Preview
FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM INDEX NO. E2024003883
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024
MONROE COUNTY CLERK’S OFFICE THIS IS NOT A BILL. THIS IS YOUR RECEIPT.
Receipt # 3763706
Book Page CIVIL
Return To: No. Pages: 6
JASON ADAM GANG
Instrument: EFILING INDEX NUMBER
Control #: 202402291570
Index #: E2024003883
Date: 02/29/2024
CFG Merchant Solutions LLC Time: 3:55:55 PM
Navy Federal Credit Union
Kant Lose Logistics LLC
Kant Lose Logistics
Barnes, Adrian
Little, Lamorris
State Fee Index Number $165.00
County Fee Index Number $26.00
State Fee Cultural Education $14.25
State Fee Records $4.75 Employee: CW
Management
Total Fees Paid: $210.00
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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INDEX NO. E2024003883
FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF MONROE
________________________________________________
CFG MERCHANT SOLUTIONS, LLC, |
| Index No.
Petitioner, |
| VERIFIED
-against- | PETITION
|
NAVY FEDERAL CREDIT UNION, |
KANT LOSE LOGISTICS LLC |
DBA KANT LOSE LOGISTICS and |
ADRIAN BARNES and LAMORRIS LITTLE |
|
Respondents, |
________________________________________________|
TO THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF MONROE
Petitioner, CFG MERCHANT SOLUTIONS, LLC (“Petitioner”), by and through its counsel,
The Law Office of Jason A. Gang, PLLC, petitions the Court as follows:
PARTIES
1. Petitioner, CFG MERCHANT SOLUTIONS, LLC (hereinafter known as “Petitioner”) is a
New York corporation with a principal address at 180 Maiden Lane, 15th Floor, New York,
NY 10038.
2. Respondent, NAVY FEDERAL CREDIT UNION (“NAVY FCU”) is a Virginia corporation
with a principal place of business at 820 Follin Lane SE, Vienna, VA 22180.
3. Respondent, KANT LOSE LOGISTICS LLC DBA KANT LOSE LOGISTICS (“Merchant”)
is a North Carolina corporation with a principal place of business at 832 Chastain Avenue,
Concord, NC 28025.
4. Respondent, ADRIAN BARNES (“Adrian Barnes”) is an owner and principal of Merchant
and resides at 832 Chastain Avenue, Concord, NC 28025.
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NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024
5. Respondent, LAMORRIS LITTLE (“Lamorris Little” and together with Adrian Barnes, the
“Guarantors” and together with Merchant, the “Judgment Debtors”) is an owner and principal
of Merchant and resides at 3454 Highway 109 North, Wadesboro, NC 28170.
JURISDICTION AND VENUE
6. Venue and jurisdiction are proper pursuant to CPLR § 5221(a)(4) as this Court entered the
Judgment and retains jurisdiction for the purposes of enforcement thereof.
FACTUAL BACKGROUND
7. A Judgment was entered in the Supreme Court, County of Monroe, in favor of Petitioner
against the Judgment Debtors, jointly and severally, on January 26, 2024, in the sum of
$85,498.02 under Index No. E2023009071 (the “Judgment”). A copy of the Judgment is
attached as Exhibit A.
8. The full balance of the Judgment remains outstanding.
9. On May 2, 2023, Petitioner and Merchant entered into a Purchase Agreement (the
“Agreement”) pursuant to which Petitioner purchased 14.98% of Merchant’s total future
accounts receivable up to the sum of $96,785.00 in exchange for an upfront purchase price of
$65,000.00. A copy of the Agreement is attached as Exhibit B.
10. Pursuant to a Personal Guaranty of Performance (the “Guaranty” and together with the
Agreement, the “Agreements”), Guarantors guaranteed the Merchant’s obligations to
Petitioner pursuant to the Agreements. A copy of the Guaranty is included in Exhibit B.
11. Pursuant to the Agreements, the Judgment Debtors consented to jurisdiction in this Court.
12. The Judgment Debtors default under the Agreements on or about August 2, 2023, leaving an
outstanding balance of $74,963.00 on the purchased receivables.
13. The Agreements do not provide for any notices of default.
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14. In aid of the enforcement of Judgment, Petitioner served an Information Subpoena with
Restraining Notice and Notice of Exemption (the “IS/RN”) upon NAVY FEDERAL CREDIT
UNION (“NAVY FCU”). A copy of the IS/RN is attached as Exhibit C.
15. NAVY FCU’s response to the IS/RN indicates that the Judgment Debtors maintain accounts
with NAVY FCU with monies held in the amount of $20,890.35. A copy of NAVY FCU’s
response is attached as Exhibit D.
16. Petitioner now requests a turnover of the Judgment Debtors’ assets located at NAVY FCU.
ARGUMENT
AS A JUDGMENT CREDITOR, PETITIONER IS ENTITLED TO A TURNOVER
ORDER PURSUANT TO CPLR 5225(b) and/or 5227
17. Petitioner repeats each and every allegation above as if set forth fully herein.
18. Pursuant to CPLR § 5225(b) a judgment creditor may commence a special proceeding against
“a person in possession or custody of money… in which the judgment debtor has an
interest…where it is shown that the judgment debtor is entitled to possession of such
property…”
19. CPLR § 5227 provides that “[u]pon a special proceeding commenced by the judgment creditor,
against any person who it is shown is or will become indebted to the judgment debtor, the court
may require such person to pay to the judgment creditor the debt upon maturity, or so much of
it as is sufficient to satisfy the judgment, and to execute and deliver any document necessary
to effect payment; or it may direct that a judgment be entered against such person in favor of
the judgment creditor.
20. NAVY FCU has actual possession of the funds maintained in the accounts titled to the
Judgment Debtors at NAVY FCU. See Exhibit D.
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21. As a depository institution in possession of funds in deposit account(s) titled to the Judgment
Debtors, NAVY FCU is also indebted to the Judgment Debtors.
22. Petitioner is entitled to possession of the monies and assets of the Judgment Debtors pursuant
to the Judgment. See Exhibit A.
23. The Judgment remains wholly unpaid.
24. NAVY FCU is a garnishee under Article 52 of the CPLR and, as such, Petitioner is entitled to
an Order, pursuant to CPLR §§ 5225(b) and/or 5227, directing turnover of sufficient funds to
satisfy the unpaid balance of the Judgment plus interest, or such lesser amount as may be held
by the garnishee.
25. No prior application has been made for the relief sought herein.
WHEREFORE, Petitioner respectfully requests that the Court grant an Order, pursuant to
CPLR §§ 5225(b) and/or 5227, directing NAVY FEDERAL CREDIT UNION to turnover all
monies and/or property held by NAVY FEDERAL CREDIT UNION in which either of the
Judgment Debtors have an interest up to the sum of $85,498.02, plus interest at 9% per annum
from January 26, 2024, and for such other and further relief as the Court deems just and proper.
Dated: February 29, 2024
Hewlett, New York
______________________________
JASON A. GANG, ESQ.
The Law Office of Jason A. Gang
1245 Hewlett Plaza, #478
Hewlett, New York11557
(646) 389-5610
Attorney for Petitioner
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FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024
VERIFICATION
STATE OF NEW YORK )
) ss:
COUNTY OF NASSAU )
JASON GANG, ESQ., being duly sworn states that he is the attorney for the Petitioner,
CFG MERCHANT SOLUTIONS, LLC in this action and that the foregoing is true to his
knowledge, except as to matters therein stated on information and belief and as to those matters he
believes to be true; that the grounds of his belief and as to those matters not stated upon his
knowledge are correspondence and other writings furnished to him by Petitioner; and that the
reason why the verification is not made by Petitioner is that Petitioner does not have an office in
the county where he has an office.
______________________________
JASON GANG, ESQ.
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Preview
FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM INDEX NO. E2024003883 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 MONROE COUNTY CLERK’S OFFICE THIS IS NOT A BILL. THIS IS YOUR RECEIPT. Receipt # 3763706 Book Page CIVIL Return To: No. Pages: 6 JASON ADAM GANG Instrument: EFILING INDEX NUMBER Control #: 202402291570 Index #: E2024003883 Date: 02/29/2024 CFG Merchant Solutions LLC Time: 3:55:55 PM Navy Federal Credit Union Kant Lose Logistics LLC Kant Lose Logistics Barnes, Adrian Little, Lamorris State Fee Index Number $165.00 County Fee Index Number $26.00 State Fee Cultural Education $14.25 State Fee Records $4.75 Employee: CW Management Total Fees Paid: $210.00 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 6 202402291570 02/29/2024 03:55:55 PM CIVIL 202402291570 INDEX NO. E2024003883 FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF MONROE ________________________________________________ CFG MERCHANT SOLUTIONS, LLC, | | Index No. Petitioner, | | VERIFIED -against- | PETITION | NAVY FEDERAL CREDIT UNION, | KANT LOSE LOGISTICS LLC | DBA KANT LOSE LOGISTICS and | ADRIAN BARNES and LAMORRIS LITTLE | | Respondents, | ________________________________________________| TO THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF MONROE Petitioner, CFG MERCHANT SOLUTIONS, LLC (“Petitioner”), by and through its counsel, The Law Office of Jason A. Gang, PLLC, petitions the Court as follows: PARTIES 1. Petitioner, CFG MERCHANT SOLUTIONS, LLC (hereinafter known as “Petitioner”) is a New York corporation with a principal address at 180 Maiden Lane, 15th Floor, New York, NY 10038. 2. Respondent, NAVY FEDERAL CREDIT UNION (“NAVY FCU”) is a Virginia corporation with a principal place of business at 820 Follin Lane SE, Vienna, VA 22180. 3. Respondent, KANT LOSE LOGISTICS LLC DBA KANT LOSE LOGISTICS (“Merchant”) is a North Carolina corporation with a principal place of business at 832 Chastain Avenue, Concord, NC 28025. 4. Respondent, ADRIAN BARNES (“Adrian Barnes”) is an owner and principal of Merchant and resides at 832 Chastain Avenue, Concord, NC 28025. 2 of 6 202402291570 02/29/2024 03:55:55 PM CIVIL 202402291570 INDEX NO. E2024003883 FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 5. Respondent, LAMORRIS LITTLE (“Lamorris Little” and together with Adrian Barnes, the “Guarantors” and together with Merchant, the “Judgment Debtors”) is an owner and principal of Merchant and resides at 3454 Highway 109 North, Wadesboro, NC 28170. JURISDICTION AND VENUE 6. Venue and jurisdiction are proper pursuant to CPLR § 5221(a)(4) as this Court entered the Judgment and retains jurisdiction for the purposes of enforcement thereof. FACTUAL BACKGROUND 7. A Judgment was entered in the Supreme Court, County of Monroe, in favor of Petitioner against the Judgment Debtors, jointly and severally, on January 26, 2024, in the sum of $85,498.02 under Index No. E2023009071 (the “Judgment”). A copy of the Judgment is attached as Exhibit A. 8. The full balance of the Judgment remains outstanding. 9. On May 2, 2023, Petitioner and Merchant entered into a Purchase Agreement (the “Agreement”) pursuant to which Petitioner purchased 14.98% of Merchant’s total future accounts receivable up to the sum of $96,785.00 in exchange for an upfront purchase price of $65,000.00. A copy of the Agreement is attached as Exhibit B. 10. Pursuant to a Personal Guaranty of Performance (the “Guaranty” and together with the Agreement, the “Agreements”), Guarantors guaranteed the Merchant’s obligations to Petitioner pursuant to the Agreements. A copy of the Guaranty is included in Exhibit B. 11. Pursuant to the Agreements, the Judgment Debtors consented to jurisdiction in this Court. 12. The Judgment Debtors default under the Agreements on or about August 2, 2023, leaving an outstanding balance of $74,963.00 on the purchased receivables. 13. The Agreements do not provide for any notices of default. 3 of 6 202402291570 02/29/2024 03:55:55 PM CIVIL 202402291570 INDEX NO. E2024003883 FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 14. In aid of the enforcement of Judgment, Petitioner served an Information Subpoena with Restraining Notice and Notice of Exemption (the “IS/RN”) upon NAVY FEDERAL CREDIT UNION (“NAVY FCU”). A copy of the IS/RN is attached as Exhibit C. 15. NAVY FCU’s response to the IS/RN indicates that the Judgment Debtors maintain accounts with NAVY FCU with monies held in the amount of $20,890.35. A copy of NAVY FCU’s response is attached as Exhibit D. 16. Petitioner now requests a turnover of the Judgment Debtors’ assets located at NAVY FCU. ARGUMENT AS A JUDGMENT CREDITOR, PETITIONER IS ENTITLED TO A TURNOVER ORDER PURSUANT TO CPLR 5225(b) and/or 5227 17. Petitioner repeats each and every allegation above as if set forth fully herein. 18. Pursuant to CPLR § 5225(b) a judgment creditor may commence a special proceeding against “a person in possession or custody of money… in which the judgment debtor has an interest…where it is shown that the judgment debtor is entitled to possession of such property…” 19. CPLR § 5227 provides that “[u]pon a special proceeding commenced by the judgment creditor, against any person who it is shown is or will become indebted to the judgment debtor, the court may require such person to pay to the judgment creditor the debt upon maturity, or so much of it as is sufficient to satisfy the judgment, and to execute and deliver any document necessary to effect payment; or it may direct that a judgment be entered against such person in favor of the judgment creditor. 20. NAVY FCU has actual possession of the funds maintained in the accounts titled to the Judgment Debtors at NAVY FCU. See Exhibit D. 4 of 6 202402291570 02/29/2024 03:55:55 PM CIVIL 202402291570 INDEX NO. E2024003883 FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 21. As a depository institution in possession of funds in deposit account(s) titled to the Judgment Debtors, NAVY FCU is also indebted to the Judgment Debtors. 22. Petitioner is entitled to possession of the monies and assets of the Judgment Debtors pursuant to the Judgment. See Exhibit A. 23. The Judgment remains wholly unpaid. 24. NAVY FCU is a garnishee under Article 52 of the CPLR and, as such, Petitioner is entitled to an Order, pursuant to CPLR §§ 5225(b) and/or 5227, directing turnover of sufficient funds to satisfy the unpaid balance of the Judgment plus interest, or such lesser amount as may be held by the garnishee. 25. No prior application has been made for the relief sought herein. WHEREFORE, Petitioner respectfully requests that the Court grant an Order, pursuant to CPLR §§ 5225(b) and/or 5227, directing NAVY FEDERAL CREDIT UNION to turnover all monies and/or property held by NAVY FEDERAL CREDIT UNION in which either of the Judgment Debtors have an interest up to the sum of $85,498.02, plus interest at 9% per annum from January 26, 2024, and for such other and further relief as the Court deems just and proper. Dated: February 29, 2024 Hewlett, New York ______________________________ JASON A. GANG, ESQ. The Law Office of Jason A. Gang 1245 Hewlett Plaza, #478 Hewlett, New York11557 (646) 389-5610 Attorney for Petitioner 5 of 6 202402291570 02/29/2024 03:55:55 PM CIVIL 202402291570 INDEX NO. E2024003883 FILED: MONROE COUNTY CLERK 02/29/2024 03:21 PM NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 02/29/2024 VERIFICATION STATE OF NEW YORK ) ) ss: COUNTY OF NASSAU ) JASON GANG, ESQ., being duly sworn states that he is the attorney for the Petitioner, CFG MERCHANT SOLUTIONS, LLC in this action and that the foregoing is true to his knowledge, except as to matters therein stated on information and belief and as to those matters he believes to be true; that the grounds of his belief and as to those matters not stated upon his knowledge are correspondence and other writings furnished to him by Petitioner; and that the reason why the verification is not made by Petitioner is that Petitioner does not have an office in the county where he has an office. ______________________________ JASON GANG, ESQ. 6 of 6