INTE Securities, LLC v. Skybell Technologies, Inc.

CourtDistrict Court, S.D. New York
DecidedFebruary 23, 2024
Docket1:23-cv-03241
StatusUnknown

This text of INTE Securities, LLC v. Skybell Technologies, Inc. (INTE Securities, LLC v. Skybell Technologies, Inc.) 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
INTE Securities, LLC v. Skybell Technologies, Inc., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK INTE SECURITIES, LLC, Petitioner, 23 Civ. 3241 (KPF) -v.- OPINION AND ORDER

SKYBELL TECHNOLOGIES, INC., Respondent. KATHERINE POLK FAILLA, District Judge: Before the Court is Petitioner INTE Securities, LLC’s unopposed motion for summary judgment in support of its petition (the “Petition”) to confirm an arbitral award pursuant to Section 9 of the Federal Arbitration Act (the “FAA”), 9 U.S.C. §§ 1-16. Following the arbitration proceedings that heralded this action, arbitrator Richard H. Silberberg (the “Arbitrator”) of the American Arbitration Association (the “AAA”) issued a Final Award (the “Final Award”) finding that Respondent Skybell Technologies, Inc. had breached a payment obligation contained in the Investment Advisory and Investment Banking Agreement (the “IA/IB Agreement”) entered into by the parties in late 2018, which breach had resulted in damages in the principal sum of $250,000. For the reasons set forth in the remainder of this Opinion, the Court grants Petitioner’s motion and confirms the Final Award. BACKGROUND1 A. Factual Background Petitioner INTE Securities, LLC is a Florida limited liability company

registered with the Financial Industry Regulatory Authority (“FINRA”) as a broker-dealer. (Pet. 56.1 ¶ 2). Its main office is located in Boca Raton, Florida. (Id. ¶ 3). Respondent Skybell Technologies, Inc. is a Nevada corporation that develops Wi-Fi-enabled doorbell cameras for home security systems. (Id. ¶¶ 1, 6). Its principal place of business is located in Irvine, California. (Id. ¶ 7). The instant dispute arose from an Investment Advisory and Investment Banking Agreement entered into between Petitioner and the entity “Skybell, Inc.” on December 21, 2018. (Pet. 56.1 ¶ 15). Petitioner asserts that the IA/IB

Agreement mistakenly referred to “Skybell, Inc.,” and that its counterparty should have been designated as “Skybell Technologies, Inc.” (i.e., Respondent). (See Chubak Decl., Ex. 1 (“Final Award”) at 1 n.1). The IA/IB Agreement was

1 The facts set forth in this Opinion are drawn from Petitioner’s submissions in connection with its motion for summary judgment. The Court primarily sources facts from Petitioner’s Local Rule 56.1 Statement (“Pet. 56.1” (Dkt. #14)) and the Declaration of Jeffrey Chubak, Esq. (“Chubak Decl.” (Dkt. #16)), including the exhibits attached thereto (“Chubak Decl., Ex. []”). Citations to Petitioner’s Rule 56.1 Statement incorporate by reference the documents and testimony cited therein. Where a fact stated in the Rule 56.1 Statement is supported by evidence, the Court finds that fact to be true. See Local Civil Rule 56.1(c) (“Each numbered paragraph in the statement of material facts set forth in the statement required to be served by the moving party will be deemed to be admitted for purposes of the motion unless specifically controverted by a correspondingly numbered paragraph in the statement required to be submitted by the opposing party.”); id. at 56.1(d) (“Each statement by the movant or opponent pursuant to Rule 56.1(a) and (b), including each statement controverting any statement of material fact, must be followed by citation to evidence which would be admissible, set forth as required by Fed. R. Civ. P. 56(c).”).

2 signed by Joseph Scalisi, Respondent’s Founder and Chief Technology Officer. (See Chubak Decl., Ex. 11 (“IA/IB”) at 9). Relevant to the instant dispute, Section 8.B(1) of the IA/IB Agreement calls for the payment of $250,000 to

Nathan Low, the designated “Service Provider” under the IA/IB Agreement, “or any company designated by him,” not later than “18 months from the date of th[e] Agreement.” (Id. at 4). On August 4, 2022, Petitioner sent Respondent a written notice via registered mail of its intention to commence an arbitration proceeding pursuant to Section 17.G of the IA/IB Agreement. (Pet. 56.1 ¶¶ 22-23; see generally Chubak Decl., Ex. 14). The letter was delivered to Respondent’s address — the address listed for “Skybell, Inc.” in the IA/IB Agreement (see

IA/IB 7), and as the “Principal Address” of the entity “Skybell Technologies, Inc.” in a Statement of Information, Corporation, obtained by Petitioner from the California Secretary of State (see Chubak Decl., Ex. 5 at 1) — on August 12, 2022. (Pet. 56.1 ¶ 23). Petitioner also emailed the letter to Joseph Scalisi; to Desiree Mejia, Respondent’s Co-Founder and Chief Operating Officer; and to Ron Garriques, its Chief Executive Officer. (Pet. 56.1 ¶¶ 17, 24; see generally Chubak Decl., Ex. 16). Petitioner thereafter filed a Demand for Arbitration, Statement of Claim,

and accompanying exhibits with the AAA on September 9, 2022. (Pet. 56.1 ¶ 25; see generally Chubak Decl., Ex. 7). Petitioner again sent notice of the

3 filing to Scalisi, Mejia, and Garriques via email. (Pet. 56.1 ¶¶ 25-26; see generally Chubak Decl., Ex. 17). By letter dated November 11, 2022, the AAA notified the parties of the

appointment of Richard H. Silberberg as arbitrator, and the scheduling of a preliminary hearing for November 21, 2022, via Zoom. (Pet. 56.1 ¶ 27; see generally Chubak Decl., Ex. 18). Despite receiving notice, Respondent failed to attend the hearing. (Pet. 56.1 ¶ 28). The Arbitrator rescheduled the preliminary hearing to December 19, 2022, indicating via Procedural Order issued November 23, 2022, that “if Respondent did not appear, the preliminary hearing would move forward on that date and [the Arbitrator] would establish the schedule and procedures for the Arbitration without Respondent’s

participation.” (Final Award 3). Each of the AAA’s Procedural Orders was sent to Respondent via both physical and electronic mail at the addresses for Respondent provided by Petitioner and on file with the AAA. (Id.). After Respondent failed to appear for the December 19, 2022 preliminary hearing, Petitioner sought leave to submit a dispositive motion pursuant to Rule R-34 of the AAA Commercial Arbitration Rules on January 12, 2023. (Final Award 3 & n.2). Respondent was directed (again, via Procedural Order) to file a written response by January 27, 2023. (Id. at 3). Respondent filed no

such response, and the Arbitrator authorized Petitioner to file a dispositive motion by February 17, 2023. (Id.).

4 Petitioner filed its dispositive motion on February 15, 2023, together with several sworn affidavits. (Final Award 3). Respondent was provided — by yet another Procedural Order — until March 8, 2023, to submit a written

response. (Id. at 4). No such response was filed. (Id.). The Arbitrator thereafter declared the arbitration proceedings closed as of March 8, 2023. (Id.). On April 5, 2023, the Arbitrator issued a Final Award granting Petitioner’s dispositive motion and directing Respondent to pay Petitioner $250,000 plus pre-award interest at the statutory rate from June 21, 2020, through April 5, 2023 (totaling $62,753.42) for a total award of $312,753.42. (Pet. 56.1 ¶ 31; Final Award 6-7). The Final Award also directed Respondent to

reimburse Petitioner $9,582.50 for AAA administrative fees and arbitrator compensation. (Id.). Of equal importance, the Final Award made the factual finding that the entity “Skybell, Inc.” identified in the IA/IB Agreement was in fact Respondent. (Id. at 5). B. Procedural Background The procedural history of the instant case is somewhat circuitous. After the arbitration proceedings concluded, Petitioner commenced the instant action on April 18, 2023, by filing a petition to confirm the Final Award

pursuant to Section 9 of the FAA. (See generally Dkt. #1).

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INTE Securities, LLC v. Skybell Technologies, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/inte-securities-llc-v-skybell-technologies-inc-nysd-2024.