Justice F. Dana Winslow
Owner Treeline moved for summary judgment in lieu of complaint in this action to recover the balance due on three promissory notes. Computer Career Center (CCC) leased office space in Treeline's building, and vacated before the lease's expiration. It executed three promissory notes to Treeline for payment obligations under the lease—April 21 note, April 23 note, and July 14 note. Treeline alleged CCC defaulted on the notes. CCC did not deny executing the notes or its default, but explained it suffered financial hardship resulting from Hurricane Sandy. It stated it attempted to negotiate a payment schedule, to no avail, but continued to pay monthly installments on the July 14 note. CCC also argued none of its payments on the July 14 note were credited, alleging Treeline's alleged amount due was incorrect. The court found CCC failed to raise an issue of fact regarding a defense to either the April 21 or 23 note, ruling Treeline made a prima facie showing of entitlement to judgment as a matter of law. Yet, it noted Treeline failed to provide evidentiary proof CCC's security deposit was properly or actually applied, thus CCC's right to set-off was not refuted. Hence, summary judgment was granted on the first two notes, and only as to liability, not the amount due, on the July 14 note.
