On March 31, 2021, the Second Department issued a decision in Capital One Taxi Medallion Fin. v. JEB Mgt. Corp., 2021 NY Slip Op. 01960, holding that the waiver of defenses in a guaranty prevented the guarantor from asserting affirmative defenses to the guaranty’s enforcement, explaining: On a motion for summary judgment to enforce a... Read more »
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Posts Categorized: Judgment and Collection
Court Grants Summary Judgment In Lieu of Complaint Based on Settlement Agreement
On March 17, 2021, Justice Borrok of the New York County Commercial Division issued a decision in Wilkins Media, LLC v. Oxigen Beverages, Inc., 2021 NY Slip Op. 30847(U), granting summary judgment in lieu of complaint based on a settlement agreement, explaining: Pursuant to CPLR § 3213, a motion for summary judgment in lieu of... Read more »
That LLC Was Not Formed When it Was Assigned Note Did Not Cause it to Lack Standing to Enforce Note
On March 10, 2021, the Second Department issued a decision in Torto Note Member, LLC v. Babad, 2021 NY Slip Op. 01438, holding that even though an LLC was not formed when it was assigned a note, the LLC had standing to sue on the note, explaining: The appellants also failed to raise a triable... Read more »
Acknowledgement of Debt Can Be Valid Even if it Contains Ambiguities
On March 4, 2021, the First Department issued a decision in Hawk Mtn. LLC v. RAM Capital Group LLC, 2021 NY Slip Op. 01349, holding that an acknowledgement of a debt can be valid even if it contains ambiguities, explaining: In opposition to defendant’s initial showing that the time in which to commence this action... Read more »
Lien Recorded Under Debtor’s Correct Surname Valid Even Though First Name Was Incorrect
On December 23, 2020, The Appellate Division, Second Department issued a decision in Myrtle 684, LLC v. Tauber, 2020 NY Slip Op. 07901, holding that a deed recorded under a debtor’s correct surname was created a valid lien even though the debtor’s first name was not correctly spelled, explaining: CPLR 5203(a) gives priority to a... Read more »
Accounts Receivable are Tangible Assets
On May 1, 2020, the Fourth Department issued a decision in Violet Realty, Inc. v. Amigone, Sanchez & Mattrey, LLP, 2020 NY Slip Op. 02592, holding that accounts receivable are tangible assets, explaining: We agree with plaintiff, however, that the court erred in granting defendant’s cross motion insofar as it seeks a determination that defendant’s... Read more »
Failure to Serve Judgment Debtor Dooms Creditor’s Attempts to Collect
On April 10, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Kasen v. Mission Cantina, LLC, 2020 NY Slip Op. 30929(U), holding that the failure to serve the judgment debtor doomed a creditor’s attempts to collect, explaining: CPLR § 5225 (a) provides: (a) Property in the possession of judgment... Read more »
Garnishee Liable for Transfer of Restrained Funds
On January 22, 2020, the Second Department issued a decision in Matter of Bravado Intl. Group Merchandising Servs., Inc. v. United States Tennis Assn. Inc., 2020 NY Slip Op. 00410, holding that a garnishee was liable for transferring restrained funds, explaining: Pursuant to CPLR 5222(b), a judgment creditor may serve a notice to restrain or... Read more »
Judgment Creditor Did Not Create Lien on Debtor’s Property Because Debtor’s Name Was Misspelled
On December 18, 2019, the Second Department issued a decision in Matter of Fischer v. Chabbott, 2019 NY Slip Op. 09002, holding that a judgment creditor failed to create a lien on a debtor’s property because the debtor’s name was misspelled on the judgment the creditor had docketed, explaining: CPLR 5203(a) gives priority to a... Read more »
Foreign Judgment Takes Precedence over Settlement Agreement That the Judgment Enforced
On December 24, 2019, the Second Department issued a decision in Bernardo v. Ramos, 2019 NY Slip Op. 09245, holding that a foreign judgment takes precedence over a settlement agreement that the judgment enforced, explaining: The parties entered into a compromise agreement dated May 18, 2004, in the Philippines, whereby the defendant agreed to pay... Read more »