AMTO, LLC v. Bedford Asset Management, LLC

168 F. Supp. 3d 556, 2016 WL 1030141
CourtDistrict Court, S.D. New York
DecidedMarch 10, 2016
DocketCase No. 14-CV-9913 (KMK)
StatusPublished
Cited by14 cases

This text of 168 F. Supp. 3d 556 (AMTO, LLC v. Bedford Asset Management, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMTO, LLC v. Bedford Asset Management, LLC, 168 F. Supp. 3d 556, 2016 WL 1030141 (S.D.N.Y. 2016).

Opinion

OPINION & ORDER

KENNETH M. KARAS, United States District Judge

Plaintiff AMTO, LLC (“Plaintiff” or “AMTO”) brings this Action against Defendant Bedford Asset Management, LLC (“Defendant” or “Bedford”), seeking to collect on two unpaid loans on the grounds of breach of contract, account stated, and unjust enrichment. Bedford has asserted two counterclaims against AMTO, alleging a fraudulent conveyance, in violation of N.Y. Debt, and Cred. Law § 276, and a claim of civil conspiracy to commit tor-tious interference. Bedford also filed a Third-Party Complaint against Energo-kom, LLC (“Energokom”) and Ivan Kuz-netsov (“Kuznetsov” and, collectively with Energokom, “Third-Party Defendants”), alleging the same claims. Before the Court is AMTO’s Motion for Partial Summary Judgment, seeking summary judgment on its First and Fourth Causes of Action, the breach of contract claims. (Notice of Mot. (Dkt. No. 42).) AMTO’s Motion also seeks to strike Bedford’s affirmative defenses and to dismiss Bedford’s counterclaims. (Id.) Also before the Court is Third-Party Defendants’ Motion To Dismiss Bedford’s Third-Party Complaint in its entirety. (Notice of Mot. (Dkt. No. 39).) For the following reasons, Plaintiffs Motion for Summary Judgment is denied, without prejudice. Plaintiffs Motion To Strike Defendant’s Affirmative Defenses is granted in part and denied in part, and its Motion To Dismiss Defendant’s Counterclaims is granted. Finally, Third-Party Defendant’s Motion to Dismiss the Third-Party Complaint is granted.

I. Background

A. The Facts

1. The Parties

AMTO is a limited liability company existing under the Republic of Latvia. (Def.’s Resp. to Pl.’s Statement of Material Facts Pursuant to Local Civil Rule 56.1 (“Def.’s 56.1”) ¶ 1 (Dkt. No. 50).)1 Bedford is a domestic limited liability company organized under the laws of the State of Delaware. (Id. ¶ 2.) Energokom is a limited liability company existing under the Republic of Latvia. (Id. ¶ 3.) Bedford asserts that Kuznetsov, through intermediate entities, is the 100% owner of AMTO, (Decl. of Alexander Altman in Opp’n to Third-Party Def.’s Mot. To Dismiss (“Altman Decl. I”) ¶ 3 (Dkt. No. 46)), and that Kuznetsov controls Energokom through indirect majority ownership, (id. ¶ 2).

2, The Bedford Loans

On or about May 29, 2009, Energokom loaned Bedford $100,000 (the “$100,000 Loan”) pursuant to a loan agreement. (Def.’s 56.1 ¶ 4; see also Aff. of Leonid Krizhanovsky in Supp. of Pl.’s Mot. (“Kri-zhanovsky Aff.”) ¶ 4 (Dkt. No. 43); id. at Ex. 2.) The agreement required that the $100,000 Loan be repaid by May 28, 2010. (Krizhanovsky Aff. Ex. 2, at 1.) Bedford [560]*560entered into a subsequent agreement with Energokom dated May 28, 2010 regarding the $100,000 Loan, (Def.’s 56.1 ¶ 5), which extended the repayment date for the $100,000 Loan to May 28, 2012, (Krizha-novsky Aff. Ex. 3). Bedford accepted the $100,000 Loan but has not repaid it. (Def.’s 56.1 ¶ 6.)

On or about October 20, 2009, Energo-kom loaned Bedford an additional $54,000 (the “$54,000 Loan” and, collectively with the $100,000 Loan, the “Bedford Loans”), pursuant to a loan agreement. (Def.’s 56.1 ¶ 7; see also Krizhanovsky Aff. ¶ 9; id. at Ex. 5.) The agreement required that the $54,000 Loan be repaid by December 31, 2010. (Krizhanovsky Aff. Ex. 5, at 1.) Bed-ford entered into a subsequent agreement with Energokom dated December 31, 2010 regarding the $54,000 Loan, (Def.’s 56.1 ¶ 8), which extended the repayment date for the $54,000 Loan to December 31, 2012, (Krizhanovsky Aff. Ex. 6). Bedford accepted the $54,000 Loan but has not repaid it. (Def.’s 56.1 ¶ 9.)

The loan agreements underlying each of the Bedford Loans contained the following section, entitled “Governing Law”:

This Agreement will be construed in accordance with and governed by the Latvian law and the competent courts of Latvian Republic shall have exclusive jurisdiction to hear all matters arising from or in connection with this Agreement.

(See Krizhanovsky Aff. Exs. 2, 5; see also Altman Decl. I ¶ 5.)

Energokom demanded payment of the Bedford Loans by letter dated July 13, 2012. (Decl. of Leonid Krizhanovsky (“Kri-zhanovsky Decl.”) ¶ 8 (Dkt. No. 53); Decl. of Alexander Altman in Opp’n to Pl.’s Mot. for Summ. J. (“Altman Decl. II”) ¶ 13 (Dkt. No. 48); id. at Ex. D.)2 AMTO and Third-Party Defendants assert that just over a month later, on August 20, 2012, Energokom assigned its rights under the Bedford Loans to AMTO. (See Krizhanov-sky Aff. ¶¶ 6, 11; id. at Ex. 4; see also Krizhanovsky Decl. ¶ 9; id. at Ex. 5.) Bed-ford denies that Energokom “effectively assigned to Plaintiff any of its rights” with respect to the Bedford Loans. (Answer with Counterclaims (“Answer”) ¶¶ 8, 25 (Dkt. No. 4).) Specifically, Bedford’s owner, Alexander Altman (“Altman”), contends that the assignment “occurred without fair consideration and was not in the regular course of Energokom’s business.” (Altman Decl. II ¶ 11.) Bedford further questions whether the assignment was valid under Latvian law. (Def.’s 56.1 ¶ 13; Decl. of Daniel F. McGuire in Opp’n to (1) Pl.’s Mots, for Summ. J. and Dismissal of Defenses and Countercls., and (2) Third-Party Def.’s Mot. for Dismissal of Third-Party Claims (“McGuire Decl.”) ¶ 10 (Dkt. No. 49); see also id. at Ex. 3.)

AMTO and Third-Party Defendants claim that on August 29, 2012, AMTO sent a letter to Bedford informing it of the assignment of the Bedford Loans from Energokom to AMTO. (See Krizhanovsky Decl. ¶ 10; id. at Ex. 6.)3 Altman vigorously disputes the authenticity of the letter, insisting that he never received, and has never seen, it. (Sur-Reply Decl. of Alexander Altman in Opp’n to Third-Party-Defs.’ Mot. To Dismiss (“Altman Sur-Reply Deck”) ¶¶ 4-6 (Dkt. No. 61).)

[561]*5613. The Tomkins Loan

On or around February 10, 2010, non-party Tomkins Ltd. (“Tomkins”) loaned $300,000 to Energokom (the “Tomkins Loan”), pursuant to a loan agreement. (Krizhanovsky Decl. ¶ 5; id. at Ex. 3; Altman Decl. I ¶ 6; Answer ¶ 44.) The loan agreement contained the following section, entitled “Governing Law”:

This Agreement will be construed in accordance with and governed by English law and the High Court in London shall have exclusive jurisdiction to hear all matters arising from or in connection with this Agreement.

(Krizhanovsky Decl. ¶ 5; id. at Ex. 3.)

On or around June 15, 2012, Tomkins assigned its rights under the Tomkins Loan to UNIX, s.r.o. (“UNIX”). (Krizha-novsky Decl. ¶ 7; Altman Decl. I ¶ 7.) Altman asserts that both he and UNIX are “well known to Kuznetsov and Energokom through prior business dealings,” and that he informed Kuznetsov of the assignment of the Tomkins Loan at or around the time that the assignment occurred. (Altman Decl. I ¶¶ 8-9.) By letter dated September 6, 2012, UNIX sent a demand letter to Energokom. (Id. ¶ 9.) The letter is entitled “1st reminder” and informs Energokom that UNIX acquired the Tomkins Loan. (Id. at Ex. A.) On October 1, 2012, Altman caused Bedford to acquire the Tomkins Loan from UNIX “for fair value.” (Altman Decl. I ¶ 10; see also Krizhanovsky Decl. ¶ 13.)4

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168 F. Supp. 3d 556, 2016 WL 1030141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amto-llc-v-bedford-asset-management-llc-nysd-2016.