Wells Fargo Bank, N.A. v. David Herzog LLC

2026 NY Slip Op 30723(U)
CourtNew York Supreme Court, New York County
DecidedFebruary 19, 2026
DocketIndex No. 850222/2025
StatusUnpublished
AuthorFrancis A. Kahn III

This text of 2026 NY Slip Op 30723(U) (Wells Fargo Bank, N.A. v. David Herzog LLC) 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
Wells Fargo Bank, N.A. v. David Herzog LLC, 2026 NY Slip Op 30723(U) (N.Y. Super. Ct. 2026).

Opinion

Wells Fargo Bank, N.A. v David Herzog LLC 2026 NY Slip Op 30723(U) February 19, 2026 Supreme Court, New York County Docket Number: Index No. 850222/2025 Judge: Francis A. Kahn III 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.

file:///LRB-ALB-FS1/Vol1/ecourts/Process/covers/NYSUP.8502222025.NEW_YORK.001.LBLX000_TO.html[03/10/2026 3:45:55 PM] !FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 PM! INDEX NO. 850222/2025 NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. FRANCIS A. KAHN, Ill PART 32 Justice ---------------------------------------------------------------------------------X INDEX NO. 850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS MOTION DATE TRUSTEE, FOR THE BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2 COMMERCIAL MORTGAGE PASSTHROUGH MOTION SEQ. NO. 002 CERTIFICATES, SERIES 2020-GSA2, AND THE RR INTEREST OWNER,

Plaintiff,

- V - DECISION + ORDER ON DAVID HERZOG LLC,MICHAEL HERZOG LLC,DAVID HERZOG, MICHAEL HERZOG, CITY OF NEW YORK MOTION DEPARTMENT OF FINANCE, CITY OF NEW YORK ENVIRONMENTAL CONTROL BOARD , JOHN DOE , JANE DOE, XYZ CORPORATION, ENDEAVOR GUIDANCE , LLC

Defendant. -----------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 002) 65, 66, 67, 68 , 69 , 70, 71, 72 , 73 , 74, 75, 76, 77 , 78, 79, 80, 81, 82 , 83, 84 , 85 , 86 , 87, 88, 89, 90 , 91 , 92, 93, 94 , 95, 96 , 97, 98, 99, 100, 101, 102, 103 were read on this motion to/for APPOINT - FIDUCIARY

Upon the foregoing documents, the motion is determined as follows :

In this action, Plaintiff seeks to foreclose on an amended, restated and consolidated mortgage, dated November 5, 2020, encumbering a parcel of improved real property located at 57 West 86 th Street, New York, New York. Plaintiff commenced this action wherein it is alleged Defendants defaulted under the loan documents by, inter alia, failing "to make full and timely monthly payments since at least June 2024". Now, Plaintiff moves pursuant to RPL §254[10] and RPAPL §1325[1] for the appointment of a temporary receiver of the rents of the mortgaged premises. Mortgagor and Guarantor Defendants oppose the motion.

Under Real Property Law §254[1 0], the appointment of a receiver in the event of a default is proper where the parties to the mortgage agree to same even without notice or without regard to the sufficiency of security (see ADHY Advisors LLC. v 530 W 152nd St. LLC, 82 AD3d 619 [I5 1 Dept 2011]; 366 Fourth St. Corp. v Foxfire Enters., 149 AD2d 692 [2 nd Dept 1989]). Despite the parties' assent, the appointment is not perfunctory and the Court, in the exercise of its equitable power, retains the discretion to deny the appointment of a receiver (see ADHY Advisors LLC. v 530 W 152nd St. LLC, supra; Nechadim Corp. v Simmons, 171 AD3d 1195, 1197 [2d Dept 2019]).

850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 1 of 5 BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2 COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR INTEREST OWNER vs. DAVID HERZOG LLC ET AL Motion No. 002

[* 1] 1 of 5 !FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025 NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026

Section l0[a][vii] of the Mortgage provides, in pertinent part, as follows:

(a) Upon the occurrence of any Event of Default, Mortgagee may take such action, without notice or demand, as it deems advisable to protect and enforce its rights against Mortgagor and in and to the Mortgaged Property, by Mortgagee itself or otherwise, including the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Mortgagee may determine, in its sole discretion, without impairing or otherwise affecting the other rights and remedies of Mortgagee:

(vii) apply for the appointment of a trustee, receiver, liquidator or conservator of the Mortgaged Property, without notice and without regard for the adequacy of the security for the Debt and without regard for the solvency of Mortgagor or of any person, firm or other entity liable for the payment of the Debt.

In the present case, it is undisputed that the parties' mortgage provides that Plaintiff may apply for the appointment of a receiver and Plaintiff pied that Defendants, inter alia , defaulted in repayment of the indebtedness, a default event under the loan documents. Accordingly, Plaintiff established its entitlement to the appointment of a receiver of the mortgaged premises (see eg SKW Hillside Bleeker Lender LLC v 145 Bleeker LLC, 217 AD3d 536 [1 st Dept 2023]; CSFB 2004-CJ Bronx Apts LLC v Sinckler, Inc., 96 AD3d 680 [l5t Dept 2012]). In opposition, Defendants have not demonstrated that denial of the appointment of a receiver is an appropriate exercise of the Court' s discretion (see id.; US Bank, NA. v Rufai, 202 AD3d 719, 721 [2d Dept 2022]; Shaw Funding, LP v Bennett, 185 AD3d 857, 858 [2 nd Dept 2020]).

In opposition, Defendants have not demonstrated that denial of the appointment of a receiver is an appropriate exercise of the Court' s discretion (se e id.; US Bank, NA. v Rufai, 202 AD3d 719, 721 [2d Dept 2022]; Shaw Funding, LP v Bennett, 185 AD3d 857, 858 [2 nd Dept 2020]). To the extent Defendants' opposition is based on cases where appointment of a receiver was sought pursuant to CPLR §640 I it is unavailing (see eg Groh v Halloran, 86 AD2d 30 [1 st Dept 1982]). The Appellate Division cases are clear that where, as here, the mortgage contains a provision that a lender may apply for a receiver, the mortgagor may seek such relief "' regardless of proving the necessity for the appointment'" (see GECMC 2007-C 1 Ditmars Lodging, LLC v Mohola, LLC, 84 AD3d 1311 , 1312 [2d Dept 2011 ], citing Naar v. I.J Litwak & Co., 260 AD2d 613 [2d Dept 1999]; see also SKW Hillside Bleeker Lender LLC v 145 Bleeker LLC, supra).

The claim that presently unpled defenses and other purported deficiencies in Plaintiffs action defeat this motion is without merit. A plaintiff "may apply for the appointment of a receiver, without notice and without regard for adequacy of the security for the debt, and without requirement that plaintiff demonstrate more than what is required by Real Property Law § 254(1 0)" (SKW Hillside Bleecker Lender, LLC v 145 Bleecker LLC, 217 AD3d 536, 537 [l st Dept 2023][emphasis added]). Indeed, "[c]ases hold that a receiver may be appointed so long as an action has been commenced" (HSBC Bank USA, NA. v Rubin, 210 AD3d 73 , 83 [2d Dept 2022]).

Accordingly, it is

850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 2 of 5 BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2 COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR INTEREST OWNER vs. DAVID HERZOG LLC ET AL Motion No. 002

2 of 5 [* 2] !FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025 NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026

ORDERED that the motion for the appointment of a Temporary Receiver is granted; and it is further

ORDERED that Michael Besin (FID #986171) is hereby appointed with the usual powers and directions of a Temporary Receiver for the benefit of Plaintiff of all the rents and profits now due and unpaid or become due during the pendency of this action and issuing out the mortgaged property mentioned located at 57 West 86th Street, New York, New York; and it is further

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Related

Shaw Funding, LP v. Bennett
2020 NY Slip Op 3936 (Appellate Division of the Supreme Court of New York, 2020)
ADHY Advisors LLC v. 530 West 152nd Street LLC
82 A.D.3d 619 (Appellate Division of the Supreme Court of New York, 2011)
GECMC 2007-C1 Ditmars Lodging v. Mohola
84 A.D.3d 1311 (Appellate Division of the Supreme Court of New York, 2011)
Groh v. Halloran
86 A.D.2d 30 (Appellate Division of the Supreme Court of New York, 1982)
366 Fourth Street Corp. v. FoxFire Enterprises, Inc.
149 A.D.2d 692 (Appellate Division of the Supreme Court of New York, 1989)
Naar v. I.J. Litwak & Co.
260 A.D.2d 613 (Appellate Division of the Supreme Court of New York, 1999)
HSBC Bank USA, N.A. v. Rubin
210 A.D.3d 73 (Appellate Division of the Supreme Court of New York, 2022)

Cite This Page — Counsel Stack

Bluebook (online)
2026 NY Slip Op 30723(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-bank-na-v-david-herzog-llc-nysupctnewyork-2026.