Libertas Funding, LLC v. Travelland RV

2024 NY Slip Op 30415(U)

Opinion

Libertas Funding, LLC v Travelland RV 2024 NY Slip Op 30415(U)

February 6, 2024

Supreme Court, Kings County Docket Number: Index No. 533254/2023 Judge: Leon Ruchelsman

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.

FILED: KINGS COUNTY CLERK 02/06/2024 02:19 PM INDEX NO. 533254/2023 NYSCEF DOC. NO. 48 RECEIVED NYSCEF: 02/06/2024

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF KINGS: CIVIL TERM: COMMERCIAL PART 8 -----. -------------- . -------- ... ··------------x LIBERTAS FUNDING, LLC,

Plaintiff, Decision and order

- against - Index.No. 533254/2023

TRAVELLAND RV, INC. AND KEVIN MICHAEL MUNSTERMANN,

Defendants, February 6, 2024 --. - ·--· . ·----· .. · ,----· ·-: ·----------· --· :---:x PRESENT: HON. LEON RUC::HELSMAN ~otion Seq. #1 & #2

The p1aintif:f has moved seeking summary judgement pursuant to GPLR §3212 arguing there are no questions of fact the defendants ow& the mohef sought. The defendants have cross-moved seeking to dismiss the complaint on the grounds of lack qf jurisdiction. The motions have been opposed respectively. Papers were submitted by the parties arid .after reviewing all the arguments this court now makes the following determination.

On August 7, 2023, the plaintiff a merchant cash advance fuhdihg provider entered into a contract with de.fendants who reside in Washington state. Pur.suant to. th.e agreement the. plaintiff purchased $198,000 of defendant's future receivable for $150,000. The defendant Kevin Munstermann guaranteed the agTeement. The plaintiff asserts the defendants stopped rernitta,nce s in b.Qtober 2 0 2.3 and now owe $15 8 , 819 . 5 0 . The plaintiff asserts. the de-fendants breached t:he agreemen:t by changing t:h~ bank whe.re.in the functs were to be withdrawn without notifying the plaintiff anci by failing to pay amounts when due.

1 of 4

[* 1]

FILED: KINGS COUNTY CLERK 02/06/2024 02:19 PM INDEX NO. 533254/2023 NYSCEF DOC. NO. 48 RECEIVED NYSCEF: 02/06/2024

This .a-e.tion- was commen_c-e_d and now the pla,intiff seeks summary j.µdgernent arguing the.r;e .can be no: questions .of fact the

defendants owe the amount outstanding and judgement should be granted in their favor·. The- -def,endant;:s _oppose· the. m9tion arg1,1ing there has bE!en no jurisdiction Conferred- upon the def e:ndants- and in any event: there are questions of fact which preclude a su!11IIlary -determinatio n at this time.

Conclusions_ of Law

Where the material facts at i$sue in a case ~~e in disput~ summary judgment canno1: be .granted ( Zuckerman ·~1. City of New ·tork, 49 N.YS2d SS-.7, 427 NYS2d 595 [1980"] )". Generally, it ·is ;for

the jury, the trier of fact 'to determine the legal cause of any injury, however, where only one conclusi:on rri.ay be drawn from the

facts then the que·stiort of legal cause m-ay be decided by the triai cou:rt as a matter o:f 1 9 w (Marino v; Jarriison, 189 AD3d 1021,

136NYS3d :324 [2d Dept., 2021).

It_ i,s well settl~d that the parties to an agr.eemeht may

freely select any forum to ·r·.esolve·· -any disputes re.garding the interpretatio n. or ·perf.ormance 0,f t_he <:igre'eme.nt {Br·oo.ke Group -v. JCH Syndicate 488, 87 NY2d 530, 64.0 NYS.2d 479 [1996]). Further, a forum s-electi.bn cla.use .is pTim? faq;i.·e valid '~1,1nless- it 1·s· .shown by t:he c_hqllenging _pa_rty t.o he .unreasonable. , urij ust, in. contrav.erid. oh o.f pubJic policy, invalid due to fr·aud or

2

2 of 4

[* 2]

FILED: KINGS COUNTY CLERK 02/06/2024 02:19 PM INDEX NO. 533254/2023 NYSCEF DOC. NO. 48 RECEIVED NYSCEF: 02/06/2024

overreaching, or it is shown that a trial iri the selected forum would be so gravely difficult that the challenging party would,

for all practical purposes, be deprived of its day in court'1 (see, Stravalle v. Land Cargo Inc., 39 AD3d 735, 835 NYS2d 606 [2d Dept., 2007]), In this case the agreement states that "any lawsuit, action or proceeding arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York State (the "Acceptable Forums"). Each party signing this Agreement agrees that the Acceptable Forums are convenient, and irrevocably submits to the jur.isdiction of the Acceptable Forums and waives any and all objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any other forum, the p,arties waive any right to oppose any motion or application made by either party to transfer such proceeding to an Acceptable Forum'' ( ~ , Agreement of s.ale

of Future Receipts,

.

146 [NYSCEF Doc. No. 2]).

.

The defendants argue that notwithstanding the forum selec:tion clause, pursuant to Business Corporation Law. §1314 (b) ri.o such basis for jurisdiction exists. That statute states that a nonresident may not maintain an action against a foreign :corporation, The statute does enumerate five· exceptions, namely

( 1) the action is brought:.. to recover damages arising from the breach of a contract made or to be performed in New York; (2) the subject matter of the litigation is within t'lew York; (3) t:he

3

3 of 4

[* 3]

FILED: KINGS COUNTY CLERK 02/06/2024 02:19 PM INDEX NO. 533254/2023 NYSCEF DOC. NO. 48 RECEIVED NYSCEF: 02/06/2024

·ca,use. -of action .a.rose within New York; (.4) t.h_e nqn.-domicili ary woµlq b.e subj_ect to per.son.al jurisqiction under CPLR §302; and (5) the de.fendarit is a foreign entity d"oing busine_ss or a:uthorized to do b.usine--s:s in: New Yo.rk. '.!:'he defendants a_ssert that none of the exceptions apply and that con:seque·ntly no subj e·ct matter jurisdiction has been conferr.ed. _. T.he plaintiff

counters that Business .. Corporation Law -§1314 {b) ,cannot ]par the ~ct ion because the plaintiff is a _limited liability company and

not:. a- corpo-ration .. Tt is true· that Business: c.orporation -Law

§1314 (b) only apP,lies to co_rporatiqns an.ct not lirni.ted liability companies (see, ·Pinnacle Business Fundihg LLC v. Muharib, 2023" WL

6:94 0304. [Supreme .Court ""Kiri.gs County 2023] ) . Thus, ];3µsiQ.es._s

Corporation Law §l314(b) cannot be valid grounds upon which to -object to j"urisd-iction .

Indeed,.- the:re· are no gro.unds ·to object to jµri.sdict.;Lon .

Furthe.r, there are no other grounds presented opposing the motion seeking, sum+nary judg,ement. ·Thus,. the motion. ·s_ee,kin9·· summary jlidgerne.nt is granted a_n¢l the _cross-moti_on seeking to dismiss is

hereby denied.

So ordered.

ENTER:

DATED: :Fe_pruaiy 6r 2024 B:rooklyn. N. Y.. I-ton.

·.JS.C

4

4 of 4

[* 4]