Summary Judgment Granted Under CPLR 3212 And 3213, Under Guaranties Of Debts Established By Foreign Judgment

Posted: June 2, 2025 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Categories Breach of Contract, Summary Judgment in Lieu of Complaint, Summary Judgment

Summary Judgment Granted Under CPLR 3212 And 3213, Under Guaranties Of Debts Established By Foreign Judgment

On April 30, 2025, Justice Joel M. Cohen granted summary judgment under CPLR 3212 and 3213 (instrument for the payment of money only), compelling payment under guaranties for a debt of non-party HYLA UK Holdco Limited (“HYLA UK”). The case is White Matter Holding Limited v. Abubaker, Index No. 653658/2023.

The Court had previously denied a motion for summary judgment in lieu of complaint on the guaranties under CPLR 3213 by plaintiff White Matter Holding Limited (“White Matter”), finding “there was a dispute as to whether HYLA UK’s payment obligations on the underlying settlement agreement had been triggered”. Slip op., p. 1. After a London Circuit Commercial Court’s $7,500,000 default judgment against HYLA UK became final, the Court permitted White Matter to renew its prior motion against three guarantors, Umais Abubaker, Huzaifa Abubaker, and Global Investment Holdings Limited (“Guarantors”).

White Matter brought its renewed motion for summary judgment against Guarantors under both CPLR 3212 and 3213, a distinction Justice Cohen found to be immaterial: “Plaintiff has met its burden under both provisions.” Slip op., p. 2 (citing authority “noting that the standard for summary judgment under each statute is the same aside from the more stringent ‘instrument for payment of money only’ requirement under CPLR 3213” and that a guarantee qualifies as an ‘instrument for the payment of money only under CPLR).

Thus:

White Matter has established a prima facie case for summary judgment pursuant to CPLR 3212 and 3213 by demonstrating that Defendants executed unconditional guaranties that unconditionally and irrevocably guaranteed the payment and performance of HYLA UK’s obligations under the settlement agreement . . ., and that Defendants have failed to pay after receiving written notice.

Slip op., p. 3.

Because White Matter had made a timely demand to Guarantors for payment by July 1, 2023 of the principal amount and “all duly documented costs, expenses and fees, including all reasonable attorneys’ fees, which may be incurred by White Matter in enforcing . . . this Guarantee” and “Defendants have submitted no evidence demonstrating a triable issue of fact”, White Matter was entitled to a judgment including the costs of collection as well as pre-judgment interest running from July 1, 2023. Id.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning breach of contract, enforcement of instruments for payment of money only, or summary judgment.