Preview
FILED: NEW YORK COUNTY CLERK 07/26/2019 01:54 PM INDEX NO. 654284/2019
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/26/2019
SUPREME COURT OF THE STATE OF NEW YORK Index No.
COUNTY OF NEW YORK
--- ---------------------------- -----------x SUMMONS
WISE FUNDING GROUP, LLC
Plaintiff, Plaintiff designates New York
-against- as the place of trial
County
ELITE HARDWOOD FLOORING, INC. DBA ELITE The basis of the venue is:
HARDWOOD FLOORING, TIMOTHY L. NEWMAN Pursuant to the agreement between
AND LAUREN ANN NEWMAN the parties
Defendant(s).
------------------- 3rd
------------'x Plaintiff's Address: 767 Avenue
32nd
PlOOr, New York, NY 10017
•'
To the above names Defendants:
You are hereby summoned to answer the complaint in this action and serve a copy of your
answer, or, if the complaint is not served with this summons, to serve a notice of appearance, on
Plaintiff s Attorney within 20 days afterthe service of this summons, exclusive of the date of service
or within 30 days after the service is complete if this summons is not personally delivered to you
within the State of New York; and in case of your failure to appear or answer, judgment will be taken
against you by default for the relief demanded in the complaint.
Dated: July 26, 2019 Richard Muller Esq.
Attorney for Plaintif
Wise Funding Group, LLC
3rd 32nd
To: 767 Avenue, FlOOr
New York, NY 10017
Elite Hardwood Flooring, Inc. dba Elite (212)-676-5586
Hardwood Flooring :
196 Bournehurst Drive
Plymouth, MA 02360
Timothy L. Newman:
196 Bournehurst Drive
Plymouth, MA 02360
Lauren Ann Newman:
3 Mane Circle
Pocasset, MA 02559
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SUPREME COURT OF THE STATE OF NEW YORK Index No.
COUNTY OF NEW YORK
--------------------------------------------------x
WISE FUNDING GROUP, LLC
Plaintiff,
-against- VERIFIED COMPLAINT
ELITE HARDWOOD FLOORING, INC. DBA ELITE
HARDWOOD FLOORING, TIMOTHY L. NEWMAN
AND LAUREN ANN NEWMAN
Defendant(s).
-------- ----------------------------------------------x
Plaintiff Wise Funding Group, LLC ("Plaintiff "), by its attorney, Richard Muller Esq., for its
complaint herein against ELITE HARDWOOD FLOORING, INC. DBA ELITE HARDWOOD
FLOORING ("ELITE"), TIMOTHY L. NEWMAN ("TIMOTHY") and LAUREN ANN NEWMAN
("LAUREN") (ELITE, TIMOTHY and LAUREN collectively known as "Defendants"), allege as
follows:
THE PARTIES
1. At allrelevant times, Plaintiff was and is a limited liability company organized and
existing under the laws of the State of New York.
2. Upon information and belief and at allrelevant times, ELITE was and is a company
organized and existing under the laws of the State of Massachusetts that agreed that any
action between the parties be instituted in any court sitting in New York State.
3. Upon and information belief, at allrelevant times, TIMOTHY was and IS an individual
residing in the State of Massachusetts who agreed that any action between the parties be
instituted in any court sitting in New York State.
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4. Upon and information belief, at all relevant times, LAUREN was and IS an individual
residing in the State of Massachusetts who agreed that any action between the parties be
instituted in any court sitting in New York State.
THE FACTS
5. On or about May 30, 2019, Plaintiff and ELITE entered into a Purchase and Sale of
Future Receivables (the "Merchant Agreement") whereby Plaintiff agreed to purchase all
rights to ELITE's future account- receivables a face value of $51,100.00 with an
having
agreed upon purchase price of $35,000.00.
6. Pursuant to the Merchant Agreement, ELITE agreed to have one bank account approved
by Plaintiff (the "bank account") from which ELITE authorized Plaintiff to debit 25% of
ELITE's revenue until the purchased amount of receivables- $51,100.00- was paid
daily
in full.
7. In addition, TIMOTHY and LAUREN agreed to guarantee any and all amounts owed to
Plaintiff from ELITE upon a breach in performance by ELITE.
8. Plaintiff remitted the purchase price for the future receivables to ELITE as agreed.
Initially, ELITE met its obligations under the Merchant Agreement.
9. On or about July 24, 2019, ELITE stopped making itspayments to Plaintiff and otherwise
breached the Merchant Agreement by intentionally impeding and preventing Plaintiff
from making the agreed upon ACH withdrawals from the Bank Account while
conducting regular business operations and stillin receipt of accounts-receivable. This is
a default under the Merchant Agreement.
10. Company Defendant made payments totaling $7,165.00 leaving a balance of $43,935.00.
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11. Despite due demand, ELITE has failed to pay the amounts due and owing by ELITE to
Plaintiff under the Merchant Agreement.
12. Additionally, TIMOTHY and LAUREN is responsible for all amounts incurred as a result
of any default by ELITE.
13. There remains a balance due and owing to Plaintiff on the Merchañt Agreement in the
amount of $43,935.00 plus interest, costs, disbursements and attorney fees.
AS AND FOR A FIRST CAUSE OF ACTION
(BREACH OF CONTRACT)
"1"
14. Plaintiff repeats and realleges each and every allegation contained in paragraphs
"13"
through of this complaint as though fully set herein at length.
15. Plaintiff gave fair consideration to ELITE which was tendered for the right to receive the
aforementioned receivables. Thus, Plaintiff fully performed under the Merchant
Agreement.
16. Upon and information and belief, ELITE is stillconducting regular business operations
and still collecting receivables.
17. ELITE breached the Merchant Agreement by defaulting on itsrepresentations and
warranties to Plaintiff by blocking Plaintiff's access to the Designated Bank Account
from which ELITE agreed to permit Plaintiff to withdraw receivables, by failing to
deposit receivables into the Designated Bank Account, by disposing of Plaintiff's assets
without Plaintiff's prior written express consent, and/or by depositing receivables into a
bank account other than the Designated Bank Account, all while stillconducting regular
business operations. As a result, Plaintiff has been unable to collect its daily percentage
of Receivables purchased from ELITE since the date of said default
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18. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant for breach
of contract for $43,935.00 of future receivables, plus interest, costs, disbursements and
attorney fees.
AS AND FOR A SECOND CAUSE OF ACTION
(PERSONAL GUARANTEE)
"1"
19. Plaintiff repeats and realleges each and every allegation contained in paragraphs
"18"
through of this complaint as though fully set forth at length herein.
20. Pursuant to the Merchant Agreement, TIMOTHY and LAUREN personally guaranteed
that ELITE would perform its obligations thereunder and that he or she would be
personally liable for any loss suffered by Plaintiff because of a breach ELITE.
21. ELITE has breached the Merchant Agreement as detailed above.
22. By reason of the foregoing, Plaintiff is entitled to a judgment against TIMOTHY and
LAUREN based on his or her personal guarantee in the sum of $43,935.00, plus interest,
costs, disbursements and attorney fees.
AS AND FOR A THIRD CAUSE OF ACTION
(UNJUST ENRICHMENT)
"1"
23. Plaintiff repeats and realleges each and every allegation contained in paragraphs
"22"
through of this complaint as though fully set forth at length herein.
24. Defendants have been unjustly enriched in that they have received the purchase price for
the future receivables, yet have failed to pay the sum of $43,935.00, plus interest, costs,
disbursements and attorney fees.
25. By reason of the foregoing, Plaintiff is entitled to a judgment against the Defendants for
unjust enrichment in the sum of $43,935.00, plus interest, costs, disbursements and
attorney fees.
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WHEREFORE, PlaintiffWise Funding Group, LLC requests judgment against Defendants ELITE
HARDWOOD FLOORING, INC. DBA ELITE HARDWOOD FLOORING, TIMOTHY L.
NEWMAN AND LAUREN ANN NEWMAN as follows
a. On the first cause of action of the complaint, Plaintiff requests judgment against
ELITE in the amount of $43,935.00, plus interest, costs, disbursements and
attorney fees;
b. On the second cause of action of the complaint, Plaintiff requests judgment against
TIMOTHY and LAUREN in the amount of $43,935.00, plus interest, costs,
disbursements and attorney fees.
c. On the third cause of action of the complaint, Plaintiff requests judgment against
ELITE, TIMOTHY and LAUREN in the amount of $43,935.00, plus interest,
costs, disbursements and attorney fees.
d. For such other and further relief as this Court deems just and proper.
Dated: New York, New York
July 26, 2019 By:
Richard Muller Esq,
Wise Funding Group, LLC
Attorney for Plaintiff
3rd 32nd
767 Avenue, FlOOr
New York, NY 10017
(212)-676- 5586
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STATE OF NEW YORK )
COUNTY OF NEW YORK )
LISA ADJODA, being duly sworn, states:
I am the Collection Manager for Plaintiff,Wise Funding Group, LLC in the within action. I have read
the foregoing Verified Complaint and know the contents thereof; the same is true to my knowledge,
except as to the matters therein stated to be alleged upon info-1ñation and belief and as to those matters I
believe them to be true.
The foregoing statements are true under penalties of perjury.
BY:
Lisa Adjoda
Sworn to before me this c (a day of
2019
RICHARD MULLER
Notesy Publk;, State of Neo
No. O2MU6314885
- in Kings Count.
Qualified
Public C Evives NOV U
Ñotary
RICHMtD MULLER
Notesy Pubbs, Senseof New Wrk
No. O2MU6314885
in Kings County
Qualified
Comrnission Emires NOV. 17, .2 Z
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NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/26/2019
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--- -----------_________ __--,---------------------X Index No.
WISE FUNDING GROUP, LLC
Plaintiffs
- against -
ELITE HARDWOOD FLOORING, INC. DBA ELITE
HARDWOOD FLOORING, TIMOTHY L. NEWMAN
AND LAUREN ANN NEWMAN
Defendants
NOTICE OF COMMENCEMENT OF ACTION
SUBJECT TO MANDATORY ELECTRONIC FILING
PLEASE TAKE NOTICE that thematter cap6oned above, which has been commêñced by filingof the
accompanying documents with the County Clerk, issubject to mand*nry electronic filing pursuant to Section
202.5-bb of the Uniform Rules for the TrialCourts. This notice is being served as required by Subdivision (b)
(3) of that Section.
The New York State Courts Electronic Filing System ("NYSCEF") is designed forthe electronic filing
of documents with the County Clerk and the court and for the electronic service of those documents, court
documents, and court notices upon counsel and self-represeñted parties. Counsel and/or parties who do not
notify the court of a claimed exemption (see below) as required by Section 202.5-bb(e) must immediately
record their representation within the e-filed matter on the Consent page in NYSCEF. Failure to do so may
result in an inability to receive electronic notice of document filings.
Exemptions from mandatory e-filingare limited to: 1) attorneys who certifyin good faith that theylack
the computer equipment and with all the requisite knowledge to and self-
(along employees) comply; 2)
represented parties who choose not to participatein e-filing.For additional information about electronic filing,
including access to Section 202.5-bb, consult the NYSCEF website atwww.nycourts.gov/efile or contact the
NYSCEF Resource Center at 646386-3033 or efile@courts.state.ny.us.
Dated: July 26, 2019
Richard Muller, Esq
Attorney for Plaintiff
Wise Funding Group, LLC
3rd 32nd
767 Avenue, FlOOr
New York, NY 10017
212-676-5586
rmuller@wisefundinegroup.com
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NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/26/2019
SUPREME COURT OF THE STATE OF NEW YORK Index #
COUNTY OF NEW YORK
WISE FUNDING GROUP, LLC
Plaintiff,
-against-
ELITE HARDWOOD FLOORING, INC. DBA ELITE
HARDWOOD FLOORING, TIMOTHY L. NEWMAN
AND LAUREN ANN NEWMAN
Defendants
......... ....................................
SUMMONS AND VERIFIED COMPLAINT
Richard Muller, Esq
Attorney for Plaintiff
3rd
767 Avenue
32nd
Fl0Or
New York, N.Y. 10017
(212) 676-5586
Service of a copy of the within is hereby admitted.
Dated,
Attorney(s) for
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