EDF Renewable Development, Inc. v. Tritec Real Estate Co.EDF Renewable Development, Inc. v. Tritec Real Estate Co.
OPINION & ORDER
On January 9, 2015, plaintiff EDF Renewable Development, Inc. (“plaintiff’) commenced this action against defendant Tritec Real Estate Co., Inc. (“defendant”) pursuant to this Court’s diversity of citizenship jurisdiction under
II. Background
A. Factual Background
Plaintiff is a Delaware corporation with its principal place of business in California, (Complaint [“Compl.”], ¶ 3), and “is a project developer with extensive experience in the renewable enеrgy industry.” (Id.)
Long Island Solar (“LIS”) is a Delaware limited liability company with its principal place of. business in California. (Compl., ¶ 4).: At all relevant times, plaintiff owned one hundred percent (100%) of-the membership interests in LIS. (Id.) Pursuant to a Purchase and Sale Agreement dated November 6, 2012 (the “Sale Agreement”), (a) an affiliate of plaintiff sold all membership interests in LIS to CD NY Solar 1 LLC; and (b) LIS assigned its right to the claims asserted in this cásp to plaintiff. (Id.)
Defendant is a Nеw York corporation with its principal place of business in Suffolk County, New York, (Compl., ¶ 5), and is a real estate, development and construction company. (Id.)
In or around 2008, the Long Island Power Authority (“LIPA”) awarded plaintiff the contract for a ¡project “for solar photovoltaic power installations on Long Island[,]” (Compl,, ¶¶ 9-10), pursuant to which plaintiff “proposed options for developing smaller power installations at numerous sites, which would, be aggregated to satisfy LIPA’s request and to support the LIPA power grid,” (Id., ¶ 11). According to' plaintiff, Suffolk County collaborated with "it and LIS to use County-owned parking" lots for the power installations (“the carport installations”), (id., ¶ 13), and
In January 2010, LIS entered into 'a twenty (20)-year contract with LIPA for the sale of electricity producеd by the carport installations (the “Power Purchase Agreement”), (Compl., ¶ 14), which included (i) a deadline by which the solar installations were to be completed; and (ii) penalties in the event of a failure to' build all planned installations. (Id., ¶ 15).
According to plaintiff, Suffolk County enacted resolution No. 28-2010 authorizing former Suffolk County Executive Steven Levy (“Levy”) to enter into leases with LIS “to facilitate the use of the County parking facilities for the construction and operation of solar energy facilities.” (Compl., ¶ 17). On March 22, 2010, LIS and the County entered into seven (7) separate lease agreements “for the installation and operation of solar carport facilities on Suffolk County-owned property” at specific locations, including at the Ronkóri-koma Long Island Railroad Station (“the Ronkonkoma Site”), for twenty (20)-year periods. (Id., ¶¶2, 18, 21). According to рlaintiff, the Ronkonkoma Site is the largest of the seven (7) leased siteá and comprised almost one-third (%) of the total project size. (Id., ¶¶ 2,20).
Plaintiff alleges that Section 35.02 of the lease pertaining to the Ronkonkoma Site (the “Lease”) provides that:
“[t]he County shall fully support and cooperate with [LIS] in the conduct of its operations and the exercise of its rights under this Agreement [including with [LIS’s] efforts] to (a) obtain from any Governmental Authority or any other person or entity any ... permit .,.. ”
(Compl., ¶ 23) (third brackets in original; emphasis omitted)
According to plaintiff, defendant “was fully aware of the Ronkonkoma Lease ... because [it] had obtained a copy of the Lease pursuant to New York State’s Freedom of Information Law.” (Compl., ¶ 24).
By the end of 2011, Suffolk County had issued building permits to LIS for five (5) of the seven (7) project sites, (Compl., ¶26), exclusive of the Ronkonkomа Site and a site in Deer Park, for which LIS had not yet submitted full building permit packages.
Plaintiff alleges, inter alia, (1) that defendant “is the developer of the ’Ronkon-koma Hub,’ a project in close proximity to the Ronkonkoma [Site] ... [,]” (Compl., ¶ 30); (2) that prior to January 2012, defendant had unsuccessfully, “attempted to get [Levy] to breach the Ronkonkoma Lease by not allowing [plaintiffs] construction of the solar carports at. the Ronkonkoma site[,]” (id., ¶ 32); and (3) that after Steven Bellone (“Bellone”) replaced Levy as the Suffolk. County Executive in January 2012, defendant (a) “promptly renewed its efforts to interfere with the Ronkonkoma Lease... [,]” (id., ¶ 33), and (b) “had a meeting with Suffolk County officials, including Mr. Bellone, in order to pressure and persuade Suffolk County not to permit [plaintiffs] installation of the solar carports at the Ronkonkoma [S]ite.”
“decision to meet with Mr. Bellone shortly after he assumеd office as the new Suffolk County Executive was specifically calculated to maximize [its] chance of persuading Suffolk County to breach the Ronkonkoma Lease. Specifically, [defendant] believed that it had a better chance of convincing Mr. Bellone not to permit the solar carports at the Ronkonkoma [S]ite because he was new to the post of County Executive and was still unfamiliar with [plаintiffs] solar project and the Ronkonkoma Lease.”
(Compl., ¶ 35).
Plaintiff alleges that “[a]t, or shortly after the January 2012 meeting” “(1) defendant persuaded Suffolk County not to permit [plaintiffs] solar project at the ... Ronkonkoma [Site][,]” (id., ¶36); (2) the County “decided not to issue the building permit for the Ronkonkoma [S]ite as it had promptly done for all the other sites[,]” (id., ¶37); (3) the County stopped “fully supporting] and cooperating]” with plaintiff regarding the building permit for thе Ronkonkoma Site, (id., ¶ 38); and (4) “Suffolk County officials successfully devised a plan to ’stall’ [plaintiffs] building permit application for the Ronkonkoma [S]ite by instructing County employees involved in the permitting process not to respond to [plaintiffs] inquiries regarding the building permit for the Ronkonkoma [S]ite.” (Id., ¶ 39).
On or about February 14, 2012, after defendant’s meeting with Bellone, LIS submitted “the full building permit package” for the Ronkonkoma Site. (Compl., ¶ 27). On or about February 16, 2012, LIPA infоrmed LIS that “it had been advised that Suffolk County would not honor the Ronkonkoma Lease and would not issue the building permit for the Ronkonko-ma [S]ite.” (Id, ¶ 40).
On March 2, 2012, LIS met with representatives of the County, who informed it “that, notwithstanding the Ronkonkoma Lease, Suffolk County intended to refuse tp allow the solar carports at the Ronkon-koma [S]ite.” (Compl., ¶¶ 41-42). According to plaintiff, thereafter LIS “repeatedly requested the issuance of the pеrmit for the Ronkonkoma [S]ite, but received no response from Suffolk County.” (Id., ¶46).
Plaintiff alleges: (1) that “[d]ue to Suffolk County’s refusal to issue the building permit for the Ronkonkoma [S]ite, which was a direct result of [defendant’s] intentional and malicious interference with the Ronkonkoma Lease, it became impossible for [LIS] to build the Ronkonkoma [S]ite as. required by the Power Purchase Agreement^]”, (Compl., ¶ 48); and (2). that as a result thereof, it sustained damages (a) in excess of ten million dollars ($10,000,-000.00) for the “direct costs of the physical equipment [it] ordered for the Ronkonko-ma [S]ite, including steel and solar panels,” (Compl., ¶ 51), (b) in excess of two million dollars ($2,000,000.00) for “development costs, professional fees, and project management fees attributable to the Ronkon-koma [S]ite,” (id., ¶ 52), (c) for lost profits “because it was not able to obtain the income that LIPA would have paid for the electricity that was to be produced by the solar carports at the Ronkonkoma [S]ite[,]” (id., ¶ 53), and (d) for attorney’s fees and expenses it incurred it connection with a lawsuit it was “forced to file” against the County for breach of contract because of defendant’s interference with the Lease. (Id., ¶ 54).
B. Procedural History
On January 9, 2015, plaintiff commenced this action against defendant pursuant to this Court’s diversity of citizenship jurisdiction undеr
Defendant now moves to dismiss the complaint pursuant to, inter alia,
III. Discussion
A. Standard of Review
The standard of review on a motion made pursuant to
“A pleading that offers ’labels and 'conclusions’ or ’a formulaic recitation of the elements of a cause of action will not do.’” Iqbal,
In deciding a motion pursuant to
Nonetheless, a plaintiff is not required to plead “specific evidence or extra faсts beyond what is needed to make the claim plausible.” Arista Records, LLC v. Doe 3,
In deciding a motion pursuant to
B. The Noerr-Pennington Doctrine
Defendant contends that plaintiffs tor-tious interference сlaim is barred by the N oerr-Pennington doctrine and First Amendment principles.
Where, as here, “a plaintiff claims the defendant tortiously interfered with a [contract] by lobbying a governmental entity, courts applying New York law analyze the First Amendment issue under the Noerr-Pennington doctrine.”
“Lobbying activities fall within the ’sham exception’ when ’they are found to be a “sham” to disguise what is other
Although “[ojvertly corrupt conduct, such as threatening or bribing a public official, has also been ruled1, to be outside the protection of the [N oerr-Pen-nington] doctrine[,]” FORSA,
Since “an important policy behind the Noerr-Pennington doctrine is the need to protect the right of the people to participate in the political process, the doctrine is an application of the [F]irst [A]mendment[ ] ... [and] is relevant outside the context of antitrust actions.” FORSA,
Contrary to plaintiffs contention, defendant’s meeting with Bellone regarding the issuance of a building permit to
Since plaintiff' alleges, inter alia, that defendant acted because' it “was concerned that [plaintiffs] planned solar project for the Ronkonkoma [S]ite could be incompatible with the Ronkonkоma Hub that [it] was developing,” (Compl., ¶31), and not solely to damage plaintiff, the “sham exception” to the Noerr-Pennington doctrine is inapplicable. See, e.g. FORSA,
Moreover, it cannot reasonably be inferred from the factual allegations in the complaint that defendant engaged in any overtly corrupt or illegal conduct. In sum, plaintiff “do[es] not possess [a] cognizable eause[ ] of action for what amounts to ... defendant’s] mastery of the local political process to protect [its] legitimate business interests.” Alfred Weissman,
III. CONCLUSION
For the foregoing reasons, the branch of defendant’s motion seeking dismissal of plaintiffs complaint pursuant to the Noerr-Pennington doctrine is granted and the complaint is dismissed in its entirety with prejudice pm-suant to
SO ORDERED.
Notes
. The factual allegations are -taken from the complaint and are assumed to be true for púrposes of this motion only. They do not constitute findings of fact by the Court.
. Plaintiff does not attach a copy of the Lease to the complaint but this allegation, like all Of the other factual allegations in the complaint, is presumed to be true for рurposes of this motion only.
. A building permit was issued for the site in Deer Park on March 7, 2012. (Compl., ¶28). Accordingly, six (6) of the seven (7) sites "now have solar carport facilities in operation.” (Id., ¶ 29).
.Based upon the allegations in the complaint, LIS had not yet submitted “the full building permit package” for the Ronkonko-ma Site at the time of defendant’s meeting with Bellone. (See Compl., ¶¶ 27, 33-34).
. "Lobbying” in this context means "try[mg] to influence [] a political decision-maker! ] Lobby, Black’s Law Dictionary (10th ed. 2014),
. In light of this determination, it is unnecessary to consider defendant’s remaining contentions.