FILED: NEW YORK COUNTY CLERK 09/21/ :07 PM INDEX NO /2016 NYSCEF DOC. NO. 45 RECEIVED NYSCEF: 09/21/2016

Similar documents
National Credit Union Admin. Bd. v Basin 2016 NY Slip Op 32456(U) December 13, 2016 Supreme Court, New York County Docket Number: /16 Judge:

FILED: NEW YORK COUNTY CLERK 02/10/ :54 PM INDEX NO /2014 NYSCEF DOC. NO. 42 RECEIVED NYSCEF: 02/10/2015

310 W. 115 St. LLC v Greenpoint Mtge. Funding, Inc NY Slip Op 31644(U) August 27, 2015 Supreme Court, New York County Docket Number:

FILED: NEW YORK COUNTY CLERK 11/04/ :46 PM INDEX NO /2015 NYSCEF DOC. NO. 67 RECEIVED NYSCEF: 11/04/2016

Gatto v Smith 2012 NY Slip Op 33105(U) December 20, 2012 Sup Ct, Queens County Docket Number: 2572/11 Judge: Howard G. Lane Republished from New York

FILED: KINGS COUNTY CLERK 06/13/ :14 PM INDEX NO /2013 NYSCEF DOC. NO. 73 RECEIVED NYSCEF: 06/13/2016

FILED: NEW YORK COUNTY CLERK 08/27/ :37 PM INDEX NO /2014 NYSCEF DOC. NO. 67 RECEIVED NYSCEF: 08/27/2015. Exhibit

Roza 14W LLC v ATB Holding Co., LLC 2014 NY Slip Op 32162(U) August 6, 2014 Supreme Court, New York County Docket Number: /2013 Judge: Ellen M.

FILED: NEW YORK COUNTY CLERK 03/28/ :08 PM INDEX NO /2016 NYSCEF DOC. NO. 6 RECEIVED NYSCEF: 03/28/2016

Private Capital Funding Co., LLC v 513 Cent. Park LLC 2014 NY Slip Op 32004(U) July 29, 2014 Sup Ct, NY County Docket Number: /2012 Judge: Anil

FILED: WESTCHESTER COUNTY CLERK 01/21/ :52 AM INDEX NO /2015 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 01/21/2016

International Union of Bricklayers & Allied Craftworkers v Bank of New York Mellon 2014 NY Slip Op 30177(U) January 17, 2014 Supreme Court, New York

FILED: NEW YORK COUNTY CLERK 06/19/ :27 PM INDEX NO /2017 NYSCEF DOC. NO. 18 RECEIVED NYSCEF: 06/19/2017

FILED: BRONX COUNTY CLERK 03/27/ :27 PM INDEX NO /2016E NYSCEF DOC. NO. 19 RECEIVED NYSCEF: 03/27/2018

MEMORANDUM OF LAW IN SUPPORT OF DEFENDANT S CROSS-MOTION FOR SUMMARY JUDGMENT AND IN OPPOSITION TO PLAINTIFF S MOTION FOR SUMMARY JUDGMENT

FILED: KINGS COUNTY CLERK 02/21/ :04 PM INDEX NO /2017 NYSCEF DOC. NO. 5 RECEIVED NYSCEF: 02/21/2017

FILED: NEW YORK COUNTY CLERK 11/28/ :06 PM INDEX NO /2016 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 11/28/2016

FILED: KINGS COUNTY CLERK 01/04/ :58 PM INDEX NO /2016 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 01/04/2017

FILED: NEW YORK COUNTY CLERK 07/09/ :06 PM INDEX NO /2014 NYSCEF DOC. NO. 50 RECEIVED NYSCEF: 07/09/2015

FILED: NEW YORK COUNTY CLERK 10/27/ :00 PM INDEX NO /2015 NYSCEF DOC. NO. 66 RECEIVED NYSCEF: 10/27/2015

Wells Fargo Bank N.A. v Kourbage 2016 NY Slip Op 30302(U) February 10, 2016 Supreme Court, Suffolk County Docket Number: 32512/13 Judge: Denise F.

Ventures Trust 2013-I-H-R v Tsimmer 2017 NY Slip Op 30570(U) March 23, 2017 Supreme Court, New York County Docket Number: /15 Judge: Barbara

Flushing Sav. Bank, FSB v Ataraxis Props. Ltd NY Slip Op 31416(U) June 7, 2010 Supreme Court, Suffolk County Docket Number: Judge:

Choi v Korowitz 2013 NY Slip Op 33944(U) August 15, 2013 Supreme Court, Queens County Docket Number: /11 Judge: Bernice D. Siegal Cases posted

Signature Bank v Atlas Race LLC 2016 NY Slip Op 32366(U) November 28, 2016 Supreme Court, New York County Docket Number: /15 Judge: Kathryn E.

Deutsche Bank Natl. Trust Co. v Stevens 2016 NY Slip Op 32404(U) December 7, 2016 Supreme Court, New York County Docket Number: /2008 Judge:

Axa Equit. Life Ins. Co. v 200 E. 87th St. Assoc., L.P NY Slip Op 30069(U) January 4, 2019 Supreme Court, New York County Docket Number:

FILED: NEW YORK COUNTY CLERK 09/15/ :14 PM INDEX NO /2014 NYSCEF DOC. NO. 67 RECEIVED NYSCEF: 09/15/2015

Starzpack, Inc. v Terrafina, LLC 2016 NY Slip Op 30651(U) March 16, 2016 Supreme Court, Queens County Docket Number: /15 Judge: Janice A.

FILED: NEW YORK COUNTY CLERK 11/01/ :57 PM INDEX NO /2016 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 11/01/2016

Merchant Cash & Capital, LLC v M.B. Auto Body, Inc NY Slip Op 31685(U) August 31, 2016 Supreme Court, Nassau County Docket Number: /2015

Fayenson v Freidman 2010 NY Slip Op 30726(U) April 5, 2010 Supreme Court, New York County Docket Number: /2009 Judge: Paul Wooten Republished

Jaeckle v Jurasin 2018 NY Slip Op 32463(U) October 1, 2018 Supreme Court, New York County Docket Number: /2016 Judge: Kathryn E.

Provident Bank v Shah 2018 NY Slip Op 32719(U) October 22, 2018 Supreme Court, New York County Docket Number: /2017 Judge: Paul A.

FILED: BRONX COUNTY CLERK 04/21/ :32 AM INDEX NO /2013E NYSCEF DOC. NO. 39 RECEIVED NYSCEF: 04/21/2015

FILED: NEW YORK COUNTY CLERK 06/07/ :58 PM INDEX NO /2016 NYSCEF DOC. NO. 25 RECEIVED NYSCEF: 06/07/2016

FILED: NEW YORK COUNTY CLERK 08/26/ :25 PM INDEX NO /2014 NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 08/26/2014

Wells Fargo Bank N.A. v Webster Bus. Credit Corp NY Slip Op 33850(U) April 13, 2010 Sup Ct, NY County Docket Number: /2009 Judge: Richard

Time Warner Cable N.Y. City, LLC v Fidelity Invs. Inst.Servs. Co., Inc NY Slip Op 32860(U) October 31, 2018 Supreme Court, New York County

Nexbank, SSB v Soffer 2015 NY Slip Op 30167(U) February 3, 2015 Supreme Court, New York County Docket Number: /2013 Judge: Shirley Werner

Briare Tile, Inc. v Town & Country Flooring, Inc NY Slip Op 31520(U) May 24, 2011 Supreme Court, New York County Docket Number: /2010

FILED: NEW YORK COUNTY CLERK 07/27/ :15 PM INDEX NO /2016 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/27/2016

Dis v Bellport Area Community Action Comm NY Slip Op 31817(U) July 15, 2010 Sup Ct, Suffolk County Docket Number: Judge: Emily Pines

FILED: NEW YORK COUNTY CLERK 07/27/ :37 PM INDEX NO /2015 NYSCEF DOC. NO. 66 RECEIVED NYSCEF: 07/27/2018

FIFTH DISTRICT. PRESIDING JUSTICE STEWART delivered the opinion of the court:

Emigrant Bank v Greene 2015 NY Slip Op 31343(U) February 24, 2015 Supreme Court, Queens County Docket Number: /2014 Judge: Allan B.

PNC Bank, N.A. v Walsh 2013 NY Slip Op 31740(U) July 29, 2013 Sup Ct, NY County Docket Number: /2012 Judge: Eileen Bransten Republished from

CF Notes, LLC v Johnson 2014 NY Slip Op 31598(U) June 19, 2014 Sup Ct, New York County Docket Number: /2013 Judge: Saliann Scarpulla Cases

Bank of Am., N.A. v Oztimurlenk 2015 NY Slip Op 31372(U) July 6, 2015 Supreme Court, Suffolk County Docket Number: 19455/2012 Judge: William B.

Newbank v Parcare Servs. Inc NY Slip Op 30200(U) January 30, 2013 Sup Ct, Queens County Docket Number: 30639/2010 Judge: Robert J.

FILED: NEW YORK COUNTY CLERK 06/14/2013 INDEX NO /2013 NYSCEF DOC. NO. 71 RECEIVED NYSCEF: 06/14/2013 EXHIBIT H

FILED: NEW YORK COUNTY CLERK 03/11/2013 INDEX NO /2013 NYSCEF DOC. NO. 26 RECEIVED NYSCEF: 03/11/2013

Ramos v 885 W.E. Residents Corp NY Slip Op 30077(U) January 11, 2019 Supreme Court, New York County Docket Number: /2016 Judge: Carol R.

DaSilva v Haks Engineers 2013 NY Slip Op 30217(U) January 29, 2013 Sup Ct, New York County Docket Number: /11 Judge: Donna M.

Wells Fargo Bank, N.A. v Kahya 2013 NY Slip Op 33091(U) November 27, 2013 Supreme Court, Suffolk County Docket Number: Judge: Jr.

Analisa Salon Ltd. v Elide Prop. LLC 2011 NY Slip Op 34125(U) July 22, 2011 Sup Ct, Westchester County Docket Number: 7582/05 Judge: Orazio R.

FILED: KINGS COUNTY CLERK 01/27/ :45 PM INDEX NO /2015 NYSCEF DOC. NO. 49 RECEIVED NYSCEF: 01/27/2016

Sullivan v Warner Bros. Tel NY Slip Op 32620(U) October 17, 2013 Supreme Court, New York County Docket Number: /12 Judge: Paul Wooten

LG Funding, LLC v Filton LLC 2018 NY Slip Op 33289(U) December 14, 2018 Supreme Court, Nassau County Docket Number: /17 Judge: Jack L.

Fhima v Erensel 2018 NY Slip Op 32663(U) October 17, 2018 Supreme Court, New York County Docket Number: /2016 Judge: Debra A.

FILED: NEW YORK COUNTY CLERK 08/24/ :27 PM INDEX NO /2016 NYSCEF DOC. NO. 65 RECEIVED NYSCEF: 08/24/2016

Supreme Court of the State of New York Appellate Division: Second Judicial Department D51351 M/afa

FILED: NEW YORK COUNTY CLERK 08/09/ :47 PM INDEX NO /2016 NYSCEF DOC. NO. 27 RECEIVED NYSCEF: 08/09/2016

Mack-Cali Realty Corp. v NGM Ins. Co NY Slip Op 33719(U) January 16, 2013 Sup Ct, Westchester County Docket Number: 50233/2012 Judge: Sam D.

Barnett v City of New York 2015 NY Slip Op 30190(U) January 15, 2015 Supreme Court, Bronx County Docket Number: /2011 Judge: Sharon A.M.

FILED: KINGS COUNTY CLERK 05/02/ :32 PM INDEX NO /2015 NYSCEF DOC. NO. 8 RECEIVED NYSCEF: 05/02/2016

FILED: NEW YORK COUNTY CLERK 05/10/ :36 PM INDEX NO /2016 NYSCEF DOC. NO. 72 RECEIVED NYSCEF: 05/10/2017

Sentinal Ins. Co. v Madison Ave. LLC 2018 NY Slip Op 32863(U) November 2, 2018 Supreme Court, New York County Docket Number: /18 Judge:

Eastern Funding LLC v 843 Second Ave. Symphony, Inc NY Slip Op 31588(U) August 20, 2015 Supreme Court, New York County Docket Number:

FILED: NEW YORK COUNTY CLERK 04/20/ :16 PM INDEX NO /2016 NYSCEF DOC. NO. 26 RECEIVED NYSCEF: 04/20/2018

Cohen v Hoschander 2018 NY Slip Op 32882(U) November 8, 2018 Supreme Court, New York County Docket Number: /2017 Judge: Kathryn E.

Platinum Equity Advisors, LLC v SDI, Inc NY Slip Op 33993(U) July 18, 2014 Supreme Court, New York County Docket Number: /2013 Judge:

Matter of Jones v Madison Ave. LLC 2018 NY Slip Op 33104(U) December 4, 2018 Supreme Court, New York County Docket Number: /15 Judge:

Wells Fargo Bank, N.A. v Neiman 2014 NY Slip Op 30644(U) March 4, 2014 Sup Ct, NY County Docket Number: /12 Judge: Leon Ruchelsman Cases

Equity Recovery Corp. v Kahal Minchas Chinuch of Tartikov 2014 NY Slip Op 32617(U) September 22, 2014 Sup Ct, Kings County Docket Number: /14

Deutsche Bank Natl. Trust Co. v Unknown Heirs of the Estate of Souto 2016 NY Slip Op 31274(U) July 5, 2016 Supreme Court, New York County Docket

US Bank Natl. Assoc. v Perkins 2010 NY Slip Op 32423(U) August 5, 2010 Sup Ct, NY County Docket Number: /2009 Judge: Paul Wooten Republished

Booso v City of New York 2013 NY Slip Op 31878(U) August 8, 2013 Sup Ct, New York County Docket Number: /2010 Judge: Kathryn E.

Parra v Trinity Church Corp NY Slip Op 34122(U) June 13, 2011 Sup Ct, New York County Docket Number: /08 Judge: Doris Ling-Cohan Cases

FILED: KINGS COUNTY CLERK 05/31/ :16 PM INDEX NO /2015 NYSCEF DOC. NO. 78 RECEIVED NYSCEF: 05/31/2016

CHARLES N. INTERNICOLA, ESQ. CASE LITIGATION REPORT

FILED: KINGS COUNTY CLERK 08/03/ :57 PM INDEX NO /2015 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 08/03/2016

Allaire v Mover 2014 NY Slip Op 32507(U) September 29, 2014 Sup Ct, New York County Docket Number: /09 Judge: Marcy S. Friedman Cases posted

SUPREME COURT - STATE OF NEW YORK IAS TERM PART 23 NASSAU COUNTY ORDER

Deutsche Bank Natl. Trust Co. v McLean-Chance 2013 NY Slip Op 32606(U) October 17, 2013 Supreme Court, Queens County Docket Number: 11828/2012 Judge:

M. Slavin & Sons, LTD v Penny Port, LLC 2013 NY Slip Op 32054(U) August 29, 2013 Supreme Court, New York County Docket Number: /2012 Judge:

Gliklad v Kessler 2016 NY Slip Op 31301(U) July 7, 2016 Supreme Court, New York County Docket Number: /2014 Judge: Anil C. Singh Cases posted

Onewest Bank, FSB v Burrell 2013 NY Slip Op 31274(U) June 12, 2013 Sup Ct, Suffolk County Docket Number: Judge: Emily Pines Republished

Bloostein v Morrison Cohen LLP 2017 NY Slip Op 31238(U) June 7, 2017 Supreme Court, New York County Docket Number: /2012 Judge: Anil C.

Lugo v City of New York 2013 NY Slip Op 30267(U) January 29, 2013 Supreme Court, New York County Docket Number: /2010 Judge: Kathryn E.

FILED: QUEENS COUNTY CLERK 04/25/ :50 PM INDEX NO /2015 NYSCEF DOC. NO. 49 RECEIVED NYSCEF: 04/25/2017

MEMORANDUM OF LAW IN SUPPORT OF PETITION AND MOTION TO VACATE ARBITRATION AWARD PURSUANT TO CPLR 7511

Burgund v Verizon N.Y. Inc NY Slip Op 31944(U) August 10, 2018 Supreme Court, New York County Docket Number: /2014 Judge: Kelly A.

MEMORANDUM DECISION NEW YORK SUPREME COURT - QUEENS COUNTY. PRESENT: HON. ORIN R. KITZES PART 17 Justice

LG Funding, LLC v City N. Grill Corp NY Slip Op 33290(U) December 14, 2018 Supreme Court, Nassau County Docket Number: /2017 Judge:

Quinones v City of New York 2011 NY Slip Op 33846(U) July 6, 2011 Sup Ct, Bronx County Docket Number: 6924/2007 Judge: Nelida Malave-Gonzalez Cases

U.S. Bank Nat'l Assoc. v Bank of Smithtown 2014 NY Slip Op 32795(U) October 14, 2014 Sup Ct, Suffolk County Docket Number: 05684/2014 Judge: Jr.

Lonardo v Common Ground Community IV Hous. Dev. Fund Corp NY Slip Op 30086(U) January 10, 2019 Supreme Court, New York County Docket Number:

Capital One v York St. Check Cashers, Inc NY Slip Op 30480(U) February 28, 2013 Supreme Court, Suffolk County Docket Number: Judge:

Park Natl. Bank v Lops 2011 NY Slip Op 32505(U) September 16, 2011 Sup Ct, Nassau County Docket Number: Judge: Steven M. Jaeger Republished

Transcription:

FILED NEW YORK COUNTY CLERK 09/21/2016 0507 PM INDEX NO. 651546/2016 NYSCEF DOC. NO. 45 RECEIVED NYSCEF 09/21/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK NATIONAL CREDIT UNION ADMINISTRATION BOARD, ACTING IN ITS CAPACITY AS CONSERVATOR OF MONTAUK CREDIT UNION v. Plaintiff, BORIS BASIN, CAPITAL TAXI LLC, KING OF RUSSIA TAXI, LLC, SUNNY TAXI LLC, BROTHER TAXI LLC, HOLIDAY TAXI LLC, Defendants. Index No. 651546/2016 DEFENDANTS MEMORANDUM OF LAW IN OPPOSITION TO PLAINTIFF S MOTION FOR SUMMARY JUDGMENT Brett A. Berman, Esquire Jordan B. Kaplan, Esquire 100 Park Avenue, 15 th Floor New York, New York 10017 Tel. No. 212-878-7900 Attorneys for Defendants 42328827v1 1 of 9

PRELIMINARY STATEMENT Defendants Boris Basin, Capital Taxi LLC, King of Russia Taxi, LLC, Sunny Taxi LLC, Brother Taxi LLC, and Holiday Taxi LLC (collectively, Defendants ), by and through their attorneys, Fox Rothschild LLP and pursuant to CPLR 3212, respectfully submit this Memorandum of Law in opposition to the motion for summary judgment and to dismiss the affirmative defenses (the Motion ) filed by plaintiff National Credit Union Administration Board, acting in its capacity as conservator of Montauk Credit Union ( Plaintiff ). For the reasons set forth herein, Plaintiff s motion should be denied in its entirety, and Defendants should be permitted to proceed with discovery to defend against the spurious allegations asserted against them. In this action, Plaintiff alleges that, as a lender, it entered into a number of promissory notes (the Notes ) with a number of different entities (the Borrowers ). (See Affidavit of Boris Basin ( Defendants Aff. ) at 7). The Borrowers obligations to pay back the Notes were conditioned on the performance of the terms of the Notes by Plaintiff, as lender. (Id. at 8). To date, Plaintiff has not provided any evidence that it performed as lender pursuant to the Notes. (Id. at 9). This Court should deny summary judgment as the Motion is significantly premature, filed a mere three weeks after service of the answer. (Id. at 6). The parties have not had the opportunity to conduct any discovery and as a result there are significant factual issues in dispute. (Ibid.). Moreover, summary judgment should be denied because Plaintiff fails to make a prima facie case for breach of contract. Finally, Plaintiff s argument that Defendants affirmative defenses fail as a matter of law is without merit because Defendants have not been afforded the opportunity to obtain discovery to address the significant disputes issues of fact in 42328827v1 1 2 of 9

this case. Stated simply, Plaintiff has not met its burden of proof to demonstrate that it is entitled to judgment as a matter of law. LEGAL ARGUMENT New York law is clear that a party moving for summary judgment must make a prima facie showing of entitlement to judgment as a matter of law, tendering sufficient evidence to eliminate any material issues of fact from the case. See Korina et al. v. New York City Transit Authority, et al., 37 A.D.3d 765, 765-766 (2d Dept, 2007). The remedy of summary judgment is a drastic one, and should not be granted where there is any doubt as to the existence of a triable issue of fact. See Rotuba Extruders, Inc. v. Ceppos, 46 N.Y.2d 223, 231 (1978) (citation omitted). New York Courts have consistently stated that the existence of a single genuine issue of fact is sufficient to preclude summary judgment. See e.g. Wanger v. Zeh., 45 Misc. 2d 93, 94 (Sup. Ct., Albany Co., 1965), aff d 26 A.D.2d 729 (3d Dept. 1966). New York law is further clear that a motion for summary judgment is also premature, and should therefore be denied, when substantial discovery remains outstanding. See Ramos v. Dego Deutsche Gesellschaft Fuer Imobilienfonds MBH, 37 A.D.3d 802, 803 (2d Dep t 2007). POINT I PLAINTIFF S MOTION FOR SUMMARY JUDGMENT MUST BE DENIED BECAUSE PLAINTIFF FAILS TO DEMONSTRATE A PRIMA FACIE CASE FOR BREACH OF CONTRACT Plaintiff s Motion should be denied as a matter of law because disputed issues of fact exist as to whether Plaintiff performed its obligations under the Notes, a necessary element of Plaintiff s claim. Without those proofs, Plaintiff cannot establish that it is entitled to the relief sought through its pending motion for summary judgment. It is black letter law in New York that, in order to establish a claim for a breach of 42328827v1 2 3 of 9

contract, the plaintiff must show (i) the existence of a contract, (ii) plaintiff s performance thereunder, (iii) a breach by the defendant, and (iv) damages resulting therefrom. Morris v. 702 E. Fifth St. HDFC, 46 A.D.3d 478 (1st Dep t 2007); Furia v. Furia, 116 A.D.2d 694 (2d Dep t 1986). Plaintiff s pleadings, to date, are deficient and never allege Plaintiff performed its obligations under the Notes. Indeed, notwithstanding the multitude of allegations and testamentary statements contained in Plaintiff s complaint and the multiple purported affidavits submitted with Plaintiff s instant Motion, not once does Plaintiff allege that it actually performed its obligations under the agreements alleged in the Complaint. Plaintiff submits only that it allegedly entered into agreements with each of the Defendants and, with no facts to support its statements, makes the conclusory statement that each of the Defendants defaulted under those agreements. Nowhere does Plaintiff state, demonstrate, or otherwise show the Court that it performed all of its obligations under the parties alleged agreements. Absent any proof as to whether Plaintiff performed its obligations under the Notes, Plaintiff cannot be entitled to summary judgment. Indeed, at its very core, Plaintiff cannot even establish that it has even stated a claim upon which relief may be granted. Accordingly, Plaintiff s Motion should be denied in its entirety and Defendants should be afforded the opportunity to conduct basic discovery concerning these disputed issues of material fact. POINT II PLAINTIFF FAILS TO BEAR ITS BURDEN TO DEMONSTRATE THAT DEFENDANTS AFFIRMATIVE DEFENSES SHOULD BE DISMISSED Plaintiff s request to dismiss Defendants affirmative defenses is without merit and entirely premature at this juncture. It is well-settled under New York law that [i]n reviewing a 42328827v1 3 4 of 9

motion to dismiss an affirmative defense, the court must liberally construe the pleadings in favor of the party asserting the defense and give that party the benefit of every reasonable inference. Mazzei v. Kyriacou, 98 A.D.3d 1088, 1089 (2d Dep t 2012) (quoting Fireman's Fund Ins. Co. v. Farrell, 57 A.D.3d 721, 723 (2d Dept. 2008)). Further, [w]hen moving to dismiss an affirmative defense, the plaintiff bears the burden of demonstrating that the affirmative defense is without merit as a matter of law. Bank of N.Y. v. Penalver, 125 A.D.3d 796, 797 (2d Dept. 2015) quoting Vita v. N.Y. Waste Servs., LLC, 34 A.D.3d 559, 559 (2d Dept. 2006); see also Chestnut Realty Corp. v. Kaminski, 95 A.D.3d 1254 (2d Dept. 2012) (affirming lower court denial of motion to dismiss affirmative defenses where plaintiff could not show that affirmative defense is without merit as a matter of law). A. Defendants Have Established that Plaintiff Fails to State a Claim Upon Which Relief May be Granted As to the first affirmative defense, as set forth above, Plaintiff has failed to allege that it performed its obligations under the parties alleged agreement, and therefore has failed to state a claim upon which relief can be granted. Plaintiff s argument that Defendants first affirmative defense should be dismissed is therefore without merit. B. Defendants Have Been Unduly Prejudiced by Plaintiff s Delay in Prosecuting this Action As to the second affirmative defense, Plaintiff s entire argument is based upon the unsupported conclusory statement that Defendants provide no evidence that they have suffered any injury by the alleged delay of Plaintiff. (See Plaintiff s Memorandum of Law at p. 7). It is quite intriguing that Plaintiff is even able to make such a statement, especially considering that the parties have not taken any discovery in this matter and that Plaintiff has no basis for its purported conclusions concerning Defendants damages. Accordingly, Defendants are entitled to 42328827v1 4 5 of 9

demonstrate the multiple ways in which they have been damaged by Plaintiff s failure to act. C. Plaintiff Cannot Benefit From its Misconduct and Fraud New York law is clear that the default of a primary obligation must be a bona fide default and not one caused by the lender. See generally, Canterbury Realty & Equip. Corp. v. Poughkeepsie Sav. Bank, 135 A.D.2d 102 (3d Dep t 1988); see also Bank of China v. Chan, 937 F.2d 780, 789 (2d Cir. 1991)(bank s bad faith conduct in connection with underlying obligation would be complete defense to unconditional guaranty). Where, as here, a corporate principal/mortgagee purposefully causes a corporate mortgagor to default on a loan which the principal holds, the principal/mortgagee is estopped from foreclosure. See 192 Sheridan Corp. v. O Brien, 252 A.D.2d 934, 935 (3d Dep t 1998). New York law precludes foreclosure where the mortgagee is alleged to have wrongfully caused the mortgagor s default or some other condition that led to the foreclosure action. MCC Funding LLC v. Diamond Point Enters., LLC, 36 Misc.3d 1206(A) (Sup. Ct. Kings Cty., 2012)(citing Red Tulip, LLC v. Neiva, 44 A.D.3d 204, 210-11 (1st Dep t 2007). The Appellate Division in 192 Sheridan Corp. expounded on these principles and held that a mortgagee could not benefit from its own bad-faith conduct, stating It is well settled that bad faith, fraud, or oppressive or unconscionable conduct by the mortgagee will operate to relieve a default... [Defendants] affidavit... alleges facts which, if proven, would relieve defendants of the default. These include claims that... [the foreclosing partners], as general managers of the partnership s operations, paid themselves excessive management fees, failed to account to their copartners for the property s income and expenses and purposefully caused the default on the original note and mortgage. Id. at 936 (emphasis added). By filing the instant motion, Plaintiff attempt to cut off Defendants from taking any 42328827v1 5 6 of 9

discovery relating to these facts, from adding additional information relevant to these claims, and from otherwise forming the foundation for its claims. (See e.g. Defendants Aff. at 6; CPLR 3212(f)). Plaintiff cannot be permitted to continue to benefit from its bad faith precluding Defendants from uncovering their bad faith conduct. Accordingly, it is premature to dismiss Defendants third affirmative defense at this juncture. In light of the above, Defendants affirmative defenses should not be dismissed. POINT III SUMMARY JUDGMENT AS TO ANY OF PLAINTIFF S CLAIMS IS PREMATURE BECAUSE DISCOVERY HAS NOT YET BEGUN Plaintiff s motion for partial summary judgment requests that the Court fund, where Defendants have not even had a chance to serve their first set of discovery requests upon Plaintiff, that, as a matter of law, Defendants are liable to Plaintiff. However, because the parties have not engaged in any discovery in connection with this litigation, Plaintiff s and Defendants allegations have, to date, been completely untested and material facts remain disputed at every level. Gera v. All-Pro Athletics, Inc., 870 N.Y.S.2d 87 (2d Dep t 2008); Groves v. Land s End Housing Co., Inc., 80 N.Y.2d 978 (1992). Notwithstanding the parties multiple filings in this matter, Plaintiff has failed to submit a certification or affidavit from any representative that dispels or otherwise challenges the untested allegation that Plaintiff caused any purported default of the subject Notes. Thus, material issues of fact remain and further development of the record through discovery is necessary to ensure that no disputed issues of material fact exist before any party is entitled to judgment as a matter of law. See e.g. CPLR 3212(f) ( Should it appear from affidavits submitted in opposition that facts essential to justify opposition may exist but cannot then be stated, the court may deny the 42328827v1 6 7 of 9

motion... ); see also O Hara v. New School, 987 N.Y.S.2d 386 (1st Dep t 2014)(denying plaintiffs pre-discovery motion for summary judgment where issues of material fact relating to the ultimate issues of the case were not within the movant s knowledge, requiring discovery); Belziti v. Langford, 963 N.Y.S.2d 654 (1st Dep t 2013)(finding summary judgment motion was properly denied as premature where limited discovery had taken place and the movant had not yet been deposed); Rodrigues v. County of Westchester, 993 N.Y.S.2d 52 (2d Dep t 2014) (finding summary judgment was premature in action seeking to recover damages for personal injuries where depositions were not yet complete); O'Toole v. County of Sullivan, 680 N.Y.S.2d 315 (3d Dep't 1998)(finding summary judgment was not warranted on a negligence cause of action where there were only approximately seven days between the answer and the motion for summary judgment, which deprived the plaintiff of a reasonable opportunity for disclosure). Accordingly, the resolution of Plaintiff s claims is not proper for adjudication on a motion for summary judgment at this time, especially given the fact that no discovery especially on the most critical disputed facts has occurred. New York law is clear that judgment should not be granted until the parties have had a reasonable opportunity to take discovery, particularly where fats upon which liability is predicated are particularly within a party s knowledge and necessitate a level of unearthing before the issues are clear, such as the case here. See e.g. O Hara, 987 N.Y.S.2d 386 (1st Dep t 2014); Belziti, 963 N.Y.S.2d 654 (1st Dep t 2013); Rodrigues, 993 N.Y.S.2d 52 (2d Dep t 2014). In other words, the objective facts that exist, even with the undeveloped record in this case, reveal significant issues with Plaintiff s claims. All these facts run, when viewed in the light most favorable to Defendants, as they must for purposes of this Motion, counter to Plaintiff s allegations that Defendants defaulted on the Notes, and therefore are capable of defeating 42328827v1 7 8 of 9

summary judgment at this time. CONCLUSION For all of the foregoing reasons, Plaintiff s motion for summary judgment should be denied in its entirety. Dated September 21, 2016 FOX ROTHSCHILD, LLP By /s/ Brett A. Berman Brett A. Berman, Esquire Jordan B. Kaplan, Esquire 100 Park Avenue, 15 th Floor New York, New York 10017 Telephone No. 212-878-7900 Attorneys for Defendants 42328827v1 8 9 of 9