with Yellow Book which provided that the signatory was signing "Individually and for the Company." The advertising contract also referred to another clause making the signatory personally liable for full performance. The contract also provided no oral agreements could alter the contract terms.

The Second Department in Yellow Book of NY upheld the individual liability of the defendant president individually for the debt on the advertising contract because:



An agent who signs an agreement on behalf of a disclosed principal will not be held liable for its performance unless the agent clearly and explicitly intended to substitute his personal liability for that of his principal (see Key Equip. Fin. v South Shore Imaging, Inc., 69 AD3d 805 [2010]; Yellow Book of NY v DePante, 309 AD2d 859, 860 [2003]; Star Video Entertainment v J & I Video Distrib., 268 AD2d 423 [2000]). In the instant case, Shelley, as president of 2 Shell (see Yellow Book Co. v Mega, 190 Misc 2d 108 [2001]; cf. Yellow Book of NY v DePante, 309 AD2d at 860), explicitly agreed to accept personal liability. Accordingly, the plaintiff, by submitting the signed contracts in connection with its motion, established its entitlement to judgment as a matter of law against Shelley.



Since the written contracts between the parties were unambiguous, parol evidence with respect to a contrary intent was not admissible (See Willsey v Gjuraj, 65 AD3d 1228, 1230 [2009]; Henrich v Phazar Antenna Corp, 33 AD3d 864, 867 [2006]). Since Shelley relied on parol evidence in opposition to the plaintiff's motion, he failed to raise a triable issue of fact. Prudenti, P.J., Skelos, Florio and Sgroi, JJ., concur.

In the case at bar, the defendant Dominick Melfi accepted individual liability for full performance. Thus, based upon the rationale of Yellow Book v. Shelley, Mr. Melfi is personally liable on both contracts for the amount owed on the two contracts.

The payments made by defendants on both contracts conclusively show that they were signed by defendants and enforceable. Payments on the 2010 contract constitute an admission that the contract was valid and enforceable. Defendants fail to specifically deny that the 2010 contract was not signed by Mr. Melfi.

Defendant Mr. Melfi claims that he called the plaintiff to cancel on three occasions in September and October 2012 to cancel the advertising for the 2013 year.

The 2012 contract executed by the parties provides in paragraph 8 that the contract can only be cancelled in writing within 14 days after execution of the contract. Paragraph 14 provides that the contact cannot be changed unless in writing, signed by authorized [*5]representatives of the parties.

This court rejects defendants attempt to modify the contract orally when the agreement provides otherwise. No names of the representatives to whom Mr. Melfi spoke are provided.

Attempts to vary the written contract which is unambiguous by parol evidence is ineffective. See Moloney v. Weingarten, 118 AD2d 836, 500 NYS2d 320 (2nd Dept 1986), wherein the Court stated:



In addition, the parties' written agreement, which was drafted by the plaintiff, an attorney, is a complete, integrated document which is unambiguous and not susceptible to alternative interpretations. As such, its terms may not, under the parol evidence rule, be varied, contradicted or supplemented by evidence of a contemporaneous oral agreement (Lebowitz v. Mingus, supra, 100 AD2d at pp. 817-818, 474 NYS2d 748).

The Second Department in Yellow Book of NY v. Shelley, supra, also rejected defendant's attempts to vary the written agreement by parol evidence. Thus, any verbal modifications claimed by defendants are rejected.

Plaintiff is entitled to judgment for $5,299.87, plus interest at the rate of 18% interest (see paragraph 6 which provides for a late payment of 1.5% of the overdue payments). Also, plaintiff is entitled to attorney fees of 25% of the amount owed, see paragraph 12 of the agreement. The evidence submitted demonstrates that plaintiff is entitled to attorney fees of $1,322.00.

So Ordered:



/s/ Hon. Scott Fairgrieve

DISTRICT COURT JUDGE



Dated:December 15, 2014