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FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF ONONDAGA
KARIM COURGI, Individually and as Member of Index No.
SYRACUSE HOUSING LLC, POINT GROVE LLC,
BELLEVUE APTS LLC, and BRADFORD HEIGHTS, LLC
at 117 Buchman Close Circle, Fayetteville, NY 13066 SUMMONS
Plaintiffs,
-against-
CUSHMAN & WAKEFIELD 1, INC., at 1290 AVENUE OF
THE AMERICAS, NEW YORK, NY, UNITED STATES,
10104, PYRAMID BROKERAGE COMPANY, INC. at 5845
Widewaters Parkway Suite 100, East Syracuse, NY 13057 and
JOHN CLARK at 113 Buchman Close Circle, Fayetteville,
NY 13066
Defendants.
TO THE ABOVE-NAMED DEFENDANTS:
YOU ARE HEREBY SUMMONED to answer the complaint of the Plaintiffs herein and
to serve a copy of your answer, or if the complaint is not served with this summons, to serve a
notice of appearance, on the Attorneys for Plaintiffs at the address indicated below within 20 days
after the service of this Summons (not counting the day of service itself), or within 30 days after
service is complete if the summons is not delivered personally to you within the State ofNew York.
YOU ARE HEREBY NOTIFIED THAT should you fail to answer, a judgment will be
entered against you by default for the relief demanded in the Verified Complaint.
Plaintiffs designate Onondaga as the place of trial. The basis of the venue is the residence
and place of business of the parties herein.
Dated: April , 2024
G LAW, PLLC
Attorneys for Plaintiffs
By: Anthony C. Galli, Esq.
6555 Ridings Road
Syracuse, NY 13206
Phone (315) 480-1954
Email civil@galli-law.com
Our File No.: 24-01214
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF ONONDAGA
KARIM COURGI, Individually and as Member of Index No.
SYRACUSE HOUSING LLC, POINT GROVE LLC,
BELLEVUE APTS LLC, and BRADFORD HEIGHTS, LLC
VERIFIED COMPLAINT
Plaintiffs,
-against-
CUSHMAN & WAKEFIELD 1, INC., PYRAMID
BROKERAGE COMPANY, INC. and JOHN CLARK.
Defendants.
The Plaintiff, Karim Courgi, individually, and as sole member of Syracuse Housing LLC,
Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC (hereinafter collectively
"Plaintiffs"
referred to as the or "Plaintiff') by and through his undersigned counsel, Galli Law,
PLLC, hereby files the following Verified Complaint against Cushman Wakefield 1, Inc., Pyramid
Brokerage Company, Inc., and its Chief Executive Officer, John Clark, individually (collectively
referred to as the "Defendants"), and in support thereof, alleges as follows:
NATURE OF ACTION AND PARTIES
1. This lawsuit relates to the negligence and misconduct of John Clark, who is a duly
licensed real estate broker and/or agent of Pyramid Brokerage Company, Inc., of which John Clark
is the Chief Executive Officer.
2. Upon information and belief, Cushman Wakefield 1, Inc. is one in the same with
Pyramid Brokerage Company, Inc. and/or the sole owner of Pyramid Brokerage Company, Inc.,
of which Michelle MacKay is the Chief Executive Officer.
3. In particular, this action stems from John Clark's self-dealing, misconduct,
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misguidance, failure to advise, negligence, errors and omissions, breaches of fiduciary duty, and
fraudulent inducement with respect to Karim Courgi and his various single member entities:
Syracuse Housing LLC, Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC.
4. The Plaintiff, Karim Courgi is an individual residing at 117 Buchmans Close Circle
Fayetteville, NY 13066.
5. Karim Courgi is the sole member of Syracuse Housing LLC Point Grove LLC,
Bellevue Apts LLC, and Bradford Heights LLC, all of which are real estate holdings companies
with offices in Onondaga County.
6. Syracuse Housing LLC is a single member entity that owned real property located
at 910 Teall Ave., Syracuse New York 13206.
7. Point Grove LLC is a single member entity that owned real property located at 309
Hawley Ave., Syracuse, New York 13203.
8. Bellevue Apts LLC is a single member entity that owned real property located at
1000 Bellevue Ave, Syracuse, New York 13204. This property also had cellular towers on the
roof of the structure.
9. Bradford Heights LLC is a single member entity that owned real property located
at 110-112 Blossom Street Syracuse, NY 13224.
10. The Defendant, Cushman & Wakefield 1, Inc. is a domestic corporation with an
address of 1290 Avenue of the Americas, New York, New York 10104, and upon information and
belief, is the owner of the co-Defendant, Pyramid Brokerage, Inc.
11. The Defendant, Pyramid Brokerage Company, Inc. (hereinalter, "Pyramid") is a
commercial real estate brokerage with offices at 5845 Widewaters Pkwy, Suite 200, East Syracuse,
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New York 13057 and doing business in Onondaga County.
12. The Defendant, John Clark, is an individual residing at 113 Buchmans Close Circle
Fayetteville, NY 13066, and who is licensed real estate broker and/or agent at, and Chief Executive
Officer of, Pyramid and engages in the business of commercial real estate in Onondaga County,
New York.
13. The Plaintiff and Defendant, John Clark came to know one another when Plaintiff
requested the Defendant's services to purchase property located at 4603 East Genesee St.,
Syracuse, New York 13214.
14. The Plaintiff informed the defendant that he wanted to purchase the property
located at 4603 East Genesee St., Syracuse, New York 13214.
15. The Defendant recommended and counselled the Plaintiff to sell one or all of his
properties listed above in order to replace those properties in a 1031 Exchange with 4603 East
Genesee St., Syracuse, New York 13214.
16. The Plaintiff accepted the Defendant's advice and counsel and entertained 1031
Exchange options with the sale of his aforementioned properties even though he had no intention
to sell his properties until John Clark guided him to do so.
17. Thereafter, the Plaintiff entered into listing agreements with the Defendant,
Pyramid to sell each of the properties listed above: 910 Teall Ave., Syracuse New York 13206;
309 Hawley Ave., Syracuse, New York 13203; 1000 Bellevue Ave, Syracuse, New York 13204
and the cellular towers on the roof ofthe structure; 110-112 Blossom Street Syracuse, NY 13224.
18. The Defendant warranted and represented to the Plaintiff that the Defendant would
else."
"put more money in [the Plaintiff's] pocket than anyone
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19. Thereafter, the Defendant recommended, advised, and counselled the Plaintiff to
sell the following properties as a package to accomplish a 1031 exchange: 309 Hawley Ave.,
Syracuse, New York 13203 and 1000 Bellevue Ave, Syracuse, New York 13204 (including the
cellular towers on the roof of the structure).
properties'
20. The Defendant advised and counselled the Plaintiff to sell the as a
package because the 1000 Bellevue property was not in good shape but the 309 Hawley property
was in good shape, so selling a good property with a bad property, along with the cell towers on
the bad property, would be more appealing to buyers.
21. The Defendant represented that he had buyer lists and could promptly sell the
Plaintiff's properties as a package.
22. The Defendant wasted the Plaintiff's time entertaining offers from unqualified
buyers who were not ready, willing, and able to buy, which delayed the Plaintiff's ability to achieve
a 1031 Exchange.
23. The packaged nature of the sale also limited interested buyers and delayed the
ability to sell.
24. The Defendant failed to permit the Plaintiff to entertain offers from other buyers
who the Plaintiff procured, even though the Defendant's proposed buyers did not make tenable
offers and were advancing slowly through due diligence, and thereby wasted the Plaintiff's time
and resources.
25. The Defendant's failure to properly counsel and advise the Plaintiff through the
sale process frustrated and precluded the Plaintiff's ability to effectuate a 1031 exchange.
26. The Defendant's refusal to entertain offers from buyers Defendant did not procure
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is evidence of the Defendant's self-dealing and breach of fiduciary duty, as it was motivated by
maximizing the Defendant's commissions rather than accomplishing a 1031 exchange at the best
value for the Plaintiff.
27. Due to the Defendant's errors, omissions, negligence, and failures to advise, the
Plaintiff closed on the purchase of the property located at 4603 East Genesee St., Syracuse, New
York 13214 and was unable to use any of the proceeds of the sale of properties listed above to
accomplish a 1031 exchange.
28. The Plaintiff has been damaged in an amount exceeding $150,000.00 had the
Defendant not committed errors, omissions, negligence, and failed to advise with regard to the
1031 exchange.
29. The Defendant is the sole cause of the Plaintiff's failure to meet a 1031 exchange,
and the resulting damages as a proximate result of the Defendant's negligence, errors, omissions,
failures to advise, and breach of fiduciary duty to place the Plaintiff's interests above the
Defendant's own interests.
30. The Defendant, John Clark, in his individual capacity, but also as a licensed broker
and/or agent and officer of Pyramid, has engaged in self-dealing, misconduct, misguidance, failure
to advise, negligence, errors and omissions, breaches of fiduciary duty, and fraudulent inducement
with respect to Karim Courgi and his single member entities, Syracuse Housing LLC, Point Grove
LLC, Bellevue Apts LLC, and Bradford Heights LLC.
31. Additionally, with regard to the property located at 910 Teall Ave., Syracuse New
York 13206, the Plaintiff was the sole procuring cause of the sale to Coral Real Estate, LLC along
with assistance from Cuse Realty, LLC.
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32. The Plaintiff paid a commission to Hunt Real Estate and Cuse Realty LLC for the
sale of the property located at 910 Teall Ave., Syracuse New York 13206.
33. The Plaintiff did not pay a commission to the Defendant upon the sale of 910 Teall
Ave., Syracuse New York 13206 because the Defendant was not the procuring cause of the sale
and the Plaintiff already paid other real estate brokerages.
34. In addition, the Plaintiff did not pay a commission to the Defendant upon the sale
of 910 Teall Ave., Syracuse New York 13206 because the Plaintiff had terminated its listing
agreement with the Defendant within three (3) days of executing the listing agreement.
35. The Agreement was cancelled and the Defendant expended little to no effort and/or
resources to sell any of the Plaintiff's properties.
36. The Defendant never informed the Plaintiff that the Plaintiff's listing had not been
"dormant"
terminated, but instead, informed the Plaintiff that they converted the listing to without
advising the Plaintiff or explaining any listing cancellation procedures to the Plaintiff.
"dormant"
37. The Defendant concealed the fact the listing was converted to status with
the intent to wait for the sale of the property(ies) to then demand a commission on the sale.
38. The Defendant did not produce a ready willing and able buyer for the property
located at 910 Teall Ave., Syracuse New York 13206.
39. Nonetheless, the Defendant threatened the Plaintiff with legal action if he did not
pay the Defendant a $30,000.00 commission on the sale of 910 Teall Ave., Syracuse New York
13206.
40. The Defendant came to the Plaintiff's home and fraudulently induced the Plaintiff
to pay the Defendant, claiming that the listing was never cancelled, but rather only changed to
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"dormant"
status. That statement is false, and was made to induce the Plaintiff to pay an undue
commission upon threat of legal action, which was conveyed in person at the Plaintiff's personal
residence in a threatening manner.
41. The Defendant fraudulently induced the Plaintiff to pay a $30,000.00 commission
to the Defendants that they did not earn because the listing agreement was cancelled and the
property sold nearly a year later without any assistance of Pyramid or John Clark.
42. The Defendant must refund the $30,000.00 to the Plaintiff, as it was not earned,
fraudulently induced to be paid, and unjustly enriches the Defendant.
JURISDICTION AND VENUE
43. Jurisdiction over the Defendants in the Supreme Court of the State of New York
and venue in this County is proper pursuant to N.Y. CPLR §§ 301 and 302 by virtue of their
principal places of business being located in New York and engaging in purposeful and ongoing
business activity in Onondaga County and in this Judicial District.
44. Venue is also proper in this Court pursuant to CPLR § 503. Plaintiff designates
Onondaga County as the place of trial since a substantial part of the events or omissions giving
rise to the claim occurred in Onondaga County, and so are the parties herein.
AS AND FOR THE FIRST CAUSE OF ACTION
(BREACH OF FIDUCIARY DUTY)
45. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth
herein.
46. As a licensed real estate broker contracted by the Plaintiff, at all times relevant the
Defendants owed a fiduciary duty and duty of loyalty to the Plaintiff.
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47. As described in the preceding paragraphs, which are incorporated herein by
reference, the Defendants have breached their fiduciary duty and duty of loyalty.
48. As a result, the Defendant has breached its fiduciary duty to the Plaintiff, which has
resulted in damages to the Plaintiff exceeding $200,000.00 but which will be established at trial.
AS AND FOR THE FOURTH CAUSE OF ACTION
(NEGLIGENCE / ERRORS AND OMISSIONS)
49. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth
herein.
50. The Defendant owes a duty of care to the Plaintiff as real estate broker and agent
of the Plaintiff.
51. As described in the preceding paragraphs, which are incorporated herein by
reference, the Defendants have breached that duty of care, and committed negligence.
52. The Defendant's negligence was the proximate cause of the Plaintiff's damages,
which total at least $200,000.00 but which will be established at trial.
AS AND FOR THE THIRD CAUSE OF ACTION
(UNJUST ENRICHMENT)
53. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth
herein.
54. The Defendant has benefited from the tens of thousands of dollars the Plaintiffs
paid in commissions to the Defendants.
55. As described in the preceding paragraphs, which are incorporated herein by
reference, the Defendant did not earn the commissions they have been paid for, as the Defendant
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did not procure the sale, or otherwise interfered and prevented the Plaintiff from selling to other
buyers at higher sale prices.
Defendants'
56. The unjust enrichment has been at the expense of and detriment to the
Plaintiffs, who have been forced to pay commissions to real estate brokers who did not procure
sales.
57. Equity and good conscience require restitution to the Plaintiff.
AS AND FOR THE FOURTH CAUSE OF ACTION
(FRAUDULENT INDUCEMENT)
58. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth
herein.
59. The Defendant, John Clark fraudulent induced the Plaintiff to pay unearned
commissions under false and materially misleading representations and statements.
60. As described in the preceding paragraphs, which are incorporated herein by
reference, the Defendant
61. The Defendant did not produce a ready willing and able buyer for the property
located at 910 Teall Ave., Syracuse New York 13206.
62. Nonetheless, the Defendant threatened the Plaintiff with legal action if he did not
pay the Defendant a $30,000.00 commission on the sale of 910 Teall Ave., Syracuse New York
13206.
63. The Defendant came to the Plaintiff's home and fraudulently induced the Plaintiff
to pay the Defendant, claiming that the listing was never cancelled, but rather only changed to
"dormant"
status. That statement is false, and was made to induce the Plaintiff to pay an undue
commission.
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64, The Defendant fraudulently induced the Plaintiff to pay a $30,000.00 commission
to the Defendants that they did not earn because the listing agreement was cancelled and the
property sold nearly a year later without any assistance of Pyramid or John Clark.
65. The Defendant must refund the $30,000.00 to the Plaintiff, as it was not earned,
fraudulently induced to be paid, and unjustly enriches the Defendant.
66. John Clark knew such statements, representations, and material omissions were
false and deceptive.
67. John Clark made such statements, representations, and material omissions with
knowledge or belief that they were false or that they did not have a sufficient basis of information
with which to make them.
68. John Clark intended to induce the Plaintiffs to act and in some instances refrain
from acting in reliance upon the misrepresentation and falsehood.
69. For example, John Clark lied to induce the Plaintiff to pay an unearned commission
to the Defendant.
70. The Plaintiff has justifiably relied upon John Clark's representations in taking
action or refraining from taking action as the case may be.
71. As a result, the Plaintiffs have been damaged in the sum of commissions paid to
Pyramid despite the same not having been earned.
PRAYER FOR RELIEF
WHEREFORE, the Plaintiff respectfully requests that this Honorable Court enter
judgment against the Defendants as follows:
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Plaintiffs'
(1) On First Cause of Action against the Defendants for Breach of Fiduciary
Duty, granting judgment in favor of the Plaintiffs for an amount to be determined at
attorneys'
trial, plus interest and fees;
Plaintiffs'
(2) On Second Cause of Action against the Defendants for Negligence / Errors
and Omissions, granting judgment in favor of the Plaintiffs for an amount to be
attorneys'
determined at trial, plus interest and fees;
Plaintiffs'
(3) On Third Cause of Action against the Defendants for Unjust Enrichment,
granting judgment in favor of the Plaintiffs for an amount to be determined at trial, plus
attorneys'
interest and fees;
Plaintiffs'
(4) On Fourth Cause of Action against the Defendants for Fraudulent
Preview
FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ONONDAGA KARIM COURGI, Individually and as Member of Index No. SYRACUSE HOUSING LLC, POINT GROVE LLC, BELLEVUE APTS LLC, and BRADFORD HEIGHTS, LLC at 117 Buchman Close Circle, Fayetteville, NY 13066 SUMMONS Plaintiffs, -against- CUSHMAN & WAKEFIELD 1, INC., at 1290 AVENUE OF THE AMERICAS, NEW YORK, NY, UNITED STATES, 10104, PYRAMID BROKERAGE COMPANY, INC. at 5845 Widewaters Parkway Suite 100, East Syracuse, NY 13057 and JOHN CLARK at 113 Buchman Close Circle, Fayetteville, NY 13066 Defendants. TO THE ABOVE-NAMED DEFENDANTS: YOU ARE HEREBY SUMMONED to answer the complaint of the Plaintiffs herein and to serve a copy of your answer, or if the complaint is not served with this summons, to serve a notice of appearance, on the Attorneys for Plaintiffs at the address indicated below within 20 days after the service of this Summons (not counting the day of service itself), or within 30 days after service is complete if the summons is not delivered personally to you within the State ofNew York. YOU ARE HEREBY NOTIFIED THAT should you fail to answer, a judgment will be entered against you by default for the relief demanded in the Verified Complaint. Plaintiffs designate Onondaga as the place of trial. The basis of the venue is the residence and place of business of the parties herein. Dated: April , 2024 G LAW, PLLC Attorneys for Plaintiffs By: Anthony C. Galli, Esq. 6555 Ridings Road Syracuse, NY 13206 Phone (315) 480-1954 Email civil@galli-law.com Our File No.: 24-01214 1 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ONONDAGA KARIM COURGI, Individually and as Member of Index No. SYRACUSE HOUSING LLC, POINT GROVE LLC, BELLEVUE APTS LLC, and BRADFORD HEIGHTS, LLC VERIFIED COMPLAINT Plaintiffs, -against- CUSHMAN & WAKEFIELD 1, INC., PYRAMID BROKERAGE COMPANY, INC. and JOHN CLARK. Defendants. The Plaintiff, Karim Courgi, individually, and as sole member of Syracuse Housing LLC, Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC (hereinafter collectively "Plaintiffs" referred to as the or "Plaintiff') by and through his undersigned counsel, Galli Law, PLLC, hereby files the following Verified Complaint against Cushman Wakefield 1, Inc., Pyramid Brokerage Company, Inc., and its Chief Executive Officer, John Clark, individually (collectively referred to as the "Defendants"), and in support thereof, alleges as follows: NATURE OF ACTION AND PARTIES 1. This lawsuit relates to the negligence and misconduct of John Clark, who is a duly licensed real estate broker and/or agent of Pyramid Brokerage Company, Inc., of which John Clark is the Chief Executive Officer. 2. Upon information and belief, Cushman Wakefield 1, Inc. is one in the same with Pyramid Brokerage Company, Inc. and/or the sole owner of Pyramid Brokerage Company, Inc., of which Michelle MacKay is the Chief Executive Officer. 3. In particular, this action stems from John Clark's self-dealing, misconduct, 2 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 misguidance, failure to advise, negligence, errors and omissions, breaches of fiduciary duty, and fraudulent inducement with respect to Karim Courgi and his various single member entities: Syracuse Housing LLC, Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC. 4. The Plaintiff, Karim Courgi is an individual residing at 117 Buchmans Close Circle Fayetteville, NY 13066. 5. Karim Courgi is the sole member of Syracuse Housing LLC Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC, all of which are real estate holdings companies with offices in Onondaga County. 6. Syracuse Housing LLC is a single member entity that owned real property located at 910 Teall Ave., Syracuse New York 13206. 7. Point Grove LLC is a single member entity that owned real property located at 309 Hawley Ave., Syracuse, New York 13203. 8. Bellevue Apts LLC is a single member entity that owned real property located at 1000 Bellevue Ave, Syracuse, New York 13204. This property also had cellular towers on the roof of the structure. 9. Bradford Heights LLC is a single member entity that owned real property located at 110-112 Blossom Street Syracuse, NY 13224. 10. The Defendant, Cushman & Wakefield 1, Inc. is a domestic corporation with an address of 1290 Avenue of the Americas, New York, New York 10104, and upon information and belief, is the owner of the co-Defendant, Pyramid Brokerage, Inc. 11. The Defendant, Pyramid Brokerage Company, Inc. (hereinalter, "Pyramid") is a commercial real estate brokerage with offices at 5845 Widewaters Pkwy, Suite 200, East Syracuse, 3 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 New York 13057 and doing business in Onondaga County. 12. The Defendant, John Clark, is an individual residing at 113 Buchmans Close Circle Fayetteville, NY 13066, and who is licensed real estate broker and/or agent at, and Chief Executive Officer of, Pyramid and engages in the business of commercial real estate in Onondaga County, New York. 13. The Plaintiff and Defendant, John Clark came to know one another when Plaintiff requested the Defendant's services to purchase property located at 4603 East Genesee St., Syracuse, New York 13214. 14. The Plaintiff informed the defendant that he wanted to purchase the property located at 4603 East Genesee St., Syracuse, New York 13214. 15. The Defendant recommended and counselled the Plaintiff to sell one or all of his properties listed above in order to replace those properties in a 1031 Exchange with 4603 East Genesee St., Syracuse, New York 13214. 16. The Plaintiff accepted the Defendant's advice and counsel and entertained 1031 Exchange options with the sale of his aforementioned properties even though he had no intention to sell his properties until John Clark guided him to do so. 17. Thereafter, the Plaintiff entered into listing agreements with the Defendant, Pyramid to sell each of the properties listed above: 910 Teall Ave., Syracuse New York 13206; 309 Hawley Ave., Syracuse, New York 13203; 1000 Bellevue Ave, Syracuse, New York 13204 and the cellular towers on the roof ofthe structure; 110-112 Blossom Street Syracuse, NY 13224. 18. The Defendant warranted and represented to the Plaintiff that the Defendant would else." "put more money in [the Plaintiff's] pocket than anyone 4 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 19. Thereafter, the Defendant recommended, advised, and counselled the Plaintiff to sell the following properties as a package to accomplish a 1031 exchange: 309 Hawley Ave., Syracuse, New York 13203 and 1000 Bellevue Ave, Syracuse, New York 13204 (including the cellular towers on the roof of the structure). properties' 20. The Defendant advised and counselled the Plaintiff to sell the as a package because the 1000 Bellevue property was not in good shape but the 309 Hawley property was in good shape, so selling a good property with a bad property, along with the cell towers on the bad property, would be more appealing to buyers. 21. The Defendant represented that he had buyer lists and could promptly sell the Plaintiff's properties as a package. 22. The Defendant wasted the Plaintiff's time entertaining offers from unqualified buyers who were not ready, willing, and able to buy, which delayed the Plaintiff's ability to achieve a 1031 Exchange. 23. The packaged nature of the sale also limited interested buyers and delayed the ability to sell. 24. The Defendant failed to permit the Plaintiff to entertain offers from other buyers who the Plaintiff procured, even though the Defendant's proposed buyers did not make tenable offers and were advancing slowly through due diligence, and thereby wasted the Plaintiff's time and resources. 25. The Defendant's failure to properly counsel and advise the Plaintiff through the sale process frustrated and precluded the Plaintiff's ability to effectuate a 1031 exchange. 26. The Defendant's refusal to entertain offers from buyers Defendant did not procure 5 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 is evidence of the Defendant's self-dealing and breach of fiduciary duty, as it was motivated by maximizing the Defendant's commissions rather than accomplishing a 1031 exchange at the best value for the Plaintiff. 27. Due to the Defendant's errors, omissions, negligence, and failures to advise, the Plaintiff closed on the purchase of the property located at 4603 East Genesee St., Syracuse, New York 13214 and was unable to use any of the proceeds of the sale of properties listed above to accomplish a 1031 exchange. 28. The Plaintiff has been damaged in an amount exceeding $150,000.00 had the Defendant not committed errors, omissions, negligence, and failed to advise with regard to the 1031 exchange. 29. The Defendant is the sole cause of the Plaintiff's failure to meet a 1031 exchange, and the resulting damages as a proximate result of the Defendant's negligence, errors, omissions, failures to advise, and breach of fiduciary duty to place the Plaintiff's interests above the Defendant's own interests. 30. The Defendant, John Clark, in his individual capacity, but also as a licensed broker and/or agent and officer of Pyramid, has engaged in self-dealing, misconduct, misguidance, failure to advise, negligence, errors and omissions, breaches of fiduciary duty, and fraudulent inducement with respect to Karim Courgi and his single member entities, Syracuse Housing LLC, Point Grove LLC, Bellevue Apts LLC, and Bradford Heights LLC. 31. Additionally, with regard to the property located at 910 Teall Ave., Syracuse New York 13206, the Plaintiff was the sole procuring cause of the sale to Coral Real Estate, LLC along with assistance from Cuse Realty, LLC. 6 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 32. The Plaintiff paid a commission to Hunt Real Estate and Cuse Realty LLC for the sale of the property located at 910 Teall Ave., Syracuse New York 13206. 33. The Plaintiff did not pay a commission to the Defendant upon the sale of 910 Teall Ave., Syracuse New York 13206 because the Defendant was not the procuring cause of the sale and the Plaintiff already paid other real estate brokerages. 34. In addition, the Plaintiff did not pay a commission to the Defendant upon the sale of 910 Teall Ave., Syracuse New York 13206 because the Plaintiff had terminated its listing agreement with the Defendant within three (3) days of executing the listing agreement. 35. The Agreement was cancelled and the Defendant expended little to no effort and/or resources to sell any of the Plaintiff's properties. 36. The Defendant never informed the Plaintiff that the Plaintiff's listing had not been "dormant" terminated, but instead, informed the Plaintiff that they converted the listing to without advising the Plaintiff or explaining any listing cancellation procedures to the Plaintiff. "dormant" 37. The Defendant concealed the fact the listing was converted to status with the intent to wait for the sale of the property(ies) to then demand a commission on the sale. 38. The Defendant did not produce a ready willing and able buyer for the property located at 910 Teall Ave., Syracuse New York 13206. 39. Nonetheless, the Defendant threatened the Plaintiff with legal action if he did not pay the Defendant a $30,000.00 commission on the sale of 910 Teall Ave., Syracuse New York 13206. 40. The Defendant came to the Plaintiff's home and fraudulently induced the Plaintiff to pay the Defendant, claiming that the listing was never cancelled, but rather only changed to 7 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 "dormant" status. That statement is false, and was made to induce the Plaintiff to pay an undue commission upon threat of legal action, which was conveyed in person at the Plaintiff's personal residence in a threatening manner. 41. The Defendant fraudulently induced the Plaintiff to pay a $30,000.00 commission to the Defendants that they did not earn because the listing agreement was cancelled and the property sold nearly a year later without any assistance of Pyramid or John Clark. 42. The Defendant must refund the $30,000.00 to the Plaintiff, as it was not earned, fraudulently induced to be paid, and unjustly enriches the Defendant. JURISDICTION AND VENUE 43. Jurisdiction over the Defendants in the Supreme Court of the State of New York and venue in this County is proper pursuant to N.Y. CPLR §§ 301 and 302 by virtue of their principal places of business being located in New York and engaging in purposeful and ongoing business activity in Onondaga County and in this Judicial District. 44. Venue is also proper in this Court pursuant to CPLR § 503. Plaintiff designates Onondaga County as the place of trial since a substantial part of the events or omissions giving rise to the claim occurred in Onondaga County, and so are the parties herein. AS AND FOR THE FIRST CAUSE OF ACTION (BREACH OF FIDUCIARY DUTY) 45. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth herein. 46. As a licensed real estate broker contracted by the Plaintiff, at all times relevant the Defendants owed a fiduciary duty and duty of loyalty to the Plaintiff. 8 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 47. As described in the preceding paragraphs, which are incorporated herein by reference, the Defendants have breached their fiduciary duty and duty of loyalty. 48. As a result, the Defendant has breached its fiduciary duty to the Plaintiff, which has resulted in damages to the Plaintiff exceeding $200,000.00 but which will be established at trial. AS AND FOR THE FOURTH CAUSE OF ACTION (NEGLIGENCE / ERRORS AND OMISSIONS) 49. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth herein. 50. The Defendant owes a duty of care to the Plaintiff as real estate broker and agent of the Plaintiff. 51. As described in the preceding paragraphs, which are incorporated herein by reference, the Defendants have breached that duty of care, and committed negligence. 52. The Defendant's negligence was the proximate cause of the Plaintiff's damages, which total at least $200,000.00 but which will be established at trial. AS AND FOR THE THIRD CAUSE OF ACTION (UNJUST ENRICHMENT) 53. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth herein. 54. The Defendant has benefited from the tens of thousands of dollars the Plaintiffs paid in commissions to the Defendants. 55. As described in the preceding paragraphs, which are incorporated herein by reference, the Defendant did not earn the commissions they have been paid for, as the Defendant 9 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 did not procure the sale, or otherwise interfered and prevented the Plaintiff from selling to other buyers at higher sale prices. Defendants' 56. The unjust enrichment has been at the expense of and detriment to the Plaintiffs, who have been forced to pay commissions to real estate brokers who did not procure sales. 57. Equity and good conscience require restitution to the Plaintiff. AS AND FOR THE FOURTH CAUSE OF ACTION (FRAUDULENT INDUCEMENT) 58. The Plaintiff repeats and realleges the paragraphs alleged above as if fully set forth herein. 59. The Defendant, John Clark fraudulent induced the Plaintiff to pay unearned commissions under false and materially misleading representations and statements. 60. As described in the preceding paragraphs, which are incorporated herein by reference, the Defendant 61. The Defendant did not produce a ready willing and able buyer for the property located at 910 Teall Ave., Syracuse New York 13206. 62. Nonetheless, the Defendant threatened the Plaintiff with legal action if he did not pay the Defendant a $30,000.00 commission on the sale of 910 Teall Ave., Syracuse New York 13206. 63. The Defendant came to the Plaintiff's home and fraudulently induced the Plaintiff to pay the Defendant, claiming that the listing was never cancelled, but rather only changed to "dormant" status. That statement is false, and was made to induce the Plaintiff to pay an undue commission. 10 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 64, The Defendant fraudulently induced the Plaintiff to pay a $30,000.00 commission to the Defendants that they did not earn because the listing agreement was cancelled and the property sold nearly a year later without any assistance of Pyramid or John Clark. 65. The Defendant must refund the $30,000.00 to the Plaintiff, as it was not earned, fraudulently induced to be paid, and unjustly enriches the Defendant. 66. John Clark knew such statements, representations, and material omissions were false and deceptive. 67. John Clark made such statements, representations, and material omissions with knowledge or belief that they were false or that they did not have a sufficient basis of information with which to make them. 68. John Clark intended to induce the Plaintiffs to act and in some instances refrain from acting in reliance upon the misrepresentation and falsehood. 69. For example, John Clark lied to induce the Plaintiff to pay an unearned commission to the Defendant. 70. The Plaintiff has justifiably relied upon John Clark's representations in taking action or refraining from taking action as the case may be. 71. As a result, the Plaintiffs have been damaged in the sum of commissions paid to Pyramid despite the same not having been earned. PRAYER FOR RELIEF WHEREFORE, the Plaintiff respectfully requests that this Honorable Court enter judgment against the Defendants as follows: 11 of 13 FILED: ONONDAGA COUNTY CLERK 04/17/2024 01:29 PM INDEX NO. 004020/2024 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/17/2024 Plaintiffs' (1) On First Cause of Action against the Defendants for Breach of Fiduciary Duty, granting judgment in favor of the Plaintiffs for an amount to be determined at attorneys' trial, plus interest and fees; Plaintiffs' (2) On Second Cause of Action against the Defendants for Negligence / Errors and Omissions, granting judgment in favor of the Plaintiffs for an amount to be attorneys' determined at trial, plus interest and fees; Plaintiffs' (3) On Third Cause of Action against the Defendants for Unjust Enrichment, granting judgment in favor of the Plaintiffs for an amount to be determined at trial, plus attorneys' interest and fees; Plaintiffs' (4) On Fourth Cause of Action against the Defendants for Fraudulent