FILED: NEW YORK COUNTY CLERK 10/19/2016 10/24/2016 01:33 02:50 PM INDEX NO. 655524/2016 NYSCEF DOC. NO. 17 RECEIVED NYSCEF: 10/19/2016 10/24/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK Index #: ASPIRE FEDERAL CREDIT UNION, -against- Plaintiff, Plaintiff designates New York County as the place of trial pursuant to CPLR Sections 503 and 508 SUMMONS NINE T THIRTY ONE SHEARN CORPORATION and PLACIDA ROBINSON and NEW YORK CITY TAXI AND LIMOUSINE COMMISSION Defendants. To The Above-Named Defendants: You are hereby summoned to answer the verified complaint in this action and to serve a copy of your answer, or if the verified complaint is not served with this summons, to serve a notice of appearance on the plaintiff s attorney within twenty (20) days after the service of this summons, exclusive of the day of service (or within thirty (30) days after the service is complete if this summons is not personally delivered to you within the State of New York); and in the case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the verified complaint. Dated: October 19, 2016 New York, New York The Shanker Law Firm, P.C. Steven J. Shanker, Esq. Attorneys for the Plaintiff ASPIRE FEDERAL CREDIT UNION 44 Wall Street- 12th Floor New York, NY 10005 Tele: (212) 461-2244 Fax: (646) 755-3335 Our File No. 2016-9-00761 1 of 14
TO: PLACIDA ROBINSON, individually 700 Lenox Avenue- #7L New York, NY 10039 NINE T THIRTY ONE SHEARN CORPORATION 700 Lenox Avenue- #7L New York, NY 10039 NINE T THIRTY ONE SHEARN CORPORATION Via the New York State Secretary of State New York City Taxi and Limousine Commission 33 Beaver Street New York, NY 10004 2 of 14
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK Index #: ASPIRE FEDERAL CREDIT UNION, VERIFIED COMPLAINT Plaintiff, -against- NINE T THIRTY ONE SHEARN CORPORATION and PLACIDA ROBINSON and NEW YORK CITY TAXI AND LIMOUSINE COMMISSION Defendants. Plaintiff, ASPIRE FEDERAL CREDIT UNION ( Aspire ), by its attorneys, The Shanker Law Firm, P.C., for its complaint, alleges, upon information and belief, as follows: PARTIES 1. Aspire is a Federally chartered credit union, organized and operated in accordance with the Federal Credit Union Act, with its principal place of business located in the State of New Jersey. 2. Defendant, NINE T THIRTY ONE SHEARN CORPORATION, is a New York corporation with its principal place of business located at 700 Lenox Avenue #7L, New York, New York 10039. Upon information and belief, NINE T THIRTY ONE SHEARN CORPORATION is a single purpose entity that owns a vehicle bearing vehicle identification number 4TBD1FK5CU013640, and owns and licenses a medallion issued by the New York City Taxi and Limousine Commission ("TLC") bearing number 9T31. 3. Defendant, PLACIDA ROBINSON, ( Robinson ) is an individual with an address of 700 3 of 14
Lenox Avenue #7L, New York, New York 10039. Robinson is the sole shareholder of NINE T THIRTY ONE SHEARN CORPORATION, and the guarantor of the loan described herein. 4. Defendant TLC is an agency of the City of New York responsible for licensing and regulating New York City's medallion taxicabs. THE MEDALLION LOAN 5. Defendant NINE T THIRTY ONE SHEARN CORPORATION made a request that Aspire extend it certain financial accommodations, namely a loan in the amount of $840,000.00 (eight hundred forty thousand dollars and zero cents). Defendant NINE T THIRTY ONE SHEARN CORPORATION shall be referred to as the "Medallion Loan Borrower." 6. To evidence the loan made by Aspire, the Medallion Loan Borrower executed and delivered to Aspire a promissory note dated, December 10, 2013 (the Medallion Loan Note"), pursuant to which the Medallion Loan Borrower promised to pay Aspire the sum of $840,000.00, identified in the Medallion Loan Note. The note specifically stated $840,000.00 with interest thereon to be computed and paid from December 10, 2013 of this Note until January 1, 2017 (the Maturity Date ) at the rate of 3.75% per annum except as set forth below, in consecutive monthly installments of $3,890.17. 7. To secure its obligations to Aspire, the Medallion Loan Borrower executed and delivered to Aspire a Security Agreement, dated December 10, 2013 (the "Medallion Loan Security Agreement") pursuant to which the Medallion Loan Borrower granted Aspire a security interest in certain collateral, including "[a]ll of the taxicab vehicles, New York City taxicab licenses and representative medallions (including, without limitation, those vehicles, licenses and medallions described on Schedule A, annexed hereto)... " (the Medallion ). As per the Schedule A attached to the Medallion Loan Security Agreement, the collateral included, among 4 of 14
other things, Medallion Number identified as 9T31 along with the vehicle (2012 Toyota) bearing vehicle identification number 4TBD1FK5CU013640 ( Medallion Loan Collateral ). 8. Pursuant to the agreement of the parties, Aspire did in fact loan the Medallion Loan Borrower the sum of $840,000.00. A letter detailing a distribution of the proceeds of the loan was given to Aspire by the Medallion Loan Borrower. 9. On or about December 10, 2013, Robinson executed and delivered to Aspire an unconditional guaranty pursuant to which she unconditionally guaranteed payment of the Medallion Loan Borrower s obligations to Aspire under the Medallion Loan Note (the Medallion Loan Guaranty" and, together with the Medallion Loan Note, the Medallion Loan Security Agreement and any other related documents, the "Medallion Loan Documents"). 10. Aspire duly perfected its security interest in the Medallion Loan Collateral by filing UCC-1 Financing Statements with the New York State Secretary of State. THE DEFAULT AND ACCELLERATION 11. Pursuant to Section 6 of the Medallion Loan Security Agreement, "[t]he occurrence of any of the following events shall constitute an 'Event of Default' under this Agreement: (a) if the Borrower shall not pay when due: (i) any installment of principal or interest under the Note; or (ii) any other payments due under the Note prior to the Maturity Date; (b) if the Borrower shall not pay when due, any other part of the Indebtedness or any other amount payable in connection with the Indebtedness or any part thereof; (c) the failure of the Borrower to perform, and/or breach by the Borrower of, any of the terms, covenants or conditions of this Agreement or the Note... 12. The Medallion Loan Note provides in relevant part that at the option of the holder of 5 of 14
this note and upon the terms and conditions provided in the security agreement, upon a default in making any payment of principal and interest hereunder when due and payable, the unpaid principal balance hereof and all accrued interest shall become immediately due and payable. 13. The Medallion Loan Note specifically provides that "the occurrence of an 'Event of Default' (as such term is defined in the Security Agreement), the unpaid principal balance hereof and all accrued interest shall become immediately due and payable. In enforcing its rights under this Note and under such Security Agreement and other instruments delivered in connection with the loan represented hereby, the holder shall have the right and option to pursue its remedies with respect to this Note or to enforce the provisions of the Security Agreement or such other instruments, or any combination thereof, and either simultaneously or in such order as the holder shall deem in its best interest. 14. Pursuant to Section 6 of the Medallion Loan Security Agreement, "[u]pon the occurrence of an 'Event of Default', the Lender shall have the right to declare the entire amount of the indebtedness and interest accrued thereon immediately due and payable and by giving written notice thereof to the Borrower and, upon the giving of such notice, the Indebtedness shall be immediately due and payable by the Borrower to the Lender. 15. Pursuant to the terms of the Medallion Loan Note, the Medallion Loan Borrower was obligated to make a payment on April 1, 2016 in the amount of $3,890.17 ( Monthly Payment ). The Medallion Loan Borrower failed to make the required Monthly Payment on April 1, 2016, as obligated. 16. Aspire sent a letter to the Medallion Loan Borrower on April 19, 2016 to inform the Medallion Loan Borrower that it was more than 18 days behind in making the monthly payment on its secured taxi loan. 6 of 14
17. The failure of the Medallion Loan Borrower to make the required medallion loan Monthly Payment on April 1, 2016, constituted an Event of Default pursuant to the terms of the Medallion Loan Documents entitling Aspire to accelerate the Medallion Loan Note. 18. Notwithstanding the Default by the Medallion Loan Borrower in failing to make the Monthly Payment on April 1, 2016, Aspire did not immediately declare a default. 19. Pursuant to the terms of the Medallion Loan Note, the Medallion Loan Borrower was obligated to make a Monthly Payment on May 1, 2016 in the amount of $3,890.17. The Medallion Loan Borrower failed to make the required Monthly Payment on May 1, 2016 as obligated. 20. The failure of the Medallion Loan Borrower to make the required medallion loan Monthly Payment on May 1, 2016, constituted an Event of Default pursuant to the terms of the Medallion Loan Documents entitling Aspire to accelerate the Medallion Loan Note. 21. Notwithstanding the Default by the Medallion Loan Borrower in failing to make the Monthly Payment on May 1, 2016, Aspire did not immediately declare a default. 22. Aspire sent a letter to the Medallion Loan Borrower on May 12, 2016 to inform the Medallion Loan Borrower that it was more than 39 days behind in making the monthly payment on its secured taxi loan. 23. Pursuant to the terms of the Medallion Loan Note, the Medallion Loan Borrower was obligated to make a Monthly Payment on June 1, 2016 in the amount of $3,890.17. The Medallion Loan Borrower failed to make the required Monthly Payment on June 1, 2016 as obligated. 24. The failure of the Medallion Loan Borrower to make the required medallion loan Monthly Payment on June 1, 2016, constituted an Event of Default pursuant to the terms of the 7 of 14
Medallion Loan Documents entitling Aspire to accelerate the Medallion Loan Note. 25. Notwithstanding the Default by the Medallion Loan Borrower in failing to make the Monthly Payment on June 1, 2016, Aspire did not immediately declare a default. 26. On June 6, 2014, when Aspire had still not received the Monthly Payments from April 1, 2016, May 1, 2016 and June 1, 2016 from the Medallion Loan Borrower, Aspire elected to declare a default and accelerate the Medallion Loan Note (the Medallion Loan Acceleration ). 27. By letter dated June 6, 2016 (the Medallion Loan Default and Acceleration Letter"), Aspire (i) gave notice of the default to the Medallion Loan Borrower and to Robinson, in her capacity as guarantor of the obligations of the Medallion Loan Borrower under the Medallion Loan Note; (ii) declared the outstanding balance due under the Medallion Loan Note to be immediately due and payable, (iii) demanded that the Medallion Loan Borrower and Robinson immediately pay in full the outstanding aggregate principal sum of $805,729.80 due under the Medallion Loan Note, accrued but unpaid interest from through the date of the Medallion Loan Default and Acceleration Letter along with late charges, costs and attorney s fees, and any and all other sums due pursuant to the Medallion Loan Note and the Medallion Loan Security Agreement (the Medallion Loan Indebtedness"). 28. As a result of the Medallion Loan Borrower s default, the full amount due under the Medallion Loan Note, including principal, accrued and unpaid interest thereon calculated at the default rate set in the Medallion Loan Documents, plus late charges, collection costs and expenses, including reasonable attorneys' fees and all other sums due by virtue of the Medallion Loan Indebtedness became immediately due and payable. 29. Neither the Medallion Loan Borrower nor Robinson, as the guarantor, has paid the Medallion Loan Indebtedness, despite demand and, as result, both are in default. 8 of 14
30. The Medallion Loan Borrower and Robinson have failed to pay the full amount of the Medallion Loan Indebtedness, and such remains due and owing as of this date. ASPIRE'S ENTITLEMENT TO IMMEDIATE POSSESSION OF THE MEDALLION LOAN COLLATERAL 31. Pursuant to the Medallion Loan Note, "[i]n enforcing its rights under this Note and such Security Agreement and other instruments delivered in connection with the loan represented hereby, the holder shall have the right and option to pursue its remedies with respect to this Note or to enforce the provisions of the Security Agreement or such other instruments, or any combination thereof, and either simultaneously or in such order as the holder shall deem in its best interest. 32. Pursuant to Section 7 of the Medallion Loan Security Agreement,"[i]n the event that [Aspire] elects to accelerate the [Medallion Loan Indebtedness]...and within ten (10) days after the mailing of such notice the Borrower fails to pay the [Medallion Loan Indebtedness], or in any event, if the Borrower shall fail to pay the entire unpaid principal balance on the Note and accrued interest thereon upon the Maturity Date or any other part of the Indebtedness or interest thereon which it is due, then in any such events [Aspire] shall have the right, in addition to and in connection with any other rights it may have under the Note, the Agreement, the Medallion Loan Letter, the Uniform Commercial Code and otherwise at law or in equity...(b) to enter upon the Borrower's premises peaceably by the Lender s own means or with or with legal process and take possession of the [Medallion Loan Collateral], and the Borrower agrees not to resist or interfere, (c) to require the Borrower to assemble the [Medallion Loan Collateral] and make it available to the Lender at a place to be designated by the Lender that is reasonably convenient to both parties (it being agreed that the Borrower s address set forth above is a place reasonably 9 of 14
convenient for such assembling, and, (d) to sell, assign and deliver the [Medallion Loan Collateral] at public or private sale, for cash, on credit or future delivery, with or without advertisement of the time, place or terms of sale..." 33. As a result of the default by the Medallion Loan Borrower and the Medallion Loan Acceleration, Aspire is entitled to immediate possession of the Medallion Loan Collateral. FIRST CAUSE OF ACTION (Replevin- Medallion Loan Collateral) 34. Aspire repeats and realleges the allegations contained in paragraphs 1 though 33. 35. Pursuant to the Medallion Loan Security Agreement, upon default by the Medallion Loan Borrower, Aspire is entitled to take immediate possession of the Medallion Loan Collateral, without further demand or further notice, and without legal process, and the Medallion Loan Borrower is required to assemble the Medallion Loan Collateral and make it available to Aspire at a reasonable place designated in the Medallion Loan Security Agreement, and Aspire is authorized to take possession of and remove the Medallion Loan Collateral, and to sell, assign and deliver the Medallion Loan Collateral at public or private sale in accordance with applicable law. 36. As a result of the Medallion Loan Borrower s default, its continued possession of the Medallion Loan Collateral is wrongful. 37. Aspire is entitled to immediate possession of the Medallion Loan Collateral. SECOND CAUSE OF ACTION (TRO, Preliminary and Permanent Injunction) 38. Aspire repeats and realleges the allegations contained in paragraphs 1 though 37. 39. Aspire is likely to suffer irreparable harm should the Medallion Loan Borrower, 10 of 14
Robinson, or the TLC transfer, dispose of or otherwise interfere with the Medallion Loan Collateral. 40. Aspire is likely to prevail on the merits of its cause of action for replevin of the Medallion Loan Collateral. 41. Accordingly, Aspire is entitled to temporary, preliminary, and permanent injunctive relief enjoining the Medallion Loan Borrower, Robinson, and the TLC from taking possession of, or otherwise exercising continued control over the Medallion Loan Collateral, removing the Medallion Loan Collateral from the Medallion Loan Borrower s business, or any other location, transferring, selling, pledging, or assigning the Medallion Loan Collateral, changing the composition of the Medallion Loan Collateral, or otherwise disposing of the Medallion Loan Collateral. THIRD CAUSE OF ACTION (Medallion Loan Indebtedness) 42. Aspire repeats and realleges the allegations contained in paragraphs 1 though 41. 43. By virtue of the foregoing, Aspire is entitled to judgment against the Medallion Loan Borrower in the amount of the Outstanding Medallion Loan Debt. FOURTH CAUSE OF ACTION (Robinson Guaranty) 44. Aspire repeats and realleges the allegations contained in paragraphs 1 though 43. 45. Robinson failed to pay the Medallion Loan Indebtedness as required pursuant to the Medallion Loan Guaranty. 46. By virtue of the foregoing, Aspire is entitled to judgment against Robinson for the full amount of the Medallion Loan Indebtedness. 11 of 14
FIFTH CAUSE OF ACTION (Attorneys Fees, Costs and Disbursements) 47. Aspire repeats and realleges the allegations contained in paragraphs 1 though 46. 48. Pursuant to the Medallion Loan Documents, the Medallion Loan Borrower and Robinson agreed to pay all of Aspire's fees, expenses and disbursements, including attorneys' fees, incurred to enforce and protect Aspire's rights under the Medallion Loan Documents. 49. By virtue of the foregoing, Aspire is entitled to judgment against the Medallion Loan Borrower and Robinson for its costs, fees and disbursements, including reasonable attorneys' fees and expenses in an amount to be determined, incurred to enforce and protect Aspire 's rights under the Medallion Loan Documents. WHEREFORE, Aspire demands judgment against defendants as follows: (i) on the first cause of action, against the Medallion Loan Borrower for immediate possession of the Medallion Loan Collateral and directing the Medallion Loan Borrower to deliver the Medallion Loan Collateral to Aspire; (ii) on the second cause of action, against the Medallion Loan Borrower, Robinson, and the New York City Taxi and Limousine Commission for temporary, preliminary and permanent injunctive relief enjoining them from taking possession of, or otherwise exercising any control over the Medallion Loan Collateral and/or removing said collateral from their places of business, or any other location, or transferring, selling, pledging, or assigning said collateral, changing the composition of said collateral, or otherwise disposing of said collateral; (iii) on the third cause of action, against the Medallion Loan Borrower, in the amount of $805,729.80, along with late charges, costs and attorney s fees, and any and all other 12 of 14
sums due pursuant to the Medallion Loan Note and the Medallion Loan Security Agreement. (iv) on the fourth cause of action, against Robinson, in the amount of $805,729.80, along with late charges, costs and attorney s fees, and any and all other sums due pursuant to the Medallion Loan Note and the Medallion Loan Security Agreement. (v) on the fifth cause of action, against the Medallion Loan Borrower and Robinson, jointly and severally, for collection expenses, including attorneys' fees, costs and disbursements, in an amount to be determined; and (vi) for costs, disbursements and such further and other relief as the Court deems just and proper. Dated: October 19, 2016 New York, New York The Shanker Law Firm, P.C. Steven J. Shanker, Esq. Attorneys for the Plaintiff ASPIRE FEDERAL CREDIT UNION 44 Wall Street- 12th Floor New York, NY 10005 Tele: (212) 461-2244 Fax: (646) 755-3335 Our File No. 2016-9-00761 13 of 14
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