Court Opinion

ID: 9960252
Source: CourtListenerOpinion
Date Created: 2024-04-15 20:07:38.935788+00
Date Added: 2024-06-11T08:19:19.150976
License: Public Domain

Hainan Haitou No.1 Inv. Partnership (L.P.) v Sure
                        Idea Ltd.
               2024 NY Slip Op 31248(U)
                     April 10, 2024
           Supreme Court, New York County
        Docket Number: Index No. 655951/2023
                 Judge: Melissa A. Crane
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
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                       publication.
                                                                                                                      INDEX NO. 655951/2023
  NYSCEF DOC. NO. 13                                                                                            RECEIVED NYSCEF: 04/10/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. MELISSA A. CRANE                                            PART                              60M
                                                                                      Justice
            ----------------------------------------------------------------- ----------------X
                                                                                                  INDEX NO.          655951/2023
             HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP
             (LIMITED PARTNERSHIP)                                                                MOTION DATE         01/17/2024

                                                          Plaintiff,                              MOTION SEQ. NO.         001

                                                 - V -
                                                                                                    DECISION + ORDER ON
             SURE IDEA LIMITED,
                                                                                                          MOTION
                                                          Defendant.
            ------------------------------------------------------------------- --------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 2
            were read on this motion to/for                                   JUDGMENT - SUMMARY IN LIEU OF COMPLAINT.

                      In this unopposed motion, plaintiff Hainan Haitou N o.1 Investment Partnership (Limited

            Partnership) ("Plaintiff') moves, pursuant to CPLR 3213, for summary judgment in lieu of

            complaint as against defendant Sure Idea Limited ("Defendant").

                                                                 Factual Background

                      On 9/12/16, Defendant executed a promissory note (the "Promissory Note") in Plaintiff's

            favor, in the principal amount of $54,767,902.53 (Doc 4 [Promissory Note]). Per the Promissory

            Note, the interest rate was set at 10% fixed per annum, and the maturity date was set as 9/12/21

            (the "Maturity Date"). Defendant ultimately failed to pay off the Promissory Note by the 9/12/21

            set Maturity Date.

                      On 9/27/21, Plaintiff agreed to enter into a Modification of Loan Agreement and

            Ratification of Unsecured Promissory Note and other loan documents with Defendant (Doc 5

            [Modification of Loan Agreement and Ratification of Unsecured Promissory Note]) (the "Loan

            Modification Agreement").                    This extended the Maturity Date for two years to 9/12/23 (the

             655951/2023 HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) vs.                          Page 1 of 5
             SURE IDEA LIMITED
             Motion No. 001

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                                                                                                  INDEX NO. 655951/2023
  NYSCEF DOC. NO. 13                                                                       RECEIVED NYSCEF: 04/10/2024

            "Extended Maturity Date"). As part of the modification, both parties also acknowledged and

            agreed that as of 9/12/21, the outstanding loan amount of the Promissory Note totaled

            $65,126,351.20, consisting of $38,856,217.86 in principal and $26,270,133.34 in interest.

                     Under the Promissory Note and the Loan Modification Agreement, repayment was

            required in full on or before 9/12/23, the Extended Maturity Date. Under the Loan Modification

            Agreement, upon the occurrence and during the continuance of an event of default, interest on the

            outstanding principal amount accrued on the daily penalty at the rate of .05% per day:

                     "Upon the occurrence and during the continuance of an Event of Default, interest
                     on the outstanding principal amount of Note A Loan and, to the extent permitted
                     by law, overdue interest and other amounts due in respect of Note A Loan (other
                     than interest accruing on the outstanding principal amount due and payable on the
                     Payment Date or acceleration thereof), shall accrue the daily penalty at the rate of
                     five in ten thousand percent (0.05% or 0.0005) (the "Default Rate") or the
                     maximum permitted legal interest rate, whichever is less, calculated from the date
                     such payment was due without regard to any grace or cure periods contained herein,
                     if any"

            (id.).

                     Defendant ultimately failed to pay off the Promissory Note as of the Extended Maturity

            Date of 9/12/23, as required under the Promissory Note's terms and the Loan Modification's terms

            (Doc 3 [Yang Aff.] at ,i 18). As such, Plaintiff issued a Notice of Default, dated 11/10/23, to

            Defendant on 11/14/23, pursuant to the notice requirements under both the Promissory Note and

            Loan Modification Agreement, demanding, amongst other things, that Defendant pay the

            Promissory Note in full (Doc 7 [Notice of Default]). Defendant has not made any payments to

            Plaintiff since that time (Doc 3 [Yang Aff.] at ,i,i 19-20). As of 9/12/23, the unpaid loan amount

            under the Promissory Note and Loan Modification Agreement was $62,351,064.48 (Doc 3 [Yang

            Aff.] at i124).

             655951/2023 HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) vs.      Page 2 of 5
             SURE IDEA LIMITED
             Motion No. 001

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                                                                                                 INDEX NO. 655951/2023
  NYSCEF DOC. NO. 13                                                                       RECEIVED NYSCEF: 04/10/2024

                                                        Discussion

                   CPLR 3213 provides for accelerated judgment where the instrument sued upon is for the

            payment of money only and the right to payment can be ascertained from the face of the document

            without regard to extrinsic evidence, "other than simple proof of nonpayment or a similar de

            minimis deviation from the face of the document" (Weissman v Sinorm Deli, Inc., 88 NY2d 437,

            444 [1996]; see Arbor-Myrtle Beach PE LLC v Frydman, 2021 NY Slip Op. 30223[U], 2 [Sup Ct,

            NY County 2021], affd 2022 NY Slip Op. 00806 [1st Dept 2022]).

                   Additionally, accelerated judgment under CPLR 3213 is also appropriate where the

            plaintiff establishes a prima facie case by virtue of a note and a failure to make payments called

            for therein (Warburg, Pincus Equity Partners, L.P. v O'Neill, 11 AD3d 327 [1st Dept 2004], citing

            DDS Partners v. Celenza, 6 A.D.3d 347, 348 [2004]). Thus, a promissory note is a "typical

            example of an instrument within the meaning of [CPLR 3213]" (DDS Partners, LLC v Celenza, 6

            AD3d 347, 348 [1st Dept 2004], citing Weissman, 88 NY2d at 444).

                   Further, the same standards that apply to motions for summary judgment under CPLR 3212

            apply to CPLR 3213 motions. The movant must make a prima facie case by submitting the

            instrument and evidence of the defendant's failure to make payments in accordance with the

            instrument's terms (see Weissman, 88 NY2d at 444; Matas v Alpargatas S.A.I.C., 274 AD2d 327,

            328 [1st Dept 2000]).

                   The unopposed motion is granted.        Plaintiff has established its prima facie case and

            entitlement to summary judgment as a matter oflaw under the relevant loan documents, including

            the Promissory Note and the Loan Modification Agreement.

                   Plaintiff demonstrates that it entered into the Promissory Note, and Loan Modification

            Agreement with Defendant, and that Defendant ultimately failed to repay the amounts due to

             655951/2023 HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) vs.     Page 3 of 5
             SURE IDEA LIMITED
             Motion No. 001

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                                                                                                 INDEX NO. 655951/2023
  NYSCEF DOC. NO. 13                                                                       RECEIVED NYSCEF: 04/10/2024

            Plaintiff under both those agreements. Specifically, Plaintiff has demonstrated that Defendant

            failed to make the required payments as of the Extended Maturity Date of 9/12/23.

                   Further, the underlying agreements, the Promissory Note and the Loan Modification

            Agreement, also constitute instruments for the payment of money only, as they contain an

            unambiguous promise to pay a specified amount, plus interest, on a specified date.

                   Additionally, the Promissory Note, considered together with Wang Yang's supporting

            affirmation (Doc 3 [Yang Aff.]) as to Defendant's default sufficiently establish Plaintiffsprima

           facie entitlement to summary judgment.        Defendant has neither appeared nor submitted any

            opposition to this motion, despite Plaintiffs effectuation of proper service of the required

            documents under CPLR 3213 (Doc 11 [Affirmation of Service by E-mail]; Doc 12 [Plaintiffs

            Proof of Mail Service Upon Defendant]). Thus, Defendant has failed to rebut Plaintiffs prima

           facie showing by proffering evidentiary proof sufficient to raise a triable issue. The motion is,

            therefore, granted in the absence of opposition.

                   Plaintiff is entitled to judgment against Defendant in the principal amount of

            $38,856,217.86, together with $23,494,846.62 in accrued interest through 9/12/23, and interest on

            the unpaid principal amount of $38,856,217.86 at the contractual default interest rate of .05% per

            day from 9/13/23.

                   The court denies Plaintiffs request for attorneys' fees and expenses. While Plaintiff may

            be entitled to its attorneys' fees and expenses under the loan documents, Plaintiff did not submit

            any support for incurred fees and expenses on this motion.

                   The court has considered Plaintiffs remaining contentions and finds them unavailing.

                   Accordingly, it is

             655951/2023 HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) vs.     Page 4 of 5
             SURE IDEA LIMITED
             Motion No. 001

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                                                                                                    INDEX NO. 655951/2023
  NYSCEF DOC. NO. 13                                                                          RECEIVED NYSCEF: 04/10/2024

                    ORDERED that Plaintiff Hainan Haitou No. I Investment Partnership (Limited

            Partnership)'s motion for summary judgment in lieu of complaint, pursuant to CPLR 3213, as

            against Defendant Sure Idea Limited, is granted, without opposition; and it is further

                    ORDERED that the Clerk is directed to enter judgment, in favor of PlaintiffHainan Haitou

            No. I Investment Partnership (Limited Partnership), and as against Defendant Sure Idea Limited,

            in the following sums: $38,856,217.86 for unpaid interest and $23,494,846.62 for accrued interest

            through 9/12/23. Plaintiff is also entitled to default rate interest on the unpaid principal amount,

            $38,856,217.86, at the contractual default interest rate of .05% per day from 9/13/23 until the date

            of this decision and order, and thereafter at the statutory rate, as calculated by the Clerk, together

            with costs and disbursements to be taxed by the Clerk upon submission of an appropriate bill of

            costs; and it is further

                    ORDERED that the Clerk is directed to enter judgment and to mark this case as disposed.

                                                                           202404~090~E696C7

                     4/10/2024
                       DATE                                                       MELISSA A. CRANE, J.S.C.

                                                                       ~
             CHECK ONE:                   CASE DISPOSED                    NON-FINAL DISPOSITION

                                          GRANTED         □ DENIED         GRANTED IN PART         □ OTHER
             APPLICATION:                 SETTLE ORDER                     SUBMIT ORDER

             CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN       FIDUCIARY APPOINTMENT   □ REFERENCE

             655951/2023 HAINAN HAITOU NO.1 INVESTMENT PARTNERSHIP (LIMITED PARTNERSHIP) vs.        Page 5 of 5
             SURE IDEA LIMITED
             Motion No. 001

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