General Electric Capital Corporation v. Bestway Tour & Travel, Inc.
1:09-cv-00442
S.D.N.Y.Nov 7, 2012Background
- GE Capital filed suit Jan 15, 2009 against Bestway Tour, Wilson Cheng, Vivian Cheng seeking guaranty obligations under multiple leases.
- A default judgment was entered May 27, 2009 and the matter was referred to Magistrate Judge Fox for an inquest and damages Report.
- Magistrate Judge Fox issued a damages Report on Aug 6, 2010; GE timely objected, Defendants did not participate.
- In 2012 the case was reassigned to Judge Abrams who held a conference on Oct 25, 2012 and adopted the Report as modified by this opinion.
- GE seeks additional damages beyond $249,114.41: (i) outstanding rent under Lease 1, (ii) Bestway Tour liability under Lease 1, and (iii) a terminal rental adjustment under Lease 2.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Outstanding rent under Lease 1 after Oct 2008 | GE seeks $167,148.00 for post-Oct 2008 rent | Bestway Tour denies further liability beyond the previously awarded amount | Lease 1 outstanding rent awarded in addition to $93,485.00. |
| Bestway Tour's liability under Lease 1 | Bestway Tour is a guarantor and jointly liable for Lease 1 | Guaranties for Lease A did not implicate Bestway Tour; evidence insufficient for other leases | Bestway Tour jointly and severally liable for Lease 1 damages. |
| Terminal rental value under Lease 2 | GE entitled to terminal rental adjustment under Lease 2 | Record lacked vehicle identification and exhibit defining terminal value | GE awarded $52,901.00 for Terminal Rental Value under Lease 2. |
Key Cases Cited
- Credit Lyonnais Sec. (USA), Inc. v. Alcantara, 183 F.3d 151 (2d Cir. 1999) (damages and reasonable certainty standards in damages awards)
- Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61 (2d Cir. 1981) (allowing inferences from evidence in damages determinations)
- U.S. v. Male Juvenile, 121 F.3d 34 (2d Cir. 1997) (de novo review of magistrate judge findings)