FILED: KINGS COUNTY CLERK 06/08/ /30/ :11 03:00 PM INDEX NO /2015 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 06/08/2015

Transcription

1 FILED: KINGS COUNTY CLERK 06/08/ /30/ :11 03:00 PM INDEX NO /2015 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 06/08/ /30/2015 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS X BARRISTERS TITLE AGENCY, LLC, Plaintiff, -against- Index No.: SUMMONS Plaintiff designates Kings County as the Place of trial The Basis of Venue is TIMMY HARRISON and the situs of the Property SUB DEVELOPMENT IV CORP. Plaintiff s Place of Business: Defendants Coleman Street, Unit 1A X Brooklyn, NY TO THE ABOVE NAMED DEFENDANTS: You are hereby summoned and required to serve upon the attorneys for the Plaintiff herein an answer to the Complaint in this action within twenty (20) days after service of this summons, exclusive of the day of service, or within thirty (30) days after service is complete if this summons is not personally delivered to you within the State of New York. In case of your failure to answer, judgment will be taken against you by default for the relief demanded in the Complaint. Dated: New York, New York June 3, 2015 Yours truly, Jason J. Rebhun The Law Offices of Jason J. Rebhun, PC Attorney for Plaintiff(s) 225 Broadway, 38 th Floor New York, NY (646) Defendants Address: TIMMY HARRISON SUB DEVELOPMENT IV CORP Ryder Street Via Secretary of State Brooklyn NY 11234

2 FILED: KINGS COUNTY CLERK 06/08/ :11 PM INDEX NO /2015 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/08/2015 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS X BARRISTERS TITLE AGENCY, LLC, Index No.: -against- Plaintiff, VERIFIED COMPLAINT TIMMY HARRISON and SUB DEVELOPMENT IV CORP. Defendant X Plaintiff, by and through its counsel, The Law Offices of Jason J. Rebhun, P.C., hereby alleges as follows: 1. This action concerns Defendant Timmy Harrison s execution of his 50% interest in a deed in favor of co-defendant Sub Development IV Corp. (without consideration) and a few weeks thereafter, Defendant Timmy Harrison s execution of a different deed conveying the same interest to a different party while misleading everyone involved into believing that he had not previously conveyed that interest. 2. Due to Defendant Harrison s double execution of the same interest to two different people, Plaintiff herein is unable to record the proper deed which was signed at closing on January 13, The January 13, 2015 closing was a bona fide transfer and was undertaken with the mortgage bank s approval on the short sale. 3. Upon information and belief, Defendant Harrison admitted to the Sheriff of New York City, and specifically Theresa Russo, who is charged with investigating fraud, that he acted improperly when he executed the first deed and thereafter withheld that information and executed the same interest in a different deed to a bona fide purchaser. 1

3 4. Plaintiff Barristers Title Agency LLC is a limited liability company registered and actually doing business in New York, and specifically as a title agency charged with preparing and recording real property documents prior to, at, and following closings. 5. Defendant Timmy Harrison ( Harrison ) is a New York resident and resides at 1518 Ryder Street, Brooklyn NY. 6. Until December 18, 2014, Timmy was a fifty (50%) percent owner of the property known as 125 Pulaski Street, Brooklyn NY ( the property ). 7. James Walter, deceased prior to December 18, 2014 was the other fifty (50%) percent owner of the property. His interest remains vested in his estate and heirs until they conveyed, and/or attempted to convey, same on January 13, Defendant SUB DEVELOPMENT IV CORP. ( Sub Development ) is a registered corporation in the State of New York and licensed to do business therein. 9. Sub Development maintains a place of business at Liberty Avenue, Ozone Park, NY Sub Development is a necessary party herein by virtue that it is the current owner of the property. Background 11. Harrison and James Walter took title as tenants in common to the property by deed recorded January 6, Harrison then conveyed his interest in the property to White Collar Construction Inc. by deed recorded on March 29, 2013 and the following year, specifically on June 4, 2014, White Collar Construction Inc. deeded the property back to Harrison. 13. On October 9, 2014, Plaintiff recorded on ACRIS a Contract for the subject 2

4 property between Harrison and Age 420 Equities LLC. 14. Harrison had agreed to convey his interest in the property to Age 420 Equities LLC who later changed the name of the buyer in the property to 125 Pulaski St Inc. 15. Defendant Harrison then executed a deed conveying his 50% interest to Defendant Sub Development for zero ($0) consideration by deed dated December 18, 2014 which was recorded on ACRIS on January 24, Thereafter, on January 13, 2015, Harrison, together with James Walter s heirs were present at a closing and signed Title Affidavits in which Mr. Harrison swore to, in pertinent part: 9. There have been no other contracts of sale entered into, nor are there any contemplated transfers, other than the closing now taking place. 17. As part of the closing, Harrison and Walters heirs executed a deed conveying their full one hundred (100%) percent interest in the property to 125 Pulaski St Inc. but same cannot be recorded because of Harrison s deed to Sub Development given to them on December 18, Additionally, in the same Affidavit, Mr. Harrison swore that he made the Affidavit to induce the above indicated title company to insure title to the above noted property, knowing that the said title company will rely upon same made herein in issuing said title insurance. I further agree to indemnify and hold harmless said Title Company from any and all claims resulting from what was misrepresented and/or from what was not disclosed herein. 19. Moreover, as a material part of the closing, Plaintiff paid off Harrison s mortgage on the property in the amount of three hundred and thirty three thousand and seven hundred and sixty seven ($333,767.00) dollars. 3

5 20. At the closing held on January 13, 2015, Plaintiff had a termination of contract executed which essentially nullified the recorded contract to Age 420 Equities LLC. 21. The closing which took place on January 13, 2015 was supposed to have conveyed the property from Harrison and Walters heirs to 125 Pulaski St Inc but due to Harrison s prior conveyance of December 18, 2014, the closing was consummated but Plaintiff was and continues to remain unable to record the proper conveyance documents due to Harrison s prior conveyance without consideration. 22. This value of this action exceeds the lower jurisdictional limits of all lower courts in the State of New York. AS FOR A FIRST CAUSE OF ACTION FOR FRAUD AS AGAINST DEFENDANT HARRISON 23. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint with the same force and affect as if separately enumerated hereunder. 24. Harrison represented to Plaintiff at the January 13, 2015 closing that he had the standing, authority, and capacity to execute a deed which would have conveyed his 50% interest in the property to 125 Pulaski St Inc. 25. Harrison indeed executed such a deed as aforesaid on January 13, At the time that he executed the January 13, 2015 deed, Harrison had previously executed a deed conveying the same interest to Defendant Sub Development. 27. Harrison knew that Plaintiff would rely on his representation that he could convey his interest and indeed swore to same in an Affidavit. 28. Indeed, Harrison executed a sworn Affidavit wherein he represented that he had not 4

6 previously conveyed his interest. 29. Harrison s execution of the Affidavit was made with the intent to induce Plaintiff to rely upon same. 30. Plaintiff relied upon Harrison s representations when it paid off Harrison s mortgage and prepared the transfer documents to 125 Pulaski St Inc. and ultimately relied upon Harrison s representations when it attempted to record the January 13, 2015 transfer documents. 31. Harrison knew that his representations and sworn Affidavit were false. 32. Harrison s actual knowledge of his falsity was maliciously made with the intent to damage Plaintiff. 33. Harrison intended to deceive Plaintiff when he executed the deed, when he permitted Plaintiff to pay off his mortgage, and when he signed the Affidavit. 34. Plaintiff reasonably relied upon Harrison s representations both verbally and in his sworn Affidavit. 35. Plaintiff could not have found Harrison s December 18, 2014 deed unless Harrison notified Plaintiff of same because the December 18, 2014 deed was recorded on January 24, 2015, after the January 13, 2015 closing. 36. Plaintiff sustained damages due to its inability to record the January 13, 2015 transfer documents and because Harrison s actions have exposed Plaintiff to liability from the subject buyer, 125 Pulaski St Inc. 37. Harrison s actions render him liable for treble and punitive damages due to the egregious fraud perpetuated upon Plaintiff. 5

7 AS FOR A SECOND CAUSE OF ACTION FOR BREACH OF CONTRACT AS AGAINST DEFENDANT HARRISON 38. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint with the same force and affect as if separately enumerated hereunder. 39. The January 13, 2015 closing constituted a contract between Plaintiff and Defendant Harrison. 40. Plaintiff was due to act as the title agent for the subject closing and indeed pay off Harrison s mortgage and Harrison was supposed to have conveyed his interest as aforesaid. 41. Following the closing, Harrison would have ceased being the owner of the property and also discharged from the subject mortgage which was personally in his name and thus rendered him personally liable for the amount of the mortgage. 42. Harrison breached his contract when he failed to convey his interest. 43. As a result of Harrison s breach, Plaintiff was damaged in an amount to be determined at trial, but no less than the amount of the mortgage that was paid off on Harrison s behalf: thirty three thousand and seven hundred and sixty seven ($333,767.00) dollars. 44. Additionally, by and through Harrison s Affidavit, he is contractually obligated to indemnify and hold Plaintiff herein. AS FOR A THIRD CAUSE OF ACTION FOR A DECLARATORY JUDGMENT THAT THE DECEMBER 18, 2014 DEED TRANSFER IS VOID AS A MATTER OF LAW AND IS HEREBY DEEMED INVALID AND RESCINDED 45. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint 6

8 with the same force and affect as if separately enumerated hereunder. 46. The December 18, 2014 deed transfer to Sub Development was not a bona fide transfer, was undertaken without any consideration, no taxes were paid by either party, and was otherwise a sham and a non-arms length transaction/transfer. 47. Given that Harrison had previously executed a contract to convey his interest in the property to someone other than Sub Development, Harrison knew that he was contractually obligated to convey the property to Age 420 Equities LLC/125 Pulaski St Inc. 48. Sub Development was on notice of the contract to Age 420 Equities LLC which was recorded on October 9, 2014, well before Harrison executed the December 19, 2014 deed to Sub Development. 49. Sub Development knew or should have known of the Age 420 Equities LLC contract because same was recorded on ACRIS. 50. Nonetheless, Sub Development induced Harrison to execute the December 19, 2014 deed. 51. Despite Harrison s execution of the December 19, 2014 deed, he again executed another deed conveying the same interest to another entity on January 13, The January 13, 2015 deed was entirely in proper form with parties represented by counsel, transfer taxes to paid, consideration, pay off of mortgages, etc. 53. The December 18, 2014 deed/transfer was entirely a sham and a fraudulent transfer. 54. As a result, Plaintiff prays for an Order that the December 18, 2014 deed be rescinded and that the January 13, 2015 be recorded instead and in its place. 55. Accordingly, an Order must be accordingly entered against Defendants and 7

9 instructing the City Register and/or any City of New York officials/employees to rescind the December 18, 2014 and to record the January 13, 2015 deed. 56. Plaintiff has no adequate remedy at law. 57. A justiciable controversy exists pursuant to CPLR AS FOR A FOURTH CAUSE OF ACTION FOR FRAUDULENT CONVEYANCE 58. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint with the same force and affect as if separately enumerated hereunder. 59. As a result of the foregoing and because the December 18, 2014 transfer was a sham and without consideration, Sub Development never acquired any authority, right, title, interest, or any apparent authority to claim any interest in the subject property. 60. As a result of the fraudulent transfers stated herein, Plaintiff is entitled to an Order restoring the January 13, 2015 deed and returning the property to 125 Pulaski St Inc. AS FOR A FIFTH CAUSE OF ACTION FOR REIMBURSEMENT OF ATTORNEY S FEES 61. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint with the same force and affect as if separately enumerated hereunder. 62. That by reason of the foregoing, and in addition to his sworn Affidavit, Harrison caused Plaintiff to retain counsel to vacate the December 18, 2014 deed. 63. That Plaintiff has been required to pay attorney s fees to institute the instant action and upon information and belief, will continue to pay attorney s fees in the future to remedy the vacating of the false deeds. 8

10 64. Harrison agreed in his Affidavit, to indemnify and hold Plaintiff harmless for any and all claims resulting from what was misrepresented and/or what was not disclosed herein. 65. The instant action is precisely the underlying intent of the cited paragraph in Harrison s Affidavit. 66. Upon information and belief, Plaintiff will incur legal fees and attorney s fees in the amount of not less than $75, That by reason of the foregoing, Plaintiff has been damaged in the sum of at least $75,000. AS AND FOR A SIXTH CAUSE OF ACTION FOR INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS 68. Plaintiff repeats, reiterates and realleges each and every allegation of this complaint with the same force and affect as if separately enumerated hereunder. 69. Sub Development was on notice of the subject contract by virtue of the recorded document on ACRIS which is available to the public. 70. Despite being on notice of the contractual obligations between Plaintiff and Age 420 Equities LLC, Sub Development intentionally induced Harrison to breach the agreement to convey the property to it instead of Plaintiff s agent and buyer, 125 Pulaski St Inc. 71. As a result of Defendant Sub Development s actions, Plaintiff has been damaged as aforesaid. 72. Both Defendants malicious and reckless actions were intentionally undertaken to damage Plaintiff which renders both Defendants liable to Plaintiff for punitive 9

11 damages. WHEREFORE, Plaintiff demands judgment against Defendants as follows: (a) On the First Cause of Action for an Order awarding Plaintiff monetary damages due to Defendant Harrison s fraud; (b) On the Second Cause of Action for an Order declaring that Defendant Harrison breached his contract with Plaintiff and awarding Plaintiff monetary damages including full indemnification and holding Plaintiff harmless; (c) On the Third Cause of Action for an Order declaring the December 18, 2014 deed void and rescinded and instead, that the January 13, 2015 deed be recorded in its place; (d) On the Fourth Cause of Action for an Order deeming the December 18, 2014 deed a fraudulent conveyance and vacating that deed; (e) On the Fifth Cause of Action for an Order awarding Plaintiff recovery of its attorney s fees herein in an amount to be determined at trial but no less than $75,000; (f) On the Sixth Cause of Action for an Order awarding Plaintiff monetary damages for Defendants intentional interference with contractual relations; (g) Together with such other relief as the Court deems just and proper. Dated: New York, New York June 4, 2015 Yours truly, Jason J. Rebhun THE LAW OFFICES OF JASON J. REBHUN, P.C. Attorneys for Plaintiff 225 Broadway, 38 th Floor New York, NY (646) Jason@jasonrebhun.com 10

12