Court Opinion

ID: 9958783
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:11:57.69893+00
Date Added: 2024-06-11T08:15:52.528417
License: Public Domain

GKER Ltd. v Clarkson BU LLC
               2024 NY Slip Op 31067(U)
                     March 27, 2024
           Supreme Court, New York County
        Docket Number: Index No. 653955/2023
                Judge: Suzanne J. Adams
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 03/28/2024 05:00 P~                                                   INDEX NO. 653955/2023
  NYSCEF DOC. NO. 82                                                                         RECEIVED NYSCEF: 03/28/2024

                            SUPREME COURT OF THE STATE OF NEW YORK
                                      NEW YORK COUNTY
           PRESENT:        HON.SUZANNEJ.ADAMS                                 PART                                 39M
                                                                  Justice
           ----------- --------X                                              INDEX NO.            653955/2023
            GKER LTD., ON BEHALF OF ITSELF AND DERIVATIVELY
            ON BEHALF OF CLARKSON BU LLC,                                     MOTION DATE                N/A

                                               Plaintiff,                     MOTION SEQ. NO.            001

                                       - V -

            CLARKSON BU LLC,75-77 CLARKSON AVENUE
            INVESTORS, LLC,ERAN REISFELD, RAN ORON,
            CLARKSON 1, LLC,HANNAN SALTZMAN, GILi                                DECISION + ORDER ON
            HABERBERG, BENJAMIN HABERBERG, BARUCH                                       MOTION
            BEZNER, NIR MESTERMAN, RAN MESTERMAN, OFFICE
            LINE LTD., HEZI ASPIS

                                               Defendant.
           -----------,---------X

           The following e-filed documents, listed by NYSCEF document number (Motion 001) 3, 4, 5, 6, 7, 8, 9, 10,
           11, 12, 13, 14, 15, 16, 17, 18,21,22,24,28,29, 30,33,34, 37, 38, 39,40,41,42,43,44,45,46,47,48,
           49, 50, 51, 52, 53, 54, 55,56, 63, 64, 65,66, 67,68, 69, 80, 81
           were read on this motion to/for                       PREL INJUNCTION/TEMP REST ORDR

                  Upon the foregoing documents, and oral argument before the court on November 29, 2023,

           it is ordered that plaintiffs motion is granted. This matter arises out of the construction, operation,

           and management of a condominium residential development located at 77 Clarkson Avenue,

           Brooklyn, New York. In April 2017, plaintiff GKER Ltd. ("GKER") assumed the holding of

           approximately 32% of the membership units in defendant 75-77 Clarkson Avenue Investors, LLC

           ("75-77 Clarkson"), for which $1,842,514.00 was invested. 75-77 Clarkson is a holding entity

           whose purpose was to invest in defendant Clarkson BU LLC ("Clarkson BU"), the entity with title

           to the aforementioned residential development property.           In July 202, 75-77 Clarkson was

           dissolved and GKER's membership interest therein was deemed to be a membership interest in

           Clarkson BU. Plaintiff commenced this action in August 2023, alleging that defendants have

            653955/2023 GKER LTD., ON BEHALF OF ITSELF AND DERIVATIVELY ON BEHALF OF                 Page 1 of 4
            CLARKSON BU LLC vs. CLARKSON BU LLC ET AL
            Motion No. 001

                                                            1 of 4
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 [FILED: NEW YORK COUNTY CLERK 03/28/2024 05:00 P~                                                 INDEX NO. 653955/2023
  NYSCEF DOC. NO. 82                                                                       RECEIVED NYSCEF: 03/28/2024

           misappropriated GKER's investments and engaged in fraud in acquiring and repaying certain

           loans, all to plaintiff's detriment. Plaintiff now moves by order to show cause for an order of

           attachment and certain preliminary injunctive relief. Defendants Clarkson BU, Eran Reisfeld, Ran

           Oron, Gili Haberberg, and Benjamin Haberberg oppose the motion.

                  Entitlement to a preliminary injunction under CPLR § 6301 is established by a showing of:

           "(1) a likelihood of ultimate success on the merits; (2) the prospect of irreparable injury if the

           provisional relief is withheld; and (3) a balance of equities tipping in the moving party's favor."

           Doe v. Axelrod, 73 N.Y.2d 748, 750 (1988). The purpose of a preliminary injunction is to maintain

           the status quo pending a trial. See Terrell v. Terrell, 279 A.D.2d 301, 304 (1 st Dep't 2001); Sau

           Thi Ma v. Xuan T Lien, 198 A.D.2d 186, 187 ( !51 Dep't 1993). Further, an order of attachment

           pursuant to CPLR § 6201 may be granted "where the plaintiff has demanded and would be entitled,

           in whole or in part, or in the alternative, to a money judgment against one or more defendants,

           when: 1. the defendant is a nondomiciliary residing without the state ... ; or 3. the defendant, with

           intent to defraud his creditors or frustrate the enforcement of a judgment that might be rendered in

           plaintiff's favor, has assigned, disposed of, encumbered or secreted property, or removed if from

           the state or is about to do any of these acts .... "

                   The record before this court contains ample evidence that justifies the issuance of both

           injunctive relief and an order of attachment in favor of plaintiff at this juncture of the litigation.

           There is a likelihood of plaintiff's success on the merits of its claims, as there appears to be no

           adequate explanation to date for the lack of proper documentation of the nature of the cash flow in

           and out of the subject property development. The prospect of irreparable injury to plaintiff is

           apparent, since, for example, any improper borrowing against the property in question may result

           in a foreclosure and subsequent loss of the asset property. The balance of the equities lies with

            653955/2023 GKER LTD., ON BEHALF OF ITSELF AND DERIVATIVELY ON BEHALF OF               Page 2 of 4
            CLARKSON BU LLC vs. CLARKSON BU LLC ET AL
            Motion No. 001

                                                            2 of 4
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 [FILED: NEW YORK COUNTY CLERK 03/28/2024 05:00 P~                                                 INDEX NO. 653955/2023
  NYSCEF DOC. NO. 82                                                                       RECEIVED NYSCEF: 03/28/2024

           plaintiff for the same reason. In addition, the facts of this matter support the issuance of an order

           of attachment, where: plaintiff has demanded, inter alia, a money judgment; at least one defendant

           is located outside New York State; and the possibility exists that said defendant or defendants may

           remove monies from the State in frustration of enforcement by plaintiff of a prospective judgment.

                  Accordingly, it is hereby

                  ORDERED that plaintiff's motion is granted; and it is further

                  ORDERED that plaintiffs motion for an order of attachment is granted and the amount to

           be secured by this order of attachment, inclusive of probable interest, costs and Sheriffs fees and

           expenses, shall be $1,847,514.00; and it is further

                   ORDERED that plaintiffs undertaking is fixed in the sum of $10,000.00, conditioned that

           the plaintiff shall pay to the defendant an amount not exceeding $1,000.00 for legal costs and

           damages which may be sustained by reason of the attachment, and up to and not exceeding

           $1,000.00 to the Sheriff for allowable fees, if defendants recover judgment or if it is decided that

           plaintiff is not entitled to an attachment of the property described hereinbelow; and it is further

                  ORDERED that the Sheriff of the City of New York, or the Sheriff of any County of the

           State of New York, shall levy within his jurisdiction, at any time before final judgment, upon such

           real property in which defendants have an interest and upon such debts owing to defendants as will

           satisfy $1,842,514.00, together with probable interest, costs, and the Sheriff's fees and expenses,

           specifically the following real property: 75-77 Clarkson Avenue, Brooklyn, New York 11226 (the

           "Property"), and that the Sheriff proceed herein in the manner and make his return within the time

           prescribed by law; and it is further

                  ORDERED that all defendants, including without limitation, Clarkson BU LLC, and their

           agents and all those acting in concert with defendants or on defendants' behalf, are enjoined and

            653955/2023 GKER LTD., ON BEHALF OF ITSELF AND DERIVATIVELY ON BEHALF OF              Page 3 of 4
            CLARKSON BU LLC vs. CLARKSON BU LLC ET AL
            Motion No. 001

                                                          3 of 4
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 [FILED: NEW YORK COUNTY CLERK 03/28/2024 05:00 P~                                                   INDEX NO. 653955/2023
  NYSCEF DOC. NO. 82                                                                           RECEIVED NYSCEF: 03/28/2024

           restrained from dissipating, paying, or transferring any monies in their possession, or any monies

           that may come into their possession, in connection with the sale of condominiums located at the

           Property; and it is further

                   ORDERED that Clarkson BU LLC, the Property owner, is enjoined and restrained from

           releasing any monies, funds, loan repayments and/or any disbursements to any of the defendants,

           or anyone else on their behalf; and it is further

                   ORDERED that Clarkson BU LLC, and those managing it, including several defendants,

           are enjoined and restrained from using any monies or funds of Clarkson BU LLC, or those monies

           attributable to the Property, for any purpose other than for management and expenses of the

           Property (e.g., taxes, utilities, and/or mortgage); and it is further

                   ORDERED that plaintiffs previous undertaking of$5,000.00 pursuant to this court's order

           of October 18, 2023, shall remain in effect.

                   This constitutes the decision and order of the court.

                   3/27/2024
                     DATE                                                          SUZANNE J. ADAMS, 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

            653955/2023 GKER LTD., ON BEHALF OF ITSELF AND DERIVATIVELY ON BEHALF OF                 Page4 of 4
            CLARKSON BU LLC vs. CLARKSON BU LLC ET AL
            Motion No. 001

                                                            4 of 4
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