Court Opinion

ID: 9942817
Source: CourtListenerOpinion
Date Created: 2024-02-21 21:08:54.443285+00
Date Added: 2024-06-11T13:44:45.448846
License: Public Domain

TD Bank, N.A. v Koumba Textile Inc.
               2024 NY Slip Op 30516(U)
                    February 15, 2024
           Supreme Court, New York County
        Docket Number: Index No. 652341/2023
                  Judge: Louis L. Nock
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                       publication.
                                                                                                                       INDEX NO. 652341/2023
  NYSCEF DOC. NO. 29                                                                                             RECEIVED NYSCEF: 02/15/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. LOUIS L. NOCK                                                PART                              38M
                                                                                      Justice
            ---------------------------------------------------------------------------------X     INDEX NO.          652341/2023
             TD BANK, N.A.,
                                                                                                   MOTION DATE         11/02/2023
                                                         Plaintiff,
                                                                                                   MOTION SEQ. NO.         001
                                                 -v-
             KOUMBA TEXTILE INC. and OUSMANE SAMPIL,                                                 DECISION + ORDER ON
                                                                                                           MOTION
                                                         Defendants.
            ---------------------------------------------------------------------------------X

            The following e-filed documents, listed by NYSCEF document numbers (Motion 001) 5, 6, 7, 8, 9, 10, 11,
            12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, and 28
            were read on this motion for                                                         DEFAULT JUDGMENT                    .

            LOUIS L. NOCK, J.S.C.

                      Upon the foregoing documents, the plaintiff’s motion for a default judgment is granted,

            without opposition, and for the reasons set forth in the motion papers, and per the following

            memorandum decision.

                      Background

                      On July 5, 2019, plaintiff TD Bank, N.A., extended a commercial line of credit for

            $50,500 (the “Loan”) to defendant Koumba Textile Inc. (“Borrower”), as evidenced by a

            “Promissory Note” (the “Note”) and “Business Loan Agreement” (the “Loan Agreement”) (Hall-

            Mitchell aff., NYSCEF Doc. No. 6, ¶¶ 6–8). The Loan was secured by a certain executed

            “Commercial Guaranty,” whereby defendant Ousmane Sampil (“Guarantor”) absolutely and

            unconditionally guaranteed payment of all amounts due on the Loan (the “Guaranty”) owed by

            Borrower to plaintiff (id., ¶¶ 18–21). To further secure payment of the Loan, Borrower executed

            a certain “Commercial Security Agreement,” whereby Borrower granted plaintiff a security

            interest in all of Borrower’s assets as defined in the Commercial Security Agreement (the
             652341/2023 TD BANK, N.A. vs. KOUMBA TEXTILE INC. ET AL                                                   Page 1 of 5
             Motion No. 001

                                                                           1 of 5
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                                                                                                   INDEX NO. 652341/2023
  NYSCEF DOC. NO. 29                                                                        RECEIVED NYSCEF: 02/15/2024

            “Collateral”) (the Note, Loan Agreement, Commercial Guaranty, Commercial Security

            Agreement, and all related loan documents are collectively referred to hereinafter as the “Loan

            Documents”), which security interest was perfected by a UCC-1 Financing Statement (id., ¶¶

            22–23).

                   As more fully set forth in the affidavit of Kimberly Hall-Mitchell, plaintiff’s assistant

            vice president, Borrower defaulted on the Loan by failing to make monthly payments, as

            required under the Loan Documents (the “Stated Default”), starting with the November 5, 2022,

            payment and each monthly payment thereafter (id., ¶ 26). Despite plaintiff’s declaration of the

            Stated Default, acceleration of the Loan, and demands for immediate payment of all amounts due

            on the Loan on February 17, 2023, and again on April 13, 2023, Borrower and Guarantor remain

            in default under the terms of the Loan Documents (id., ¶¶ 27–28). As of August 10, 2023, the

            total amount of plaintiff’s alleged damages against both defendants is $56,715.42 (id., ¶ 29).

                   Plaintiff commenced this action on May 15, 2023 (summons and complaint, NYSCEF

            Doc. No. 1). Affidavits of service, regular on their faces, attest to service on Borrower by

            service on the Secretary of State on May 26, 2023, pursuant to Business Corporations Law §

            306(b) (NYSCEF Doc. No. 3), and on Guarantor by delivery and mailing to his dwelling place

            pursuant to CPLR 308(2), with service completed on May 30, 2023 (NYSCEF Doc. No. 2). An

            affirmation of additional service filed in support of the motion attests to the requisite additional

            mailing pursuant to CPLR 3215(g)(4)(i) and 3215(g)(3)(i) on September 19, 2023, more than

            twenty days in advance of entry of judgment (Espinal aff., NYSCEF Doc. No. 25, ¶¶ 2–3).

            Defendants’ time to respond to the complaint has expired, and they have neither appeared nor

            answered the complaint. There is no opposition to the motion.

             652341/2023 TD BANK, N.A. vs. KOUMBA TEXTILE INC. ET AL                                Page 2 of 5
             Motion No. 001

                                                             2 of 5
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                                                                                                  INDEX NO. 652341/2023
  NYSCEF DOC. NO. 29                                                                      RECEIVED NYSCEF: 02/15/2024

                   Standard of Review

                   A plaintiff that seeks entry of a default judgment for a defendant’s failure to answer must

            submit proof of service of the summons and complaint upon the defendant, proof of the facts

            constituting the claim, and proof of the defendant’s default (CPLR 3215[f]). “The standard of

            proof is not stringent, amounting only to some firsthand confirmation of the facts” (Feffer v

            Malpeso, 210 AD2d 60, 61 [1st Dept 1994]). “[D]efaulters are deemed to have admitted all

            factual allegations contained in the complaint and all reasonable inferences that flow from them”

            (Woodson v Mendon Leasing Corp., 100 NY2d 62, 71 [2003]). Nevertheless, “CPLR 3215 does

            not contemplate that default judgments are to be rubber-stamped once jurisdiction and a failure

            to appear have been shown. Some proof of liability is also required to satisfy the court as to the

            prima facie validity of the uncontested cause of action” (Guzetti v City of N.Y., 32 AD3d 234,

            235 [1st Dept 2006] [internal quotations and citations omitted]).

                   Discussion

                   Plaintiff has satisfied its burden on the motion by submission of the affidavits of service

            on defendants (NYSCEF Doc. Nos. 2, 3), the affirmation of additional mailing on defendants

            (NYSCEF Doc. No. 25, ¶¶ 2–3), the affirmation of plaintiff’s counsel Angel F. Espinal, Esq.

            attesting to defendants’ default (Espinal aff., NYSCEF Doc. No. 14, ¶¶ 4–11), and Hall-

            Mitchell’s affidavit, which attests to the facts alleged in the complaint and the amount of

            plaintiff’s damages (Hall-Mitchell aff., NYSCEF Doc. No. 6, ¶¶ 6–8). Defendants have never

            appeared in the action, nor did they submit any opposition to the motion. Plaintiff is, therefore,

            entitled to entry of a default judgment against defendants.

                   The Note, Loan Agreement, and Guaranty all contain attorney fee provisions (see, Note

            at 1; Loan Agreement at 4; Guaranty at 3). Plaintiff’s counsel has submitted an Affirmation of

             652341/2023 TD BANK, N.A. vs. KOUMBA TEXTILE INC. ET AL                              Page 3 of 5
             Motion No. 001

                                                             3 of 5
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                                                                                                      INDEX NO. 652341/2023
  NYSCEF DOC. NO. 29                                                                            RECEIVED NYSCEF: 02/15/2024

            Legal Fees, Costs and Expenses (NYSCEF Doc. No. 19) which sets forth what, based on this

            court’s application of the applicable standards (see, In re Freeman’s Estate, 34 NY2d 1 [1974]),

            constitutes reasonably incurred legal fees in this matter, amounting to $2,208.78.

                       Accordingly, it is

                       ORDERED that the plaintiff’s motion for a default judgment is granted; and, accordingly,

            it is

                       ORDERED that the Clerk of the Court is directed to enter judgment in favor of plaintiff

            and against both defendants, jointly and severally, in the principal amount of $49,898.80, with

            interest on said principal amount at the statutory rate from February 27, 2023,1 through the date

            of entry of judgment, as calculated by the Clerk, and continuing to accrue thereafter through the

            date of satisfaction of judgment, and in the additional sum of $2,208.78 as plaintiff’s reasonable

            attorneys’ fees incurred in this action; and it is further

                       ORDERED that, within 14 days of the date of filing hereof, defendant Koumba Textile

            Inc. is compelled to make available to plaintiff TD Bank, N.A., the collateral described in the

            UCC-1 Financing Statement filed in this action (NYSCEF Doc. No. 11) (the “Collateral”), for

            sale or other disposition pursuant to the Uniform Commercial Code; and it is further

                       ORDERED that plaintiff TD Bank, N.A., is authorized to sell, liquidate, dispose of or

            retain the Collateral in a commercially reasonable manner, with the proceeds from the same

            being applied first to the costs of such sale or other disposition and then in reduction of the

            amounts due from defendant Koumba Textile Inc.; and it is further

                       ORDERED that defendant Koumba Textile Inc. is restrained from any use of the

            Collateral; and it is further

            1
                The acceleration date of the indebtedness as alleged in the complaint (¶ 19).
                652341/2023 TD BANK, N.A. vs. KOUMBA TEXTILE INC. ET AL                               Page 4 of 5
                Motion No. 001

                                                                     4 of 5
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                                                                                                      INDEX NO. 652341/2023
  NYSCEF DOC. NO. 29                                                                            RECEIVED NYSCEF: 02/15/2024

                    ORDERED that defendant Koumba Textile Inc. is required to hold all the Collateral and

            all proceeds from the Collateral in trust for TD Bank, N.A.; and it is further

                    ORDERED that, upon entry of judgment herein by the Clerk of the Court, the sheriff of

            any county of the State of New York in which the Collateral is located, upon receipt of a copy of

            this Decision and Order, and such judgment, and upon the payment by plaintiff of said sheriff’s

            fees, is directed to break open, enter, search for, and seize the Collateral and deliver same to

            plaintiff.

                    This constitutes the decision and order of the court.

                                                                             ENTER:

                     2/15/2024                                                                $SIG$
                       DATE
             CHECK ONE:                X   CASE DISPOSED                    NON-FINAL DISPOSITION

             APPLICATION:
                                       X   GRANTED

                                           SETTLE ORDER
                                                               DENIED       GRANTED IN PART

                                                                            SUBMIT ORDER
                                                                                                      □   OTHER

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

             652341/2023 TD BANK, N.A. vs. KOUMBA TEXTILE INC. ET AL                                  Page 5 of 5
             Motion No. 001

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