Answer: Bank Of America, N.A. v. Btc Gems Inc., Reenu Bhansali

On February 25, 2014 a Answer was filed involving a dispute between Bank Of America, N.A., and Btc Gems Inc., Reenu Bhansali, for Commercial in the District Court of New York County.

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INDEX NO. 650618/2014
FILED: NEW YORK COUNTY CLERK 06/13/2014
NYSCEF Doc. NO. 10 RECEIVED NYSCEF: 06/23/2014

SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK

BANK OF AMERICA, N. A.,
Index No.: 650618/2014

Plaintiff,
VERIFIED ANSWER
- against -

BTC GEMS INC. and
REENU BHANSALI,

Defendants.

Defendants BTC GEMS INC. and REENU BHANSALI, by their attorney

MICHAEL F. NEWTON, ESQ., answering the Complaint of the Plaintiff BANK OF

AMERICA, N. A., above named, alleges as follows:

PARTIES

i Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “1” of Plaintiff's Complaint.

2. Deny each and every allegation contained within Paragraph “2” of the Plaintiff's

Complaint.

3 Admit the allegations contained within Paragraph “3” of Plaintiff's Complaint

that Defendant REENU BHANSALLT is an individual having an address of 24 Pheasant

Run, Scarsdale, NY 10583.

BACKGROUND

4 Admit the allegations contained within Paragraph “4” of Plaintiff's Complaint

that on or about February 21, 2007, Defendart BTC GEMS INC. executed and delivered

a Loan Agreément in favor of the Plaintiff, pursuant to which Plaintiff extended to
Defendant BTC GEMS INC. a line of credit in the maximum principal amount of

$35, 000.00. ,

5 Admit’ the allegations contained within Paragraph “5” of Plaintiff's Complaint

that in connection with the Loan, Guarantor executed a certain Guaranty dated February

21, 2007.

6 Admit the allegations contained within Paragraph “6” of Plaintiff's Complaint

that Guarantor is a shareholder, officer and/or director of the Borrower.

7 Deny each and every allegation contained within Paragraph “7” of the Plaintiff's

Complaint.

8 Deny each and every allegation contained within Paragraph “8” of the Plaintiff's

Complaint.

9 Deny tach and every allegation contained within Paragraph “9” of the Plaintiff's

Complaint.

10. Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “10” of Plaintiff's Complaint.

11. Deny each and every allegation contained within Paragraph “11” of the Plaintiff's

Complaint.

12. Deny ‘each and every allegation contained within Paragraph “12” of Plaintiff's

Complaint that Borrower has failed to repay the Line of Credit, since the Borrower has

agreed to make certain monthly payments to the Plaintiff, under the guideline of the Loan

Agreement.

43. Deny gach and every allegation contained within Parapraph “13” of the Plaintiff's

Complaint.

14. Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “14” of Plaintiff's Complaint.
15, Deny each and every allegation contained within Paragraph “15” of the Plaintiff's

Complaint.

A FIRST CAUSE OF ACTION
(BREACH OF CONTRACT— DEFENDANTS)

16, Defendants BTC GEMS INC. and REENU BHANSALI repeat and reiterate each

and every denial and admission heretofore made in this Answer to the paragraphs of the

Complaint designated eye through “15” inclusive, with the same force and effects ag if

set forth here more particularly at length.

17. Deny each and every allegation contained within Paragraph “17” of the Plaintiff's

Complaint,

18. Deny éach and every allegation contained within Paragraph “18” of the Plaintiff's

Complaint.

19, Deny having knowledge or information sufficient to form a belief to the truth of

the allegation’ contained within Paragraph “19” of Plaintiff's Complaint.

20. Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “20” of Plaintiff's Complaint.

21. Deny tach and every allegation contained within Paragraph “21” of the Plaintiff's

Complaint.

ASECOND CAUSE OF ACTION
(ACCOUNTS STATED — DEFENDANTS)

22. Defendants BTC GEMS INC. and REENU BHANSALI repeat and reiterate each

and every denial and admission heretofore made in this Answer to the paragraphs of the

Complaint degignated “1” through “21” inclusive, with the same force and effects as if

set forth here more particularly at length.

23. Deny each and every allegation contained within Paragraph “23” of the Plaintiff's

Complaint.
t
24. Deny each and every allegation contained within Paragraph “24” of the Plaintiff's

Complaint.

25. Deny each and every allegation contained within Paragraph “25” of the Plaintiff's

Complaint.

26. Deny each and every allegation contained within Paragraph “26” of the Plaintiff's

Complaint.

a7. Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “27” of Plaintiff's Complaint.

28. Deny each and every allegation contained within Paragraph “28” of the Plaintiff's
S
Complaint.

29. Deny éach and every allegation contained within Paragraph “29” of the Plaintiff's

Complaint.
¢
A ‘THIRD CAUSE OF ACTION
(UNJUST ENRICHMENT AS AGAINST THE BORROWER)

30. Defendants BTC GEMS INC, and REENU BHANSALI repeat and reiterate each

and every denial and admission heretofore made in this Answer to the paragraphs of the

Complaint designated “1” through “29” inclusive, with the same force and effects as if

set forth here imore particularly at length.

31, Deny gach and every allegation contained within Paragraph “31” of the Plaintiff's

Complaint.

A FOURTH CAUSE OF ACTION
(MONEY HAD AND RECEIVED 4S AGAINST THE BORROWER)

32. Defendants BTC GEMS INC. and REENU BHANSALI repeat and reiterate each

and every denial and admission heretofore made in this Answer to the paragraphs of the
Complaint designated “1” through “31” inclusive, with the same force and effects as if

set forth here more particularly at length.

33. Deny having knowledge or information sufficient to form a belief to the truth of

the allegations contained within Paragraph “33” of Plaintiff's Complaint.

34. Deny éach and every allegation contained within Paragraph “34” of the Plaintiff's

Complaint, except admit that Plaintiff agreed to loan money to the Defendant Borrower.

35. Deny each and every allegation contained within Paragraph “35” of the Plaintiff's

Complaint.

36. Deny éach and every allegation contained within Paragraph “36” of the Plaintiff's

Complaint.

37. Deny éach and every allegation contained within Paragraph “37” of the Plaintiff's

Complaint.

FIRST AFFIRMATIVE DEFENSE
(CONTRACTUAL RIGHT OF ARBITRATION)

According to Section 8.4 of the Loan Agreement dated February 21, 2007,

annexed to Plaintiff's Complaint as Exhibit “A”, entitled “Dispute Resolution Provision”,

the issues raided by the Complaint are subject to binding arbitration in accordance with

the Federal Arbitration Act (Title IX, US Code). Defendants hereby invoke their rights to

arbitration under this provision. According to Section 8.4, the arbitration proceeding will

be conducted pursuant to the rules and procedures of financial services dispute of the

American Arbitration Association. This dispute resolution provision is a material

inducement for the parties entering into the Loan Agreement.
y
SECOND AFFIRMATIVE DEFENSE
G@ATLURE TO PERMIT THE DEFENDANT TO MITIGATE DAMAGES)

Defendants have attempted to mitigate the damages, but said attempt had been

rebuffed and refused by the Plaintiff.

THIRD AFFIRMATIVE DEFENSE
(QEFER AND ACCEPTANCE)

Plaintiff offered a repayment schedule to the Defendants, which was accepted by

Defendants. Plaintiff failed to allow Defendants a reasonable opportunity to comply with

the terms of the offer. Defendants are still ready, willing and able to comply.

WHEREFORE, Defendants demand judgment in their favor dismissing all four

Causes of Action of Plaintiff's Complaint, and seeks and Order/Judgment of this Court

referring this matter to binding arbitration in accordance with the terms of the Loan

Agreement annexed to the Complaint as Exhibit “A”, together with the costs and

disbursements of this action.
‘

Dated: New Fork, New York
June 13, 2014

t Yours etc.,

uu, i
MICHAEL F. NE TON, ESQ.
Attorney for Defendants
286 Madison Avenue, Suite 702
New York, New York 10016
Tel.: 212-725-8001
TO:
Buchanan Ingersoll & Rooney, PC
Attorneys for Plaintiff
One Oxford Center
301 Grant Street, 20" Floor
Pittsburgh, PA 15219
ATTORNEY VERIFICATION

STATE OF NEW YORK )
)58
COUNTY OF NEW YORK )

MICHAEL F. NEWTON, ESQ., an attorney admitted to practice in the State of
New York, affirms under the penalty of perjury that:

Iam the attorney for the Defendants BTC GEMS INC. and REENU BHANSALI,
in the within action; I have read the foregoing Verified Answer to and know the contents
thereof; the same is true to my own knowledge, except as to the matters therein stated to
be alleged on information and belief and that as to those matters I believe them to be true.

This verification is being made by the undersigned since the Defendants have
offices and/or reside in a county other than the one where i maintain my office.

Dated: New York, New York
June 13, 2014

erreur Awe lf f Hie

MICHAEL F. NEWTON, ESQ.
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK.

BANK OF AMERICA, N. A.,
Index No.: 650618/2014
Plaintiff,
AFFIDAVIT OF SERVICE
BY MAIL
- against -

BTC GEMS INC. and
REENU BHANSALI,

Defendants.

CITY OF NEW YORK. 4 }
}es.t
COUNTY OF NEW YORK }

MARTINA VILTON, being duly sworn deposes and says: I am not a party to the action, I am over the
age of 18 years and reside in Brooklyn, New York.

That on the 13” day of June, 2014, I served a true copy of the following:

VERIFIED ANSWER

Upon the following party by depositing a true copy of same enclosed in a post-paid, properly addressed
envelope, in an official depository under the exclusive care and custody of the United States Postal Service
within New York City, addressed to each of the following persons at the last know address set forth after each
name:

Buchanan Ingersoll & Rooney, PC
Attorneys for Plaintiff
One Oxford Center
301 Grant Street, 20" Floor
Pittsburgh, PA 15219

Those being the respective addres s (s) within the State designated by them for that purpose upon the proceeding
papers in this action or the respective places where they kept an office, between which places there then was
and now is a regular communhidation by mail.

Sworn to by me this
3" da ine, 204

ake ybLon
NOTAR AC MARTINA VILTON
VICKY FRIDMAN
Notary Public, Sizte of New York
jo, O1FRG027891
Qualified in Queens Coun
Commissi jon Expires July 19, 2 ty,
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index No. 650618 Year 2014
SUPREME CURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
BANK OF AMERICA, N. A.,
Plaintiff;
-against-

BTC GEMS, INC. and REENU BHANSALI,

Defendants,

VERIFIED ANSWER

LAW OFFICE OF MICHAEL F. NEWTON
Attorney at Law

Attorney for DEFENDANTS
Office and Past Office Address, Telephone
286 Madison Avenues7th Floor *Suite 702
New York, N.Y. 10017
212) 725-8001
a
To

Altorney(s) for
Service ofa copy of the within is hereby admitted.

Dated,
Attormey(s) for
si Please take notice
{ ] NOTICE OF ENTR'
that the within is a (certified) true copy ofa
duly entered in the office of the clerk of the within named court on 200,
{ | NOLICE OF SETTLEMENT
that an order of which the within is a trae copy will be presented for
settlement to the HON. ‘one of the judges
of the within named court, at
on 200_ ‘at M.

Dated,
Yours, ete.
MICHAEL F. NEWTON
Attormey at Law
Attorney for
To Office und Post Offive Address

Attorney(s) for 286 Madison Avenue*7th floor
New York, New York 10017

Can a min Setrenl Dro MISCELLANEOUS MATTERSACTIVE MISCE
|, ANEOUS MATTERIAAAEARAMInERAdZ GOAL sal Bach Voted Antirer oe

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Answer: Bank Of America, N.A. v. Btc Gems Inc., Reenu Bhansali

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