Iandoli v. Asiatic Petroleum Corp., 56 N.Y.2d 871 (1982)
When a plaintiff establishes a prima facie case for summary judgment, the burden shifts to the defendant to demonstrate a triable issue of fact by presenting proof in evidentiary form.
Summary
Iandoli sued Asiatic Petroleum for non-payment of services rendered. Asiatic denied performance in its answer and counterclaimed for damages due to delays. Iandoli moved for summary judgment, presenting an admission from Asiatic’s employee that the work was completed for the agreed price. Asiatic attempted to rebut this admission, but failed to present any specific facts demonstrating non-performance. The Court of Appeals held that Iandoli established a prima facie case, and Asiatic failed to meet its burden to demonstrate a triable issue of fact. The Court reversed the Appellate Division order, granting Iandoli summary judgment.
Facts
Iandoli performed work for Asiatic Petroleum under a contract. A dispute arose over non-payment. Arthur Geller, an employee of Solow Development Corporation (related to Asiatic), admitted that the work performed was of the agreed price and reasonable value. Iandoli claimed a balance due of $1,097,767.64. Asiatic’s answer denied performance, alleging delays caused by Iandoli, as further detailed in its counterclaims. However, Asiatic’s answering papers lacked specific facts supporting the denial of performance or the counterclaims.
Procedural History
Iandoli moved for summary judgment. The Supreme Court, New York County, initially granted Iandoli’s motion. The Appellate Division modified the Supreme Court’s order, reducing the judgment amount and affirming the denial of summary judgment on one of Asiatic’s counterclaims. The Court of Appeals reversed the Appellate Division’s decision, reinstating the original Supreme Court order and granting Iandoli summary judgment and dismissing one of Asiatic’s counterclaims. The Court answered the certified question in the negative, indicating disagreement with the Appellate Division’s handling of the summary judgment motion.
Issue(s)
Whether the defendant, in opposing a motion for summary judgment, met its burden to demonstrate a triable issue of fact after the plaintiff established a prima facie case.
Holding
Yes, because once the plaintiff established a prima facie case based on the admission of the defendant’s employee, the burden shifted to the defendant to present proof in evidentiary form demonstrating a triable issue of ultimate fact concerning non-performance.
Court’s Reasoning
The Court of Appeals emphasized that the admission by Asiatic’s employee, Arthur Geller, established a prima facie right to judgment for Iandoli. This shifted the burden to Asiatic to rebut this showing and demonstrate a triable issue of fact. The court cited Indig v Finkelstein, 23 NY2d 728; Capelin Assoc. v Globe Mfg. Corp., 34 NY2d 338; and Ehrlich v American Moninger Greenhouse Mfg. Corp., 26 NY2d 255, as precedent for this principle. The Court noted that while a verified answer can be used as an affidavit, Asiatic’s answer lacked specific evidentiary facts to support its denial of performance or its counterclaims. “Since the Geller admission established prima facie plaintiffs right to judgment, it was defendants’ obligation not only to rebut that prima facie showing but also to demonstrate the existence of a triable issue of ultimate fact by presenting proof in evidentiary form to show nonperformance”. The Court contrasted this lack of evidence with the requirements outlined in Zuckerman v City of New York, 49 NY2d 557. The Court also addressed Asiatic’s fourth counterclaim, which was brought by Solow individually, arguing that it failed to state a cause of action because Solow was not a party to the contract. The Court concluded that Iandoli was entitled to summary judgment on its complaint and dismissal of the fourth counterclaim due to Asiatic’s failure to present sufficient evidence to create a triable issue of fact.