SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK APP GROUP INTERNATIONAL, LLC, Index No. Petitioner, VERIFIED PETITION -against- PNC BANK, NATIONAL ASSOCIATION, RAM I' CAPITAL FUNDING, LLC, GTR SOURCE, LLC, AMERICORE HEALTH LLC, PINEVILLE MEDICAL CENTER LLC, PINEVILLE COMMUNITY HOSPITAL ASSOCIATION INC, COMMUNITY MEDICAL CENTER OF IZARD COUNTY, COMMUNITY MEDICAL CENTER OF CALICO, COMMUNITY MEDICAL CENTER OF HORESHOE BEND, COMMUNITY MEDICAL CENTER OF MELBOURNE, AMERICORE HEALTH ENTERPRISES LLC, TOTAL CARE PHARMACY PCH, TOTAL CARE RURAL CLINIC, PINEVILLE MEDICAL CENTER, LLC, ELLWOOD CITY HOSPITAL, ELLWOOD CITY MEDICAL CENTER, LLC, ELLWOOD MEDICAL LLC, rr r amnre x rrr rn r vrratn ELLWOOD MEDICAL a nrxmva nor.a a CENTER OPERATIONS LLC, AMERICORE HEALTH MANAGEMENT LLC, and GRANT R. WHITE, Respondents. Petitioner APP GROUP INTERNATIONAL, LLC, by and through its counsel, Stein Adler Dabah & Zelkowitz, LLP, Petitions the Court as follows: 1. Petitioner APP GROUP INTERNATIONAL, LLC ("AGI"), Judgment-Creditor of Respondents/Judgment-Debtors AMERICORE HEALTH LLC, PINEVILLE MEDICAL CENTER LLC, PINEVILLE COMMUNITY HOSPITAL ASSOCIATION INC, COMMUNITY MEDICAL CENTER OF IZARD COUNTY, COMMUNITY MEDICAL CENTER OF CALICO, COMMUNITY MEDICAL CENTER OF HORESHOE BEND, COMMUNITY MEDICAL CENTER OF MELBOURNE, AMERICORE HEALTH ENTERPRISES LLC, TOTAL CARE PHARMACY PCH, TOTAL CARE RURAL CLINIC, PINEVILLE MEDICAL CENTER, LLC, 1 of 6
ELLWOOD CITY HOSPITAL, ELLWOOD CITY MEDICAL CENTER, LLC, ELLWOOD MEDICAL LLC, ELLWOOD MEDICAL CENTER OPERATIONS LLC, AMERICORE "Judgment-Debtors" HEALTH MANAGEMENT LLC, and GRANT R. WHITE (collectively, "Judgment-Debtors"), commences this special proceeding for an Order, pursuant to CPLR 5239, 5225(b) and CPLR 5227: a) directing the turnover of money held by Respondent PNC Bank, National Association, in accounts for the Judgment-Debtors, in a sufficient amount to partially or completely satisfy the judgment dated June 18, 2018, of which $552,049.90 remains outstanding, together with such other and further relief as shall be just and proper, including directing any person to execute and deliver any document necessary to effect payment or delivery of funds or property of the Judgment Debtors, pursuant to CPLR 5225(c); b) holding that the UCC liens and judgment execution lien of APP GROUP INTERNATIONAL, LLC has priority over any UCC or judgment execution liens of Respondents, RAM CAPITAL FUNDING, LLC, and GTR SOURCE, LLC; and c) Granting APP GROUP INTERNATIONAL, LLC such other and further relief as the Court deems just and proper. 2. For the purposes of clarity, this Petition does not seek to restrain or turnover funds in the accounts held by PNC BANK for ECH Legacy, Inc. THE PARTIES 3. Petitioner AGI is a limited liability company duly with an address at 85 Broad Street, 17th Floor, New York, New York, 10004. 4. Upon information and belief, the Judgment-Debtors reside in Fort Lauderdale, Florida. 2 of 6
5. Upon information and belief, Respondent PNC BANK, NATIONAL ASSOCIATION ("PNC") is a national bank association with branches in and throughout the State of New York. 6. Upon information and belief, Respondent RAM CAPITAL FUNDING, LLC ("RAM") is a limited liability company with its principal place of business in New York, New York. 7. Upon information and belief, Respondent GTR SOURCE, LLC ("GTR") is a limited liability company with its principal place of business in New York, New York. JURISDICTION AND VENUE 8. Venue and jurisdiction are proper pursuant to CPLR 5239 as the accounts that are the subject of this Petition were levied upon in New York County. RELEVANT BACKGROUND 9. AGI filed its UCC-1 Statements against the Judgment-Debtors' assets, thereby perfecting its liens on the assets of the Judgment Debtors prior to RAM and GTR. 10. AGI's UCC-1 Statements perfecting AGI's lien were filed on or before May 31, 2018. 11. GTR did not file a UCC-1 Statement to perfect a lien until on or about June 8, 2018. 12. Upon information and belief RAM never filed a UCC-1 Statement and has no perfected security interest in the property of any Judgment-Debtor. 13. On June 4, 2018, the Clerk for the Supreme Court, Schenectady County, entered judgment in favor of AGI and against the Judgment-Debtors in Index Number 2018-1186. On June 18, 2018, the Clerk for the Supreme Court, Schenectady County entered an amended judgment correcting a numerical error. True, correct, and complete copies of the Amended Judgment and the Judgment are attached hereto as Exhibit A. Judgment was entered in favor of AGI and against the Judgment-Debtors in the amount of $552,274.90. Petitioner has collected only $1,515.91 of the judgment and, as such, the judgment remains unsatisfied. 3 of 6
14. On June 8, 2018, counsel for AGI sent the New York Marshal an Execution with Notice of Garnishment. A copy of the Execution with Notice of Garnishment is attached hereto as Exhibit B. On June 8, 2018, at 3:54 p.m., New York Marshal Barbarovich sent the Execution with Notice of Garnishment with Levy and Demand to PNC Bank. At 7:42 a.m., on June 11, 2018, PNC accepted service and processed AGI's Notice of Garnishment with Levy and Demand. On June 12, 2018, New York Marshal Barbarovich served an additional copy of AGI's Notice of Garnishment with Levy and Demand on a branch of PNC. A copy of AGI's Notice of Garnishment with Levy and Demand is attached hereto as Exhibit C. 15. GTR obtained a judgment in the Supreme Court, Kings County, on June 8, 2018. GTR sent an Execution, Levy, and Demand to New York Marshal Biegel on or after June 8, 2018. Marshal Biegel purports to have served PNC bank at some unknown time of day on June 11, 2018. teller' A copy of GTR's Execution is attached hereto as Exhibit D. Given the fact that the bank teller's hours begin at 8:00 a.m. at the branch served, 340 Madison Avenue, New York, New York, service of GTR's execution must have occurred sometime after 8:00 a.m. on June 11, 2018. A printout of the branch's hours is attached hereto as Exhibit E. 16. RAM obtained a judgment in the Supreme Court, Kings County, on June 8, 2018. RAM sent an Execution, Levy, and Demand to New York Marshal Biegel on or after June 8, 2018. Marshal Biegel purports to have served PNC bank at some unknown time of day on June 11, 2018. teller' A copy of RAM's Execution is attached hereto as Exhibit F. Given the fact that the bank teller's hours begin at 8:00 a.m. at the branch served, 340 Madison Avenue, New York, New York, service of GTR's execution must have occurred sometime after 8:00 a.m. on June 11, 2018. Exhibit E. 17. Based upon the foregoing, AGI's execution was delivered and accepted first by PNC and, as a result, AGI's execution has priority over RAM and GTR. CPLR 5234(b). As such, AGI is entitled to an Order, pursuant to CPLR 5234(b) and 5239, holding that its execution is entitled to be satisfied first since its execution was delivered first. 4 of 6
18. As PNC is a garnishee and/or transferee under Article 52 of the CPLR, Petitioner is entitled to an Order, pursuant to CPLR 5225(b) and 5227, directing the turnover of sufficient funds, or such lesser amount as may be held by the garnishee, or, in the alternative, for a judgment against PNC in any amount released and/or transferred in violation of the Restraint. 19. No prior request for such relief has been previously made. WHEREFORE AGI petitions the Court for an Order, pursuant to CPLR 5239, 5225(b) and CPLR 5227: A) Directing the turnover of money held by Respondent PNC Bank, National Association, in accounts for the Judgment-Debtors, in a sufficient amount to partially or completely satisfy the judgment dated June 18, 2018, of which $552,049.90 remains outstanding, together with such other and further relief as shall be just and proper, including directing any person to execute and deliver any document necessary to effect payment or delivery of funds or property of the Judgment Debtors, pursuant to CPLR 5225(c); and B) Holding that the UCC liens and judgment execution lien of APP GROUP INTERNATIONAL, LLC has priority over any UCC or judgment execution liens of Respondents, RAM CAPITAL FUNDING, LLC, and GTR SOURCE, LLC; and C) Granting APP GROUP INTERNATIONAL, LLC such other and further relief as the Court deems just and proper. Dated: Tarrytown, New York July 24, 2018 /s/ Christopher R. Murray Christopher R. Murray, Esq. Stein Adler Dabah & Zelkowitz, LLP Attorneys for Petitioner APP Group International, LLC 520 White Plains Road Suite 500 - Office 5095 Tarrytown, New York 10591 Tel: (212) 867-5620 E-Mail:cmurray@steinadlerlaw.corn 5 of 6
VERIFICATION JASON GANG, Esq., an attorney duly licensed to practice law in the Courts of the State of New York, affirms the truth of the following under penalty of perjury: I am collections counsel for Petitioner in the within special proceeding. I have read the foregoing Petition and know the contents thereof; the same is true to my personal knowledge, except as to the matters therein stated to be alleged upon information and belief and, as to those matters, I believe them to be true. Dated: Hewlett, New York July 24, 2018 a 6 of 6