Awe Inc. v Anjac Enters. Inc. 2026 NY Slip Op 30714(U) February 27, 2026 Supreme Court, New York County Docket Number: Index No. 652543/2020 Judge: Lori S. Sattler 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.
file:///LRB-ALB-FS1/Vol1/ecourts/Process/covers/NYSUP.6525432020.NEW_YORK.001.LBLX036_TO.html[03/10/2026 3:45:54 PM] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. LORI S. SATTLER PART 02M Justice ---------------------------------------------------------------------------------X INDEX NO. 652543/2020 AWE INCORPORATED, MOTION DATE 03/31/2025 Plaintiff, MOTION SEQ. NO. 002 -v- ANJAC ENTERPRISES INC.,GREGORY SHMULEVICH, DECISION + ORDER ON HUDSON INSURANCE COMPANY MOTION Defendant. ---------------------------------------------------------------------------------X
The following e-filed documents, listed by NYSCEF document number (Motion 002) 2, 10, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67 were read on this motion to/for JUDGMENT - SUMMARY .
In this commercial action, Plaintiff Awe Incorporated (“Plaintiff”) moves for summary
judgment on its claims and dismissal of the counterclaims asserted by Defendants Anjac
Enterprises Inc. (“Anjac”) and Gregory Shmulevich (“Shmulevich”). Defendants Anjac,
Shmulevich and Hudson Insurance Company (“HIC”) oppose the motion.
Anjac is a general contracting firm working on municipal construction projects (NYSCEF
Doc. No. 60, Berg’s Affirmation ¶ 7). Shmulevich is Anjac’s employee, working as a project
manager and engineer (Berg’s Affirmation ¶ 1). Anjac was hired by non-party New York State
Office of General Services (“NYSOGS”) to perform construction work in three Psychiatric
Centers: Creedmoor, Manhattan, and Kingsboro. Plaintiff was Anjac’s subcontractor on all three
projects, based on three separate subcontract agreements entered into between September 2018
and April 2019 (NYSCEF Doc. No. 43, Creedmoor Subcontract; NYSCEF Doc. No. 45,
Manhattan Subcontract; NYSCEF Doc. No. 47, Kingsboro Subcontract). Each of these
Subcontracts provided for progress payments based on approved performance and payments by
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 1 of 6 Motion No. 002
1 of 6 [* 1] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
NYSOGS, and that “[p]roof LL220 compliance and payment to workers, Material-, Equipment-
suppliers is required prior to final payment” (Creedmoor Subcontract at 1; Manhattan Subcontract
at 1; Kingsboro Subcontract at 1). Shmulevich signed these Subcontracts on Anjac’s behalf (id.).
Plaintiff completed the work contracted for in all Subcontracts, which was accepted by
NYSOGS, and Anjac received final payments from NYSOGS on all projects by October 2020
(NYSCEF Doc. No. 48-50). However, Anjac did not pay the full amount billed by Plaintiff
(NYSCEF Doc. No. 56, Notice to Admit ¶¶ 1-8, 10, 13-22, 24, 27-34, 36, 39-41; NYSCEF Doc.
No. 57, Response to Notice to Admit ¶ 1). The undisputed total outstanding amount due to Plaintiff
is $99,000; that is $27,550 under the Manhattan Subcontract, $42,650 under the Creedmoor
Subcontract, and $28,800 under the Kingsboro Subcontract (Notice to Admit ¶¶ 3-4, 17-18, 32-
33; Response to Notice to Admit ¶ 1; Creedmoor Subcontract at 1; Manhattan Subcontract at 1;
Kingsboro Subcontract at 1). In February 2020, Plaintiff filed mechanic’s liens due to lack of
payment (NYSCEF Doc. No. 51, “Mechanic’s Liens”). In April 2020, HIC issued bonds
discharging the liens (NYSCEF Doc. No. 52, “Bonds”).
In June 2020, Plaintiff initiated this proceeding, interposing causes of action for breach of
contract and diversion of trust funds against Anjac and Shmulevich, and for foreclosure of the
Mechanic’s Liens against the Bonds against Anjac and HIC. In their answer, Defendants
interposed three counterclaims: two for breach of contract on behalf of Anjac for failure to keep
payroll records and failure to remit funds to material men, and one on behalf of Shmulevich for
damages resulting from this action.
Almost three years after this action was commenced, in April 2023, the Commissioner of
Labor issued a notice to the Office of State Comptroller (“State Comptroller”) informing it that an
investigation had been commenced to determine whether wages had been fully paid for the
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 2 of 6 Motion No. 002
2 of 6 [* 2] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
Manhattan Psychiatric Center project (NYSCEF Doc. No. 55, “Notice”). The Notice required the
State Comptroller to withhold the total amount of $7,258.04, but did not specify what, if any,
irregularities in Anjac’s or Plaintiff’s conduct were investigated (id.). There is no evidence that
any payment was withheld, since Anjac admits it received full payment for this project.
On a motion for summary judgment, the moving party “must make a prima facie showing
of entitlement to judgment as a matter of law, tendering sufficient evidence to eliminate any
material issues of fact from the case” (Winegrad v New York Univ. Med. Center, 64 NY2d 851,
853 [1985], citing Zuckerman v City of New York, 49 NY2d 557, 562 [1980]). “Failure to make
such showing requires denial of the motion, regardless of the sufficiency of the opposing papers”
(Winegrad, 64 NY2d at 853). Should the movant make its prima facie showing, the burden shifts
to the opposing party, who must then produce admissible evidentiary proof to establish that
material issues of fact exist (Alvarez v Prospect Hosp., 68 NY2d 320, 324 [1986]). A cause of
action for breach of contract requires a plaintiff to demonstrate “the existence of a contract, the
plaintiff’s performance thereunder, the defendant’s breach thereof, and resulting damages” (Harris
v Seward Park Hous. Corp., 79 AD3d 425, 426 [1st Dept 2010], citing Morris v 702 E. Fifth St.
HDFC, 46 AD3d 478, 479 [2007]).
Here, it is undisputed that Plaintiff and Anjac were bound by the three subcontracts, and
that Plaintiff performed the work thereunder, but did not receive full payment for it. Defendants
allege that the reason for non-payment was a concern that payrolls provided by Plaintiff were
improper (Berg’s Affirmation ¶¶ 8-10, 14), relying on check’s made payable to Plaintiff’s
employees in the sum of zero dollars (NYSCEF Doc. No. 63, Checks), however, “[a] shadowy
semblance of an issue [is] insufficient to defeat summary judgment” (Stonehill Capital Mgt. LLC
v Bank of the W., 28 NY3d 439, 448 [2016] [internal citation omitted]). Additionally, Plaintiff
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 3 of 6 Motion No. 002
3 of 6 [* 3] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
submits sworn affidavits from all its employees named in the checks, in which they confirm that
they were paid directly by Plaintiff, rather than a payroll company, which resulted in the checks
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Awe Inc. v Anjac Enters. Inc. 2026 NY Slip Op 30714(U) February 27, 2026 Supreme Court, New York County Docket Number: Index No. 652543/2020 Judge: Lori S. Sattler 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.
file:///LRB-ALB-FS1/Vol1/ecourts/Process/covers/NYSUP.6525432020.NEW_YORK.001.LBLX036_TO.html[03/10/2026 3:45:54 PM] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. LORI S. SATTLER PART 02M Justice ---------------------------------------------------------------------------------X INDEX NO. 652543/2020 AWE INCORPORATED, MOTION DATE 03/31/2025 Plaintiff, MOTION SEQ. NO. 002 -v- ANJAC ENTERPRISES INC.,GREGORY SHMULEVICH, DECISION + ORDER ON HUDSON INSURANCE COMPANY MOTION Defendant. ---------------------------------------------------------------------------------X
The following e-filed documents, listed by NYSCEF document number (Motion 002) 2, 10, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67 were read on this motion to/for JUDGMENT - SUMMARY .
In this commercial action, Plaintiff Awe Incorporated (“Plaintiff”) moves for summary
judgment on its claims and dismissal of the counterclaims asserted by Defendants Anjac
Enterprises Inc. (“Anjac”) and Gregory Shmulevich (“Shmulevich”). Defendants Anjac,
Shmulevich and Hudson Insurance Company (“HIC”) oppose the motion.
Anjac is a general contracting firm working on municipal construction projects (NYSCEF
Doc. No. 60, Berg’s Affirmation ¶ 7). Shmulevich is Anjac’s employee, working as a project
manager and engineer (Berg’s Affirmation ¶ 1). Anjac was hired by non-party New York State
Office of General Services (“NYSOGS”) to perform construction work in three Psychiatric
Centers: Creedmoor, Manhattan, and Kingsboro. Plaintiff was Anjac’s subcontractor on all three
projects, based on three separate subcontract agreements entered into between September 2018
and April 2019 (NYSCEF Doc. No. 43, Creedmoor Subcontract; NYSCEF Doc. No. 45,
Manhattan Subcontract; NYSCEF Doc. No. 47, Kingsboro Subcontract). Each of these
Subcontracts provided for progress payments based on approved performance and payments by
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 1 of 6 Motion No. 002
1 of 6 [* 1] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
NYSOGS, and that “[p]roof LL220 compliance and payment to workers, Material-, Equipment-
suppliers is required prior to final payment” (Creedmoor Subcontract at 1; Manhattan Subcontract
at 1; Kingsboro Subcontract at 1). Shmulevich signed these Subcontracts on Anjac’s behalf (id.).
Plaintiff completed the work contracted for in all Subcontracts, which was accepted by
NYSOGS, and Anjac received final payments from NYSOGS on all projects by October 2020
(NYSCEF Doc. No. 48-50). However, Anjac did not pay the full amount billed by Plaintiff
(NYSCEF Doc. No. 56, Notice to Admit ¶¶ 1-8, 10, 13-22, 24, 27-34, 36, 39-41; NYSCEF Doc.
No. 57, Response to Notice to Admit ¶ 1). The undisputed total outstanding amount due to Plaintiff
is $99,000; that is $27,550 under the Manhattan Subcontract, $42,650 under the Creedmoor
Subcontract, and $28,800 under the Kingsboro Subcontract (Notice to Admit ¶¶ 3-4, 17-18, 32-
33; Response to Notice to Admit ¶ 1; Creedmoor Subcontract at 1; Manhattan Subcontract at 1;
Kingsboro Subcontract at 1). In February 2020, Plaintiff filed mechanic’s liens due to lack of
payment (NYSCEF Doc. No. 51, “Mechanic’s Liens”). In April 2020, HIC issued bonds
discharging the liens (NYSCEF Doc. No. 52, “Bonds”).
In June 2020, Plaintiff initiated this proceeding, interposing causes of action for breach of
contract and diversion of trust funds against Anjac and Shmulevich, and for foreclosure of the
Mechanic’s Liens against the Bonds against Anjac and HIC. In their answer, Defendants
interposed three counterclaims: two for breach of contract on behalf of Anjac for failure to keep
payroll records and failure to remit funds to material men, and one on behalf of Shmulevich for
damages resulting from this action.
Almost three years after this action was commenced, in April 2023, the Commissioner of
Labor issued a notice to the Office of State Comptroller (“State Comptroller”) informing it that an
investigation had been commenced to determine whether wages had been fully paid for the
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 2 of 6 Motion No. 002
2 of 6 [* 2] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
Manhattan Psychiatric Center project (NYSCEF Doc. No. 55, “Notice”). The Notice required the
State Comptroller to withhold the total amount of $7,258.04, but did not specify what, if any,
irregularities in Anjac’s or Plaintiff’s conduct were investigated (id.). There is no evidence that
any payment was withheld, since Anjac admits it received full payment for this project.
On a motion for summary judgment, the moving party “must make a prima facie showing
of entitlement to judgment as a matter of law, tendering sufficient evidence to eliminate any
material issues of fact from the case” (Winegrad v New York Univ. Med. Center, 64 NY2d 851,
853 [1985], citing Zuckerman v City of New York, 49 NY2d 557, 562 [1980]). “Failure to make
such showing requires denial of the motion, regardless of the sufficiency of the opposing papers”
(Winegrad, 64 NY2d at 853). Should the movant make its prima facie showing, the burden shifts
to the opposing party, who must then produce admissible evidentiary proof to establish that
material issues of fact exist (Alvarez v Prospect Hosp., 68 NY2d 320, 324 [1986]). A cause of
action for breach of contract requires a plaintiff to demonstrate “the existence of a contract, the
plaintiff’s performance thereunder, the defendant’s breach thereof, and resulting damages” (Harris
v Seward Park Hous. Corp., 79 AD3d 425, 426 [1st Dept 2010], citing Morris v 702 E. Fifth St.
HDFC, 46 AD3d 478, 479 [2007]).
Here, it is undisputed that Plaintiff and Anjac were bound by the three subcontracts, and
that Plaintiff performed the work thereunder, but did not receive full payment for it. Defendants
allege that the reason for non-payment was a concern that payrolls provided by Plaintiff were
improper (Berg’s Affirmation ¶¶ 8-10, 14), relying on check’s made payable to Plaintiff’s
employees in the sum of zero dollars (NYSCEF Doc. No. 63, Checks), however, “[a] shadowy
semblance of an issue [is] insufficient to defeat summary judgment” (Stonehill Capital Mgt. LLC
v Bank of the W., 28 NY3d 439, 448 [2016] [internal citation omitted]). Additionally, Plaintiff
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 3 of 6 Motion No. 002
3 of 6 [* 3] FILED: NEW YORK COUNTY CLERK 03/03/2026 11:45 AM INDEX NO. 652543/2020 NYSCEF DOC. NO. 68 RECEIVED NYSCEF: 03/02/2026
submits sworn affidavits from all its employees named in the checks, in which they confirm that
they were paid directly by Plaintiff, rather than a payroll company, which resulted in the checks
from the payroll company being issued for zero dollars (NYSCEF Doc. No. 54).
Defendants further rely on the Notice from the Commissioner of Labor, but that was issued
almost four years after Plaintiff completed the work under the Subcontracts and three years after
this action was commenced, and Defendants concede that the State Comptroller has not raised any
issue with Anjac regarding Plaintiff’s payroll submissions on any of the projects (Notice to Admit
¶¶ 12, 26, 38; Response to Notice to Admit ¶ 1). Accordingly, Plaintiff demonstrates that Anjac
breached the Subcontracts by failing to pay the amounts due to Plaintiff and summary judgment is
granted as to these causes of action as against Anjac. However, Plaintiff fails to demonstrate the
existence of a contract with Shmulevich, therefore, the motion is denied as to the breach of contract
causes of action as against him and these causes of action are dismissed.
The motion is granted as to the cause of action for foreclosure of the Mechanic’s Liens
against the Bonds. To enforce a mechanic’s lien against a discharge bond, a party is “required to
make a prima facie case the lien was valid, and that it was entitled to the amount asserted” (KNR
Constr., LLC v Epiphany Constr. Servs., Ltd., 228 AD3d 511, 511 [1st Dept 2024]). Here, there is
no dispute between the parties as to the validity of the Liens before they were discharged by the
Bonds or the amount owed by Anjac to Plaintiff. Accordingly, Plaintiff may recover the damages
due for breach of contract against the Bonds.
In light of the foregoing, the motion as to the diversion of funds causes of action is moot
and these causes of action are dismissed.
As for the counterclaims, the motion for summary judgment is granted. Defendants
concede that the State Comptroller “had not raised any claim with Anjac regarding payroll or other
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submissions” on any of the projects completed by Plaintiff (Notice to Admit ¶¶ 12, 26, 38;
Response to Notice to Admit ¶ 1), justifying dismissal of the first counterclaim, for breach of
contract based on alleged payroll deficiencies. Similarly, as Plaintiff furnished proof that it paid
its employees (NYSCEF Doc. No. 54) and Defendants failed to raise a triable issue of facts to
contradict it, the motion is granted and the second counterclaim for breach of contract is also
dismissed. Finally, Shmulevich’s counterclaim for damages caused by being sued in this
proceeding is also dismissed, as he fails to sufficiently set forth a cause of action.
Accordingly, it is hereby
ORDERED that Plaintiff’s motion for summary judgment is granted as to the first, third,
and fifth causes of action for breach of the Manhattan Subcontract, the Creedmoor Subcontract,
and the Kingsboro Subcontract against Defendant Anjac and the Clerk is directed to enter
judgment in favor of Plaintiff Awe Incorporated and against Defendant Anjac Enterprises Inc. in
the amount of $99,000 with statutory interest from February 7, 2020; and it is further
ORDERED that Plaintiff’s motion for summary judgment is granted as to the seventh cause
of action for the foreclosure of the Mechanic’s Liens against the Bonds and Plaintiff shall have the
right to enforce the awarded damages against the Bonds; and it is further
ORDERED that Defendant Anjac Enterprises Inc. and/or Defendant Hudson Insurance
Company shall pay to Plaintiff Awe Incorporated within 30 days of the service of the copy of this
order with the notice of entry, up to but not to exceed the full amount due under the Bonds, to be
applied toward the satisfaction of the judgment against Defendant Anjac Enterprises Inc.; and it is
further
ORDERED that Plaintiff’s motion for summary judgment is granted as to Defendants’
counterclaims, and all counterclaims are dismissed; and it is further
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ORDERED that Plaintiff’s the first, third, and fifth causes of action for breach of contract
as against Defendant Gregory Shmulevich are dismissed; and it is further
ORDERED that Plaintiff’s second, fourth, and sixth causes of action for diversion of funds
as to all Defendants are dismissed.
All other relief sought is denied. This constitutes the Decision and Order of the Court.
2/27/2026 $SIG$ DATE LORI S. SATTLER, J.S.C. CHECK ONE: X CASE DISPOSED NON-FINAL DISPOSITION
□ GRANTED DENIED X GRANTED IN PART OTHER
APPLICATION: SETTLE ORDER SUBMIT ORDER
□ CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT REFERENCE
652543/2020 AWE INCORPORATED vs. ANJAC ENTERPRISES INC. ET AL Page 6 of 6 Motion No. 002
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