Court Opinion

ID: 9954304
Source: CourtListenerOpinion
Date Created: 2024-03-25 21:10:58.273502+00
Date Added: 2024-06-11T08:12:03.395066
License: Public Domain

Matter of Maxx Sports & Entertainment Group, Inc. v
                         Krick
               2024 NY Slip Op 30916(U)
                     March 19, 2024
           Supreme Court, New York County
        Docket Number: Index No. 654556/2023
                  Judge: John J. Kelley
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
  FILED: NEW YORK COUNTY CLERK 03/19/2024 04:56 PM                                                                   INDEX NO. 654556/2023
  NYSCEF DOC. NO. 28                                                                                           RECEIVED NYSCEF: 03/19/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. JOHN J. KELLEY                                             PART                              56M
                                                                                      Justice
            ---------------------------------------------------------------------------------X   INDEX NO.          654556/2023
             In the Matter of
                                                                                                 MOTION DATE         12/19/2023
             MAXX SPORTS & ENTERTAINMENT GROUP, INC.,
                                                                                                 MOTION SEQ. NO.         001
                                                         Petitioner,

                                                 -v-
                                                                                                   DECISION, ORDER, AND
             TRYSTA KRICK,                                                                              JUDGMENT

                                                         Respondent.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 1, 2, 3, 4, 5, 6, 7, 8,
            9, 10, 11, 12, 13, 14
            were read on this motion to/for                                      CONFIRM/DISAPPROVE AWARD/REPORT                   .

                      MAXX Sports & Entertainment Group, Inc. (MAXX), petitions pursuant to CPLR 7510 to

            confirm an arbitration award dated August 30, 2023, made by an arbitrator acting under the

            auspices of the American Arbitration Association (AAA). The respondent, Trysta Krick, does not

            oppose the petition. The petition is granted, the award is confirmed, and the Clerk of the court

            is directed to enter a money judgment in favor of MAXX in the sum of $40,838.70, plus statutory

            interest from August 20, 2023.

                      MAXX is a career management agency and business advisor for media personalities

            and broadcast talent, including those in the sports and entertainment industry. On January 22,

            2020, MAXX entered into a representation contract with Krick, who is a radio and media

            personality currently employed by Audacy Operations, Inc., doing business as BetQL (Audacy).

            The contract had an initial term of two years, and was renewed for an additional two-year term,

            thus extending the agreement until January 21, 2024. The contract provided that MAXX was

            entitled to receive a 10% commission on any compensation that Krick received pursuant to any

            employment agreements that she entered into during the term of her contract with MAXX,

             654556/2023 MAXX SPORTS & ENTERTAINMENT GROUP, INC. vs. KRICK, TRYSTA                                   Page 1 of 4
             Motion No. 001

                                                                           1 of 4
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  FILED: NEW YORK COUNTY CLERK 03/19/2024 04:56 PM                                               INDEX NO. 654556/2023
  NYSCEF DOC. NO. 28                                                                      RECEIVED NYSCEF: 03/19/2024

            except as to any amendment or extension of Krick’s preexisting employment agreement with

            Barstool Sports. The contract further provided that MAXX was entitled to receive commissions

            even after the termination of the subject contract to the extent that Krick continued to receive

            compensation pursuant to any employment agreement that she entered into during the term of

            the subject contract, as well as any extensions of said agreements that had been entered into

            during the term of the subject contract. MAXX secured Krick’s employment with Audacy

            pursuant to a two-year employment contract that commenced on September 7, 2021, and was

            extended from September 6, 2023 until September 6, 2024.

                   The contract between MAXX and Krick contained an arbitration clause, pursuant to

            which the parties agreed to arbitrate any dispute under the agreement in New York. After Krick

            failed to pay MAXX its commissions on December 2, 2022, MAXX demanded arbitration before

            the AAA. After both parties appeared at an arbitration hearing, the AAA arbitrator, in an award

            dated August 30, 2023, found in favor of MAXX and against Krick, in the total principal sum of

            $40,838.70, and also directed that,

                           “[i]n the event the option extension was exercised, and Krick and Audacy enter
                           into an extension, modification, renewal, or spinoff of the Audacy Agreement,
                           Krick shall pay to MAXX Sports commissions in an amount equal to ten percent
                           (10%) of monies, including but not limited to exercised stock options, licenses,
                           franchise agreement proceeds, overtime, advances, profit-sharing advances, and
                           all other forms of compensation (‘Compensation’) received by Krick, directly or
                           indirectly, for a period equal to such extension, modification, renewal, or spinoff,
                           but such payment period shall not exceed five (5) years regardless of the length
                           of such extension, modification, renewal, or spinoff;

                           “In the event Krick enters into an employment agreement with an employer up to
                           and including January 21, 2024, Krick shall pay to MAXX Sports as commissions
                           an amount equal to ten percent (10%) of Compensation received by Krick
                           through such employment agreement and a sum equal to ten percent (10%) of
                           Compensation received by Krick, directly or indirectly, for a period equal to the
                           length of time of an option to extend such agreement provided that such option is
                           exercised prior to the termination of the Representation Agreement. In the event
                           Krick and her employer enter into a spinoff, modification, extension, or
                           subsequent renewal of such employment agreement negotiated during the term
                           of the Representation Agreement, Krick shall pay to MAXX Sports as
                           commission an amount equal to ten percent (10%) of Compensation for the
                           length of time of such spinoff or renewal but such time period shall not exceed
                           five (5) years.”
             654556/2023 MAXX SPORTS & ENTERTAINMENT GROUP, INC. vs. KRICK, TRYSTA                Page 2 of 4
             Motion No. 001

                                                          2 of 4
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  FILED: NEW YORK COUNTY CLERK 03/19/2024 04:56 PM                                                    INDEX NO. 654556/2023
  NYSCEF DOC. NO. 28                                                                          RECEIVED NYSCEF: 03/19/2024

                    MAXX commenced this proceeding on September 18, 2023. In an order dated

            November 14, 2023 (MOT SEQ 002), this court granted MAXX’s motion pursuant to CPLR

            308(5) for permission to effect service of process upon Krick by overnight delivery and regular

            mail at two addresses in Washington, D.C. On November 16, 2023, MAXX properly served

            Krick with process in accordance with the November 14, 2023 order. Krick has not appeared in

            this proceeding.

                    Pursuant to CPLR 7510, the court “shall confirm an [arbitration] award upon application

            of a party made within one year after its delivery to him [or her] unless the award is vacated or

            modified upon a ground specified in section 7511.” The grounds specified in CPLR 7511 are

            exclusive (see Bernstein Family Ltd. Partnership v Sovereign Partners, L.P., 66 AD3d 201 [1st

            Dept 2009]) and it is a “well-established rule that an arbitrator’s rulings, unlike a trial court’s, are

            largely unreviewable” (Matter of Falzone v New York Cent. Mut. Fire Ins. Co., 15 NY3d 530, 534

            [2013]). The instant proceeding to confirm the arbitration award was timely commenced on

            September 18, 2023 (see CPLR 304[a]). MAXX contends that the award was proper in all

            respects and that no grounds exist for modification or vacatur. The court agrees, and concludes

            that MAXX is entitled both to the confirmation of the award, the entry of a money judgment in

            the sum of $40,838.70, and a judgment declaring its entitlement to future payments to the extent

            set forth in the arbitration award. The money judgment must bear interest from the date of the

            arbitration award, that is, from August 30, 2023 (see CPLR 5002; Board of Educ. of Cent.

            School Dist. No. 1 of Towns of Niagara, Wheatfield, Lewiston & Cambria v Niagara-Wheatfield

            Teachers Assn., 46 NY2d 553, 558 [1979]; Dermigny v Harper, 127 AD3d 685, 686 [2d Dept

            2015]; Matter of Levin & Glasser, P.C. v Kenmore Prop., LLC, 70 AD3d 443, 446 [1st Dept

            2010]; Matter of Gruberg v Cortell Group, Inc., 143 AD2d 39, 39 [1st Dept 1988]).

                    Accordingly, it is,

                    ADJUDGED that the petition is granted, without opposition, and the arbitration award

            rendered in the matter entitled Matter of MAXX Sports & Entertainment Group, Inc., v Trysta
             654556/2023 MAXX SPORTS & ENTERTAINMENT GROUP, INC. vs. KRICK, TRYSTA                    Page 3 of 4
             Motion No. 001

                                                            3 of 4
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  FILED: NEW YORK COUNTY CLERK 03/19/2024 04:56 PM                                                  INDEX NO. 654556/2023
  NYSCEF DOC. NO. 28                                                                          RECEIVED NYSCEF: 03/19/2024

            Krick, American Arbitration Association Case Number 01-23-0000-5487, dated August 30, 2023,

            be, and hereby is, confirmed; and it is further,

                    ORDERED that the Clerk of the court shall enter a money judgment in favor of the

            petitioner, MAXX Sports & Entertainment Group, Inc., and against the respondent, Trysta Krick,

            in the principal sum of $40,838.70, with statutory interest at 9% per annum from August 30, 202;

            and it is further,

                    ADJUDGED AND DECLARED that,

                             In the event the option extension was exercised, and Krick and Audacy enter into
                             an extension, modification, renewal, or spinoff of the Audacy Agreement, Krick
                             shall pay to MAXX Sports commissions in an amount equal to ten percent (10%)
                             of monies, including but not limited to exercised stock options, licenses, franchise
                             agreement proceeds, overtime, advances, profit-sharing advances, and all other
                             forms of compensation (‘Compensation’) received by Krick, directly or indirectly,
                             for a period equal to such extension, modification, renewal, or spinoff, but such
                             payment period shall not exceed five (5) years regardless of the length of such
                             extension, modification, renewal, or spinoff; and

                             In the event Krick enters into an employment agreement with an employer up to
                             and including January 21, 2024, Krick shall pay to MAXX Sports as commissions
                             an amount equal to ten percent (10%) of Compensation received by Krick
                             through such employment agreement and a sum equal to ten percent (10%) of
                             Compensation received by Krick, directly or indirectly, for a period equal to the
                             length of time of an option to extend such agreement provided that such option is
                             exercised prior to the termination of the Representation Agreement. In the event
                             Krick and her employer enter into a spinoff, modification, extension, or
                             subsequent renewal of such employment agreement negotiated during the term
                             of the Representation Agreement, Krick shall pay to MAXX Sports as
                             commission an amount equal to ten percent (10%) of Compensation for the
                             length of time of such spinoff or renewal but such time period shall not exceed
                             five (5) years.

                    This constitutes the Decision, Order, and Judgment of the court.

                    3/19/2024                                                             $SIG$
                      DATE                                                        JOHN J. KELLEY, J.S.C.
             CHECK ONE:                X   CASE DISPOSED                  NON-FINAL DISPOSITION

                                                                                                   □
                                       X   GRANTED             DENIED     GRANTED IN PART              OTHER

             APPLICATION:                  SETTLE ORDER                   SUBMIT ORDER

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

             654556/2023 MAXX SPORTS & ENTERTAINMENT GROUP, INC. vs. KRICK, TRYSTA                  Page 4 of 4
             Motion No. 001

                                                            4 of 4
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