Getty Petroleum sues Green Valley Oil for $4.36 million rent payment

By Caroline Salls

Pittsburgh, Jan. 12 - Getty Petroleum Marketing Inc. filed a breach-of-contract lawsuit Thursday in connection with Green Valley Oil, LLC's alleged failure to pay rent due in December and January under a site and facilities sublease, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

Getty Petroleum said Green Valley owes $4.36 million in rent and late fees.

Getty Petroleum said it subleases about 280 non-residential properties to Green Valley.

Although Green Valley may have had a right to reduced rent if Getty Petroleum's rent payments to landlord Getty Realty were reduced, Getty Petroleum said Green Valley is not entitled under the sublease to delay paying rent based on Getty Petroleum's payment of rent.

According to the lawsuit, Getty Realty asked the court on Dec. 2 to enjoin Getty Petroleum Marketing from collecting rents from its subtenants and have all previously paid subtenant rent paid into escrow.

The court ordered that all subtenant rent be placed into escrow on Dec. 5. However, Getty Petroleum said it filed a notice of voluntary discontinuance and did not pay any subrents into escrow.

Following a payment demand to Green Valley from Getty Petroleum for December rent, Green Valley argued that it did not need to pay December or January rent because it was concerned about whether the payment would go to the appropriate party.

Green Valley also said it had an offset claim for amounts paid in November against the December rent, according to the complaint.

Getty Petroleum said it served Green Valley with a notice of default on Dec. 22 and terminated the sublease after Green Valley failed to pay the December and January rent to either Getty Petroleum or Getty Realty by Jan. 6.

Getty Petroleum, an East Meadow, N.Y., distributor of motor and heating fuels, filed for bankruptcy on Dec. 5. Its Chapter 11 case number is 11-15606.

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