Lebetkin v. Giray

CourtDistrict Court, S.D. New York
DecidedMarch 25, 2020
Docket1:18-cv-08170
StatusUnknown

This text of Lebetkin v. Giray (Lebetkin v. Giray) 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
Lebetkin v. Giray, (S.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------X : STEVEN LEBETKIN, : : Plaintiff, : 18cv8170 (DLC) -v- : : OPINION AND ORDER AYSE GIRAY a/k/a SARA BARAN and JOHN : DOES 1 through 25, : Defendants. : : -------------------------------------- X

APPEARANCES

For the plaintiff: Paul W. Verner Verner Simon 30 Wall Street, 8th Floor New York, NY 10005

For the defendant: Stephen M. Rosenberg Richard B. Feldman Michael H. Smith Rosenberg Feldman Smith, LLP 551 Fifth Avenue, 24th Floor New York, NY 10176

DENISE COTE, District Judge: Plaintiff Steven Lebetkin and defendant Ayse Giray entered into a Consulting Agreement (the “Agreement”) in 2012. Lebetkin alleges that Giray breached the Agreement by failing to pay him a contingency fee for his services. Defendant has moved for summary judgment. For the following reasons, defendant’s motion is granted. Background The following facts are undisputed or taken in the light most favorable to the plaintiff, unless otherwise noted. The Agreement Giray was formerly married to Hamdi Ulukaya, the founder of

the Chobani yogurt brand. They divorced in 1999. In 2006, Giray and Lebetkin began a romantic relationship. In June 2012, Lebetkin contacted Lewis Sassoon, an attorney, to discuss a potential lawsuit by Giray against Ulukaya which would assert that she was entitled to an equity stake in Chobani. Sassoon introduced Lebetkin and Giray to attorneys at the firm of Rosenberg Feldman Smith, LLP (“RFS”), including, as relevant here, Richard Feldman. Sassoon prepared a draft of a consulting agreement for Lebetkin and Giray to sign, which they did at the RFS offices on July 16, 2012. The Agreement begins by describing the services that

Lebetkin was to provide Giray and the payment that he was to receive in return: 1. Services. Consultant [Lebetkin] agrees to perform and complete services for; [sic] business consultation, review of business records, and working with attorneys and accountants, all in relation to a potential law suit (including settlement and negotiation talks) in connection with establishing Giray’s ownership interest to a portion of the shares of stock of Euphrates, Inc. and Agro-Farma, Inc. n/k/a Chobani, Inc., together with possible claims of breach of fiduciary duty against Hamdi Ulukaya (“Law Suit”). Consultant and Girary [sic] may amend the scope of work in writing from time to time in accordance with the terms set forth herein (the “Services”) and mutually agreed upon by Giray and Consultant. 2. Payment. In consideration of the Services performed by Consultant, Giray agrees to pay consultant 3% of any recovery Giray receives from the Law Suit, whether by trial settlement or otherwise. “Recovery” means any and all monies, property, benefits, shares of stock, membership interest in limited liability companies or other consideration in whatever form received by Giray directly or indirectly from Hamdi Ulukaya, relating to or concerning the interest or potential interest in Euphrates, Inc. and Agro-Farma, Inc., n/k/a Chobani, Inc. No other amounts shall be payable by Giray to Consultant, nor shall Consultant have any additional obligations to consult other than as defined herein. (Emphasis added.) According to Lebetkin, the Agreement’s reference to “working with attorneys” meant that he would act as a “liaison” or “go between” for Giray and her attorneys. Also of importance, the Agreement included the following language concerning its termination: 4. Term; Termination. This Agreement shall begin on the Effective Date [July 16, 2012] and terminate on the close or termination of the Law Suit or the close of negotiations and settlement of the Law Suit (the “Term”). Any remedies for breach of this Agreement shall survive any termination or expiration. Notwithstanding termination of this Agreement, the fees due to Consultant hereunder shall be paid according to this Agreement. (Emphasis added.) Termination Notice Lebetkin’s relationship with Giray, Sassoon, and the RFS attorneys rapidly became contentious.1 On August 2, Giray directed Lebetkin to only contact her attorneys with her

consent. In particular, she emailed Lebetkin: “[P]lease do not write anything without my consent and on my behalf. why is this??? YOu are worrying me as if this was your case. I am very upset.” Lebetkin sent the following reply: I am not going to fight with you about this. The assignment, which is extremely common, requires that I “perform and complete services for; business consultation, review of business records, and working with attorneys and accountants.” That is very clear to work on these kinds of records directly with the lawyers. You want to change that, and you have asked in writing for me not to work directly with the attorneys. So, I will follow your instructions on this requested change. And when they ask me about any records and business consultation, I will tell them you changed the agreement and I agreed. That means simple things like asking for bank statements and other administrative things. No problem. Sleep well.

1 In the brief period between the execution of the Agreement and Giray advising Lebetkin that it was terminated, Lebetkin did very little work. Among a few other things, he sent a “draft Chobani Litigation Worksheet” to the attorneys on July 18, explaining that he had prepared it “last night.” He attached three Microsoft Excel sheets, which summarized Giray’s contributions to and disbursements from Euphrates, Inc., an entity related to Chobani, Inc. Also, between July 30 and August 2, Lebetkin exchanged emails with RFS attorneys concerning his attempts to obtain bank records that would support Giray’s claims. Later that night, Giray again instructed Lebetkin to not send communications to her attorneys without copying her. She wrote: “[D]id you send them another e mail? This is way too much. you

go overboard you are making me [sic] impossible to work with lew [Lewis Sassoon]. You are ruining things. Stop e mailing withou[t] me seeing them[.]” Lebetkin replied, “I did not[.]” Despite Lebetkin’s assertion that he would follow Giray’s instruction “not to work directly with the attorneys,” he sent them numerous communications during August. On August 4, Lebetkin sent the attorneys his analysis of a Small Business Administration loan that Chobani had received in 2005. On August 16, he asked the attorneys to “research title and mortgage filings” for certain New York City apartments. On August 20, he forwarded the RFS attorneys a New York Times article concerning a lawsuit that alleged Chobani had misleadingly labeled its products.2 Lebetkin asked the attorneys

to “come up with an estimated amount of financial exposure to chobani” related to the labeling lawsuit, asserting that it “makes all the difference in our approach towards settlement.” Feldman replied,

2 See Stephanie Strom, Lawyers From Suits Against Big Tobacco Target Food Makers, N.Y. Times (Aug. 18, 2012), https:// www.nytimes.com/2012/08/19/business/lawyers-of-big-tobacco- lawsuits-take-aim-at-food-industry.html. It would be near impossible to comply with your request at this juncture. We do not know the status of the proceedings in the class action suit; the likelihood of their success on the merits; the nature and extent of the evidence; nor do we have access to their experts or any reports from them. Thus, there is no basis for us to make any sort of estimate. We need to remain focused on our case!!! On August 23, Lebetkin sent an email to the attorneys from Giray’s account, purporting to express her displeasure with their work. The email stated, in relevant part: I am writing to let you know of my displeasure and disappointment with the legal representation received to date. In particular, it is clear that I, not you, am doing extensive work and research on this matter that you should be doing. . . .

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