Poppy Holdings, LLC v. Ruslan Milov

CourtNew Jersey Superior Court Appellate Division
DecidedOctober 2, 2024
DocketA-2549-22
StatusUnpublished

This text of Poppy Holdings, LLC v. Ruslan Milov (Poppy Holdings, LLC v. Ruslan Milov) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poppy Holdings, LLC v. Ruslan Milov, (N.J. Ct. App. 2024).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2549-22

POPPY HOLDINGS, LLC, and TRYSTONE CAPITAL ASSETS, LLC,

Plaintiffs-Respondents,

v.

RUSLAN MILOV and LYUDMILA MILOV, 1

Defendants-Appellants,

and

DIVISION OF CODES AND STANDARDS,

Defendant. ___________________________

341 CONNECTICUT, LLC and ITTA JACOBS,

Intervenors-Respondents. ___________________________

1 Improperly pled as Linda Milov. Argued September 10, 2024 – Decided October 2, 2024

Before Judges Perez Friscia and Bergman.

On appeal from the Superior Court of New Jersey, Chancery Division, Passaic County, Docket No. F-004127-21.

Lisa C. Krenkel argued the cause for appellants (Krenkel & Krenkel, LLC, attorneys; Lisa C. Krenkel, on the briefs).

Anthony L. Velasquez argued the cause for respondents Poppy Holdings, LLC, and Trystone Capital Assets, LLC (Tryko Partners, attorneys; Anthony L. Velasquez, on the brief).

Patrick O. Lacsina argued the cause for respondents 341 Connecticut, LLC, and ITTA Jacobs (Patrick O. Lacsina Law Offices, LLC, attorneys; Patrick O. Lacsina, on the brief).

PER CURIAM

In this tax sale foreclosure matter, defendants Ruslan Milov and Lyudmila

Milov2 appeal from the April 27, 2023 Chancery Division order denying their

motion to vacate final judgment by default entered in favor of plaintiff Poppy

Holdings, LLC. Based on our review of the record, we conclude the trial court

2 For clarity, intending no disrespect, we refer to Ruslan Milov and Lyudmila Milov by their first names. A-2549-22 2 correctly determined service of process of the tax sale foreclosure complaint was

valid. We affirm.

I.

We summarize the pertinent facts from the testimony adduced at the two -

day hearing. In 1998, Ruslan purchased a commercial, four-family rental

property in Passaic. At the time of the purchase, defendants were married. In

2018, Ruslan failed to pay $2,771.94 in property taxes. Trystone Capital Assets,

LLC purchased the tax sale certificate for the property.

In accordance with the Fair Foreclosure Act, N.J.S.A. 2A:50-53 to -82,

Trystone served defendants a notice of intention to foreclose, dated June 30,

2021, by regular and certified mail at their home address. The certified mail

was unclaimed, but the regular mailed notice was not returned. On August 9,

Trystone filed a tax sale foreclosure complaint naming Ruslan and "Mrs. Milov,

spouse of Ruslan Milov" as defendants. Trystone certified defendants were

personally served the summons and complaint on August 23.

Process server William Sanchez provided Trystone two affidavits of

service, dated August 23, 2021, reflecting he effectuated personal service on

defendants. The affidavit of service for "Mrs. Milov" indicated service was

perfected by delivering a copy to "Mrs. Linda Milov" and notarized with the

A-2549-22 3 date of August 23. The affidavit of service for Ruslan indicated service was

perfected by delivering a copy to his "wife," "Mrs. Linda Milov, spouse of

Ruslan Milov," and notarized with an earlier date of June 23.

At the hearing, Sanchez testified that at the time of service, Esquire

Process Service employed him, and he used a mobile application software called

ServeManager. After effectuating service, Sanchez routinely entered the

information he learned into the ServeManager application, which generated a

report. Here, Sanchez's report detailed the date and time of service was August

23, at 9:25 a.m. Further, it indicated the service recipient as "Mrs. Linda Milov,

spouse of Ruslan Milov." Sanchez's report describes the person served as: over

forty-five years of age, caucasian, female, brown hair, over 135 pounds, and

5'6". The report additionally specified the person served had glasses and

described a "[v]ehicle bearing N[ew] J[ersey] [r]egistration ZHY[***]" was

observed at the location of service. The "[s]ervice [a]ddress" listed was

defendants' home address. The ServeManager report had a timestamp of August

28, 2031, which was ten years and five days later than Sanchez's entered date of

service.

On August 23, 2021, Trystone moved to amend the complaint, correcting

defendant "Mrs. Milov, spouse of Ruslan Milov" to "Linda Milov," which the

A-2549-22 4 court granted. On October 1, Trystone moved to enter default and for an order

setting the time, place, and amount of redemption. On October 15, the court

ordered the redemption amount of $20,695.64, the place of redemption as the

office of the Tax Collector of the City of Passaic, and the date of redemption as

December 14.

On November 15, Trystone assigned the tax sale certificate to its affiliate,

Poppy. The same day, Trystone moved to substitute the named captioned

plaintiff, which the court granted. Approximately two months later, Poppy

moved for the entry of a final judgment. On February 3, 2022, the court granted

the motion vesting Poppy with the property in "fee simple." On February 7,

plaintiff served the final judgment on defendants by certified and regular mail.

In March, 341 Connecticut, LLC purchased the property from Poppy for

$375,000 receiving a quitclaim deed, which was recorded. Trystone and its

successor Poppy certified that each motion and order was served on defendants

via regular and certified mail.

On March 24, defendants filed an emergent order to show cause to vacate

the final judgment by default. The matter was converted to a motion to vacate

final judgment, under Rule 4:50-1, "for lack of service and for any other relief

the [c]ourt deems equitable." In support of the motion, Ruslan certified his "wife

A-2549-22 5 is named Lyudmila Milov and is not named or known as Linda." Lyudmila

certified that "neither [she] nor [her] husband were home at the time the

[s]ummons and [c]omplaint were purportedly personally served on the non -

existent Linda Milov." On April 27, 341 Connecticut moved to intervene as the

new property owner seeking post-judgment discovery. The court granted 341

Connecticut's motion in part, permitting the filing of an opposition to

defendants' motion. The court thereafter ordered a hearing regarding service.

In March 2023, defendants' counsel asserted she held the funds to redeem the

tax certificate in her trust account.

At the hearing, on March 29, defendants argued plaintiff's failure to

perfect service mandated vacating the final judgment; thus, the court lacked

jurisdiction to hear the tax sale foreclosure. Defendants contended service was

invalid because: they were not personally served at their residence; the affidavit

of service for Lyudmila was dated August 23, 2021, but notarized two months

earlier on June 23; the relationship between plaintiff and Esquire created a

conflict of interest; Sanchez had a conflict of interest; and 341 Connecticut was

not a bona fide purchaser.

Lyudmila testified that on August 23, 2021, at 8:45 a.m., she left the

residence with her family for a vacation and was not personally served with the

A-2549-22 6 complaints.

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