FILED: NEW YORK COUNTY CLERK 06/22/2016 03:50 PM INDEX NO. 653311/2016 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 06/22/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ---------------------------------------------------------------)( ONYX ASSET MANAGEMENT, LLC, MYLES WITTENSTEIN, MYLES WITTENSTEIN AS TRUSTEE OF THE MYLES WITTENSTEIN REVOCABLE TRUST, AND CHICKAREE CHICKLLC, -against- 9th & 1oth STREET LLC, Plaintiffs, Defendant. ---------------------------------------------------------------)( Inde)( No. SUMMONS Plaintiffs designate the New York County as the place of trial The basis of venue is the Defendant's principal place of business located in New York County TO THE ABOVE-NAMED DEFENDANT: YOU ARE HEREBY SUMMONED to answer the Complaint in this action and to serve a copy of your Answer, or, if the Complaint is not served with this Summons, to serve a Notice of Appearance on Plaintiffs' attorney(s) within twenty (20) days after the service of this Summons, e)(clusive of the day of service (or within thirty (30) days after the service is complete if this Summons is not personally delivered to you within the State ofnew York); and in case ofyour failure to appear or answer, judgment will be taken against you by default for the relief demanded in the Complaint. Dated: New York, New York June 22,2016 DAVIDOFF BUTCHER o/itr()n fi;/ ~ B y:, ----"-----=------:6~"""'7'"""""-< Michael e)(elbaum Attorneys for Plaintiffs 605 Third Avenue, 34th Floor New York, New York 10158 (212) 557-7200 549409v.l 1 of 12
TO: 9th and loth Street LLC 186 West 80th Street New York, New York 10024 549409v.l 2 2 of 12
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ---------------------------------------------------------------X ONYX ASSET MANAGEMENT, LLC, MYLES WITTENSTEIN, MYLES WITTENSTEIN AS TRUSTEE OF THE MYLES WITTENSTEIN REVOCABLE TRUST, AND CHICKAREE CHICKLLC, Index No. Plaintiffs, -against- COMPLAINT 9th & 1oth STREET LLC ' Defendant. ---------------------------------------------------------------X Plaintiffs, by their attorneys, DavidoffHutcher & Citron LLP, as and for their Complaint in the above-entitled action, allege as follows: PARTIES 1. Plaintiff ONYX ASSET MANAGEMENT, LLC ("Onyx"), is a limited liability company duly organized and existing under the laws of the State of California, with its principal place of business located at 11777 San Vicente Boulevard, Suite 640, Los Angeles, California, and is a Class A Member of Defendant. 2. Plaintiff MYLES WITTENSTEIN ("Wittenstein") is an individual who is a resident and citizen ofthe State ofnew York residing at 13 East Woods Path, P.O. Box# 411, Sagaponack, New York and is a Class A Member ofdefendant. 3. Plaintiff CHICKAREE CHICK LLC ("CC") is a limited liability company duly organized and existing under the laws of the State of New York, with its principal place of business located at 1050 Park Avenue, Apt. loa, New York, New York, and is a Class A Member of Defendant. 3 of 12
4. Plaintiff Myles Wittenstein as Trustee of The Myles Wittenstein Revocable Trust (the "Trust") is an inter vivos trust of which Wittenstein is the grantor and the trustee, with its address c/o Wittenstein at 13 East Woods Path, P.O. Box # 411, Sagaponack, New York. 5. Defendant 9th & loth STREET, LLC ("Defendant") is a limited liability company duly organized and existing under the laws of the State ofnew York, with its principal place of business located at 186 West 80th Street, New York, New York, and is the Maker of the Unsecured Subordinated Promissory Notes (the "Notes") sued on herein. JURISDICTION AND VENUE 6. This Court has jurisdiction over the subject matter of this action, as Defendant is a New York limited liability company with its principal place of business located in the County, City and State ofnew York. 7. Venue is properly vested in this Court based upon Defendant's principal place of business in New York County in the City and State ofnew York. JOINDER OF PLAINTIFFS 8. Plaintiffs Onyx, Wittenstein and CC (collectively the "Plaintiffs") assert severally, and not jointly, their separate and distinct causes of action as hereinafter set forth. 9. The joinder of Plaintiffs as parties herein is permissive due to the fact that their respective rights to the relief demanded in their respective causes of action arise out of a series of transactions having common questions of law and fact. AS AND FOR A FIRST CAUSE OF ACTION 10. Onyx repeats and realleges the allegations set forth in Paragraphs 1-9 of this 11. On or about April 14, 2014, Defendant executed and delivered to Onyx an 2 4 of 12
Unsecured Subordinated Promissory Note in the principal amount of $1,045,920, and bearing interest at the rate of 12% per annum, which was due and payable to Onyx on April 14, 2016 ("Onyx Promissory Note # 1 "). A true copy of Onyx Promissory Note# 1 is annexed hereto as Exhibit A. 12. Onyx is now and always has been the owner and holder of Onyx Promissory Note #1. 13. Defendant owes to Onyx the principal amount of Onyx Promissory Note# 1 and prejudgment interest thereon at the rate of 12% per annum from April 14, 2014. 14. Defendant has failed and refused to pay any portion of Onyx Promissory Note# 1, and payment thereof has been duly demanded and is past due and due and owing. 15. Defendant is in default of its obligations under Onyx Promissory Note # 1. 16. By reason of the foregoing, Onyx has been damaged in the principal amount of $1,045,920, together with prejudgment interest thereon at the rate of 12% per annum from April 14, 2014 to the date of the entry of judgment. AS AND FOR A SECOND CAUSE OF ACTION 17. Onyx repeats and realleges the allegations set forth in Paragraphs 1-9 of this 18. On or about June 12, 2015, Defendant executed and delivered to Onyx an Unsecured Subordinated Promissory Note in the principal amount of $217,900, and bearing interest at the rate of 12% per annum, which was due and payable to Onyx on June 12, 2016 ("Onyx Promissory Note # 2"). A true copy of Onyx Promissory Note# 2 is annexed hereto as Exhibit B. 19. Onyx is now and always has been the owner and holder of Onyx Promissory Note 3 5 of 12
# 2. 20. Defendant owes to Onyx the principal amount of Onyx Promissory Note# 2 and prejudgment interest thereon at the rate of 12% per annum from June 12, 2015. 21. Defendant has failed and refused to pay any portion of Onyx Promissory Note # 2, and payment thereof has been duly demanded and is past due and due and owing. 22. Defendant is in default of its obligations under Onyx Promissory Note# 2. 23. By reason of the foregoing, Onyx has been damaged in the principal amount of $217,900, together with prejudgment interest thereon at the rate of 12% per annum from June 12, 2015 to the date of the entry of judgment. AS AND FOR A THIRD CAUSE OF ACTION 24. Wittenstein repeats and realleges the allegations set forth in Paragraphs 1-9 of this 25. On or about April 15, 2014, Defendant executed and delivered to Wittenstein an Unsecured Subordinated Promissory Note in the principal amount of $40,000, and bearing interest at the rate of 12% per annum, which was due and payable to Wittenstein on April 15, 2016 ("Wittenstein Promissory Note # 1 "). A true copy of Wittenstein Promissory Note # 1 is annexed hereto as Exhibit C. 26. Wittenstein is now and always has been the owner and holder of Wittenstein Promissory Note # 1. 27. Defendant owes to Wittenstein the principal amount of Wittenstein Promissory Note# 1 and prejudgment interest thereon at the rate of 12% per annum from April15, 2014. 28. Defendant has failed and refused to pay any portion of Wittenstein Promissory Note# 1, and payment thereof has been duly demanded and is past due and due and owing. 4 6 of 12
29. Defendant is in default of its obligations under Wittenstein Promissory Note # 1. 30. By reason of the foregoing, Wittenstein has been damaged in the principal amount of $40,000, together with prejudgment interest thereon at the rate of 12% per annum from April 15,2014 to the date ofthe entry of judgment. AS AND FOR A FOURTH CAUSE OF ACTION 31. Wittenstein repeats and realleges the allegations set forth in Paragraphs 1-9 of this 32. On or about April 30, 2014, Defendant executed and delivered to Wittenstein an Unsecured Subordinated Promissory Note in the principal amount of $66,840, and bearing interest at the rate of 12% per annum, which was due and payable to Wittenstein on April 30, 2016 ("Wittenstein Promissory Note # 2"). A true copy of Wittenstein Promissory Note # 2 is annexed hereto as Exhibit D. 33. Wittenstein is now and always has been the owner and holder of Wittenstein Promissory Note# 2. 34. Defendant owes to Wittenstein the principal amount of Wittenstein Promissory Note# 2 and prejudgment interest thereon at the rate of 12% per annum from April30, 2014. 35. Defendant has failed and refused to pay any portion of Wittenstein Promissory Note# 2, and payment thereof has been duly demanded and is past due and due and owing. 36. Defendant is in default of its obligations under Wittenstein Promissory Note # 2. 37. By reason of the foregoing, Wittenstein has been damaged in the principal amount of $66,840, together with prejudgment interest thereon at the rate of 12% per annum from April 30, 2014 to the date ofthe entry of judgment. 5 7 of 12
AS AND FOR A FIFTH CAUSE OF ACTION 38. Wittenstein repeats and realleges the allegations set forth in Paragraphs 1-9 ofthis 39. On or about May 2, 2014, Defendant executed and delivered to Wittenstein an Unsecured Subordinated Promissory Note in the principal amount of $20,000, and bearing interest at the rate of 12% per annum, which was due and payable to Wittenstein on May 2, 2016 ("Wittenstein Promissory Note# 3"). A true copy ofwittenstein Promissory Note# 3 is annexed hereto as Exhibit E. 40. Wittenstein is now and always has been the owner and holder of Wittenstein Promissory Note# 3. 41. Defendant owes to Wittenstein the principal amount of Wittenstein Promissory Note# 3 and prejudgment interest thereon at the rate of 12% per annum from May 2, 2014. 42. Defendant has failed and refused to pay any portion of Wittenstein Promissory Note# 3, and payment thereof has been duly demanded and is past due and due and owing. 43. Defendant is in default of its obligations under Wittenstein Promissory Note# 3. 44. By reason of the foregoing, Wittenstein has been damaged in the principal amount of $20,000, together with prejudgment interest thereon at the rate of 12% per annum from May 2, 2014 to the date ofthe entry of judgment. AS AND FOR A SIXTH CAUSE OF ACTION 45. The Trust repeats and realleges the allegations set forth in Paragraphs 1-9 of this 46. On or about June 12, 2015, Defendant executed and delivered to the Trust an Unsecured Subordinated Promissory Note in the principal amount of $32,100, and bearing 6 8 of 12
interest at the rate of 12% per annum, which was due and payable to the Trust on June 12, 2016 ("Trust Promissory Note # 1 "). A true copy of Trust Promissory Note # 1 is annexed hereto as Exhibit F. 47. The Trust is now and always has been the owner and holder of Trust Promissory Note# 1. 48. Defendant owes to the Trust the principal amount of Trust Promissory Note# 1 and prejudgment interest thereon at the rate of 12% per annum from June 12,2015. 49. Defendant has failed and refused to pay any portion of Trust Promissory Note# 1, and payment thereof has been duly demanded and is past due and due and owing. 50. Defendant is in default of its obligations under Trust Promissory Note# 1. 51. By reason of the foregoing, the Trust has been damaged in the principal amount of $32,100, together with prejudgment interest thereon at the rate of 12% per annum from June 12, 2015 to the date of the entry of judgment. AS AND FOR A SEVENTH CAUSE OF ACTION 52. CC repeats and realleges the allegations set forth in Paragraphs 1-9 of this 53. On or about April 15, 2014, Defendant executed and delivered to CC an Unsecured Subordinated Promissory Note in the principal amount of $27,240, and bearing interest at the rate of 12% per annum, which was due and payable to CC on April 15, 2016 ("CC Promissory Note# 1 "). A true copy of CC Promissory Note# 1 is annexed hereto as Exhibit G. 54. CC is now and always has been the owner and holder of CC Promissory Note # 1. 55. Defendant owes to CC the principal amount of CC Promissory Note # 1 and prejudgment interest thereon at the rate of 12% per annum from April 15, 2014. 7 9 of 12
56. Defendant has failed and refused to pay any portion of CC Promissory Note # 1, and payment thereof has been duly demanded and is past due and due and owing. 57. Defendant is in default of its obligations under CC Promissory Note# 1. 58. By reason of the foregoing, CC has been damaged in the principal amount of $27,240, together with prejudgment interest thereon at the rate of 12% per annum from April 15, 2014 to the date of the entry of judgment. AS AND FOR AN EIGHTH CAUSE OF ACTION 59. Onyx repeats and realleges the allegations set forth in Paragraphs 1-23 of this 60. Onyx Promissory Notes ## 1 and 2 both provide that if Onyx is required to employ counsel to collect the obligations of Defendant pursuant thereto, Defendant agrees to pay the court costs and reasonable attorney's fees incurred by Onyx. 61. By reason of the foregoing, Onyx is entitled to recover its court costs and reasonable attorney's fees incurred by Onyx in the prosecution ofthe above-entitled action. AS AND FOR A NINTH CAUSE OF ACTION 62. Wittenstein repeats and realleges the allegations set forth in Paragraphs 1-9 and 24-44 of this 63. Wittenstein Promissory Notes ## 1, 2 and 3 all provide that if Wittenstein is required to employ counsel to collect the obligations of Defendant pursuant thereto, Defendant agrees to pay the court costs and reasonable attorney's fees incurred by Wittenstein. 64. By reason of the foregoing, Wittenstein is entitled to recover his court costs and reasonable attorney's fees incurred by Wittenstein in the prosecution ofthe above-entitled action. 8 10 of 12
AS AND FOR A TENTH CAUSE OF ACTION 65. The Trust repeats and realleges the allegations set forth in Paragraphs 1-9 and 45-51 of this 66. Trust Promissory Note# 1 provides that if the Trust is required to employ counsel to collect the obligations of Defendant pursuant thereto, Defendant agrees to pay the court costs and reasonable attorney's fees incurred by the Trust. 67. By reason of the foregoing, the Trust is entitled to recover its court costs and reasonable attorney's fees incurred by the Trust in the prosecution of the above-entitled action. AS AND FOR AN ELEVENTH CAUSE OF ACTION 68. CC repeats and realleges the allegations set forth in Paragraphs 1-9 and 52-58 of this 69. CC Promissory Note # 1 provides that if CC is required to employ counsel to collect the obligations of Defendant pursuant thereto, Defendant agrees to pay the court costs and reasonable attorney's fees incurred by CC. 70. By reason of the foregoing, CC is entitled to recover its court costs and reasonable attorney's fees incurred by CC in the prosecution ofthe above-entitled action. WHEREFORE, Plaintiffs demand judgment against Defendant as follows: A. On the First Cause of Action, in favor of Onyx against Defendant for the principal amount of $1,045,920, together with prejudgment interest thereon at the rate of 12% per annum from April 14, 2014; B. On the Second Cause of Action, in favor of Onyx against Defendant for the principal amount of $217,900, together with prejudgment interest thereon at the rate of 12% per annum from June 12, 2015; C. On the Third Cause of Action, in favor of Wittenstein against Defendant for the principal amount of $40,000, together with prejudgment interest thereon at the rate of 12% per annum from April 15, 2014; 9 11 of 12
D. On the Fourth Cause of Action, in favor ofwittenstein against Defendant for the principal amount of $66,840, together with prejudgment interest thereon at the rate of 12% per annum from April30, 2014; E. On the Fifth Cause of Action, in favor of Wittenstein against Defendant for the principal amount of $20,000, together with prejudgment interest thereon at the rate of 12% per annum from May 2, 2014; F. On the Sixth Cause of Action, in favor of the Trust against Defendant for the principal amount of $32,100, together with prejudgment interest thereon at the rate of 12% per annum from June 12, 2015; G. On the Seventh Cause of Action, in favor of CC against Defendant for the principal amount of $27,240, together with prejudgment interest thereon at the rate of 12% per annum from April 15, 2014; H. On the Eighth Cause of Action, in favor of Onyx against Defendant for the court costs and reasonable attorney's fees incurred by Onyx in the prosecution of the above-entitled action; I. On the Ninth Cause of Action, in favor of Wittenstein against Defendant for the court costs and reasonable attorney's fees incurred by Wittenstein in the prosecution of the above-entitled action; J. On the Tenth Cause of Action, in favor of the Trust against Defendant for the court costs and reasonable attorney's fees incurred by the Trust in the prosecution of the above-entitled action. K. On the Eleventh Cause of Action, in favor of CC against Defendant for the court costs and reasonable attorney's fees incurred by CC in the prosecution of the above-entitled action. Together with the taxable costs and disbursements of the above-entitled action. Dated: New York, New York June 22, 2016 DAVIDOFF BUTCHER & CITRON LLP By~:~~~~~~~~~~=~~-~~~~-- Larry Hutcner Michael Wexelbaum 605 Third Avenue, 34th Floor New York, New York 10158 (212) 557-7200 10 12 of 12