Preview
FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023
NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
ROBIN FUNDING GROUP LLC,
Plaintiff,
Index No.:
-against-
SOUTHERN ELITE ROOFING, INC.,
TEVOR P. MOORE and VINCENT J.
MERCALDO III,
Defendants.
PLAINTIFF’S MEMORANDUM OF LAW IN SUPPORT OF PLAINTIFF’S MOTION
FOR PRELIMINARY INJUNCTION WITH TEMPORARY RESTRAINING ORDER
David J. Austin, Esq.
Attorney for Plaintiff
43 West 43rd Street, Suite 288
New York, NY 10036-7424
Tel. 646-328-0710
Fax 917-924-4403
david.austin@austinllp.com
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TABLE OF CONTENTS
PRELIMINARY STATEMENT .................................................................................................... 1
STATEMENT OF FACTS ............................................................................................................. 2
ARGUMENT .................................................................................................................................. 2
I. THE JURISDICTION AND VENUE OF THIS ACTION ARE PROPER ........................ 2
II. PLAINTIFF IS ENTITLED TO INJUNCTIVE RELIEF BASED ON THE
UNDERLYING FACTS IN THIS ACTION .............................................................................. 7
III. ROBIN FUNDING GROUP SHOULD BE PERMITTED TO SERVE DEFENDANTS
BY CERTIFIED MAIL AS DEFENDANTS CONSENTED TO SUCH SERVICE ............... 17
CONCLUSION ............................................................................................................................. 20
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TABLE OF AUTHORITIES
Cases
AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., (Sup. Ct., Nassau Co., Index No.
603462/2021, NYSCEF Doc. No. 9, March 30, 2021, Cozzens, J.) ......................................... 10
AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., Sup. Ct., Nassau Co., Index No.
603462/2021 (March 30, 2021, Cozzens, J.) (NYSCEF Doc. No. 9) ....................................... 17
AJ Equity Group LLC v. JC Global Solution, Inc., (Sup. Ct., Nassau Co., Index No.
605909/2020, NYSCEF Doc. No. 8, June 17, 2020, Jaeger, J.) ................................................. 9
AJ Equity Group LLC v. JC Global Solution, Inc., Sup. Ct., Nassau Co., Index No. 605909/2020
(June 17, 2020, Jaeger, J.) (NYSCEF Doc. No. 8).................................................................... 16
AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op 32700(U) (Sup. Ct., Nassau Co.,
Index No. 605907/2020, TRO granted in NYSCEF Doc. No. 9, June 17, 2020, Sher, J.) ......... 9
AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op 32700(U), Sup. Ct., Nassau Co.,
Index No. 605907/2020 (June 17, 2020, Sher, J.) (NYSCEF Doc. No. 9) ............................... 15
AJ Equity Group LLC v. US Transport LLC, (Sup. Ct., Nassau Co., Index No. 600223/2021,
NYSCEF Doc. No. 8, January 8, 2021, Voutsinas, J.) .............................................................. 10
AJ Equity Group LLC v. US Transport LLC, Sup. Ct., Nassau Co., Index No. 600223/2021
(January 8, 2021, Voutsinas, J.) (NYSCEF Doc. No. 8) ........................................................... 16
Alfred E. Mann v. Etirc, 78 A.D.3d 137, 141 (N.Y. App. Div. 2010) ...................................... 6, 18
Banco Do Commercio e Industria De Sao Paolo S.A. v. Esusa Engenharia e Construcoes S.A.,
173 A.D. 2d 340, 341 (1st Dept., May 23, 1991)........................................................................ 3
Bernheim v. Matthew Bender & Co., 244 A.D.2d 161, 663 N.Y.S.2d 577 (1st Dep't 1997) ........ 8
Boss v. American Express Financial Advisors, Inc., 6 N.Y.3d 242 (N.Y. 2006) ........................... 4
British W. Indies v. Banque Internationale, 172 A.D.2d 234 (N.Y. App. Div. 1991).................... 4
Brooke Group Ltd. v. JCH Syndicate, 488, 87 N.Y.2d 530, 534 (N.Y. 1996) ............................... 3
CanWestGlobal Commc’ns Corp. v. Mirkaei Tikshoret Ltd., 804 N.Y.S.2d 549, 574 (Sup. Ct.
N.Y. Cnty. 2005) ....................................................................................................................... 15
CanWest Global Communications Corp. v. Mirkaei Tikshoret Ltd., 9 Misc. 3d 845, 868, 804
N.Y.S.2d 549, 568 (Sup. Ct. N.Y. Cnty. 2005) .................................................................. 14
Chiarizia v. Xtreme Rydz Custom Cycles, 43 A.D.3d 1353, 1354 (N.Y. App. Div. 2007) ............ 4
Citibank, N.A. v. Uri Schwartz & Sons Diamonds Ltd., 97 AD3d 444, 446-447 (1st Dept. 2012)
................................................................................................................................................... 11
Creative Resources v. Rumbellow, 244 A.D. 2d 383, 383 (2nd Dept., November 10, 1997) ........ 3
Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, (Sup. Ct., Nassau Co., Index No.
600427/2021, NYSCEF Doc. No. 10, January 13, 2021, Sullivan, J.) ....................................... 9
Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, Sup. Ct., Nassau Co., Index No.
600427/2021 (January 13, 2021, Sullivan, J.) (NYSCEF Doc. No. 10) ................................... 16
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D.O.T. Tiedown & Lifting Equip., Inc. v. Wright, 272 A.D. 2d 290, 290-291 (2nd Dept., May 1,
2000)............................................................................................................................................ 3
Doe v. Axelrod, 73 N.Y. 2d 748, 750 (1988) .................................................................................. 8
Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, (Sup. Ct., Nassau Co., Index No.
617095/2019, NYSCEF Doc. No. 22, February 18, 2020, Jaeger, J.) ........................................ 9
Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, Sup. Ct., Nassau Co., Index No.
617095/2019 (February 18, 2020, Jaeger, J.) (NYSCEF Doc. No. 22) .................................... 15
Erie Insurance v. AE Design, Inc., 104 A.D.3d 1319, 1320 (N.Y. App. Div. 2013) ..................... 4
Fear & Fear, Inc. v. N.I.I. Brokerage, LLC, 50 A.D.3d 185, 186 (N.Y. App. Div. 2008)............. 4
Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U) (Sup. Ct., Nassau
Co., Index No. 603802/2020, TROs granted in NYSCEF Docs. Nos. 8 and 22, December 2,
2020; McCormack, J.) ................................................................................................................. 9
Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U), Sup. Ct., Nassau
Co., Index No. 603802/2020 (December 2, 2020, McCormack, J.) (NYSCEF Docs. Nos. 8 and
22).............................................................................................................................................. 16
Fleet Capital Leasing/Global Vendor Finance v. Angiuli Motors, Inc., 15 A.D.3d 535, 536 (N.Y.
App. Div. 2005) ........................................................................................................................... 4
Gallant Funding, L.P. v. Tocci, 950 N.Y.S.2d 491 (N.Y. Sup. Ct. 2011) ................................ 6, 18
Gerald Modell Inc. v. Morgenthau, 196 Misc. 2d 354, 359, 764 N.Y.S.2d 779, 784 (Sup. Ct.
N.Y. Cnty. 2003) ......................................................................................................................... 7
Gilbert v. Burstine, 255 N.Y. 348, 355-356 (January 13, 1931) .................................................. 17
Harper Advance, LLC V. Wingtip Communications, Inc. et al, Sup. Ct., Nassau Co., Index No.
604591/2021 (April 16, 2021, McCormack, J. P.) (NYSCEF Doc. No. 13) ............................ 17
Harris v Seward Park Housing Corp., 79 AD3d 425 (1st Dept. 2010) ........................................ 11
KMK Safety Consulting, LLC v. Jeffrey M. Brown Associates, Inc., 72 A.D.3d 650, 651 (N.Y.
App. Div. 2010) ........................................................................................................................... 4
Koob v. IDS Financial Services, Inc., 213 A.D.2d 26, 33 (N.Y. App. Div. 1995) ......................... 4
Madden Int’l, Ltd. V. Lew Footwear Holdings Pty. Ltd., 50 Mis. 3d 1210(A), 2016 N.Y. Misc.
LEXIS 160, *15 (Sup. Ct. N.Y. Cnty. Jan 15, 2016) ................................................................. 9
Masjid Usman, Inc. v. Beech 140, LLC, 68 A.D.3d 942, 943, 892 N.Y.S.2d 430, 431 (2d Dep’t
2009).......................................................................................................................................... 14
Matter of New York Merchants Protective Co., Inc. v. Mima’s Kitchen, Inc., 114 A.D. 3d 796
(2nd Dept., February 13, 2014) ................................................................................................. 17
Matter of New York State Inspection, Sec. & Law Enforcement Empls. v Cuomo, 64 N.Y.2d 233,
475 N.E.2d 90 (1984) ................................................................................................................ 13
MCA Fund Adv Inc v. Five Star Transport Specialties Inc., (Sup. Ct., Nassau Co., Index No.
602345/2020, NYSCEF Doc. No. 8, February 18, 2020, Murphy, J.)........................................ 9
MCA Fund Adv Inc v. Five Star Transport Specialties Inc., Sup. Ct., Nassau Co., Index No.
602345/2020 (February 18, 2020, Murphy, J.) (NYSCEF Doc. No. 8).................................... 15
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MCA Master Fund v. Universal Scrap Motors Inc, (Sup. Ct., Nassau Co., Index No.
603376/2020, NYSCEF Doc. No. 12, March 11, 2020, Steinman, J.) ....................................... 9
MCA Master Fund v. Universal Scrap Motors Inc, Sup. Ct., Nassau Co., Index No. 603376/2020
(March 11, 2020, Steinman, J.) (NYSCEF Doc. No. 12).......................................................... 15
Merchants Protective Co., 114 A.D. 3d at 797 ............................................................................. 18
National Westminster Bank USA v Sardi’s Inc., 174 AD2d 470, 471 (1stt Dept. 1991) .............. 11
Nobu Next Door, LLC v. Fine Arts Hous., Inc., 4 N.Y.3d 839, 840, 800 N.Y.S.2d 48, 49 (2005) 8
Novus Capital Funding LLC v. Wide Open Production Services, LLC et al., (Sup. Ct., Kings Co.,
Index No. 524011/2021, TROs granted in NYSCEF Doc. No. 12, September 28, 2021; Levine,
K.).......................................................................................................................................... 9, 15
Pamela Equities Corp. v. 270 Park Ave. Cafe Corp., 62 A.D.3d 620, 620 881 N.Y.S.2d 44, 45
(1st Dep’t 2009) .......................................................................................................................... 7
People v. N. Leasing Sys., Inc., 75 N.Y.S.3d 785, 799 (N.Y. Sup. Ct. 2017) .......................... 6, 18
Queen Funding LLC v. Elevate Roofing & Construction LLC et al., Sup. Ct., Nassau Co., Index
No. 601179/2021 (February 3, 2021, Steinman, L. D.) (NYSCEF Doc. No. 9) ....................... 16
Ratner & Assocs. v. Sears, Roebuck & Co., 294 A.D. 2d 346, 346 (2nd Dept., 2002) .................. 8
Reuters Ltd. v. United Press Int’l, Inc., 903 F.2d 904, 907 (2d Cir. 1990)), aff’d, 143 A.D.3d 418,
2016 N.Y. App. Div. LEXIS 6333 (1st Dep’t 2016) .................................................................. 9
Seinfeld Capital, Inc v. John B. Rudy Co., Inc., (Sup. Ct., Nassau Co., Index No. 600500/2021,
NYSCEF Doc. No. 9, January 14, 2021, Sher, J.) .................................................................... 10
Seinfeld Capital, Inc v. John B. Rudy Co., Inc., Sup. Ct., Nassau Co., Index No. 600500/2021
(January 14, 2021, Sher, J.) (NYSCEF Doc. No. 9) ................................................................. 16
Seinfeld Capital, Inc v. Phoenix Integrated Health LLC, (Sup. Ct., Nassau Co., Index No.
603617/2021, NYSCEF Doc. No. 9, March 26, 2021, Gugerty, J.) ......................................... 10
Seinfeld Capital, Inc v. Phoenix Integrated Health LLC, Sup. Ct., Nassau Co., Index No.
603617/2021 (March 26, 2021, Gugerty, J.) (NYSCEF Doc. No. 9) ....................................... 17
Slate Advance LLC v. George Transport LLC, (Sup. Ct., Nassau Co., Index No. 607556/2020,
NYSCEF Doc. No. 9, July 27, 2020, Marber, J.) ...................................................................... 10
Slate Advance LLC v. George Transport LLC, Sup. Ct., Nassau Co., Index No. 607556/2020
(July 27, 2020, Marber, J.) (NYSCEF Doc. No. 9)................................................................... 16
Slate Advance LLC v. Poseidons Boat Detailing LLC, (Sup. Ct., Nassau Co., Index No.
609254/2020, NYSCEF Doc. No. 9, September 3, 2020, Brandveen, J.)................................. 10
Slate Advance LLC v. Poseidons Boat Detailing LLC, Sup. Ct., Nassau Co., Index No.
609254/2020 (September 3, 2020, Brandveen, J.) (NYSCEF Doc. No. 9)............................... 16
Sp.Q.R. Co., Inc. v. United Rockland Stairs, Inc., 57 A.D.3d 642, 643, 868 N.Y.S.2d 318 (2d
Dep’t 2008) ............................................................................................................................... 15
Sp.Q.R. Co., Inc. v. United Rockland Stairs, Inc., 57 A.D.3d 642, 643, 868 N.Y.S.2d 318 (2nd
Dep’t 2008) ............................................................................................................................... 14
Spartan Bus. Solutions, LLC v. 2M Research Services LLC, (Sup. Ct., Nassau Co., Index No.
606942/2020, NYSCEF Doc. No. 8, July 13, 2020, Cozzens, J.) ............................................. 10
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Spartan Bus. Solutions, LLC v. 2M Research Services LLC, Sup. Ct., Nassau Co., Index No.
606942/2020 (July 13, 2020, Cozzens, J.) (NYSCEF Doc. No. 8) ........................................... 16
Spartan Bus. Solutions, LLC v. Cellular Central Holdings, Inc., (Sup. Ct., Nassau Co., Index No.
603236/2021, NYSCEF Doc. No. 10, March 19, 2021, Steinman, J,) ..................................... 10
Spartan Bus. Solutions, LLC v. Cellular Central Holdings, Inc., Sup. Ct., Nassau Co., Index No.
603236/2021 (March 19, 2021, Steinman, J.) (NYSCEF Doc. No. 10) ................................... 16
Spartan Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U) (Sup.
Ct., Nassau Co., Index No. 612437/2020, TRO granted in NYSCEF Doc. No. 9, March 22,
2021, Sher, J.) ............................................................................................................................ 10
Spartan Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U), Sup.
Ct., Nassau Co., Index No. 612437/2020 (March 22, 2021, Sher, J.) (NYSCEF Doc. No. 9) . 16
Spartan Bus. Solutions, LLC v. K Bar T Custom Homes, Inc., (Sup. Ct., Nassau Co., Index No.
606747/2020, NYSCEF Doc. No. 8, July 7, 2020, Libert, J.)................................................... 10
Spartan Bus. Solutions, LLC v. K Bar T Custom Homes, Inc., Sup. Ct., Nassau Co., Index No.
606747/2020 (July 7, 2020, Libert, J.) (NYSCEF Doc. No. 8)................................................. 15
Spartan Bus. Solutions, LLC v. RR Express LLC, (Sup. Ct., Nassau Co., Index No. 608643/2020,
NYSCEF Doc. No. 11, August 21, 2020, Gianelli, J.) .............................................................. 10
Spartan Bus. Solutions, LLC v. RR Express LLC, Sup. Ct., Nassau Co., Index No. 608643/2020
(August 21, 2020, Gianelli, J.) (NYSCEF Doc. No. 11) ........................................................... 16
Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., (Sup. Ct., Nassau Co., Index No.
612174/2020, November 2, 2020, Voutsinas, J.) ...................................................................... 10
Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U) (Sup. Ct.,
Nassau Co., Index No. 612174/2020, TRO granted in NYSCEF Doc. No. 9, March 23, 2021,
Voutsinas, J.) ............................................................................................................................... 9
Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U), Sup. Ct.,
Nassau Co., Index No. 612174/2020 (March 23, 2021, Voutsinas, J.) (NYSCEF Doc. No. 9) 17
Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., Sup. Ct., Nassau Co., Index No.
612174/2020 (November 2, 2020, Voutsinas, J.) (NYSCEF Doc. No. 9) ................................ 16
State v. City of New York, 275 A.D. 2d 740, 741 (2nd Dept., 2000) ............................................ 13
State v. City of New York, 275 A.D.2d 740, 741........................................................................... 15
State v. City of New York, 275 A.D.2d 740, 741, 713 N.Y.S.2d 360, 361 (2d Dep’t 2000) ......... 14
State v. City of New York, 275 A.D.2d at 741, 713 N.Y.S.2d at 361 ............................................ 14
World Global Fund LLC v. Southeastern Land Solutions LLC et al, Sup. Ct., Nassau Co., Index
No. 604421/2021 (April 21, 2021, Voutsinas, H.) (NYSCEF Doc. No. 10) ............................ 17
World Global Fund LLC v. Vintage Properties Group et al., Sup. Ct., Nassau Co., Index No.
610597/2020 (October 21, 2020, Gianelli, M. J.) (NYSCEF Doc. No. 9)................................ 16
Ying Fung Moy v. Hohi Umeki, 10 A.D. 3d 604, 605 (2nd Dept., 2004) ..................................... 13
Statutes
CPLR § 501..................................................................................................................................... 3
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CPLR § 6301................................................................................................................................... 8
CPLR § 6313................................................................................................................................... 8
CPLR § 7805................................................................................................................................. 15
Other Authorities
David D. Siegel, New York Practice § 567 (5th ed., 2011) .......................................................... 15
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Plaintiff, Robin Funding Group LLC (“Robin Funding Group” or “Plaintiff”),
respectfully submits this memorandum of law in support of its preliminary injunction restraining
the accounts of Defendants Southern Elite Roofing, Inc. (“Southern Roofing”) and Tevor P.
Moore and Vincent J. Mercaldo III (“Mr. Moore and Mr. Mercado”) (collectively “Defendants”)
pending the resolution of this action and a temporary restraining order granting the same relief
pending the hearing and determination of this motion and until further Order of the Court.
PRELIMINARY STATEMENT
Robin Funding Group respectfully submits this memorandum of law in support of its
motion for preliminary injunction and temporary restraining order. The parties to this action
entered into a contractual agreement for Robin Funding Group to pay an up-front sum to
purchase the Southern Roofing’s future revenue. Robin Funding Group performed its
obligations by paying for the purchased revenue, however Southern Roofing breached its
contractual agreement by failing to turn over the purchased revenue to Robin Funding Group and
otherwise breached the covenants and warranties made in the contract. In addition, Tevor P.
Moore and Vincent J. Mercaldo III (“Mr. Moore and Mr. Mercado” or “Defendants”) breached
the personal guarantee of Southern Roofing’s performance under the agreement.
Without the requested injunctive relief to preserve the status quo, Plaintiff will have
nothing left to recover. Jurisdiction and venue in this Court are proper as it is provided for the in
the agreement between the parties that underlies this action. Defendants should be permitted to
be served by first class certified mail, return receipt requested, because Defendants consented to
such alternative method of service in the parties’ agreement.
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STATEMENT OF FACTS
This is an action to recover debts owed to Robin Funding Group by Defendants Southern
Roofing and Mr. Moore and Mr. Mercado, under a Revenue Purchase Agreement (the “RPA”)
(Exhibit A) in the amount of $144,109.14, plus costs and interest. For a detailed recitation of
the facts, the Court is respectfully referred to the Affidavit of Ekaterina Marciante (the
“Affidavit”) dated July 17, 2023, the Attorney Affirmation of David J. Austin, Esq. (the
“Attorney Affirmation in Support”), and the accompanying exhibits thereto filed
contemporaneously herewith and incorporated by reference herein in full, including the Verified
Complaint. (NYSCEF Doc. ID No. 1.)
Robin Funding Group is in the business of providing advance payments to small
businesses in exchange for a percentage of the businesses’ future revenue. These funding
transactions are also known as “merchant cash advances” or a “revenue purchase agreements.”
Under a revenue purchase agreement (“RPA”), Robin Funding Group purchases the right to a
certain amount of a business’s future sales in exchange for an advance, lump-sum payment to the
business. The business then remits periodic payments to Robin Funding Group, drawn from the
business’s actual revenue, until the purchased amount is satisfied. Structured in this manner, a
revenue purchase agreement is not a loan, but rather a purchase of a portion of a business’s
future revenue and is a form of factoring that is common in the financial services industry.
ARGUMENT
I. THE JURISDICTION AND VENUE OF THIS ACTION ARE PROPER
Both jurisdiction and venue of the present action is clearly delineated in the Verified
Complaint by virtue of the forum selection clause in the RPA. (Verified Complaint, NYSCEF
Doc. ID No. 1 at ¶¶25-37; Ekaterina Marciante Affidavit at ¶¶7-11.)
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CPLR § 501 permits contractual venue selection provisions, stating“[s]ubject to the
provisions of subdivision two of section 510, written agreement fixing place of trial, made before
an action is commenced, shall be enforced upon a motion for change of place of trial.” CPLR §
501. Provisions in agreements whereby the parties consent to the jurisdiction of the courts of the
State of New York constitute enforceable forum selection clauses. See, e.g., D.O.T. Tiedown &
Lifting Equip., Inc. v. Wright, 272 A.D. 2d 290, 290-291 (2nd Dept., May 1, 2000) (affirming
denial of motion to dismiss for lack of personal jurisdiction where the parties’ agreement
provided that the defendant consented to the jurisdiction of the courts of the State of New York);
Creative Resources v. Rumbellow, 244 A.D. 2d 383, 383 (2nd Dept., November 10, 1997)
(affirming denial of motion to dismiss for lack of personal jurisdiction and forum non conveniens
where the parties’ agreement provided, inter alia, that the agreement would be interpreted and
enforced in accordance with the laws of the State of New York, that the agreement was
enforceable by action in the courts of the State of New York, and that the parties consented to the
jurisdiction of the courts of the State of New York); Banco Do Commercio e Industria De Sao
Paolo S.A. v. Esusa Engenharia e Construcoes S.A., 173 A.D. 2d 340, 341 (1st Dept., May 23,
1991) (affirming denial of motion to dismiss where the defendants unequivocally consented that
any action to enforce their obligations under their guarantee could be brought in any state or
federal court sitting in the City of New York and that the agreement would be governed and
construed in accordance with the laws of New York).
In addition, New York Courts have held that “[f]orum selection clauses are enforced
because they provide certainty and predictability in the resolution of disputes, particularly those
involving international business agreements.” Brooke Group Ltd. v. JCH Syndicate, 488, 87
N.Y.2d 530, 534 (N.Y. 1996); see also Boss v. American Express Financial Advisors, Inc., 6
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N.Y.3d 242 (N.Y. 2006). A forum selection clause is “prima facie valid and enforceable unless
it is shown by the challenging party to be, inter alia, unreasonable, unjust, or in contravention of
public policy.” Erie Insurance v. AE Design, Inc., 104 A.D.3d 1319, 1320 (N.Y. App. Div.
2013) (quotations and brackets omitted), citing KMK Safety Consulting, LLC v. Jeffrey M. Brown
Associates, Inc., 72 A.D.3d 650, 651 (N.Y. App. Div. 2010).
“In order to set aside [a forum selection] clause, a party must show that enforcement
would be unreasonable and unjust or that the clause is invalid because of fraud or overreaching,
such that a trial in the contractual forum would be so gravely difficult and inconvenient that the
challenging party would, for all practical purposes, be deprived of his or her day in court.” Fear
& Fear, Inc. v. N.I.I. Brokerage, LLC, 50 A.D.3d 185, 186 (N.Y. App. Div. 2008), citing British
W. Indies v. Banque Internationale, 172 A.D.2d 234 (N.Y. App. Div. 1991).
“It is the policy of the courts of this State to enforce contractual provisions for choice of
law and selection of a forum for litigation” Koob v. IDS Financial Services, Inc., 213 A.D.2d 26,
33 (N.Y. App. Div. 1995).
“[A] person who signs a document is conclusively bound by its terms absent a valid
excuse for having failed to read it.” Chiarizia v. Xtreme Rydz Custom Cycles, 43 A.D.3d 1353,
1354 (N.Y. App. Div. 2007), citing Fleet Capital Leasing/Global Vendor Finance v. Angiuli
Motors, Inc., 15 A.D.3d 535, 536 (N.Y. App. Div. 2005).
The RPA underlying the present action contains a forum selection clause choice of law
provision designating New York State, and as Defendants have consented to the RPA,
maintaining the present action in New York Supreme Court, Nassau County is proper.
(Ekaterina Marciante Affidavit at ¶¶8-9.) The RPA clearly states:
Governing Law, Venue and Jurisdiction. This Agreement shall be governed by
and construed exclusively in accordance with the laws of the State of New York,
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without regards to any applicable principles of conflicts of law. Any lawsuit,
action or proceeding arising out of or in connection with this Agreement shall be
instituted exclusively in any court sitting in New York State, (the “Acceptable
Forums”). The parties agree that the Acceptable Forums are convenient and
submit to the jurisdiction of the Acceptable Forums and waive any and all
objections to inconvenience of the jurisdiction or venue. Should a proceeding be
initiated in any other forum, each of the parties to this Agreement irrevocably
waives any right to oppose any motion or application made by any other party to
transfer such proceeding to an Acceptable Forum. Seller and its Guarantor(s)
acknowledge and agree that the Purchase Price is being paid and received by
Seller in New York, that the Specified Percentage of the Future Receipts are being
delivered to NCF in New York, and that the transaction contemplated in this
Agreement was negotiated, and is being carried out, in New York. Seller and its
Guarantor(s) acknowledge and agree that New York has a reasonable relationship
to this transaction
(Exhibit A at Paragraph 43.)
Thus, the RPA forum selection provision provides the parties’ consent to the jurisdiction
of the State of New York. In addition, the RPA provision contains a clause waiving any
objection on the basis of the forum being inconvenient or the venue being improper. (Ekaterina
Marciante Affidavit at ¶9.) Accordingly, jurisdiction and venue are proper in this case.
A. A Nexus Exists Between the Action and New York State
Notwithstanding the provisions of the RPA, there exists a substantial nexus of this action
to New Yok State. Robin Funding Group is located in New York State. (Ekaterina Marciante
Affidavit at ¶10.) The RPA was entered into in New York State, the purchase price for
Defendants’ future revenue was made from Robin Funding Group in New York State, and
payments of the future revenue purchased from Defendants were contracted by the RPA to be
made to Robin Funding Group in New York State. (Id.) Moreover, prior to default, Defendants
made payments of the purchased future revenue to Robin Funding Group in New York State.
(Ekaterina Marciante Affidavit at ¶11.)
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B. Defendants Are Properly Served by Certified Mail
Plaintiff Robin Funding Group respectfully requests the Court grant permission to serve
the present Order to Show Cause to Defendants by certified mail. Defendants have agreed to
accept process of service by certified mail or email to the mailing and email addresses provided
by them in the RPA at Exhibit A. See Exhibit A at Paragraph 7, pg.17 (“Seller further agrees
that the mailing by certified mail to the Seller’s address(es) shown on page 1 of this Agreement
or the emailing to the email address(es) shown on page 1 of this Agreement of any process
required by any such court will constitute valid and lawful service of process against each Seller,
without the necessity for service by any other means provided by statute or rule of court, but
without invalidating service performed in accordance with such other provisions. Seller agrees
that the service of such process and any legal papers served subsequently thereafter shall be
deemed complete upon such mailing or transmission of such email irrespective of weather such
mailing or email is actually received by each Seller and/or Guarantor.”).
“Contracting parties may agree to means of service alternative to the statutorily required
means.” See, e.g., People v. N. Leasing Sys., Inc., 75 N.Y.S.3d 785, 799 (N.Y. Sup. Ct. 2017).
Service of process by mail, including electronic mail (e-mail) is proper where the parties to an
agreement have consented to personal jurisdiction and agreed to such service. See, e.g., Gallant
Funding, L.P. v. Tocci, 950 N.Y.S.2d 491 (N.Y. Sup. Ct. 2011) (“the Court finds that the
[agreement] provisions sufficiently establish that the defendants consented to the personal
jurisdiction of the courts of New York and authorized [the defendant] to receive service of
process on their behalf by mail.”); see also Alfred E. Mann v. Etirc, 78 A.D.3d 137, 141 (N.Y.
App. Div. 2010) (“We observe that while service of process by e-mail is not directly authorized
by either the CPLR or the Hague Convention, it is not prohibited under either state or federal
law, or the Hague Convention, given appropriate circumstances.”). Here, Defendants have
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agreed in the RPA at Exhibit A to personal jurisdiction in the Courts of New York. See Exhibit
A at Paragraph 43. (“Governing Law, Venue and Jurisdiction. This Agreement shall be governed
by and construed exclusively in accordance with the laws of the State of New York, without
regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding arising
out of or in connection with this Agreement shall be instituted exclusively in any court sitting in
New York State, (the “Acceptable Forums”). The parties agree that the Acceptable Forums are
convenient and submit to the jurisdiction of the Acceptable Forums and waive any and all
objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any
other forum, each of the parties to this Agreement irrevocably waives any right to oppose any
motion or application made by any other party to transfer such proceeding to an Acceptable
Forum. Seller and its Guarantor(s) acknowledge and agree that the Purchase Price is being paid
and received by Seller in New York, that the Specified Percentage of the Future Receipts are
being delivered to NCF in New York, and that the transaction contemplated in this Agreement
was negotiated, and is being carried out, in New York. Seller and its Guarantor(s) acknowledge
and agree that New York has a reasonable relationship to this transaction.”).
II. PLAINTIFF IS ENTITLED TO INJUNCTIVE RELIEF BASED ON THE
UNDERLYING FACTS IN THIS ACTION
A. Legal Standard for Preliminary Injunctive Relief
Temporary restraining orders and preliminary injunctions are impermanent remedies
designed to “maintain the status quo until there can be a full hearing on the merits.” Pamela
Equities Corp. v. 270 Park Ave. Cafe Corp., 62 A.D.3d 620, 620 881 N.Y.S.2d 44, 45 (1st Dep’t
2009); see also Gerald Modell Inc. v. Morgenthau, 196 Misc. 2d 354, 359, 764 N.Y.S.2d 779,
784 (Sup. Ct. N.Y. Cnty. 2003). “A temporary restraining order may be granted pending a
hearing for a preliminary injunction where it appears that immediate and irreparable injury, loss
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or damage will result unless the defendant is restrained before the hearing can be had.” CPLR §
6301, CPLR § 6313.
CPLR § 6301 authorizes the granting of a preliminary injunction:
A preliminary injunction may be granted in any action where it appears that the
defendant threatens or is about to do, or is doing or procuring or suffering to be
done, an act in violation of the plaintiff's rights respecting the subject of the
action, and tending to render the judgment ineffectual, or in any action where the
plaintiff has demanded and would be entitled to a judgment restraining the
defendant from the commission or continuance of an act, which, if committed or
continued during the pendency of the action, would produce injury to the plaintiff.
A temporary restraining order may be granted pending a hearing for a preliminary
injunction where it appears that immediate and irreparable injury, loss or damage
will result unless the defendant is restrained before the hearing can be had.
CPLR § 6301.
“The purpose of CPLR 6301 is to preserve the status quo and to prevent dissipation of
property which may make a judgment ineffectual.” Ratner & Assocs. v. Sears, Roebuck & Co.,
294 A.D. 2d 346, 346 (2nd Dept., 2002) (internal citations omitted). A preliminary injunction
may be granted under CPLR Article 63 when the party seeking such relief demonstrates: (1) a
likelihood of ultimate success on the merits, (2) the prospect of irreparable injury if the
provisional relief is withheld, and (3) a balance of equities tipping in the moving party’s favor.
Doe v. Axelrod, 73 N.Y. 2d 748, 750 (1988). A temporary restraining order may be granted
when the movant can demonstrate: (1) the likelihood of success on the merits, (2) irreparable
injury absent granting the preliminary injunction, and (3) a balancing of the equities. W. T.
Grant Co. v. Srogi, 52 N.Y. 2d 496, 517 (1981). See also, Nobu Next Door, LLC v. Fine Arts
Hous., Inc., 4 N.Y.3d 839, 840, 800 N.Y.S.2d 48, 49 (2005); Bernheim v. Matthew Bender &
Co., 244 A.D.2d 161, 663 N.Y.S.2d 577 (1st Dep't 1997). “[A] showing of probable irreparable
harm is the single most important prerequisite for the issuance of a preliminary injunction[.]”
Madden Int’l, Ltd. V. Lew Footwear Holdings Pty. Ltd., 50 Mis. 3d 1210(A), 2016 N.Y. Misc.
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LEXIS 160, *15 (Sup. Ct. N.Y. Cnty. Jan 15, 2016) (quoting Reuters Ltd. v. United Press Int’l,
Inc., 903 F.2d 904, 907 (2d Cir. 1990)), aff’d, 143 A.D.3d 418, 2016 N.Y. App. Div. LEXIS
6333 (1st Dep’t 2016).
Ex parte applications for temporary injunctive relief in the context of revenue purchase
agreements, as is the case here, have been routinely granted by New York courts. See, e.g.,
Novus Capital Funding LLC v. Wide Open Production Services, LLC et al., (Sup. Ct., Kings Co.,
Index No. 524011/2021, TROs granted in NYSCEF Doc. No. 12, September 28, 2021; Levine,
K.); Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U) (Sup. Ct.,
Nassau Co., Index No. 603802/2020, TROs granted in NYSCEF Docs. Nos. 8 and 22, December
2, 2020; McCormack, J.); AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op
32700(U) (Sup. Ct., Nassau Co., Index No. 605907/2020, TRO granted in NYSCEF Doc. No. 9,
June 17, 2020, Sher, J.); Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, (Sup.
Ct., Nassau Co., Index No. 600427/2021, NYSCEF Doc. No. 10, January 13, 2021, Sullivan, J.);
AJ Equity Group LLC v. JC Global Solution, Inc., (Sup. Ct., Nassau Co., Index No.
605909/2020, NYSCEF Doc. No. 8, June 17, 2020, Jaeger, J.); MCA Master Fund v. Universal
Scrap Motors Inc, (Sup. Ct., Nassau Co., Index No. 603376/2020, NYSCEF Doc. No. 12, March
11, 2020, Steinman, J.); Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, (Sup. Ct.,
Nassau Co., Index No. 617095/2019, NYSCEF Doc. No. 22, February 18, 2020, Jaeger, J.);
MCA Fund Adv Inc v. Five Star Transport Specialties Inc., (Sup. Ct., Nassau Co., Index No.
602345/2020, NYSCEF Doc. No. 8, February 18, 2020, Murphy, J.); Spartan Bus. Solutions,
LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U) (Sup. Ct., Nassau Co., Index No.
612174/2020, TRO granted in NYSCEF Doc. No. 9, March 23, 2021, Voutsinas, J.); Spartan
Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U) (Sup. Ct.,
9
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Nassau Co., Index No. 612437/2020, TRO granted in NYSCEF Doc. No. 9, March 22, 2021,
Sher, J.); AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., (Sup. Ct., Nassau Co.,
Index No. 603462/2021, NYSCEF Doc. No. 9, March 30, 2021, Cozzens, J.); Seinfeld Capital,
Inc v. Phoenix Integrated Health LLC, (Sup. Ct., Nassau Co., Index No. 603617/2021, NYSCEF
Doc. No. 9, March 26, 2021, Gugerty, J.); Spartan Bus. Solutions, LLC v. Cellular Central
Holdings, Inc., (Sup. Ct., Nassau Co., Index No. 603236/2021, NYSCEF Doc. No. 10, March 19,
2021, Steinman, J,); Seinfeld Capital, Inc v. John B. Rudy Co., Inc., (Sup. Ct., Nassau Co., Index
No. 600500/2021, NYSCEF Doc. No. 9, January 14, 2021, Sher, J.); AJ Equity Group LLC v. US
Transport LLC, (Sup. Ct., Nassau Co., Index No. 600223/2021, NYSCEF Doc. No. 8, January 8,
2021, Voutsinas, J.); Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., (Sup. Ct., Nassau
Co., Index No. 612174/2020, November 2, 2020, Voutsinas, J.); Slate Advance LLC v. Poseidons
Boat Detailing LLC, (Sup. Ct., Nassau Co., Index No. 609254/2020, NYSCEF Doc. No. 9,
September 3, 2020, Brandveen, J.); Spartan Bus. Solutions, LLC v. RR Express LLC, (Sup. Ct.,
Nassau Co., Index No. 608643/2020, NYSCEF Doc. No. 11, August 21, 2020, Gianelli, J.); Slate
Advance LLC v. George Transport LLC, (Sup. Ct., Nassau Co., Index No. 607556/2020,
NYSCEF Doc. No. 9, July 27, 2020, Marber, J.); Spartan B
Preview
FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ROBIN FUNDING GROUP LLC, Plaintiff, Index No.: -against- SOUTHERN ELITE ROOFING, INC., TEVOR P. MOORE and VINCENT J. MERCALDO III, Defendants. PLAINTIFF’S MEMORANDUM OF LAW IN SUPPORT OF PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION WITH TEMPORARY RESTRAINING ORDER David J. Austin, Esq. Attorney for Plaintiff 43 West 43rd Street, Suite 288 New York, NY 10036-7424 Tel. 646-328-0710 Fax 917-924-4403 david.austin@austinllp.com 1 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 TABLE OF CONTENTS PRELIMINARY STATEMENT .................................................................................................... 1 STATEMENT OF FACTS ............................................................................................................. 2 ARGUMENT .................................................................................................................................. 2 I. THE JURISDICTION AND VENUE OF THIS ACTION ARE PROPER ........................ 2 II. PLAINTIFF IS ENTITLED TO INJUNCTIVE RELIEF BASED ON THE UNDERLYING FACTS IN THIS ACTION .............................................................................. 7 III. ROBIN FUNDING GROUP SHOULD BE PERMITTED TO SERVE DEFENDANTS BY CERTIFIED MAIL AS DEFENDANTS CONSENTED TO SUCH SERVICE ............... 17 CONCLUSION ............................................................................................................................. 20 ii 2 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 TABLE OF AUTHORITIES Cases AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., (Sup. Ct., Nassau Co., Index No. 603462/2021, NYSCEF Doc. No. 9, March 30, 2021, Cozzens, J.) ......................................... 10 AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., Sup. Ct., Nassau Co., Index No. 603462/2021 (March 30, 2021, Cozzens, J.) (NYSCEF Doc. No. 9) ....................................... 17 AJ Equity Group LLC v. JC Global Solution, Inc., (Sup. Ct., Nassau Co., Index No. 605909/2020, NYSCEF Doc. No. 8, June 17, 2020, Jaeger, J.) ................................................. 9 AJ Equity Group LLC v. JC Global Solution, Inc., Sup. Ct., Nassau Co., Index No. 605909/2020 (June 17, 2020, Jaeger, J.) (NYSCEF Doc. No. 8).................................................................... 16 AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op 32700(U) (Sup. Ct., Nassau Co., Index No. 605907/2020, TRO granted in NYSCEF Doc. No. 9, June 17, 2020, Sher, J.) ......... 9 AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op 32700(U), Sup. Ct., Nassau Co., Index No. 605907/2020 (June 17, 2020, Sher, J.) (NYSCEF Doc. No. 9) ............................... 15 AJ Equity Group LLC v. US Transport LLC, (Sup. Ct., Nassau Co., Index No. 600223/2021, NYSCEF Doc. No. 8, January 8, 2021, Voutsinas, J.) .............................................................. 10 AJ Equity Group LLC v. US Transport LLC, Sup. Ct., Nassau Co., Index No. 600223/2021 (January 8, 2021, Voutsinas, J.) (NYSCEF Doc. No. 8) ........................................................... 16 Alfred E. Mann v. Etirc, 78 A.D.3d 137, 141 (N.Y. App. Div. 2010) ...................................... 6, 18 Banco Do Commercio e Industria De Sao Paolo S.A. v. Esusa Engenharia e Construcoes S.A., 173 A.D. 2d 340, 341 (1st Dept., May 23, 1991)........................................................................ 3 Bernheim v. Matthew Bender & Co., 244 A.D.2d 161, 663 N.Y.S.2d 577 (1st Dep't 1997) ........ 8 Boss v. American Express Financial Advisors, Inc., 6 N.Y.3d 242 (N.Y. 2006) ........................... 4 British W. Indies v. Banque Internationale, 172 A.D.2d 234 (N.Y. App. Div. 1991).................... 4 Brooke Group Ltd. v. JCH Syndicate, 488, 87 N.Y.2d 530, 534 (N.Y. 1996) ............................... 3 CanWestGlobal Commc’ns Corp. v. Mirkaei Tikshoret Ltd., 804 N.Y.S.2d 549, 574 (Sup. Ct. N.Y. Cnty. 2005) ....................................................................................................................... 15 CanWest Global Communications Corp. v. Mirkaei Tikshoret Ltd., 9 Misc. 3d 845, 868, 804 N.Y.S.2d 549, 568 (Sup. Ct. N.Y. Cnty. 2005) .................................................................. 14 Chiarizia v. Xtreme Rydz Custom Cycles, 43 A.D.3d 1353, 1354 (N.Y. App. Div. 2007) ............ 4 Citibank, N.A. v. Uri Schwartz & Sons Diamonds Ltd., 97 AD3d 444, 446-447 (1st Dept. 2012) ................................................................................................................................................... 11 Creative Resources v. Rumbellow, 244 A.D. 2d 383, 383 (2nd Dept., November 10, 1997) ........ 3 Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, (Sup. Ct., Nassau Co., Index No. 600427/2021, NYSCEF Doc. No. 10, January 13, 2021, Sullivan, J.) ....................................... 9 Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, Sup. Ct., Nassau Co., Index No. 600427/2021 (January 13, 2021, Sullivan, J.) (NYSCEF Doc. No. 10) ................................... 16 iii 3 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 D.O.T. Tiedown & Lifting Equip., Inc. v. Wright, 272 A.D. 2d 290, 290-291 (2nd Dept., May 1, 2000)............................................................................................................................................ 3 Doe v. Axelrod, 73 N.Y. 2d 748, 750 (1988) .................................................................................. 8 Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, (Sup. Ct., Nassau Co., Index No. 617095/2019, NYSCEF Doc. No. 22, February 18, 2020, Jaeger, J.) ........................................ 9 Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, Sup. Ct., Nassau Co., Index No. 617095/2019 (February 18, 2020, Jaeger, J.) (NYSCEF Doc. No. 22) .................................... 15 Erie Insurance v. AE Design, Inc., 104 A.D.3d 1319, 1320 (N.Y. App. Div. 2013) ..................... 4 Fear & Fear, Inc. v. N.I.I. Brokerage, LLC, 50 A.D.3d 185, 186 (N.Y. App. Div. 2008)............. 4 Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U) (Sup. Ct., Nassau Co., Index No. 603802/2020, TROs granted in NYSCEF Docs. Nos. 8 and 22, December 2, 2020; McCormack, J.) ................................................................................................................. 9 Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U), Sup. Ct., Nassau Co., Index No. 603802/2020 (December 2, 2020, McCormack, J.) (NYSCEF Docs. Nos. 8 and 22).............................................................................................................................................. 16 Fleet Capital Leasing/Global Vendor Finance v. Angiuli Motors, Inc., 15 A.D.3d 535, 536 (N.Y. App. Div. 2005) ........................................................................................................................... 4 Gallant Funding, L.P. v. Tocci, 950 N.Y.S.2d 491 (N.Y. Sup. Ct. 2011) ................................ 6, 18 Gerald Modell Inc. v. Morgenthau, 196 Misc. 2d 354, 359, 764 N.Y.S.2d 779, 784 (Sup. Ct. N.Y. Cnty. 2003) ......................................................................................................................... 7 Gilbert v. Burstine, 255 N.Y. 348, 355-356 (January 13, 1931) .................................................. 17 Harper Advance, LLC V. Wingtip Communications, Inc. et al, Sup. Ct., Nassau Co., Index No. 604591/2021 (April 16, 2021, McCormack, J. P.) (NYSCEF Doc. No. 13) ............................ 17 Harris v Seward Park Housing Corp., 79 AD3d 425 (1st Dept. 2010) ........................................ 11 KMK Safety Consulting, LLC v. Jeffrey M. Brown Associates, Inc., 72 A.D.3d 650, 651 (N.Y. App. Div. 2010) ........................................................................................................................... 4 Koob v. IDS Financial Services, Inc., 213 A.D.2d 26, 33 (N.Y. App. Div. 1995) ......................... 4 Madden Int’l, Ltd. V. Lew Footwear Holdings Pty. Ltd., 50 Mis. 3d 1210(A), 2016 N.Y. Misc. LEXIS 160, *15 (Sup. Ct. N.Y. Cnty. Jan 15, 2016) ................................................................. 9 Masjid Usman, Inc. v. Beech 140, LLC, 68 A.D.3d 942, 943, 892 N.Y.S.2d 430, 431 (2d Dep’t 2009).......................................................................................................................................... 14 Matter of New York Merchants Protective Co., Inc. v. Mima’s Kitchen, Inc., 114 A.D. 3d 796 (2nd Dept., February 13, 2014) ................................................................................................. 17 Matter of New York State Inspection, Sec. & Law Enforcement Empls. v Cuomo, 64 N.Y.2d 233, 475 N.E.2d 90 (1984) ................................................................................................................ 13 MCA Fund Adv Inc v. Five Star Transport Specialties Inc., (Sup. Ct., Nassau Co., Index No. 602345/2020, NYSCEF Doc. No. 8, February 18, 2020, Murphy, J.)........................................ 9 MCA Fund Adv Inc v. Five Star Transport Specialties Inc., Sup. Ct., Nassau Co., Index No. 602345/2020 (February 18, 2020, Murphy, J.) (NYSCEF Doc. No. 8).................................... 15 iv 4 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 MCA Master Fund v. Universal Scrap Motors Inc, (Sup. Ct., Nassau Co., Index No. 603376/2020, NYSCEF Doc. No. 12, March 11, 2020, Steinman, J.) ....................................... 9 MCA Master Fund v. Universal Scrap Motors Inc, Sup. Ct., Nassau Co., Index No. 603376/2020 (March 11, 2020, Steinman, J.) (NYSCEF Doc. No. 12).......................................................... 15 Merchants Protective Co., 114 A.D. 3d at 797 ............................................................................. 18 National Westminster Bank USA v Sardi’s Inc., 174 AD2d 470, 471 (1stt Dept. 1991) .............. 11 Nobu Next Door, LLC v. Fine Arts Hous., Inc., 4 N.Y.3d 839, 840, 800 N.Y.S.2d 48, 49 (2005) 8 Novus Capital Funding LLC v. Wide Open Production Services, LLC et al., (Sup. Ct., Kings Co., Index No. 524011/2021, TROs granted in NYSCEF Doc. No. 12, September 28, 2021; Levine, K.).......................................................................................................................................... 9, 15 Pamela Equities Corp. v. 270 Park Ave. Cafe Corp., 62 A.D.3d 620, 620 881 N.Y.S.2d 44, 45 (1st Dep’t 2009) .......................................................................................................................... 7 People v. N. Leasing Sys., Inc., 75 N.Y.S.3d 785, 799 (N.Y. Sup. Ct. 2017) .......................... 6, 18 Queen Funding LLC v. Elevate Roofing & Construction LLC et al., Sup. Ct., Nassau Co., Index No. 601179/2021 (February 3, 2021, Steinman, L. D.) (NYSCEF Doc. No. 9) ....................... 16 Ratner & Assocs. v. Sears, Roebuck & Co., 294 A.D. 2d 346, 346 (2nd Dept., 2002) .................. 8 Reuters Ltd. v. United Press Int’l, Inc., 903 F.2d 904, 907 (2d Cir. 1990)), aff’d, 143 A.D.3d 418, 2016 N.Y. App. Div. LEXIS 6333 (1st Dep’t 2016) .................................................................. 9 Seinfeld Capital, Inc v. John B. Rudy Co., Inc., (Sup. Ct., Nassau Co., Index No. 600500/2021, NYSCEF Doc. No. 9, January 14, 2021, Sher, J.) .................................................................... 10 Seinfeld Capital, Inc v. John B. Rudy Co., Inc., Sup. Ct., Nassau Co., Index No. 600500/2021 (January 14, 2021, Sher, J.) (NYSCEF Doc. No. 9) ................................................................. 16 Seinfeld Capital, Inc v. Phoenix Integrated Health LLC, (Sup. Ct., Nassau Co., Index No. 603617/2021, NYSCEF Doc. No. 9, March 26, 2021, Gugerty, J.) ......................................... 10 Seinfeld Capital, Inc v. Phoenix Integrated Health LLC, Sup. Ct., Nassau Co., Index No. 603617/2021 (March 26, 2021, Gugerty, J.) (NYSCEF Doc. No. 9) ....................................... 17 Slate Advance LLC v. George Transport LLC, (Sup. Ct., Nassau Co., Index No. 607556/2020, NYSCEF Doc. No. 9, July 27, 2020, Marber, J.) ...................................................................... 10 Slate Advance LLC v. George Transport LLC, Sup. Ct., Nassau Co., Index No. 607556/2020 (July 27, 2020, Marber, J.) (NYSCEF Doc. No. 9)................................................................... 16 Slate Advance LLC v. Poseidons Boat Detailing LLC, (Sup. Ct., Nassau Co., Index No. 609254/2020, NYSCEF Doc. No. 9, September 3, 2020, Brandveen, J.)................................. 10 Slate Advance LLC v. Poseidons Boat Detailing LLC, Sup. Ct., Nassau Co., Index No. 609254/2020 (September 3, 2020, Brandveen, J.) (NYSCEF Doc. No. 9)............................... 16 Sp.Q.R. Co., Inc. v. United Rockland Stairs, Inc., 57 A.D.3d 642, 643, 868 N.Y.S.2d 318 (2d Dep’t 2008) ............................................................................................................................... 15 Sp.Q.R. Co., Inc. v. United Rockland Stairs, Inc., 57 A.D.3d 642, 643, 868 N.Y.S.2d 318 (2nd Dep’t 2008) ............................................................................................................................... 14 Spartan Bus. Solutions, LLC v. 2M Research Services LLC, (Sup. Ct., Nassau Co., Index No. 606942/2020, NYSCEF Doc. No. 8, July 13, 2020, Cozzens, J.) ............................................. 10 v 5 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 Spartan Bus. Solutions, LLC v. 2M Research Services LLC, Sup. Ct., Nassau Co., Index No. 606942/2020 (July 13, 2020, Cozzens, J.) (NYSCEF Doc. No. 8) ........................................... 16 Spartan Bus. Solutions, LLC v. Cellular Central Holdings, Inc., (Sup. Ct., Nassau Co., Index No. 603236/2021, NYSCEF Doc. No. 10, March 19, 2021, Steinman, J,) ..................................... 10 Spartan Bus. Solutions, LLC v. Cellular Central Holdings, Inc., Sup. Ct., Nassau Co., Index No. 603236/2021 (March 19, 2021, Steinman, J.) (NYSCEF Doc. No. 10) ................................... 16 Spartan Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U) (Sup. Ct., Nassau Co., Index No. 612437/2020, TRO granted in NYSCEF Doc. No. 9, March 22, 2021, Sher, J.) ............................................................................................................................ 10 Spartan Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U), Sup. Ct., Nassau Co., Index No. 612437/2020 (March 22, 2021, Sher, J.) (NYSCEF Doc. No. 9) . 16 Spartan Bus. Solutions, LLC v. K Bar T Custom Homes, Inc., (Sup. Ct., Nassau Co., Index No. 606747/2020, NYSCEF Doc. No. 8, July 7, 2020, Libert, J.)................................................... 10 Spartan Bus. Solutions, LLC v. K Bar T Custom Homes, Inc., Sup. Ct., Nassau Co., Index No. 606747/2020 (July 7, 2020, Libert, J.) (NYSCEF Doc. No. 8)................................................. 15 Spartan Bus. Solutions, LLC v. RR Express LLC, (Sup. Ct., Nassau Co., Index No. 608643/2020, NYSCEF Doc. No. 11, August 21, 2020, Gianelli, J.) .............................................................. 10 Spartan Bus. Solutions, LLC v. RR Express LLC, Sup. Ct., Nassau Co., Index No. 608643/2020 (August 21, 2020, Gianelli, J.) (NYSCEF Doc. No. 11) ........................................................... 16 Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., (Sup. Ct., Nassau Co., Index No. 612174/2020, November 2, 2020, Voutsinas, J.) ...................................................................... 10 Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U) (Sup. Ct., Nassau Co., Index No. 612174/2020, TRO granted in NYSCEF Doc. No. 9, March 23, 2021, Voutsinas, J.) ............................................................................................................................... 9 Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U), Sup. Ct., Nassau Co., Index No. 612174/2020 (March 23, 2021, Voutsinas, J.) (NYSCEF Doc. No. 9) 17 Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., Sup. Ct., Nassau Co., Index No. 612174/2020 (November 2, 2020, Voutsinas, J.) (NYSCEF Doc. No. 9) ................................ 16 State v. City of New York, 275 A.D. 2d 740, 741 (2nd Dept., 2000) ............................................ 13 State v. City of New York, 275 A.D.2d 740, 741........................................................................... 15 State v. City of New York, 275 A.D.2d 740, 741, 713 N.Y.S.2d 360, 361 (2d Dep’t 2000) ......... 14 State v. City of New York, 275 A.D.2d at 741, 713 N.Y.S.2d at 361 ............................................ 14 World Global Fund LLC v. Southeastern Land Solutions LLC et al, Sup. Ct., Nassau Co., Index No. 604421/2021 (April 21, 2021, Voutsinas, H.) (NYSCEF Doc. No. 10) ............................ 17 World Global Fund LLC v. Vintage Properties Group et al., Sup. Ct., Nassau Co., Index No. 610597/2020 (October 21, 2020, Gianelli, M. J.) (NYSCEF Doc. No. 9)................................ 16 Ying Fung Moy v. Hohi Umeki, 10 A.D. 3d 604, 605 (2nd Dept., 2004) ..................................... 13 Statutes CPLR § 501..................................................................................................................................... 3 vi 6 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 CPLR § 6301................................................................................................................................... 8 CPLR § 6313................................................................................................................................... 8 CPLR § 7805................................................................................................................................. 15 Other Authorities David D. Siegel, New York Practice § 567 (5th ed., 2011) .......................................................... 15 vii 7 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 Plaintiff, Robin Funding Group LLC (“Robin Funding Group” or “Plaintiff”), respectfully submits this memorandum of law in support of its preliminary injunction restraining the accounts of Defendants Southern Elite Roofing, Inc. (“Southern Roofing”) and Tevor P. Moore and Vincent J. Mercaldo III (“Mr. Moore and Mr. Mercado”) (collectively “Defendants”) pending the resolution of this action and a temporary restraining order granting the same relief pending the hearing and determination of this motion and until further Order of the Court. PRELIMINARY STATEMENT Robin Funding Group respectfully submits this memorandum of law in support of its motion for preliminary injunction and temporary restraining order. The parties to this action entered into a contractual agreement for Robin Funding Group to pay an up-front sum to purchase the Southern Roofing’s future revenue. Robin Funding Group performed its obligations by paying for the purchased revenue, however Southern Roofing breached its contractual agreement by failing to turn over the purchased revenue to Robin Funding Group and otherwise breached the covenants and warranties made in the contract. In addition, Tevor P. Moore and Vincent J. Mercaldo III (“Mr. Moore and Mr. Mercado” or “Defendants”) breached the personal guarantee of Southern Roofing’s performance under the agreement. Without the requested injunctive relief to preserve the status quo, Plaintiff will have nothing left to recover. Jurisdiction and venue in this Court are proper as it is provided for the in the agreement between the parties that underlies this action. Defendants should be permitted to be served by first class certified mail, return receipt requested, because Defendants consented to such alternative method of service in the parties’ agreement. 1 8 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 STATEMENT OF FACTS This is an action to recover debts owed to Robin Funding Group by Defendants Southern Roofing and Mr. Moore and Mr. Mercado, under a Revenue Purchase Agreement (the “RPA”) (Exhibit A) in the amount of $144,109.14, plus costs and interest. For a detailed recitation of the facts, the Court is respectfully referred to the Affidavit of Ekaterina Marciante (the “Affidavit”) dated July 17, 2023, the Attorney Affirmation of David J. Austin, Esq. (the “Attorney Affirmation in Support”), and the accompanying exhibits thereto filed contemporaneously herewith and incorporated by reference herein in full, including the Verified Complaint. (NYSCEF Doc. ID No. 1.) Robin Funding Group is in the business of providing advance payments to small businesses in exchange for a percentage of the businesses’ future revenue. These funding transactions are also known as “merchant cash advances” or a “revenue purchase agreements.” Under a revenue purchase agreement (“RPA”), Robin Funding Group purchases the right to a certain amount of a business’s future sales in exchange for an advance, lump-sum payment to the business. The business then remits periodic payments to Robin Funding Group, drawn from the business’s actual revenue, until the purchased amount is satisfied. Structured in this manner, a revenue purchase agreement is not a loan, but rather a purchase of a portion of a business’s future revenue and is a form of factoring that is common in the financial services industry. ARGUMENT I. THE JURISDICTION AND VENUE OF THIS ACTION ARE PROPER Both jurisdiction and venue of the present action is clearly delineated in the Verified Complaint by virtue of the forum selection clause in the RPA. (Verified Complaint, NYSCEF Doc. ID No. 1 at ¶¶25-37; Ekaterina Marciante Affidavit at ¶¶7-11.) 2 9 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 CPLR § 501 permits contractual venue selection provisions, stating“[s]ubject to the provisions of subdivision two of section 510, written agreement fixing place of trial, made before an action is commenced, shall be enforced upon a motion for change of place of trial.” CPLR § 501. Provisions in agreements whereby the parties consent to the jurisdiction of the courts of the State of New York constitute enforceable forum selection clauses. See, e.g., D.O.T. Tiedown & Lifting Equip., Inc. v. Wright, 272 A.D. 2d 290, 290-291 (2nd Dept., May 1, 2000) (affirming denial of motion to dismiss for lack of personal jurisdiction where the parties’ agreement provided that the defendant consented to the jurisdiction of the courts of the State of New York); Creative Resources v. Rumbellow, 244 A.D. 2d 383, 383 (2nd Dept., November 10, 1997) (affirming denial of motion to dismiss for lack of personal jurisdiction and forum non conveniens where the parties’ agreement provided, inter alia, that the agreement would be interpreted and enforced in accordance with the laws of the State of New York, that the agreement was enforceable by action in the courts of the State of New York, and that the parties consented to the jurisdiction of the courts of the State of New York); Banco Do Commercio e Industria De Sao Paolo S.A. v. Esusa Engenharia e Construcoes S.A., 173 A.D. 2d 340, 341 (1st Dept., May 23, 1991) (affirming denial of motion to dismiss where the defendants unequivocally consented that any action to enforce their obligations under their guarantee could be brought in any state or federal court sitting in the City of New York and that the agreement would be governed and construed in accordance with the laws of New York). In addition, New York Courts have held that “[f]orum selection clauses are enforced because they provide certainty and predictability in the resolution of disputes, particularly those involving international business agreements.” Brooke Group Ltd. v. JCH Syndicate, 488, 87 N.Y.2d 530, 534 (N.Y. 1996); see also Boss v. American Express Financial Advisors, Inc., 6 3 10 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 N.Y.3d 242 (N.Y. 2006). A forum selection clause is “prima facie valid and enforceable unless it is shown by the challenging party to be, inter alia, unreasonable, unjust, or in contravention of public policy.” Erie Insurance v. AE Design, Inc., 104 A.D.3d 1319, 1320 (N.Y. App. Div. 2013) (quotations and brackets omitted), citing KMK Safety Consulting, LLC v. Jeffrey M. Brown Associates, Inc., 72 A.D.3d 650, 651 (N.Y. App. Div. 2010). “In order to set aside [a forum selection] clause, a party must show that enforcement would be unreasonable and unjust or that the clause is invalid because of fraud or overreaching, such that a trial in the contractual forum would be so gravely difficult and inconvenient that the challenging party would, for all practical purposes, be deprived of his or her day in court.” Fear & Fear, Inc. v. N.I.I. Brokerage, LLC, 50 A.D.3d 185, 186 (N.Y. App. Div. 2008), citing British W. Indies v. Banque Internationale, 172 A.D.2d 234 (N.Y. App. Div. 1991). “It is the policy of the courts of this State to enforce contractual provisions for choice of law and selection of a forum for litigation” Koob v. IDS Financial Services, Inc., 213 A.D.2d 26, 33 (N.Y. App. Div. 1995). “[A] person who signs a document is conclusively bound by its terms absent a valid excuse for having failed to read it.” Chiarizia v. Xtreme Rydz Custom Cycles, 43 A.D.3d 1353, 1354 (N.Y. App. Div. 2007), citing Fleet Capital Leasing/Global Vendor Finance v. Angiuli Motors, Inc., 15 A.D.3d 535, 536 (N.Y. App. Div. 2005). The RPA underlying the present action contains a forum selection clause choice of law provision designating New York State, and as Defendants have consented to the RPA, maintaining the present action in New York Supreme Court, Nassau County is proper. (Ekaterina Marciante Affidavit at ¶¶8-9.) The RPA clearly states: Governing Law, Venue and Jurisdiction. This Agreement shall be governed by and construed exclusively in accordance with the laws of the State of New York, 4 11 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 without regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York State, (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient and submit to the jurisdiction of the Acceptable Forums and waive any and all objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any other forum, each of the parties to this Agreement irrevocably waives any right to oppose any motion or application made by any other party to transfer such proceeding to an Acceptable Forum. Seller and its Guarantor(s) acknowledge and agree that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to NCF in New York, and that the transaction contemplated in this Agreement was negotiated, and is being carried out, in New York. Seller and its Guarantor(s) acknowledge and agree that New York has a reasonable relationship to this transaction (Exhibit A at Paragraph 43.) Thus, the RPA forum selection provision provides the parties’ consent to the jurisdiction of the State of New York. In addition, the RPA provision contains a clause waiving any objection on the basis of the forum being inconvenient or the venue being improper. (Ekaterina Marciante Affidavit at ¶9.) Accordingly, jurisdiction and venue are proper in this case. A. A Nexus Exists Between the Action and New York State Notwithstanding the provisions of the RPA, there exists a substantial nexus of this action to New Yok State. Robin Funding Group is located in New York State. (Ekaterina Marciante Affidavit at ¶10.) The RPA was entered into in New York State, the purchase price for Defendants’ future revenue was made from Robin Funding Group in New York State, and payments of the future revenue purchased from Defendants were contracted by the RPA to be made to Robin Funding Group in New York State. (Id.) Moreover, prior to default, Defendants made payments of the purchased future revenue to Robin Funding Group in New York State. (Ekaterina Marciante Affidavit at ¶11.) 5 12 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 B. Defendants Are Properly Served by Certified Mail Plaintiff Robin Funding Group respectfully requests the Court grant permission to serve the present Order to Show Cause to Defendants by certified mail. Defendants have agreed to accept process of service by certified mail or email to the mailing and email addresses provided by them in the RPA at Exhibit A. See Exhibit A at Paragraph 7, pg.17 (“Seller further agrees that the mailing by certified mail to the Seller’s address(es) shown on page 1 of this Agreement or the emailing to the email address(es) shown on page 1 of this Agreement of any process required by any such court will constitute valid and lawful service of process against each Seller, without the necessity for service by any other means provided by statute or rule of court, but without invalidating service performed in accordance with such other provisions. Seller agrees that the service of such process and any legal papers served subsequently thereafter shall be deemed complete upon such mailing or transmission of such email irrespective of weather such mailing or email is actually received by each Seller and/or Guarantor.”). “Contracting parties may agree to means of service alternative to the statutorily required means.” See, e.g., People v. N. Leasing Sys., Inc., 75 N.Y.S.3d 785, 799 (N.Y. Sup. Ct. 2017). Service of process by mail, including electronic mail (e-mail) is proper where the parties to an agreement have consented to personal jurisdiction and agreed to such service. See, e.g., Gallant Funding, L.P. v. Tocci, 950 N.Y.S.2d 491 (N.Y. Sup. Ct. 2011) (“the Court finds that the [agreement] provisions sufficiently establish that the defendants consented to the personal jurisdiction of the courts of New York and authorized [the defendant] to receive service of process on their behalf by mail.”); see also Alfred E. Mann v. Etirc, 78 A.D.3d 137, 141 (N.Y. App. Div. 2010) (“We observe that while service of process by e-mail is not directly authorized by either the CPLR or the Hague Convention, it is not prohibited under either state or federal law, or the Hague Convention, given appropriate circumstances.”). Here, Defendants have 6 13 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 agreed in the RPA at Exhibit A to personal jurisdiction in the Courts of New York. See Exhibit A at Paragraph 43. (“Governing Law, Venue and Jurisdiction. This Agreement shall be governed by and construed exclusively in accordance with the laws of the State of New York, without regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York State, (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient and submit to the jurisdiction of the Acceptable Forums and waive any and all objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any other forum, each of the parties to this Agreement irrevocably waives any right to oppose any motion or application made by any other party to transfer such proceeding to an Acceptable Forum. Seller and its Guarantor(s) acknowledge and agree that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to NCF in New York, and that the transaction contemplated in this Agreement was negotiated, and is being carried out, in New York. Seller and its Guarantor(s) acknowledge and agree that New York has a reasonable relationship to this transaction.”). II. PLAINTIFF IS ENTITLED TO INJUNCTIVE RELIEF BASED ON THE UNDERLYING FACTS IN THIS ACTION A. Legal Standard for Preliminary Injunctive Relief Temporary restraining orders and preliminary injunctions are impermanent remedies designed to “maintain the status quo until there can be a full hearing on the merits.” Pamela Equities Corp. v. 270 Park Ave. Cafe Corp., 62 A.D.3d 620, 620 881 N.Y.S.2d 44, 45 (1st Dep’t 2009); see also Gerald Modell Inc. v. Morgenthau, 196 Misc. 2d 354, 359, 764 N.Y.S.2d 779, 784 (Sup. Ct. N.Y. Cnty. 2003). “A temporary restraining order may be granted pending a hearing for a preliminary injunction where it appears that immediate and irreparable injury, loss 7 14 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 or damage will result unless the defendant is restrained before the hearing can be had.” CPLR § 6301, CPLR § 6313. CPLR § 6301 authorizes the granting of a preliminary injunction: A preliminary injunction may be granted in any action where it appears that the defendant threatens or is about to do, or is doing or procuring or suffering to be done, an act in violation of the plaintiff's rights respecting the subject of the action, and tending to render the judgment ineffectual, or in any action where the plaintiff has demanded and would be entitled to a judgment restraining the defendant from the commission or continuance of an act, which, if committed or continued during the pendency of the action, would produce injury to the plaintiff. A temporary restraining order may be granted pending a hearing for a preliminary injunction where it appears that immediate and irreparable injury, loss or damage will result unless the defendant is restrained before the hearing can be had. CPLR § 6301. “The purpose of CPLR 6301 is to preserve the status quo and to prevent dissipation of property which may make a judgment ineffectual.” Ratner & Assocs. v. Sears, Roebuck & Co., 294 A.D. 2d 346, 346 (2nd Dept., 2002) (internal citations omitted). A preliminary injunction may be granted under CPLR Article 63 when the party seeking such relief demonstrates: (1) a likelihood of ultimate success on the merits, (2) the prospect of irreparable injury if the provisional relief is withheld, and (3) a balance of equities tipping in the moving party’s favor. Doe v. Axelrod, 73 N.Y. 2d 748, 750 (1988). A temporary restraining order may be granted when the movant can demonstrate: (1) the likelihood of success on the merits, (2) irreparable injury absent granting the preliminary injunction, and (3) a balancing of the equities. W. T. Grant Co. v. Srogi, 52 N.Y. 2d 496, 517 (1981). See also, Nobu Next Door, LLC v. Fine Arts Hous., Inc., 4 N.Y.3d 839, 840, 800 N.Y.S.2d 48, 49 (2005); Bernheim v. Matthew Bender & Co., 244 A.D.2d 161, 663 N.Y.S.2d 577 (1st Dep't 1997). “[A] showing of probable irreparable harm is the single most important prerequisite for the issuance of a preliminary injunction[.]” Madden Int’l, Ltd. V. Lew Footwear Holdings Pty. Ltd., 50 Mis. 3d 1210(A), 2016 N.Y. Misc. 8 15 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 LEXIS 160, *15 (Sup. Ct. N.Y. Cnty. Jan 15, 2016) (quoting Reuters Ltd. v. United Press Int’l, Inc., 903 F.2d 904, 907 (2d Cir. 1990)), aff’d, 143 A.D.3d 418, 2016 N.Y. App. Div. LEXIS 6333 (1st Dep’t 2016). Ex parte applications for temporary injunctive relief in the context of revenue purchase agreements, as is the case here, have been routinely granted by New York courts. See, e.g., Novus Capital Funding LLC v. Wide Open Production Services, LLC et al., (Sup. Ct., Kings Co., Index No. 524011/2021, TROs granted in NYSCEF Doc. No. 12, September 28, 2021; Levine, K.); Flash Funding Servs., Inc. v. Fan Food Corp., 2020 NY Slip Op 34022(U) (Sup. Ct., Nassau Co., Index No. 603802/2020, TROs granted in NYSCEF Docs. Nos. 8 and 22, December 2, 2020; McCormack, J.); AJ Equity Group LLC v. Piloch Distrib., Inc., 2020 NY Slip Op 32700(U) (Sup. Ct., Nassau Co., Index No. 605907/2020, TRO granted in NYSCEF Doc. No. 9, June 17, 2020, Sher, J.); Crystal Springs Capital, Inc v. PIC Trucking and Transp., LLC, (Sup. Ct., Nassau Co., Index No. 600427/2021, NYSCEF Doc. No. 10, January 13, 2021, Sullivan, J.); AJ Equity Group LLC v. JC Global Solution, Inc., (Sup. Ct., Nassau Co., Index No. 605909/2020, NYSCEF Doc. No. 8, June 17, 2020, Jaeger, J.); MCA Master Fund v. Universal Scrap Motors Inc, (Sup. Ct., Nassau Co., Index No. 603376/2020, NYSCEF Doc. No. 12, March 11, 2020, Steinman, J.); Emerald Grp. Holdings, LLC v. Stewart Supermarket, LLC, (Sup. Ct., Nassau Co., Index No. 617095/2019, NYSCEF Doc. No. 22, February 18, 2020, Jaeger, J.); MCA Fund Adv Inc v. Five Star Transport Specialties Inc., (Sup. Ct., Nassau Co., Index No. 602345/2020, NYSCEF Doc. No. 8, February 18, 2020, Murphy, J.); Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., 2021 NY Slip Op 30960(U) (Sup. Ct., Nassau Co., Index No. 612174/2020, TRO granted in NYSCEF Doc. No. 9, March 23, 2021, Voutsinas, J.); Spartan Bus. Solutions, LLC v. F&M Constr. & Dev. Corp., 2021 NY Slip Op 30927(U) (Sup. Ct., 9 16 of 28 FILED: NEW YORK COUNTY CLERK 07/18/2023 01:13 AM INDEX NO. 653430/2023 NYSCEF DOC. NO. 7 RECEIVED NYSCEF: 07/18/2023 Nassau Co., Index No. 612437/2020, TRO granted in NYSCEF Doc. No. 9, March 22, 2021, Sher, J.); AJ Equity Group LLC v. Frontier Expedited Freight L.L.C., (Sup. Ct., Nassau Co., Index No. 603462/2021, NYSCEF Doc. No. 9, March 30, 2021, Cozzens, J.); Seinfeld Capital, Inc v. Phoenix Integrated Health LLC, (Sup. Ct., Nassau Co., Index No. 603617/2021, NYSCEF Doc. No. 9, March 26, 2021, Gugerty, J.); Spartan Bus. Solutions, LLC v. Cellular Central Holdings, Inc., (Sup. Ct., Nassau Co., Index No. 603236/2021, NYSCEF Doc. No. 10, March 19, 2021, Steinman, J,); Seinfeld Capital, Inc v. John B. Rudy Co., Inc., (Sup. Ct., Nassau Co., Index No. 600500/2021, NYSCEF Doc. No. 9, January 14, 2021, Sher, J.); AJ Equity Group LLC v. US Transport LLC, (Sup. Ct., Nassau Co., Index No. 600223/2021, NYSCEF Doc. No. 8, January 8, 2021, Voutsinas, J.); Spartan Bus. Solutions, LLC v. Valente Law Group, P.C., (Sup. Ct., Nassau Co., Index No. 612174/2020, November 2, 2020, Voutsinas, J.); Slate Advance LLC v. Poseidons Boat Detailing LLC, (Sup. Ct., Nassau Co., Index No. 609254/2020, NYSCEF Doc. No. 9, September 3, 2020, Brandveen, J.); Spartan Bus. Solutions, LLC v. RR Express LLC, (Sup. Ct., Nassau Co., Index No. 608643/2020, NYSCEF Doc. No. 11, August 21, 2020, Gianelli, J.); Slate Advance LLC v. George Transport LLC, (Sup. Ct., Nassau Co., Index No. 607556/2020, NYSCEF Doc. No. 9, July 27, 2020, Marber, J.); Spartan B