U.S. Bank Trust Company, National Association v. Cayuga Professional Center, LLC

CourtDistrict Court, N.D. New York
DecidedJune 13, 2024
Docket3:24-cv-00540
StatusUnknown

This text of U.S. Bank Trust Company, National Association v. Cayuga Professional Center, LLC (U.S. Bank Trust Company, National Association v. Cayuga Professional Center, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Bank Trust Company, National Association v. Cayuga Professional Center, LLC, (N.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION (AS SUCCESSOR-IN-INTEREST TO U.S. BANK, NATIONAL ASSOCIATION), AS TRUSTEE, ON BEHALF OF THE REGISTERED Civil Case No. 3:24-cv-540 (FJS/ML) HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2013-GC15, ACTING BY AND THROUGH ITS SPECIAL SERVICER, LNR PARTNERS, LLC, Plaintiff, v. CAYUGA PROFESSIONAL CENTER, LLC; A. FROST TRAVIS; MACK A. TRAVIS; and NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE, Defendants. CONSENT ORDER APPOINTING RECEIVER THIS MATTER is before the Court upon the stipulation of the parties to the appointment of a receiver to take possession and control of the real and associated personal property of Defendant Cayuga Professional Center, LLC (the “Defendant” or “Borrower”) pledged as collateral to secure the obligations due to Plaintiff U.S. Bank Trust Company, National Association (as Successor-in-Interest to U.S. Bank, National Association), as Trustee, on behalf of the Registered Holders of Citigroup Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates, Series 2013-GC15 (the “Plaintiff” or “Lender”), under the Note, Loan Agreement, Mortgage, ALR and other Loan Documents, all as identified and defined in the Complaint (the “Complaint”)1, including, without limitation, the Real Property located at 1301 Trumansburg Road, Ithaca, New York 14850 and commonly known as Cayuga Professional Center (collectively, the “Real Property”), as well as all improvements, leases, equipment, fixtures, personal property, accounts, rent, revenues, intellectual property and trade names associated therewith (collectively, the “Receivership Estate”).

Upon review of the Order to Show Cause, the pleadings and papers submitted in support thereof, the other pleadings and papers on file in this case, having carefully considered the entire record herein, and good cause appearing therefor, the Court FINDS as follows: The Court makes the following findings in support of this Order: 1. As set forth in the Loan Documents, the parties stipulated to jurisdiction and venue in the State of New York and the Court has proper jurisdiction over this matter pursuant to 28 U.S.C. § 1332. 2. The Real Property at issue in this action is located in the Northern District of New York and federal law governs the issue of whether a federal court should appoint a receiver in a

diversity action. See, e.g., KeyBank Nat'l Ass'n v. Monolith Solar Assocs. LLC, No. 1:19-CV- 1562, 2020 WL 1157650, at *4 (N.D.N.Y. Mar. 10, 2020); U.S. Bank Nat’l Ass’n v. Nesbitt Bellevue Prop. LLC, 859 F.Supp.2d 602, 610 (S.D.N.Y. 2012); Varsames v. Palazzolo, 96 F.Supp.2d 361, 365 (S.D.N.Y. 2000). 3. The Order to Show Cause sufficiently alleges that (i) the Borrower defaulted under the Loan Documents; (ii) the Borrower has failed or refused to turnover or account for excess cash

1 All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Complaint. flow from the Real Property; and (iii) that immediate and irreparable injury may result in the event a receiver is not appointed. 4. Good cause exists for the appointment of a receiver in order to preserve and protect the Receivership Estate as there is imminent danger of the Real Property being injured or diminished in value, and the probability that harm to Plaintiff by denial of the appointment would

be greater than the injury to the Borrower. 5. The proposed receiver, William C. Colucci of Cushman & Wakefield/Pyramid Brokerage Company (“Cushman & Wakefield”), is not a party, attorney, or person interested in this action. Mr. Colucci is qualified to serve as receiver in this matter. Based on the foregoing findings, the Court therefore grants the relief requested in the Order to Show Cause. It is therefore ORDERED, ADJUDGED AND DECREED that: A. Appointment of Receiver 1. William C. Colucci of Cushman & Wakefield (the “Receiver”) is appointed receiver herein with respect to the Receivership Estate, with all of the powers and duties set forth

in 28 U.S.C. § 3103 and as additionally set forth herein. The Receiver shall provide a bond in the amount of $75,000 as security for the due and proper performance of his duties as Receiver. 2. No member, partner, or shareholder of the Receiver, or any entity related thereto, shall be affiliated with any Defendant or Plaintiff; and no Defendant or Plaintiff shall be a member, partner or shareholder of the Receiver. 3. For services rendered, the Receiver shall be compensated in the amount of $500 per month. B. The Receiver’s Powers 1. Pursuant to 28 U.SC. § 3103(b)(1), the Receiver has the Power to (A) take possession of, hold, secure, take charge of, preserve and protect the Receivership Estate, and sue for, collect, and sell obligations upon such conditions and for such purposes as directed by this Court; and (B) administer, collect, improve, lease, repair or sell the property of the Receivership

Estate. 2. The Receiver is vested with all of the powers and duties that are conferred upon property receivers by law or by the usages and customs of equity, and shall perform his duties under the supervision of the Court. By this Order, in addition to the powers afforded by 28 U.S.C. § 3103, the Receiver shall have the power, and is authorized and directed, to in his sole discretion and immediately upon entry of this Order: i. Take and have possession, custody, control, management, operation and charge of the Receivership Estate and any rents, income, issues and profits arising therefrom, provided however, all funds in any account maintained by the Receiver pursuant to this Order shall remain collateral for the Loan pursuant to the Loan Documents;

ii. Operate any businesses deriving from the Receivership Estate, including, without limitation, preservation, use, sale, lease, license, collection, or disposition of the Receivership Estate in the ordinary course of business; provided, however that written consent of Plaintiff shall be required prior to the sale or disposition of any portion of the Receivership Estate valued in excess of $50,000 or for any lease of Real Property;

iii. Continue the management, operation, and maintenance of the Real Property and to exercise all powers necessary to facilitate the operation of the Premises; provided, further that the Receiver shall have the right to terminate the Borrower’s existing property management firm without fee or penalty;

iv. Delegate some or all of his authority under this Order to (and to engage and compensate) one or more property management firms, including, without limitation, Cushman & Wakefield, subject to Plaintiff’s approval; v. Expend funds to purchase merchandise, materials, supplies and services as the Receiver deems necessary and advisable to assist him in performing his duties hereunder and to pay such expenses at the ordinary and usual rates and prices out of the funds that may come into the Receiver’s possession, in an amount not to exceed a $15,000.00 line item variance in the Receiver’s Budget (as defined below), absent the express written consent of Plaintiff, except to the extent an emergency arises, or further order of this Court;

vi. Secure tenants and execute leases for the Real Property;

vii. Apply receipts to payment of ordinary operating expenses, including rents and other expenses of management;

viii.

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Related

Varsames v. Palazzolo
96 F. Supp. 2d 361 (S.D. New York, 2000)
U.S. Bank National Ass'n v. Nesbitt Bellevue Property LLC
859 F. Supp. 2d 602 (S.D. New York, 2012)

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Bluebook (online)
U.S. Bank Trust Company, National Association v. Cayuga Professional Center, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-bank-trust-company-national-association-v-cayuga-professional-nynd-2024.