Matter of 979 Second Ave., LLC v. Golden Billion Trust

2024 NY Slip Op 32958(U)
CourtNew York Supreme Court, New York County
DecidedAugust 21, 2024
DocketIndex No. 654423/2023
StatusUnpublished

This text of 2024 NY Slip Op 32958(U) (Matter of 979 Second Ave., LLC v. Golden Billion Trust) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of 979 Second Ave., LLC v. Golden Billion Trust, 2024 NY Slip Op 32958(U) (N.Y. Super. Ct. 2024).

Opinion

Matter of 979 Second Ave., LLC v Golden Billion Trust 2024 NY Slip Op 32958(U) August 21, 2024 Supreme Court, New York County Docket Number: Index No. 654423/2023 Judge: John J. Kelley 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. INDEX NO. 654423/2023 NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 08/21/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. JOHN J. KELLEY PART 56M Justice ---------------------------------------------------------------------------------X INDEX NO. 654423/2023 In the Matter of MOTION DATE 01/25/2024 979 SECOND AVENUE, LLC, MOTION SEQ. NO. 001 Petitioner,

-v- GOLDEN BILLION TRUST, BAKERHOOD REALTY, INC., DECISION + ORDER ON AS TRUSTEE, WAH-MART GROUP (NY) CORP., and YUE MOTION WAH CHAO also known as WINNIE CHAO,

Respondents. ---------------------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 001) 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29 TURNOVER PROCEEDING/VACATE were read on this motion to/for FRAUDULENT CONVEYANCE/APPOINT RECEIVER .

In this special proceeding the petitioner, 979 Second Avenue, LLC (979 Second Avenue)

petitions (1) pursuant to CPLR 5225 directing the respondents Golden Billion Trust (GBT),

Bakerhood Realty, Inc. (Bakerhood), Wah-Mart Group (NY) Corp. (Wah-Mart), and Yue Wah

Chao (Chao), to turn over, to it, the sums of $105,732.62, $30,767.76, and $468,705.57,

representing three separate judgment debts owed by Chao and Wah-Mart (together the debtor

respondents), plus simple statutory post-judgment interest at 9% per annum on those sums

from March 17, 2022, November 3, 2022, and March 8, 2023, respectively, from all assets,

monies, funds, and property held jointly by GBT and Bakerhood in which the debtor

respondents have an interest; (2) pursuant to the Debtor and Creditor Law §§ 273, 274 and 276

voiding the transfer of several apartment units by the debtor respondents to those other

respondents, permitting 979 Second Avenue to attach or execute upon those units, enjoining

further disposition of those units and other property in which the debtor respondents may have

an interest, and awarding attorneys’ fees and costs incurred in seeking that relief; (3) pursuant

654423/2023 979 SECOND AVENUE LLC vs. GOLDEN BILLION TRUST ET AL Page 1 of 12 Motion No. 001

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to CPLR 5228 appointing a receiver to sell the units and disburse the proceeds to 979 Second

Avenue; and (4) for a judgment declaring that Chao, Bakerhood, and GBT are each other’s alter

egos, Chao is the equitable owner of Bakerhood and GBT, and that Bakerhood and GBT are

liable for all of Chao’s debts and obligations. The respondents do not oppose the petition. The

petition is granted, in part, as set forth herein.

On October 12, 2011, 979 Second Avenue, as landlord, and Wah Win Group Corp.

(WWGC), as tenant, entered into a lease referable to a storefront, and Chao personally

guaranteed WWGC’s obligations thereunder. After WWGC’s continued failure to pay rent, 979

Second Avenue obtained various judgements against Chao personally on the guaranty.

On December 15, 2021, in an action entitled 979 Second Ave., LLC v Chao, Sup Ct,

N.Y. County, Index No. 654145/2021, the court (Edwards, J.) granted 979 Second Avenue’s

motion for leave to enter a default motion against Chao. On March 17, 2022, the court entered

judgment in favor of 979 Second Avenue and against Chao, upon her default, in the amount of

$105,732.62 (see 979 Second Ave. LLC v Chao, Sup Ct, N.Y. County, Index No. 654145/2021,

Mar. 17, 2022 [Edwards, J.]). In an order dated January 11, 2023, that court denied Chao’s

motion to vacate her default, and the Appellate Division affirmed (see 979 Second Ave. LLC v

Yue Wah Chao, 227 AD3d 436 [1st Dept 2024]).

Nonetheless, on February 28, 2022, and thus subsequent to the entry of the order

granting the default, and less than three weeks prior to the entry of the judgment in that action,

Chao transferred, to Wah-Mart, her title to apartment units designated as 325 Fifth Avenue,

#35E, New York, New York (Unit 35E), and 155 West 71st Street, #5J, New York, New York

(Unit 5J), for no consideration, prompting 979 Second Avenue to commence an initial turnover

proceeding. On July 20, 2022, the court in that proceeding directed Wah-Mart to turn over, and

transfer to 979 Second Avenue, all assets held by Wah-Mart in which Chao had an interest,

including those apartment units, voided any transfers by Chao of her interest in those units to

Wah-Mart, and enjoined both Chao and Wah-Mart from effectuating any further transfer of those 654423/2023 979 SECOND AVENUE LLC vs. GOLDEN BILLION TRUST ET AL Page 2 of 12 Motion No. 001

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units and/or other property in which Chao may have an interest (see 979 Second Ave., LLC v

Wah-Mart (NY) Corp. and Chao, Sup Ct, N.Y. County, Index No. 154780/2022, Jul. 20, 2022

[Bluth, J.]). That court also ruled that Chao and Wah-Mart were each other’s alter egos, that

Chao was the equitable owner of Wah-Mart, and that Wah-Mart was liable for Chao’s debts and

obligations, including the relevant judgment. On November 3, 2022, that court awarded 979

Second Avenue $30,767.76 in attorneys’ fees in connection with that turnover proceeding, and

a money judgment for that sum was entered thereon as well (see id., Nov. 3, 2022).

Notwithstanding the injunction and directives issued by Justice Bluth, and

notwithstanding the fact that, on November 30, 2022, 979 Second Avenue uploaded the

turnover judgment to the Automated City Register Information System (ACRIS) in connection

with both Units 35E and 5J, Wah-Mart, on March 2, 2023, transferred ownership of Units 35E

and 5J jointly to Bakerhood and GBT for no consideration, and filed the deeds to those units

with ACRIS on March 22, 2023 and March 24, 2023, respectively1. Also on March 2, 2023,

Chao, on behalf Wah-Mart, transferred Wah-Mart’s ownership of an apartment unit designated

as 50 Bayard Street, #4F, New York, New York (Unit 4F), which Wah-Mart had owned since

2008, jointly to Bakerhood and GBT, and uploaded the deed to ACRIS on March 24, 2023. On

March 8, 2023, 979 Second Avenue obtained an additional judgment against Chao in the sum

of $468,705.57, after there had been further defaults in paying rent on the storefront lease (see

979 Second Ave., LLC v Chao, Sup Ct, N.Y. County, Index No. 654096/2022, Mar. 8, 2023

[Frank, J.]).

None of the three money judgments has yet been satisfied. On September 11, 2023,

979 Second Avenue commenced the current turnover proceeding.

1 The court notes that, although that turnover judgment required Wah-Mart, as grantor, to transfer title to Units 35E and 5J to 979 Second Avenue, the title company that filed the judgment on ACRIS mis- designated 979 Second Avenue as the “grantor” and Wah-Mart as the “grantee.” 654423/2023 979 SECOND AVENUE LLC vs. GOLDEN BILLION TRUST ET AL Page 3 of 12 Motion No. 001

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2024 NY Slip Op 32958(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-979-second-ave-llc-v-golden-billion-trust-nysupctnewyork-2024.