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  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
  • Kpl Green Llc v. Greenport Hudson Associates Llc, Morgenstern Devoesick Pllc, Crazy Beer World IncCommercial - Contract document preview
						
                                

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FILED: ROCKLAND COUNTY CLERK 12/29/2023 04:42 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 RECEIVED NYSCEF: 12/29/2023 EXHIBIT G FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 20 RECEIVED NYSCEF: 12/29/2023 04/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND ---------------------------------------------------------------------X KPL GREEN LLC, Index No. 030709/2023 Plaintiff, Mot. Seq. 001 - against - NOTICE OF MOTION GREENPORT/HUDSON ASSOCIATES, LLC, MORGENSTERN DEVOESICK, PLLC, as Escrow Agent, and CRAZY BEER WORLD, INC., Defendants. ---------------------------------------------------------------------X PLEASE TAKE NOTICE that, upon the request for judicial intervention, the annexed affirmation of Jeffrey Y. Spiegel, Esq., affirmation of F. Michael Ostrander, Esq., affidavits of Susan Gordon and Jeffrey DeVoesick, Esq., with annexed exhibits including the Verified Complaint, and movants’ memorandum of law, the undersigned, on behalf of defendants Greenport/Hudson Associates, LLC and Morgenstern DeVoesick, PLLC, will jointly move this Court at the County Courthouse, located at 1 South Main Street, New City, New York 10956, on June 9, 2023 at 9:30 a.m., or as soon thereafter as counsel may be heard, for an Order: (a) pursuant to CPLR §§ 3211(a)(1) and 3211(a)(7) dismissing the Verified Complaint’s First and Second Causes of Action based on documentary evidence and for failure to state a cause of action; (b) pursuant to CPLR § 3016(b) dismissing the Second Cause of Action for failure to plead such claim with particularity; (c) awarding defendant Greenport/Hudson Associates, LLC judgment against plaintiff KPL Green LLC in the amount of Greenport/Hudson Associates, LLC’s costs, disbursements and reasonable attorney’s fees incurred in this action; and (d) granting movants costs and such other and further relief as is just and proper. 93397945.1 1 1 of 2 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 20 RECEIVED NYSCEF: 12/29/2023 04/14/2023 PLEASE TAKE FURTHER NOTICE, that pursuant to CPLR §2214(b) answering affidavits and cross-motions, if any, must be served seven days before the return date. Dated: New York, New York April 14, 2023 LEWIS BRISBOIS BISGAARD & SMITH LLP By: /s/ Jeffrey Y. Spiegel, Esq. Jeffrey Y. Spiegel, Esq. Stephen G. Rickershauser, Esq. Attorneys for Defendant Morgenstern DeVoesick, PLLC 77 Water Street, Suite 2100 New York, New York 10005 (212) 232-1300 Jeffrey.Spiegel@lewisbrisbois.com WOODS OVIATT GILMAN LLP By: /s/ F. Michael Ostrander, Esq. F. Michael Ostrander, Esq. Attorneys for Defendant Greenport/Hudson Associates, LLC 1900 Bausch and Lomb Place Rochester, New York 14604 (585) 987-2800 fostrander@woodsoviatt.com TO (VIA NYSCEF): CONDON PAXOS PLLC Brian K. Condon, Esq. Attorneys for Plaintiff 55 Old Turnpike Road, Suite 502 Nanuet, New York 10954 (845) 627-8500 Brian@CondonPaxos.com MAYNARD, O'CONNOR, SMITH & CATALINOTTO, LLP Justin W. Gray, Esq. Attorneys for Defendant Crazy Beer World, Inc. 6 Tower Place Albany, New York 12203 (518) 465-3553 Gray@moscllp.com 93397945.1 2 2 of 2 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 23 RECEIVED NYSCEF: 12/29/2023 04/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND -------------------------------------------------------------------X KPL GREEN LLC, Index No. 030709/2023 Plaintiff, Mot. Seq. 001 -against- SPIEGEL AFFIRMATION IN GREENPORT/HUDSON ASSOCIATES, LLC, SUPPORT OF JOINT MORGENSTERN DEVOESICK, PLLC, MOTION TO DISMISS as Escrow Agent, and CRAZY BEER WORLD, INC., Defendants. -------------------------------------------------------------------X Jeffrey Y. Spiegel, an attorney at law duly admitted to practice before this Court, affirms as follows under the penalties of perjury: 1. I am a partner of Lewis Brisbois Bisgaard & Smith LLP, attorneys for defendant Morgenstern DeVoesick, PLLC (“MDP”). I submit this affirmation in support of the motion to dismiss the Verified Complaint’s First and Second Causes of Actions, jointly filed by MDP and defendant Greenport/Hudson Associates, LLC (“GHA”), pursuant to CPLR §§ 3211(a)(1) and 3211(a)(7) on the grounds that the First and Second Causes of Action are barred by documentary evidence and fail to state a cause of action. Defendants also seek dismissal of the Second Cause of Action pursuant to CPLR § 3016(b) for failure to plead such claim with particularity. The First Cause of Action is for breach of contract against GHA and the Second Cause of Action is for breach of fiduciary duty against MDP. 2. The Verified Complaint is annexed hereto as Exhibit A. 3. For the foregoing reasons, and those set forth in the accompanying papers, it is respectfully submitted that the Verified Complaint’s First and Second Causes of Action should be 93398099.1 1 1 of 3 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 23 RECEIVED NYSCEF: 12/29/2023 04/14/2023 dismissed with prejudice and without leave to replead, and such other and further relief as is just and proper should be granted. Dated: New York, New York April 14, 2023 /s/ Jeffrey Y. Spiegel Jeffrey Y. Spiegel, Esq. 93398099.1 2 2 of 3 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 23 RECEIVED NYSCEF: 12/29/2023 04/14/2023 Certificate of Compliance Pursuant to the Uniform Civil Rules for the Supreme and County Courts, I hereby certify that the number of words in the foregoing document, according to the word count on the word processing program utilized, inclusive of point headings and footnotes, and exclusive of the caption, tables of contents and tables of authorities, signature block and this certificate of compliance is 212. Dated: April 14, 2023 New York, New York By:_/s/ Jeffrey Y. Spiegel, Esq. Jeffrey Y. Spiegel, Esq. 93398099.1 3 3 of 3 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 24 RECEIVED NYSCEF: 12/29/2023 04/14/2023 EXHIBIT A FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND ----------------------------------------------------------------X KPL GREEN LLC, : Plaintiff, : Index No.: -against- : GREENPORT/HUDSON ASSOCIATES LLC, : MORGENSTERN DeVOESICK PLLC VERIFIED COMPLAINT as Escrow Agent, and CRAZY BEER : WORLD, INC. : Defendants. : ----------------------------------------------------------------X Plaintiff, KPL GREEN LLC (“Green” or “Plaintiff”), complaining of the Defendants, GREENPORT/HUDSON ASSOCIATES LLC (“Greenport”), MORGENSTERN DEVOESICK PLLC, as Escrow Agent (“MD” or “Counsel”), and CRAZY BEER WORLD, INC. (“Beer World”) (collectively “Defendants”), by their attorneys, CONDON PAXOS PLLC alleges as follows: THE PARTIES 1. Plaintiff, Green, is a domestic limited liability company organized and existing under the laws of the State of New York, with a mailing address of P.O. Box 170 East Station Yonkers, NY 10704. 2. Defendant MD is a professional service limited liability company organized and existing under the laws of the State of New York with its principal post office address of 1080 Pittsford-Victor Road, Pittsford, NY 14534. 3. Defendant Beer World is a domestic business corporation organized and existing under the law of the State of New York with a principal post office address of 239 Ulster Avenue, Apartment 2, Saugerties, NY 12477. 3 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 JURISDICTION AND VENUE 4. Jurisdiction is proper because Defendants reside in New York, this action arises out of a transaction of business in New York and the property at issue is in New York. 5. Venue is proper in Rockland County as the contract of sale has a choice of law provision identifying Rockland County as the proper Venue. FACTUAL ALLEGATIONS 6. In and around June 2022, Green entered into a contract of sale with Greenport (the “Contract of Sale”) for the purchase of real property located at 300 Fairview Avenue, Hudson, NY (the “Premises”). A copy of the Contract of Sale annexed hereto as Exhibit A. 7. The Premises is a single-story commercial shopping plaza with fifteen (15) commercial tenants. 8. At the time the Contract of Sale was executed, Greenport had entered into a new lease agreement with a new potential tenant, Beer World, which contained a liquor licensing contingency (“Beer World Lease”). See a copy of the Beer World Lease annexed hereto as Exhibit B. 9. The liquor license contingency granted Beer World, “120 days to move its existing New York State SLA license to the Premises” (the “Liquor License Contingency”). See Exhibit B. 10. The Contract of Sale established that the purchase price for the Premises was calculated to include the final execution and removal the Liquor License Contingency. Specifically, that “Seller represents that the NOI of $536,290, set forth below, is based upon the final execution.” See Exhibit A, Paragraph 2. 4 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 11. The Contract of Sale further established that, “if the Beer Lease is not fully executed without contingencies, the loss of revenues will cause a reduction in the Premises’ NOI by $52,621, as is set forth below. With Tenant Without Tenant DELTA NOI $536,290 $483,669 $52,621 Cap Rate 9.08966% 9.08966% 0% Price $5,900,000 $5,321,090 $578,910 See Exhibit A. 12. At the time of the execution of the Contract of Sale between Green and Greenport, the Liquor License Contingency had not yet been satisfied, cleared, removed nor waived and could surpass the anticipated Closing Date and, more importantly, cause a reduction in the Premises’ NOI. 13. As such, the respective parties agreed both orally and in writing that, “the end date of several contingencies set forth in the Beer Lease (including, but not limited to, the liquor license contingencies) may exceed the anticipated Closing Date,” as such, “At Closing, $578,910.00 of the Purchase Price shall be escrowed (the “Escrow Fund”) with Seller’s attorneys as Escrow Agent pending Seller’s execution of the proposed lease (“Beer Lease”).” See Exhibit A. 14. In fact, pursuant to the written Contract of Sale, the Escrow Agent for the Premises was required to continue, “to hold the Escrow Fund until such date as the Beer Lease is executed and all contingencies are cleared, satisfied, waived or removed or the Beer Lease is canceled.” See Exhibit A. 15. Thereafter, on or about October 5, 2022, Greenport and Beer World entered into a written amendment whereby the Liquor License Contingency was extended up to and through December 31, 2022 (“Beer World Amendment”). A copy of the Beer World Amendment annexed hereto as Exhibit C. 5 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 16. On or about November 8, 2022, the closing for the Premises took place and there was a transfer of ownership of the Premises from Greenport to Green (the “Closing Date”). 17. As of the Closing Date, multiple tenant estoppel certificates (“TEC”) and subordination and non-disclosure agreements (“SDNA”) had not been executed. 18. Pursuant to the Contract of Sale, Green and Greenport agreed to a thirty-day extension past closing for Greenport to secure and turnover fully executed TECs and SDNAs as to all tenants. See Exhibit A, Paragraph 7(I). 19. Notably, as of the Closing Date, the Liquor License Contingency had still not yet been cleared, satisfied, waived nor removed. 20. On November 9th and 10th of 2022, a paralegal from Defendant MD’s office sent an email to Lena E. Paxos, Esq. (“Paxos”), counsel for Green, regarding the outstanding TECs and SDNAs. A copy of the email exchange annexed hereto as Exhibit D. 21. In fact, attached to the email exchange, Exhibit D, was a proposed TEC and SDNA for Defendant MD to send to Beer World. 22. On or about December 30, 2022, Jennifer Monacelli, a paralegal of MD, and Lena E. Paxos, had a phone call discussing the outstanding TECs and SDNAs wherein Ms. Monacelli, represented that Jeffrey F. DeVoesick (“DeVoesick”), an attorney for Defendant MD, was addressing the TECs and SDNAs for Beer World directly and that, “the TECs and SDNAs were likely fully executed and sitting in DeVoesick’s email right now.” 23. On January 3, 2023, three (3) days past the expiration of the Liquor License Contingency, Albert Hrdlicka (“Hrdlicka”), counsel for Beer World, contacted Paxos, counsel for Green, requesting an extension of the Liquor License Contingency. 6 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 24. On January 18, 2023, Green, through counsel, emailed DeVoesick stating, in relevant part: “Pursuant to Paragraph 2, in pertinent part, of the Purchase and Sale agreement between Greenport/Hudson Associates, LLC and KPL Green LLC for 300 Fairview Avenue, Hudson, NY: “At Closing, $578,910.00 of the Purchase Price shall be escrowed (the “Escrow Fund”) with Seller’s attorneys as Escrow Agent (Escrow Fund”)… Seller represents that the NOI of $536,290, set forth below, is based upon the final execution and removal of contingencies of the Beer Lease regarding the 17,000 +/- square feet space…The respective parties have agreed that as the end date of several contingencies set forth in the Beer Lease (including, but not limited to, the liquor license contingencies) may exceed the anticipated Closing Date, the Escrow Agent for the Premises shall continue to hold the Escrow Fund until such date as the Beer Lease is executed and all contingencies are cleared, satisfied, waived or removed or the Beer Lease is canceled.” In light of the recent developments with Beer Lease, please provide immediate proof of the Escrow Fund.” A copy of this email is annexed hereto as Exhibit E. 25. Additional written demands were made on January 19, 2023, January 20, 2023, and January 23, 2023, but DeVoesick and Defendant MD failed to provide any proof that the Escrow Fund funds were deposited in Defendant MD’s escrow account. 26. On January 24, 2023, Hrdlicka, forwarded email exchanges between himself and DeVoesick, wherein Hrdlicka states, in relevant part, “Sorry, I am going to head out so just in case the landlord doesn’t agree to the extension the tenant reserves their right to cancel the lease since they have not received the liquor license yet.” A copy of that email exchanged annexed hereto as Exhibit F. 27. On January 24, 2023, counsel for Green sent to Greenport, DeVoesick, Hrdlicka, and Beer World, via email, First Class Mail and Certified Mail Return Receipt Requested, a written letter acknowledging and accepting Beer World’s termination of the lease. 7 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 28. On January 24, 2023, counsel for Green sent to Greenport and DeVoesick, via email, First Class Mail and Certified Mail Return Receipt Requested, a written letter demanding disbursement of the Escrow Fund pursuant to Paragraph 2 of the Contract of Sale. 29. To date, DeVoesick and Defendant MD have failed to provide proof of the Escrow Fund and/or disburse the same to Green. 30. In fact, DeVoesick further informed Brian K, Condon, Esq. (“Condon”), counsel for Green, that there were no escrow funds established at Closing relative to the Beer World Lease thereby absconding his responsibilities as Escrow Agent. AS AND FOR A FIRST CAUSE OF ACTION (Breach of Contract as to Greenport/Hudson Associates LLC) 31. Green repeats, reiterates and realleges Paragraphs 1 through 30 as if fully set forth herein. 32. Defendant Greenport entered into a Contract of Sale with Green wherein they agreed to hold $578,910 in Escrow, past the Closing Date, until the Liquor License Contingency was satisfied, waived, cleared or removed or the Beer Lease was terminated. 33. Pursuant to the Beer World Amendment, the Liquor License Contingency was extended through December 31, 2022. 34. On January 24, 2023, Green demanded disbursement of the Escrow Fund from MD. 35. On or about January 26, 2023, DeVoesick of Defendant MD represented that no escrow funds were ever established. 36. Defendant Greenport has breached the Contract of Sale by failing to hold the $578,910 in escrow until the Liquor License Contingency was either satisfied, cleared, waived and/or removed or the Beer Lease was terminated. 37. Defendant Greenport has therefore materially and willfully breached the Contract 8 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 of Sale with Green. 38. As a direct and proximate result of Defendant Greenport’s breach, Green has been damaged in an amount to be determined at trial, but an amount no less than $578,910, in addition to interest, costs, and legal fees as expressly provided by the Contract of Sale. AS AND FOR A SECOND CAUSE OF ACTION (Breach of Fiduciary Duty as Escrow Agent as to Morgenstern DeVoesick PLLC) 39. Green repeats, reiterates and realleges Paragraphs 1 through 38 as if fully set forth herein. 40. Pursuant to the Contract of Sale, “At Closing, $578,910.00 of the Purchase Price shall be escrowed (the “Escrow Fund”) with Seller’s attorneys as Escrow Agent pending Seller’s execution of the proposed lease (“Beer Lease”) with Crazy Beer World, Inc. d/b/a Beer Universe (“Beer Universe”).” Emphasis Added. 41. Further that, “The respective parties have agreed that as the end date of several contingencies set forth in the Beer Lease (including, but not limited to, the liquor license contingencies) may exceed the anticipated Closing Date, the Escrow Agent for the Premises shall continue to hold the Escrow Fund until such date as the Beer Lease is executed and all contingencies are cleared, satisfied, waived or removed or the Beer Lease is canceled.” Emphasis Added. See Exhibit A. 42. Defendant MD, as Escrow Agent, therefore owed a fiduciary duty to Green to hold that Escrow Fund, “until such date as the Beer Lease is executed and all contingencies are cleared, satisfied, waived or removed or the Beer Lease is canceled.” See Exhibit A. 43. Despite Green’s repeated requests to Defendant MD for proof of the Escrow Fund, no such proof was ever given to Green nor its counsel. 9 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 44. In fact, Defendant MD confirmed to Green, on January 26, 2023, that no escrow funds were ever established. 45. Defendant MD has therefore materially and willfully breached its fiduciary duty with Green. 46. As a result of the aforementioned breach of fiduciary duty by Defendant MD, Green has been injured, in an amount to be determined at trial, but believed to be no less than $578,910, in addition to interest, costs, and legal fees as expressly provided by the Contract. AS AND FOR A THIRD CAUSE OF ACTION (Declaratory Judgment as to Crazy Beer World, LLC) 47. Green repeats, reiterates and realleges Paragraphs 1 through 46 as if fully set forth herein. 48. Pursuant to the Beer World Amendment, Beer World had up to and through December 31, 2022, to satisfy, waive, clear, and/or remove the Liquor License Contingency or terminate the lease. 49. On or about December 30, 2022, Beer World requested an extension of the Liquor License Contingency or, alternatively, if consent was not granted reserve “their right to cancel the lease since they have not received the liquor license yet.” See Exhibit F. 50. On January 24, 2023, Green rejected Beer World’s request for an extension and accepted Beer World’s cancellation of the contract. 51. By reason of the foregoing, an actual and justiciable controversy exists between the Green and Defendant Beer World as to the rights and obligations of the parties. 52. Green seeks a judgment in their favor against Defendant Beer World, for a declaration that the lease agreement between Green and Defendant Beer World is terminated 10 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 effective January 1, 2023, thereby triggering disbursement of the Escrow Fund in the Contract of Sale. WHEREFORE, Green respectfully demands judgment against the Defendants, jointly and severally, as follows: a. On the First Cause of Action in an amount to be determined at trial, but no less than $578,910, together with statutory interest, future contractual late charges, reasonable attorney’s fees, costs and disbursements, and such other and further relief as this Court deems just and proper. b. On the Second Cause of Action in an amount to be determined at trial, but no less than $578,910, together with statutory interest, future contractual late charges, reasonable attorney’s fees, costs and disbursements, and such other and further relief as this Court deems just and proper. c. On the Third Cause of Action for Declaratory Judgment, for a declaration that the lease agreement between Green and Defendant Beer World is terminated effective January 1, 2023, thereby triggered disbursement of the Escrow Fund pursuant to the Contract of Sale. Dated: Nanuet, New York February 10, 2023 Yours, etc. CONDON PAXOS PLLC By:_____________________________ Brian K. Condon Attorneys for Plaintiff 55 Old Turnpike Road, Suite 502 Nanuet, New York 10954 (845) 627-8500 (telephone) (845) 627-8507 (facsimile) Lena@CondonPaxos.com To: GREENPORT/HUDSON ASSOCIATES, LLC 40 Office Park Way 11 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 02/10/2023 04:42 04/14/2023 12:33 PM 01:50 INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 1 24 RECEIVED NYSCEF: 12/29/2023 02/10/2023 04/14/2023 Pittsford, NY 14534 Jeffrey F. DeVoesick, Esq. Morgenstern DeVoesick PLLC 1000 Pittsford Victor Road Pittsford, New York 14534 Crazy Beer World, Inc. 70 Coons Road Troy, NY 12180 12 of 12 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 22 RECEIVED NYSCEF: 12/29/2023 04/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND -------------------------------------------------------------------X KPL GREEN LLC, Index No. 030709/2023 Plaintiff, Mot. Seq. 001 -against- AFFIDAVIT IN SUPPORT OF GREENPORT/HUDSON ASSOCIATES, LLC, JOINT MOTION TO DISMISS MORGENSTERN DEVOESICK, PLLC, as Escrow Agent, and CRAZY BEER WORLD, INC., Defendants. -------------------------------------------------------------------X STATE OF NEW YORK ) ) ss.: COUNTY OF MONROE ) JEFFREY DEVOESICK, ESQ., being duly sworn, deposes and says as follows: 1. I am a partner of Morgenstern DeVoesick, PLLC (“MDP”), a defendant in this action. I submit this Affidavit in support of the motion to dismiss the Verified Complaint’s First and Second Causes of Actions, jointly filed by MDP and defendant Greenport/Hudson Associates, LLC (“GHA”). 2. Except where expressly stated otherwise, I make this Affidavit based upon my personal knowledge. 3. In preparation of this Affidavit, I have reviewed, among other things, Plaintiff’s Verified Complaint with exhibits annexed thereto. 4. On or about June 7, 2022, GHA, as “Seller,” entered into a certain Contract for the Purchase and Sale of Real Property (“Contract”) with Marakai Realty Corp., as “Purchaser,” with regard to the purchase and sale of certain real property located at 300 Fairview Avenue, Hudson, NY, commonly known as Greenport Hudson Plaza (the “Property”). 93360002.2 1 of 4 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 22 RECEIVED NYSCEF: 12/29/2023 04/14/2023 5. MDP was GHA’s counsel for the transaction. 6. On or about November 8, 2022, the purchase and sale transaction contemplated by the Contract was closed and title to the Property was transferred pursuant to the Contract. 7. The Contract provided that “at Closing, $578,910.00 of the Purchase Price shall be escrowed (the “Escrow Fund”) with Seller’s attorneys as Escrow Agent pending Seller’s execution of the proposed [Beer Lease]”. 8. However, MDP never agreed to act as “Escrow Agent”. 9. MDP is neither a signatory on the Contract, nor a party to any agreement with Plaintiff. 10. MDP never received the $578,910 Escrow Fund. 11. The $578,910 Escrow Fund was never created consistent with the Plaintiff’s instructions and authorization on the Real Estate Closing Statement. See Affidavit of Susan Gordon, Exhibit B. 12. Title for the Property was transferred, with Plaintiff’s consent and authorization, pursuant to the Contract without the Escrow Fund ever having been arranged, created, or funded. 93360002.2 2 of 4 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 22 RECEIVED NYSCEF: 12/29/2023 04/14/2023 13 . By reason of the foregoing and otherwise, it is respectfully requested that the Court dismiss the Verified Complaint as against Defendants Greenport/Hudson Associates, LLC and Morgenstern De V oesick, PLLC in all respects and further award judgment in favor of GHA and MDP in the amount of their costs, disbursement and attorney's fees incurred in this action together with such additional relief the Court deems just and proper. Dated: Pittsford, New York April 13, 2023 Sworn to before me this [3 day of April, 2023 /ea Notary Public MAURA C. M C G U I R E NOTARY PUBLIC, State of New York Qualified in Monroe County No. 02MC6320497 My Commission Expires March 9, 2023 3 of 4 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 22 RECEIVED NYSCEF: 12/29/2023 04/14/2023 Certificate of Compliance Pursuant to the Uniform Civil Rules for the Supreme and County Courts, I hereby certify that the number of words in the foregoing document, according to the word count on the word processing program utilized, exclusive of the caption, signature block and this certificate of compliance is 372. Dated: April 13, 2023 New York, New York By:_ /s/ Jeffrey Y. Spiegel, Esq. Jeffrey Y. Spiegel, Esq. 93360002.2 4 of 4 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 21 RECEIVED NYSCEF: 12/29/2023 04/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND ----------------------------------------------------------------------X KPL GREEN LLC, Plaintiff, Index No: 030709/2023 -against- Motion Seq. No. 001 GREENPORT/HUDSON ASSOCIATES, LLC, MORGENSTERN DEVOESICK, PLLC, as Escrow Agent, and CRAZY BEER WORLD, INC., Defendants. ---------------------------------------------------------------------X DEFENDANTS GREENPORT/HUDSON ASSOCIATES, LLC AND MORGENSTERN DEVOESICK, PLLC’s MEMORANDUM OF LAW IN SUPPORT OF THEIR JOINT MOTION TO DISMISS TO THE VERIFIED COMPLAINT LEWIS BRISBOIS BISGAARD & SMITH LLP Jeffrey Y. Spiegel, Esq., Esq. Stephen G. Rickershauser, Esq. Attorneys for Defendant Morgenstern DeVoesick, PLLC 77 Water Street, Suite 2100 New York, New York 10005 (212) 232-1300 WOODS OVIATT GILMAN LLP F. Michael Ostrander, Esq. Attorneys for Defendant Greenport Hudson Associates, LLC 1900 Bausch and Lomb Place Rochester, New York 14604 (585) 987-2800 1 of 16 FILED: ROCKLAND COUNTY CLERK 12/29/2023 04/14/2023 04:42 01:50 PM INDEX NO. 030709/2023 NYSCEF DOC. NO. 72 21 RECEIVED NYSCEF: 12/29/2023 04/14/2023 TABLE OF CONTENTS PRELIMINARY STATEMENT .....................................................................................................1 STATEMENT OF FACTS ..............................................................................................................2 LEGAL STANDARD ......................................................................................................................5 ARGUMENT ...................................................................................................................................6 I. THE BREACH OF CONTRACT CLAIM AGAINST GHA MUST BE DISMISSED ............................................................................................................6 II. THE BREACH OF FIDUCIARY DUTY CLAIM AGAINST MDP MUST BE DISMISSED ..........................................................................................8 CONCLUSION ..............................................................................................................................10