[*1]
Milohnic v Milohnic
2025 NY Slip Op 50599(U) [85 Misc 3d 1261(A)]
Decided on April 21, 2025
Supreme Court, Westchester County
Jamieson, 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This opinion is uncorrected and will not be published in the printed Official Reports.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 April 21, 2025
Supreme Court, Westchester County


Steven Milohnic, in a derivative capacity on behalf of MCI INTERIORS, INC.,
and as the holder of fifty percent (50.00%) of all MCI INTERIORS, INC.'s outstanding shares entitled to vote in an election of directors, and
NICK MILOHNIC, in a derivative capacity as owners of MCI INTERIORS, INC.
and SUMMIT RETAIL INTERIORS, Plaintiffs,

against

Patricia Milohnic, ANTHONY MILOHNIC, REDLINE BUILDING SERVICES INC., MCI INTERIORS, INC. and SUMMIT RETAIL INTERIORS, Defendants.




Index No. 55844/2020



Trivella & Forte, LLP
Attorneys for Plaintiffs
1311 Mamaroneck Avenue, Suite 170
White Plains, New York 10605

Corbally, Gartland and Rappleyea, LLP
Attorneys for Defendants
35 Market Street
Poughkeepsie, New York 12601


Linda S. Jamieson, J.

The following papers numbered 1 to 6 were read on these motions:

Papers Numbered
Notice of Motion, Affirmation and Exhibits 1
Memorandum of Law in Support 2
Notice of Cross-Motion, Affirmation and Exhibits 3
Memorandum of Law 4
Reply Affirmation 5

Although this matter was settled back in 2020, the parties are still accusing each other of wrongdoing. The first motion before the Court, filed by plaintiffs, seeks (1) to enforce the so-Ordered settlement agreement between the parties dated November 5, 2020 (the "Settlement Agreement"); (2) to compel defendants to pay $33,612.50 for their share of forensic accounting fees incurred for the services of Gerald A. DeFeo; $26,112.50 to plaintiff MCI Interiors, Inc. for defendants' share of sums previously paid to Mr. DeFeo by MCI Interiors, Inc.; and $5,000 directly to Mr. DeFeo for defendants' half of Mr. DeFeo's 9/30/24 invoice; (3) to compel to pay $25,245.46 for their share of real estate taxes for 10 1st Street Hopewell Junction and $25,245.46 directly to the East Fishkill Receiver of Taxes and provide plaintiffs' counsel with proof of payment; and (4) leave to file a supplemental motion for reasonable attorneys' fees for bringing this motion. In response, defendants' motion seeks (1) to deny plaintiffs' motion (which is not a proper request for relief; and (2) to hold plaintiffs in contempt, "Ordering Plaintiffs to pay Mr. DeFeo, Ordering Plaintiff S. Milohnic to pay the taxes for 10 1st Street, attorneys fees, sanctions, costs and interest."

This Court previously held, in a Decision and Order dated January 11, 2023, that "the parties both want the Settlement Agreement to be enforced. The problem is that neither side has read the entire document; each picks and chooses certain provisions that benefit it, and ignores the other provisions. This is not acceptable. The parties are directed to comply with each and every provision in the Settlement Agreement, whether it serves their own purposes or not." It appears that despite this admonishment, the parties have yet to read the entire Settlement Agreement. Naturally, the Court grants the request to have the Settlement Agreement enforced.

A review of the Settlement Agreement shows that it says that (1) "MCI Interiors, Inc., shall advance the cost of the Forensic Accountant. Forensic Accountant shall reduce the amount due to Anthony Milohnic from MCI Interiors Inc., in an amount calculated as follows: Total amount charged by Forensic Accountant multiplied by .425."; (2) "The Parties shall, by within one (1) week of the signing of this agreement, agree to and engage a real estate appraiser or qualified real estate agent to valuate certain properties owned by two or more of the parties to this action. . . . (a) Forensic Accountant shall determine the comparative interests in these properties based on a review of documents they may reasonably request. . . . Once the property has been appraised and the percentage of ownership is determined, Anthony Milhonic shall have the option to pay to the other Parties as determined in this Section 2)a)i)(1)(a) the amount of their proportional ownership, to be exercised on or before 45 days after the Closing of this Settlement Agreement. Should Anthony Milohnic not exercise his option to buy-out the other investors as per Section 2)a)i)(1)(a) above, the property shall be immediately put on the market and sold. The net proceeds, (Purchase Price minus payment of brokers' commission, closing [*2]costs, applicable taxes and the mortgage payoff) shall be split according to the determination in 2)a)i)(1)(a)."; (3) "Steven Milohnic shall vacate the premises and cause others living in the premises to likewise vacate on or before the Closing as contemplated by this Agreement and the condition will be broom clean so that the property will appraise for the maximum value;" and (4) "The parties hereto will each pay their respective counsel, accountants and other expenses incurred in connection with the negotiation and consummation of the transactions contemplated herein. . . .";

It remains the case that under the Settlement Agreement, MCI Interiors must pay Mr. DeFeo all of his costs, to be reimbursed from his share of that company. Specifically, as set forth above, the Settlement Agreement plainly states that "MCI Interiors, Inc., shall advance the cost of the Forensic Accountant. Forensic Accountant shall reduce the amount due to Anthony Milohnic from MCI Interiors Inc., in an amount calculated as follows: Total amount charged by Forensic Accountant multiplied by .425." To the extent that plaintiffs seek to obtain these sums before Mr. DeFeo is done, there is simply no basis for this relief.

With respect to the taxes for 10 1st Street, Hopewell Junction, the Settlement Agreement is silent on this topic. It merely says that the "Forensic Accountant shall determine the comparative interests in these properties based on a review of documents they may reasonably request. . . . Once the property has been appraised and the percentage of ownership is determined, Anthony Milhonic shall have the option to pay to the other Parties as determined in this Section 2)a)i)(1)(a) the amount of their proportional ownership, to be exercised on or before 45 days after the Closing of this Settlement Agreement. Should Anthony Milohnic not exercise his option to buy-out the other investors as per Section 2)a)i)(1)(a) above, the property shall be immediately put on the market and sold. The net proceeds, (Purchase Price minus payment of brokers' commission, closing costs, applicable taxes and the mortgage payoff) shall be split according to the determination in 2)a)i)(1)(a)."

The Court finds that (1) plaintiff (and his son and fiancée) has been living in the premises since 2019, despite the Settlement Agreement stating that he must vacate the premises; and (2) plaintiff testified at his deposition that he has been paying the taxes for the premises. Given all of the circumstances here, plaintiff must continue to pay the taxes for the premises, subject to reallocation when the parties finally buy each other out or sell the premises.

To the extent that plaintiffs rely on the passage in the Settlement Agreement that states that "The parties hereto will each pay their respective counsel, accountants and other expenses incurred in connection with the negotiation and consummation of the transactions contemplated herein. . . .", it does not assist plaintiffs. This plainly provides that each party will pay their own counsel, experts, accountants any other expenses each incurred in negotiating and consummating the transactions. It does not say anything more. To the extent that joint professionals or joint expenses are incurred, they shall be allocated according to the ownership interests to be determined or as set forth in the Settlement Agreement.

The Court declines to award any counsel fees, sanctions or any of the other relief any party seeks. The Court further directs that no motions may be filed in this matter without prior, express permission from the Court. It is now nearly five years since the parties signed the Settlement Agreement. This matter must come to a conclusion.

The foregoing constitutes the decision and order of the Court.[FN1]

Dated: April 21, 2025
White Plains, New York
HON. LINDA S. JAMIESON
Justice of the Supreme Court

Footnotes


Footnote 1:All other arguments raised on these motions and all materials submitted by the parties in connection therewith have been considered by this Court, notwithstanding the specific absence of reference thereto.