TRUIST BANK v. ELGEO CORP

CourtDistrict Court, D. New Jersey
DecidedAugust 22, 2024
Docket2:24-cv-01533
StatusUnknown

This text of TRUIST BANK v. ELGEO CORP (TRUIST BANK v. ELGEO CORP) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TRUIST BANK v. ELGEO CORP, (D.N.J. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

____________________________________ : TRUIST BANK, : Civil Action No. 24-1533 (JKS)(MAH) : Plaintiff, : OPINION : v. : : ELGEO CORP, et al., : : Defendants. : ____________________________________:

I. INTRODUCTION

This matter comes before the Court on Plaintiff Truist Bank’s (“Plaintiff”) motion for leave to serve by alternative means the Summons, Complaint, and related filings upon Defendants, Elgeo Corp (“Elgeo”), David Alhalabi (“Alhalabi”), and Irakli Sharashenidze (“Sharashenidze”) pursuant to Federal Rules of Civil Procedure 4(e) and 4(h). See generally Mot. for Alt. Serv., D.E. 10. Specifically, Plaintiff requests leave to effect service on Defendants by: (1) sending a copy of the Summons, Complaint, and related filings by certified and ordinary mail to Defendants’ last known addresses and Defense counsel’s email; (2) award for the expenses incurred in effectuating service; and (3) an extension of time to serve Defendants by sixty additional days. See id.; Mot. for Ext. of Time, D.E. 11. For the reasons set forth below, Plaintiff’s motion is granted in part and denied in part. II. BACKGROUND On March 5, 2024, Plaintiff filed this action against Defendants, alleging breach of loan violations. See generally Compl., D.E. 1. According to the Complaint, Plaintiff extended to Elgeo two loans and “made available” two credit card facilities, all of which were “absolutely and unconditionally guaranteed” by Alhalabi and Sharashenidze. See id. at ¶¶ 2-3. Plaintiff alleges Defendants have defaulted on the loans and credit card facilities secured for Elgeo, and it now seeks to recover the money Defendants owe. See id. at ¶ 4. Despite multiple attempts, Plaintiff has been unsuccessful in personally serving Defendants. See generally Mot. for Alt. Serv., D.E.

10. On May 24, 2024, Plaintiff filed its first motion for alternative service. See First Mot. for Alt. Serv., D.E. 8. On May 28, 2024, the Court denied Plaintiff’s motion without prejudice due to Plaintiff’s failure to include a legal brief and a proposed form of alternative service. See Order, May 28, 2024, D.E. 9. Plaintiff rectified these deficiencies and on June 6, 2024, filed the instant motion. See Mot. for Alt. Serv., D.E. 10. Plaintiff also attached a supporting certification of its counsel, Jeffrey M. Lichtstein (“Mr. Lichtstein”), and a supplementary exhibit containing recent emails between Mr. Lichtstein and counsel for Defendants, Mr. Morris Fateha, Esq. (“Mr. Fateha”).1 Id. According to Mr. Lichtstein, Plaintiff has been unable to effectuate service on Defendants,

as detailed herein. See generally Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8-1. On March 6, 2024, the Court issued a summons for Defendants. Summons, D.E. 3. The following day, Mr. Fateha emailed Mr. Lichtstein that he “represent[s] [Elgeo] in connection with the Truist Bank matter.” See Ex. 2, First Email Exchange, D.E. 8-2 at 3. On March 8, 2024, Plaintiff retained De Novo Attorney Services, Inc. (“De Novo”) to serve Defendants at their last known addresses. Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8-1, at ¶¶ 3-6. De Novo used Defendants’ addresses from the Promissory Note and Guarantees (“Loan Documents”) associated with the loan subject to this

1 In the interest of adjudication of this motion on the merits, the Court notes that it references an additional certification and exhibits submitted in the First Motion, as well as attached exhibits and certifications submitted in the instant motion. action. See Ex. A, Promissory Note, D.E. 1-1; Ex. E, Guaranty, D.E. 1-5. However, even with Defendants’ last known addresses, De Novo could not effectuate service on Defendants. See Ex. 3, Returns of Non-Service, D.E. 8-3, at 2-4. De Novo attempted to serve Sharashenidze, individually, and as resident agent for Elgeo,

on March 11, 2024, at his last known residence, 131 Dudley Street, Apt. 122, Jersey City, New Jersey 07302.2 See id. When the process server attempted to serve Sharashenidze at this address, the current tenant stated she did not know Sharashenidze. Id. Further, the front desk representative said Sharashenidze’s lease expired on September 6, 2003. See id. Plaintiff then directed De Novo to widen its search efforts. See Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8-1, at ¶ 7. De Novo conducted an “expanded person search” (“Skip Trace”) to locate other addresses potentially associated with Sharashenidze. See Ex. 4, Skip Trace, D.E. 8-4, at 2. As a result of the Skip Trace, De Novo determined Sharashenidze likely resides at 71 Blanchard Road, South Orange, New Jersey 07079. See id. Accordingly, De Novo attempted service on Sharashenidze at 71 Blanchard Road, South

Orange, New Jersey 07079, four times: (1) March 19, 2024, at 7:16 p.m.; (2) March 23, 2024, at 10:29 a.m.; (3) March 26, 2024, at 9:04 p.m.; and (4) March 30, 2024, at 9:04 a.m. See Ex. 3, Returns of Non-Service, D.E. 8-3, at 2-3. During the March 19, 2024, attempt, a nanny at the residence stated to the process server that “[Sharashenidze] would return from work later in the evening.” See id. at 2. On March 23, 2024, the same nanny told the process server,

2 Plaintiff deemed Sharashenidze to be the resident agent for New Jersey company Elgeo because he lives in New Jersey, is president of Elgeo, and is a guarantor of the loan. See generally Mot. for Alt. Serv., D.E. 10. The Court acknowledges the “determination whether an individual is ‘a managing or general agent’ depends on a factual analysis of that person’s authority within the organization[,]” and therefore accepts for this motion Plaintiff’s characterization of Sharashenidze as resident agent. Gottlieb v. Sandia Am. Corp., 452 F.2d 510, 513 (3d Cir. 1971) (internal citations omitted). “[Sharashenidze] was not home and works every day.” See id. Subsequently, De Novo attempted service after typical work hours, at approximately 9:00 p.m. on March 26, 2024, but no one answered the door. See id. Similarly, at approximately 9:00 a.m. on March 30, 2024, De Novo could not serve Sharashenidze. See id.

Additionally, De Novo attempted to serve Alhalabi at 2423 E. 1st Street, Brooklyn, New York 11223 four times: (1) March 14, 2024, at 11:29 a.m.; (2) March 15, 2024, at 8:20 a.m.; (3) March 18, 2024, at 9:07 p.m.; and (4) March 26, 2024, at 8:50 p.m. See Ex. 3, Returns of Non- Service, D.E., 8-3 at 4. On March 14, 2024, March 15, 2024, and March 18, 2024, De Novo’s process server could not serve Alhalabi because there was “[n]o answer at the door.” See id. During the fourth service attempt on March 26, 2024, at 8:50 p.m., the process server saw “[l]ights on; kids[’] stuff everywhere; [a] television on in [two] rooms; [and a] car in the garage[,]” but could not effectuate service. See id. Plaintiff also engaged in additional investigative efforts to locate Defendants. See Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8-1, at ¶¶ 15-20. Mr. Lichtstein searched the internet, social

media, Department of Defense Manpower Data Center, and PACER. See id.; Ex. 9, Servicemembers Search, D.E. 8-9; Ex. 10, Indiv. Defs. PACER Search, D.E. 8-10; Ex. 11, Elgeo PACER Search, D.E. 8-11; Ex. 12, LinkedIn Search, D.E. 8-12. However, the investigation failed to yield any new information to assist Plaintiff. See Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8- 1, at ¶¶ 15-20. After these unsuccessful service attempts, Mr. Lichtstein directed an attorney at his firm to request a waiver of service of process from Defendants. See Ex. 1, Cert. of Jeffrey M. Lichtstein, D.E. 8-1, at ¶ 9. On April 8, 2024, Mr. Lichtstein emailed Mr.

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TRUIST BANK v. ELGEO CORP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/truist-bank-v-elgeo-corp-njd-2024.