Opinion
13640-13640A Index No. 650797/13 150676/16 Case No. 2020-00348 2020-00500
04-22-2021
LEASING CONTROL INC. as Assignee of Firequench, Inc., Plaintiff-Appellant, v. 500 FIFTH AVENUE, INC., et al., Defendants-Respondents. Leasing Control Inc. as Assignee of Firequench, Inc., Plaintiff-Appellant, v. 500 Fifth Avenue, Inc. et al., Defendants-Respondents.
Ganfer Shore Leeds & Zauderer LLP, New York (Mark C. Zauderer of counsel) and Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP, New York (Clifford A. Katz of counsel), for appellant. Curtis, Mallet–Prevost, Colt & Mosle LLP, New York (Turner P. Smith of counsel), for respondents.
Ganfer Shore Leeds & Zauderer LLP, New York (Mark C. Zauderer of counsel) and Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP, New York (Clifford A. Katz of counsel), for appellant.
Curtis, Mallet–Prevost, Colt & Mosle LLP, New York (Turner P. Smith of counsel), for respondents.
Manzanet–Daniels, J.P., Mazzarelli, Mendez, Shulman, JJ.
Orders, Supreme Court, New York County (Tanya R. Kennedy, J.), entered December 18, 2019 and December 20, 2019, which granted defendants' motions for summary judgment dismissing the complaints in both actions on grounds of champerty, unanimously affirmed, with costs.
The assignment of Firequench's claims against defendants to plaintiff was champertous (see Justinian Capital SPC v. WestLB AG, N.Y. Branch, 28 N.Y.3d 160, 165–166, 43 N.Y.S.3d 218, 65 N.E.3d 1253 [2016] ; Judiciary Law § 489[1] ). As plaintiff's president admitted during her deposition, the primary purpose of Firequench's assignment of its claims against defendants to plaintiff was for plaintiff to pursue litigation against defendants on the claims in exchange for a portion of the proceeds from the litigation ( Justinian Capital SPC, 28 N.Y.3d at 164–165,, 43 N.Y.S.3d 218 65 N.E.3d 1253 ). Plaintiff and Firequench had no pre-existing relationship and plaintiff had no pre-existing interest in the claim before the assignment (compare Trust for Certificate Holders of Merrill Lynch Mtge. Invs., Inc. Pass–Through Certificates, Series 1999–C1 v. Love Funding Corp., 13 N.Y.3d 190, 200–201, 890 N.Y.S.2d 377, 918 N.E.2d 889 [2009] ). Instead, plaintiff was a shell company with no real assets, corporate structure, or operations, and it commenced litigation two days after the assignment (see Justinian Capital SPC, 28 N.Y.3d at 165, 43 N.Y.S.3d 218, 65 N.E.3d 1253 ).