Preview
FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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TRACHTENBERG & ARENA, LLP, :
:
:
Plaintiff, : Index No.
:
-against- :
:
SERENE INVESTMENT MANAGEMENT, LLC, : COMPLAINT
:
:
Defendants. :
:
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Plaintiff Trachtenberg & Arena, LLP, as and for its its Complaint against
Defendant Serene Investment Management, LLC, alleges as follows:
PARTIES
1. Plaintiff Trachtenberg & Arena, LLP (“T&A” or “Plaintiff”) is a New
York limited liability partnership engaged in the practice of law with a principal place of
business at 420 Lexington Avenue, Suite 2818, New York, New York 10170.
2. Defendant Serene Investment Management, LLC (“Serene” or
“Defendant”), is a California limited liability company and a former client of T&A with a
principal place of business at 2625 Alcatraz Avenue, Suite 513, Berkeley, California
94705.
JURISDICTION AND VENUE
3. This Court has personal jurisdiction over Defendant pursuant to CPLR
Section 302. Defendant availed itself of the privilege of conducting activities in the State
of New York, thus invoking the privileges and benefits of its laws, by hiring Plaintiff to
initiate a lawsuit in the United States District Court of the Southern District of New York,
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communicating regularly with Plaintiff by telephone and email in connection with the
lawsuit and participating telephonically in a multi-hour mediation with Plaintiff, the
opposing party, opposing counsel and two volunteer mediators appointed by the United
States District Court for the Southern District of New York under the auspices of the
SDNY Mediation Program.
4. Venue is proper in this district based on the location of Plaintiff’s office.
FACTUAL BACKGROUND
5. On March 21, 2023, Serene and T&A entered into a written retainer
agreement (hereinafter the “Retainer Agreement”) pursuant to which T&A was engaged
to provide legal services in connection with Serene’s effort to recover damages and relief
from Lippmann Enterprises, L.L.C. and its principals, Deborah Lippmann and Jude
Severin (the “Lippmann Parties”). A true and correct copy of the signed Retainer
Agreement is attached hereto as Exhibit “A.”
6. Pursuant to the Retainer Agreement, T&A agreed to provide legal services
in exchange for Defendant’s agreement to pay for such services.
7. Serene’s lawsuit against the Lippmann Parties was initiated by the filing
of a summons and complaint on May 16, 2023 in the Southern District of New York.
8. Serene is a sophisticated lender whose lawsuit against the Lippmann
Parties sought (a) to collect principal, interest and other sums due under various loan
agreements, notes and unconditional guaranties executed by the Lippmann Parties
pursuant to which Serene’s assignor (Bank of America) loaned over $1.7 million to
Lippmann Enterprises, a nail polish company owned and operated by one or both of the
individual defendants, and (b) to recover damages and obtain equitable relief based on the
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Lippmann Parties’ alleged wrongful conduct respecting collateral pledged to secure the
indebtedness.
9. T&A delivered a total of 12 invoices to Defendant outlining the amounts
due for legal services. Six of these invoices have not been paid.
10. Payment for the amounts listed on the invoices was due upon receipt.
11. T&A fully performed all of the legal services requested by Defendant and
made disbursements on Defendant's behalf.
12. T&A’s services on Serene’s behalf included, but were not limited to,
analyzing the complicated facts of its dispute with the Lippman Parties, initiating an
action against the Lippmann Parties, locating the principals of Lippmann Enterprises
L.L.C. after they had left the New York area without leaving a forwarding address,
overseeing service of process, producing documents, demanding that the Lippmann
Parties produce documents and appear for depositions, reviewing documents contained
in the Lippmann Parties’ and Serene’s voluminous hard copy and electronic document
productions, following up on deficiencies in the Lippmann Parties’ document
production, subpoenaing the Lippmann Parties’ financial consultant, following up on the
consultant’s failure to comply with the subpoena, interacting with Serene’s Florida
bankruptcy counsel in connection with the personal Chapter 7 proceeding initiated by
one of the principals of Lippmann Enterprises, preparing for depositions, preparing for
mediation, preparing Plaintiff and the mediators for mediation, and participating in
mediation.
13. The unpaid balance owed as set forth in T&A’s six unpaid invoices is
$134,856.26.
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14. There is now due and owing from Defendant to T&A the principal sum of
$134,856.26, plus accrued interest.
FIRST CAUSE OF ACTION
(BREACH OF CONTRACT)
15. Plaintiff repeats and realleges each and every allegation set forth above as
if fully set forth at length herein.
16. The parties’ Retainer Agreement is an enforceable contract pursuant to
which T&A agreed to provide legal services to Defendant and Defendant agreed to pay
T&A for such services.
17. T&A fully performed all of its obligations under the Retainer Agreement
by providing legal services that fulfilled Defendant’s needs and otherwise conformed to
the terms of the Retainer Agreement.
18. Defendant materially breached the Retainer Agreement by failing to pay
T&A for the legal services provided and disbursements incurred pursuant to and in
accordance with the Retainer Agreement.
19. As a direct and proximate result of Defendant’s failure to pay T&A, T&A
has suffered damages in the principal amount of $134,856.26, plus interest, costs and
attorneys’ fees.
SECOND CAUSE OF ACTION
(QUANTUM MERUIT)
20. Plaintiff repeats and realleges each and every allegation set forth above as
if fully set forth at length herein.
21. At the request of Defendant, T&A performed certain work, labor and
services for Defendant as its attorneys.
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22. T&A provided legal services to Defendant in good faith.
23. Defendant accepted the services T&A rendered.
24. T&A rendered legal services to Defendant with the expectation of being
compensated for the reasonable value of those services.
25. As a direct and proximate result of Defendant’s failure to pay T&A, T&A
is entitled to the reasonable value of the services it provided in an amount to be
established at trial, plus interest, costs and attorneys’ fees.
THIRD CAUSE OF ACTION
(ACCOUNT STATED)
26. Plaintiff repeats and realleges each and every allegation set forth above as
if fully set forth at length herein.
27. T&A’s business records show an outstanding balance on Defendant’s
account in the principal amount of $134,856.26, plus interest.
28. T&A delivered the six unpaid invoices to Defendant outlining the amounts
due for its services on November 9, 2023, December 13, 2023, January 2, 2024, February
9, 2024, March 7, 2024 and April 15, 2024.
29. Defendant has not disputed or otherwise challenged the services Plaintiff
has provided.
30. T&A has made several demands on Defendant for payment of the amount
due and owing.
31. T&A’s demands for payment have not been met.
32. As a direct and proximate result of Defendant’s failure to pay T&A, T&A
has suffered damages in the principal amount of $134,856.26, plus interest, costs and
attorneys’ fees.
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FOURTH CAUSE OF ACTION
(UNJUST ENRICHMENT)
33. Plaintiff repeats and realleges each and every allegation set forth above as
if fully set forth at length herein.
34. T&A conferred benefits upon Defendant by providing legal services to
meet Defendant's needs.
35. Defendant received and has retained the benefit of the legal services
provided by T&A.
36. Defendant has failed and refused to pay the amount due to T&A for the
services it provided.
37. T&A reasonably expected that it would be compensated for the services it
provided.
38. Defendant has been unjustly enriched by receiving the benefit of the
services T&A has provided while failing or refusing to pay T&A in full for such services.
39. As a direct and proximate result of Defendant’s failure to pay T&A,
Defendant has been unjustly enriched to the extent of $134,856.26, plus interest, costs
and attorneys’ fees.
WHEREFORE, Plaintiff Trachtenberg & Arena, LLP respectfully requests that
judgment be entered in its favor and against Defendant Serene Investment Management,
LLC on the first, second and fourth causes of action in the amount of $134,856.26, plus
interest, costs and attorneys’ fees, and on the second cause of action in an amount to be
established at trial, plus interest, costs and attorneys’ fees, together with such other and
further relief as the Court deems just and proper.
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FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024
Dated: New York, New York
June 11, 2024
TRACHTENBERG & ARENA, LLP
Plaintiff
By: _/s/ David G. Trachtenberg
David G. Trachtenberg
420 Lexington Avenue, Ste 2818
New York, New York 10170
(212) 972-1375
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Preview
FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ---------------------------------------------------------------x TRACHTENBERG & ARENA, LLP, : : : Plaintiff, : Index No. : -against- : : SERENE INVESTMENT MANAGEMENT, LLC, : COMPLAINT : : Defendants. : : ---------------------------------------------------------------x Plaintiff Trachtenberg & Arena, LLP, as and for its its Complaint against Defendant Serene Investment Management, LLC, alleges as follows: PARTIES 1. Plaintiff Trachtenberg & Arena, LLP (“T&A” or “Plaintiff”) is a New York limited liability partnership engaged in the practice of law with a principal place of business at 420 Lexington Avenue, Suite 2818, New York, New York 10170. 2. Defendant Serene Investment Management, LLC (“Serene” or “Defendant”), is a California limited liability company and a former client of T&A with a principal place of business at 2625 Alcatraz Avenue, Suite 513, Berkeley, California 94705. JURISDICTION AND VENUE 3. This Court has personal jurisdiction over Defendant pursuant to CPLR Section 302. Defendant availed itself of the privilege of conducting activities in the State of New York, thus invoking the privileges and benefits of its laws, by hiring Plaintiff to initiate a lawsuit in the United States District Court of the Southern District of New York, 1 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 communicating regularly with Plaintiff by telephone and email in connection with the lawsuit and participating telephonically in a multi-hour mediation with Plaintiff, the opposing party, opposing counsel and two volunteer mediators appointed by the United States District Court for the Southern District of New York under the auspices of the SDNY Mediation Program. 4. Venue is proper in this district based on the location of Plaintiff’s office. FACTUAL BACKGROUND 5. On March 21, 2023, Serene and T&A entered into a written retainer agreement (hereinafter the “Retainer Agreement”) pursuant to which T&A was engaged to provide legal services in connection with Serene’s effort to recover damages and relief from Lippmann Enterprises, L.L.C. and its principals, Deborah Lippmann and Jude Severin (the “Lippmann Parties”). A true and correct copy of the signed Retainer Agreement is attached hereto as Exhibit “A.” 6. Pursuant to the Retainer Agreement, T&A agreed to provide legal services in exchange for Defendant’s agreement to pay for such services. 7. Serene’s lawsuit against the Lippmann Parties was initiated by the filing of a summons and complaint on May 16, 2023 in the Southern District of New York. 8. Serene is a sophisticated lender whose lawsuit against the Lippmann Parties sought (a) to collect principal, interest and other sums due under various loan agreements, notes and unconditional guaranties executed by the Lippmann Parties pursuant to which Serene’s assignor (Bank of America) loaned over $1.7 million to Lippmann Enterprises, a nail polish company owned and operated by one or both of the individual defendants, and (b) to recover damages and obtain equitable relief based on the 2 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 Lippmann Parties’ alleged wrongful conduct respecting collateral pledged to secure the indebtedness. 9. T&A delivered a total of 12 invoices to Defendant outlining the amounts due for legal services. Six of these invoices have not been paid. 10. Payment for the amounts listed on the invoices was due upon receipt. 11. T&A fully performed all of the legal services requested by Defendant and made disbursements on Defendant's behalf. 12. T&A’s services on Serene’s behalf included, but were not limited to, analyzing the complicated facts of its dispute with the Lippman Parties, initiating an action against the Lippmann Parties, locating the principals of Lippmann Enterprises L.L.C. after they had left the New York area without leaving a forwarding address, overseeing service of process, producing documents, demanding that the Lippmann Parties produce documents and appear for depositions, reviewing documents contained in the Lippmann Parties’ and Serene’s voluminous hard copy and electronic document productions, following up on deficiencies in the Lippmann Parties’ document production, subpoenaing the Lippmann Parties’ financial consultant, following up on the consultant’s failure to comply with the subpoena, interacting with Serene’s Florida bankruptcy counsel in connection with the personal Chapter 7 proceeding initiated by one of the principals of Lippmann Enterprises, preparing for depositions, preparing for mediation, preparing Plaintiff and the mediators for mediation, and participating in mediation. 13. The unpaid balance owed as set forth in T&A’s six unpaid invoices is $134,856.26. 3 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 14. There is now due and owing from Defendant to T&A the principal sum of $134,856.26, plus accrued interest. FIRST CAUSE OF ACTION (BREACH OF CONTRACT) 15. Plaintiff repeats and realleges each and every allegation set forth above as if fully set forth at length herein. 16. The parties’ Retainer Agreement is an enforceable contract pursuant to which T&A agreed to provide legal services to Defendant and Defendant agreed to pay T&A for such services. 17. T&A fully performed all of its obligations under the Retainer Agreement by providing legal services that fulfilled Defendant’s needs and otherwise conformed to the terms of the Retainer Agreement. 18. Defendant materially breached the Retainer Agreement by failing to pay T&A for the legal services provided and disbursements incurred pursuant to and in accordance with the Retainer Agreement. 19. As a direct and proximate result of Defendant’s failure to pay T&A, T&A has suffered damages in the principal amount of $134,856.26, plus interest, costs and attorneys’ fees. SECOND CAUSE OF ACTION (QUANTUM MERUIT) 20. Plaintiff repeats and realleges each and every allegation set forth above as if fully set forth at length herein. 21. At the request of Defendant, T&A performed certain work, labor and services for Defendant as its attorneys. 4 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 22. T&A provided legal services to Defendant in good faith. 23. Defendant accepted the services T&A rendered. 24. T&A rendered legal services to Defendant with the expectation of being compensated for the reasonable value of those services. 25. As a direct and proximate result of Defendant’s failure to pay T&A, T&A is entitled to the reasonable value of the services it provided in an amount to be established at trial, plus interest, costs and attorneys’ fees. THIRD CAUSE OF ACTION (ACCOUNT STATED) 26. Plaintiff repeats and realleges each and every allegation set forth above as if fully set forth at length herein. 27. T&A’s business records show an outstanding balance on Defendant’s account in the principal amount of $134,856.26, plus interest. 28. T&A delivered the six unpaid invoices to Defendant outlining the amounts due for its services on November 9, 2023, December 13, 2023, January 2, 2024, February 9, 2024, March 7, 2024 and April 15, 2024. 29. Defendant has not disputed or otherwise challenged the services Plaintiff has provided. 30. T&A has made several demands on Defendant for payment of the amount due and owing. 31. T&A’s demands for payment have not been met. 32. As a direct and proximate result of Defendant’s failure to pay T&A, T&A has suffered damages in the principal amount of $134,856.26, plus interest, costs and attorneys’ fees. 5 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 FOURTH CAUSE OF ACTION (UNJUST ENRICHMENT) 33. Plaintiff repeats and realleges each and every allegation set forth above as if fully set forth at length herein. 34. T&A conferred benefits upon Defendant by providing legal services to meet Defendant's needs. 35. Defendant received and has retained the benefit of the legal services provided by T&A. 36. Defendant has failed and refused to pay the amount due to T&A for the services it provided. 37. T&A reasonably expected that it would be compensated for the services it provided. 38. Defendant has been unjustly enriched by receiving the benefit of the services T&A has provided while failing or refusing to pay T&A in full for such services. 39. As a direct and proximate result of Defendant’s failure to pay T&A, Defendant has been unjustly enriched to the extent of $134,856.26, plus interest, costs and attorneys’ fees. WHEREFORE, Plaintiff Trachtenberg & Arena, LLP respectfully requests that judgment be entered in its favor and against Defendant Serene Investment Management, LLC on the first, second and fourth causes of action in the amount of $134,856.26, plus interest, costs and attorneys’ fees, and on the second cause of action in an amount to be established at trial, plus interest, costs and attorneys’ fees, together with such other and further relief as the Court deems just and proper. 6 of 7 FILED: NEW YORK COUNTY CLERK 06/11/2024 10:41 AM INDEX NO. 652943/2024 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 06/11/2024 Dated: New York, New York June 11, 2024 TRACHTENBERG & ARENA, LLP Plaintiff By: _/s/ David G. Trachtenberg David G. Trachtenberg 420 Lexington Avenue, Ste 2818 New York, New York 10170 (212) 972-1375 7 of 7