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FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM INDEX NO. E2024003746
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024
MONROE COUNTY CLERK’S OFFICE THIS IS NOT A BILL. THIS IS YOUR RECEIPT.
Receipt # 3762539
Book Page CIVIL
Return To: No. Pages: 7
ERICA REGINA GILERMAN
Instrument: COMPLAINT
Control #: 202402290342
Index #: E2024003746
Date: 02/29/2024
ACE FUNDING SOURCE LLC Time: 10:32:17 AM
CLOUD REVOLUTE INC
SKILLMAZE INC
KAKATIYA INDIAN KITCHEN LLC,
MOVX INC
GARIKAPATI, VENKATESWARLU
Total Fees Paid: $0.00
Employee:
State of New York
MONROE COUNTY CLERK’S OFFICE
WARNING – THIS SHEET CONSTITUTES THE CLERKS
ENDORSEMENT, REQUIRED BY SECTION 317-a(5) &
SECTION 319 OF THE REAL PROPERTY LAW OF THE
STATE OF NEW YORK. DO NOT DETACH OR REMOVE.
JAMIE ROMEO
MONROE COUNTY CLERK
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF MONROE
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ACE FUNDING SOURCE LLC, Index No.
Plaintiff, VERIFIED COMPLAINT
-against-
CLOUD REVOLUTE INC, SKILLMAZE INC,
KAKATIYA INDIAN KITCHEN LLC, MOVX INC
and VENKATESWARLU GARIKAPATI,
Defendants.
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Plaintiff, ACE FUNDING SOURCE LLC by its attorney, Erica R. Gilerman, Esq. as and
for its complaint against Defendants(s) herein, alleges as follows:
1. Plaintiff ACE FUNDING SOURCE LLC (“Plaintiff”) is a New York limited
liability company engaged in the receivables financing business.
2. Upon information and belief, CLOUD REVOLUTE INC (“Defendant-Cloud”) is a
foreign corporation.
3. Upon information and belief, SKILLMAZE INC (“Defendant-Skillmaze”) is a
foreign corporation.
4. Upon information and belief, KAKATIYA INDIAN KITCHEN LLC (“Defendant-
Kakatiya”) is a foreign limited liability company.
5. Upon information and belief, MOVX INC (“Defendant-Movx”) is a foreign
corporation.
6. Collectively, Defendant-Cloud, Defendant-Skillmaze, Defendant-Kakatiya and
Defendant-Movx shall be known as “Defendant-Seller.”
7. Defendant VENKATESWARLU GARIKAPATI (“Defendant Guarantor”) is an
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FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024
individual residing in the State of Texas and upon information and belief is a
principal of Defendant-Seller.
8. Pursuant to a receivables purchase agreement and personal guaranty dated
September 27, 2023 (collectively, the “Agreement”), Plaintiff purchased from
Defendant-Seller $1,096.000.00 (“Purchased Amount”) of each future account and
payment obligation owing to Defendant-Seller from its customers as they are
generated in the course of Defendant-Seller’s business (“Future Receivables”). A
copy of the Agreement is attached as Exhibit A.
9. The Agreement contains the parties’ express consent to the jurisdiction of the courts
located in the State of New York.
10. Pursuant to the Agreement, Plaintiff was authorized to collect via an ACH
electronic debit of the Future Receivables, until such time that Plaintiff collected
the total Purchased Amount.
11. The Agreement contains Defendant-Seller’s express covenant not to revoke its
ACH authorization to Plaintiff or otherwise take any measure to interfere with
Plaintiff’s ability to collect the Future Receivables.
12. Contrary to Defendant-Seller’s express covenant set forth above, Defendant-Seller
materially breached the terms of the Agreement on February 14, 2024, by changing
the designated bank account without Plaintiff’s authorization, by placing a stop
payment on Plaintiff’s debits to the account or by otherwise taking measures to
interfere with Plaintiff’s ability to collect the Future Receivables. A copy of the
remittance history is attached as Exhibit B.
AS AND FOR A FIRST CAUSE OF ACTION
(Breach of Contract as to Defendant-Seller)
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13. After a series of payments, on or about February 14, 2024, Defendant-Seller
stopped paying and went into default. Plaintiff has not received any cleared
payments from the Defendants since the default.
14. Plaintiff demanded repayment of money paid under the Agreement. Defendant has
failed and refused to pay the sums due under the Agreement.
15. The Agreement provides that Defendant-Seller shall be in default of the Agreement
if, inter alia, it breaches any covenants contained therein or makes any
representation or warranty providing to have been incorrect, false or misleading in
any material respect.
16. As a result of Defendant-Seller’s breach of the provisions set forth above,
Defendant-Seller has defaulted under the Agreement.
17. Pursuant to the Agreement, in the event of Defendant-Seller’s default, Plaintiff may
declare the total amount of receivables purchased and not delivered as immediately
due and owing to Plaintiff, including costs and fees. Plaintiff now has a balance of
$548,023.00 in undelivered Future Receivables, along with a contractual default
fee of $5,000.00 (“Default Fee”) and a contractual insufficient funds fee totaling
$200.00 (“NSF Fee”).
18. Subtracting the amount of receivables Plaintiff has previously collected from
Defendant-Seller under the Agreement from the total Future Receivables purchased
by Plaintiff, there is presently due and owing from Defendant-Seller to Plaintiff the
amount of $553,223,00, with interest from February 14, 2024, plus its costs and
expenses of collection, including reasonable attorney’s fees.
19. Pursuant to the terms of the Agreement, the Defendant-Seller agreed to pay
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Plaintiff’s reasonable attorney’s fees.
AS AND FOR A SECOND CAUSE OF ACTION
(Breach of Guaranty as to Defendant Guarantor)
20. Plaintiff repeats and re-alleges paragraphs 13 through 19 above, as though more
fully set forth herein at length.
21. The Agreement contains Defendant Guarantor’s separately executed and
unconditional guarantee of payment in the event of default under the Agreement by
Defendant-Seller (“Guaranty”).
22. Plaintiff made demand upon Defendant Guarantor to pay the outstanding balance
due under the Agreement, which Defendant Guarantor has failed and refused to do.
23. As a result of Defendant-Seller’s breach and default under the Agreement as set
forth above and pursuant to the Guaranty, there is presently due and owing from
Defendant Guarantor to Plaintiff the amount of $553,223 with interest thereon from
February 14, 2024, plus its costs and expenses of collection, including reasonable
attorney’s fees.
WHEREFORE, Plaintiff demands judgment as follows:
1. On the first cause of action, against Defendant-Seller, in the sum of $553,223.00,
plus interest from February 14, 2024, plus Plaintiff’s costs, expenses of collection,
including reasonable attorney’s fees of $138,305.75, or any such other amount as
the court deems just.
2. On the second cause of action, against Defendant Guarantor, in the sum of
$553,223.00, plus interest from February 14, 2024, plus Plaintiff’s costs, expenses
of collection, including reasonable attorney’s fees of $138,305.75, or any such other
amount as the court deems just.
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3. Plaintiff’s costs and expenses and such other and further relief as the court may
deem just and proper.
Dated: February 27, 2024
By: /s/ Erica R. Gilerman
Erica R. Gilerman, Esq.
515 Madison Ave, Suite #8108
New York, NY 10022
Phone: 786-436-9760
Email: erica@gilermanlaw.com
Attorneys for Plaintiff
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Preview
FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM INDEX NO. E2024003746 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 MONROE COUNTY CLERK’S OFFICE THIS IS NOT A BILL. THIS IS YOUR RECEIPT. Receipt # 3762539 Book Page CIVIL Return To: No. Pages: 7 ERICA REGINA GILERMAN Instrument: COMPLAINT Control #: 202402290342 Index #: E2024003746 Date: 02/29/2024 ACE FUNDING SOURCE LLC Time: 10:32:17 AM CLOUD REVOLUTE INC SKILLMAZE INC KAKATIYA INDIAN KITCHEN LLC, MOVX INC GARIKAPATI, VENKATESWARLU Total Fees Paid: $0.00 Employee: State of New York MONROE COUNTY CLERK’S OFFICE WARNING – THIS SHEET CONSTITUTES THE CLERKS ENDORSEMENT, REQUIRED BY SECTION 317-a(5) & SECTION 319 OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK. DO NOT DETACH OR REMOVE. JAMIE ROMEO MONROE COUNTY CLERK 1 of 7 202402290342 Index # INDEX : E2024003746 NO. E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF MONROE ----------------------------------------------------------------------x ACE FUNDING SOURCE LLC, Index No. Plaintiff, VERIFIED COMPLAINT -against- CLOUD REVOLUTE INC, SKILLMAZE INC, KAKATIYA INDIAN KITCHEN LLC, MOVX INC and VENKATESWARLU GARIKAPATI, Defendants. ----------------------------------------------------------------------x Plaintiff, ACE FUNDING SOURCE LLC by its attorney, Erica R. Gilerman, Esq. as and for its complaint against Defendants(s) herein, alleges as follows: 1. Plaintiff ACE FUNDING SOURCE LLC (“Plaintiff”) is a New York limited liability company engaged in the receivables financing business. 2. Upon information and belief, CLOUD REVOLUTE INC (“Defendant-Cloud”) is a foreign corporation. 3. Upon information and belief, SKILLMAZE INC (“Defendant-Skillmaze”) is a foreign corporation. 4. Upon information and belief, KAKATIYA INDIAN KITCHEN LLC (“Defendant- Kakatiya”) is a foreign limited liability company. 5. Upon information and belief, MOVX INC (“Defendant-Movx”) is a foreign corporation. 6. Collectively, Defendant-Cloud, Defendant-Skillmaze, Defendant-Kakatiya and Defendant-Movx shall be known as “Defendant-Seller.” 7. Defendant VENKATESWARLU GARIKAPATI (“Defendant Guarantor”) is an 1 2 of 7 202402290342 IndexNO. INDEX #: E2024003746 E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 individual residing in the State of Texas and upon information and belief is a principal of Defendant-Seller. 8. Pursuant to a receivables purchase agreement and personal guaranty dated September 27, 2023 (collectively, the “Agreement”), Plaintiff purchased from Defendant-Seller $1,096.000.00 (“Purchased Amount”) of each future account and payment obligation owing to Defendant-Seller from its customers as they are generated in the course of Defendant-Seller’s business (“Future Receivables”). A copy of the Agreement is attached as Exhibit A. 9. The Agreement contains the parties’ express consent to the jurisdiction of the courts located in the State of New York. 10. Pursuant to the Agreement, Plaintiff was authorized to collect via an ACH electronic debit of the Future Receivables, until such time that Plaintiff collected the total Purchased Amount. 11. The Agreement contains Defendant-Seller’s express covenant not to revoke its ACH authorization to Plaintiff or otherwise take any measure to interfere with Plaintiff’s ability to collect the Future Receivables. 12. Contrary to Defendant-Seller’s express covenant set forth above, Defendant-Seller materially breached the terms of the Agreement on February 14, 2024, by changing the designated bank account without Plaintiff’s authorization, by placing a stop payment on Plaintiff’s debits to the account or by otherwise taking measures to interfere with Plaintiff’s ability to collect the Future Receivables. A copy of the remittance history is attached as Exhibit B. AS AND FOR A FIRST CAUSE OF ACTION (Breach of Contract as to Defendant-Seller) 2 3 of 7 202402290342 IndexNO. INDEX #: E2024003746 E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 13. After a series of payments, on or about February 14, 2024, Defendant-Seller stopped paying and went into default. Plaintiff has not received any cleared payments from the Defendants since the default. 14. Plaintiff demanded repayment of money paid under the Agreement. Defendant has failed and refused to pay the sums due under the Agreement. 15. The Agreement provides that Defendant-Seller shall be in default of the Agreement if, inter alia, it breaches any covenants contained therein or makes any representation or warranty providing to have been incorrect, false or misleading in any material respect. 16. As a result of Defendant-Seller’s breach of the provisions set forth above, Defendant-Seller has defaulted under the Agreement. 17. Pursuant to the Agreement, in the event of Defendant-Seller’s default, Plaintiff may declare the total amount of receivables purchased and not delivered as immediately due and owing to Plaintiff, including costs and fees. Plaintiff now has a balance of $548,023.00 in undelivered Future Receivables, along with a contractual default fee of $5,000.00 (“Default Fee”) and a contractual insufficient funds fee totaling $200.00 (“NSF Fee”). 18. Subtracting the amount of receivables Plaintiff has previously collected from Defendant-Seller under the Agreement from the total Future Receivables purchased by Plaintiff, there is presently due and owing from Defendant-Seller to Plaintiff the amount of $553,223,00, with interest from February 14, 2024, plus its costs and expenses of collection, including reasonable attorney’s fees. 19. Pursuant to the terms of the Agreement, the Defendant-Seller agreed to pay 3 4 of 7 202402290342 IndexNO. INDEX #: E2024003746 E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 Plaintiff’s reasonable attorney’s fees. AS AND FOR A SECOND CAUSE OF ACTION (Breach of Guaranty as to Defendant Guarantor) 20. Plaintiff repeats and re-alleges paragraphs 13 through 19 above, as though more fully set forth herein at length. 21. The Agreement contains Defendant Guarantor’s separately executed and unconditional guarantee of payment in the event of default under the Agreement by Defendant-Seller (“Guaranty”). 22. Plaintiff made demand upon Defendant Guarantor to pay the outstanding balance due under the Agreement, which Defendant Guarantor has failed and refused to do. 23. As a result of Defendant-Seller’s breach and default under the Agreement as set forth above and pursuant to the Guaranty, there is presently due and owing from Defendant Guarantor to Plaintiff the amount of $553,223 with interest thereon from February 14, 2024, plus its costs and expenses of collection, including reasonable attorney’s fees. WHEREFORE, Plaintiff demands judgment as follows: 1. On the first cause of action, against Defendant-Seller, in the sum of $553,223.00, plus interest from February 14, 2024, plus Plaintiff’s costs, expenses of collection, including reasonable attorney’s fees of $138,305.75, or any such other amount as the court deems just. 2. On the second cause of action, against Defendant Guarantor, in the sum of $553,223.00, plus interest from February 14, 2024, plus Plaintiff’s costs, expenses of collection, including reasonable attorney’s fees of $138,305.75, or any such other amount as the court deems just. 4 5 of 7 202402290342 IndexNO. INDEX #: E2024003746 E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 3. Plaintiff’s costs and expenses and such other and further relief as the court may deem just and proper. Dated: February 27, 2024 By: /s/ Erica R. Gilerman Erica R. Gilerman, Esq. 515 Madison Ave, Suite #8108 New York, NY 10022 Phone: 786-436-9760 Email: erica@gilermanlaw.com Attorneys for Plaintiff 5 6 of 7 202402290342 IndexNO. INDEX #: E2024003746 E2024003746 FILED: MONROE COUNTY CLERK 02/28/2024 12:17 PM NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 02/28/2024 7 of 7