Teddy Volkswagen of the Bronx, LLC v. Demersky

District Court, S.D. New York·Decided July 12, 2022·No. 1:19-cv-02337·Unknown

Opinion

LAKE SSUUCICTEES 3SW, N8 Y 11042 _________

TELEPHONE (516) 328-8899 FACSIMILE (516) 328-0082 June 23, 2022 VIA ECF United States District Court Southern District of New York Attn: Hon. Alison J. Nathan, U.S.D.J. 40 Foley Square, Courtroom 906 New York, NY 10007-1312

Re: Teddy Volkswagen of the Bronx, LLC v. Phillip Demersky Case No.: 1:19-cv-2337 (AJN) (SN) Our File No.: 141-2019_______________________________

Dear Judge Nathan:

This office represents the Plaintiff in the above-referenced case. Plaintiff Teddy Volkswagen of the Bronx, LLC (hereinafter “Plaintiff” or the “Dealership”) writes pursuant to this Court’s September 7, 2021 Order of discontinuance and the parties’ executed Settlement Agreement & Release (the “Agreement”) to respectfully, and regrettably, request judgment by confession against the Defendant Phillip Demersky (hereinafter “Defendant” or “Demersky”) in the amount of $27,500.00 due to Defendant’s abject failure to honor the Agreement.

Relevant Factual Background and Procedural History

On March 15, 2019, Plaintiff filed its complaint against Defendant arising out of various schemes Defendant engaged in to steal monies from the Plaintiff during the course of and after his employment with the Dealership ended.

Following protracted discovery and motion practice, and immediately before a trial was scheduled to occur, the parties were able to reach a settlement on all issues.

On July 21, 2021, Defendant signed the Agreement, which required him to pay the sum of $25,000.00 payable at $1,000.00 per month beginning on July 1, 2021. See ¶ 1(a) of the Agreement, annexed hereto with Defendant’s executed and notarized counterpart as Exhibit “A.”1

1 Because the agreement is confidential by its terms (¶ 6), the parties did not file the agreement with the Court, nor made it part of the public record. This Court, as a result, held in a September 7, 2021 Order that it will not retain jurisdiction to enforce the Agreement unless its terms are made part of the public record. See Docket Entry 112. Plaintiff respectfully notes that the confidentiality provision of the Agreement is carved out to permit the parties to enforce the terms of the Agreement. As such, now that the Agreement is part of the public record, Plaintiff respectfully requests that this Court retain jurisdiction to enforce it. The Agreement also provides that in the event that any of the settlement payments are not received by Plaintiff on the dates set forth in the Agreement, Plaintiff’s counsel shall notify Defendant’s counsel via email and — in the event Defendant fails to cure said late payment within five (5) business days from service of said notice — Defendant shall be held in default, rendering him liable for $37,500.00 less any monies theretofore paid by Defendant. See 4 7 of the Agreement. The Agreement also provides that an affidavit of confession of judgment is appended to it, is incorporated by reference therein, shall be held in escrow by Plaintiff’s counsel and not released unless there is a default under the Agreement and Defendant fails to cure within the time required. Id. The Agreement also provides, inter alia, that this Court shall retain jurisdiction to enforce the terms of the Agreement. Id. Although Plaintiff has paid $10,000.00 towards the Agreement, every single one of his payments were late. See copy of spreadsheet listing each payment’s due date the amount, the date received,” and notes concerning how late each payment was made as of June 15, 2022 annexed hereto as Exhibit “B.” In fact, the “earliest” payment Defendant ever made was twelve (12) days late. Despite this, Plaintiff has held off from issuing any notices of default. However, Defendant’s May 1, 2022 and June 1, 2022 payments are late and have not been paid to date despite Plaintiff's issuance of a notice of default on June 15, 2022. See copy of Plaintiffs notice of default pursuant to the Agreement annexed hereto as Exhibit “C.” By the terms of the Agreement, Defendant had five (5) business days — until Wednesday, June 22, 2022 — to cure and has failed to do so. Accordingly, Plaintiff respectfully requests judgment by confession in the amount of $27,500.00. See copy of executed and notarized confession of judgment annexed hereto as Exhibit “D.” 50 ORDERED Plaintiff thanks this Court for its time and attention to this case. Dated: Lake Success, New York June 23, 2022 Respectfully submitted, MILMAN LABUDA LAW GROUP PLLC /s/ Emanuel Kataev, Esq. Emanuel Kataev, Esq. 3000 Marcus Avenue, Suite 3W8 ‘ Lake Success, NY 11042-1073 . . (516) 328-8899 (office) Sitting by Designation (516) 303-1395 (direct dial) 2/2022 (516) 328-0082 (facsimile) emanuel @ mllaborlaw.com

> The date received is based on the date the payment was deposited in Plaintiff’s bank account; the actual date payment was received was never more than one to two (1-2) days prior.

VIA ECF Ranni Law Firm Attn: Joseph J. Ranni, Esq. 148 North Main Street Florida, NY 10921-1101 joeranni@rannilaw.com

Attorneys for Defendant SETTLEMENT AGREEMENT & RELEASE

This is a Settlement Agreement and Release (hereinafter the “Agreement”) between Teddy Volkswagen of the Bronx, LLC, its parents, subsidiaries, affiliates, divisions, and/or related companies, and each of their respective directors, officers, shareholders, partners, employees, managers, members. agents, attorneys, and successors of the Company on the one hand (together, the “Company”), and Phillip Demersky (hereinafter the “Defendant” or “Demersky”), on the other hand. The Company and the Defendant may each be referred to as a “Party,” or together, be referred to herein as the “Parties.” WHEREAS, a dispute arose between the Parties related to the Defendant's employment with the Company and the terms and conditions thereof; and WHEREAS, the Company has commenced a case against the Defendant in the United States District Court for the Southern District of New York (hereinafter the “Court’) styled as Teddy Volkswagen of the Bronx, LLC y. Demersky. Case No.: 1:19-cv-2337 (AJN) (SN) (hereinafter the “Lawsuit’), alleging a claim under the Computer Fraud & Abuse Act (hereinafter “CFAA™) and causes of action under the common law of the State of New York for breach of fiduciary duty, breach of duty of loyalty, and violation of the faithless servant doctrine (collectively with the CFAA claim together the Claims”); WHEREAS, the Parties participated in a Court-Ordered settlement conference and reached a settlement as codified on the record and is incorporated by reference herein: and WHEREAS, the Company and the Defendant desire to fully and finally resolve all differences between them. NOW THEREFORE, in consideration of the mutual promises of the Parties, the receipt and sufficiency of which the Parties hereby acknowledge, the Parties intending to be bound, do hereby agree as follows: □□ Consideration. In consideration for the Company’s release of the Claims, the Defendant agrees to execute, comply with, and not revoke this agreement, and further pay the Company the total gross amount of Twenty Five Thousand and 00/100 Dollars ($25,000.00) (“Settlement Payment”). a. The Settlement Payment to be paid by Defendant shall be made payable to Teddy Volkswagen of the Bronx, LLC in twenty-five (25) equal installments commencing on July 1, 2021 and every month thereafter until paid in full. Each payment is to be received on the first of the month. b. The Company agrees and affirm that the Settlement Payment shall constitute the entire amount of monetary consideration provided to it, and that the Company will not seek any further compensation for the Claims or any other claimed injuries, damages, costs, disbursements, or attorneys” fees in connection with any of the matters encompassed in this Agreement or any aspect of the Defendant's relationship with the Company. G.

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