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FILED: NEW YORK COUNTY CLERK 03/07/2014 INDEX NO. 151302/2014
NYSCEF DOC. NO. 19 RECEIVED NYSCEF: 03/07/2014
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
x
KE KAILANI PARTNERS, LLC, Index No. 151302/2014
Petitioner, AFFIRMATION OF
CHRISTOPHER J. MAJOR
v.
Motion Sequence
MICHAEL 1. FUCHS, No. 001
Respondent.
x
CHRISTOPHER J. MAJOR, an attorney at law duly admitted to practice before the
courts of this state, hereby affirms the following subject to the penalties of perjury:
1. I am a partner in the law firm of Meister Seelig & Fein LLP ("MSF"), counsel for
Respondent Michael Fuchs ("Fuchs") and, as such, I am familiar with the facts and
circumstances of this matter as hereinafter set forth.
2. I respectfully submit this affirmation in opposition to Ke Kailani Partners, LLC
("KKP") motion pursuant to CPLR 3119 and CPLR 3124 to compel Fuchs to comply with a
subpoena served by petitioner Ke Kailani Partners, LLC ("KKP") on or about January 26, 2014
(the "Subpoena").
3. By way of background, on April 23, 2012, KKP obtained the Hawaii Judgment.
4. On or about October 16, 2012, KKP purported to register the Hawaii Judgment in
New York County pursuant to Article 54 of the New York CPLR.
5. In response to KKP's Article 54 petition to register the Hawaii Judgment in New
York, Fuchs, who was (and still is) vigorously challenging the validity and constitutionality of
the Hawaii Judgment in the appellate courts of Hawaii, filed motions in this Court seeking an
order (a) staying enforcement in New York of the Hawaii Judgment pending the outcome of
5720-001 Doc# 286 1
post-judgment motions and an appeal of the Hawaii Judgment in Hawaii (Motion Sequence No.
1); (b) striking the Hawaii Judgment in New York because of defects in the notice and filing of
the Hawaii Judgment here in New York (Motion Sequence No.2); and (c) dismissing KKP's
Article 54 petition on the ground that the Hawaii Judgment is not entitled to full faith and credit
in New York because it was procured in violation of the Fuchs Parties' due process rights.
6. After extensive briefing and oral argument on all three motions, on May 13,2013
the Court issued the Stay Order, which prohibited any actions by KKP to enforce the Hawaii
Judgment in New York pending the outcome of appeals challenging the Hawaii Judgment. In
addition, the Court held in abeyance Motion Sequence Nos. 2 and 3 pending the outcome of the
Hawaii proceedings. Thus, Fuchs' motions attacking the registration of the Hawaii Judgment in
New York and objecting to it receiving full faith and credit were not ruled upon because the
Court stayed enforcement in New York.
7. The Court conditioned the Stay Order on Fuchs posting a bond in an amount
equal to ten percent of the Hawaii Judgment. When interest was included, Fuchs was required to
and did post with the New York Supreme Court an undertaking in the amount of $2,402,037.11.
True and correct copies of the Proofs of Posting of the Undertaking are attached hereto as
Exhibit 1. That undertaking was designed by statute and did buy Fuchs peace in New York until
the conclusion of the appeal in Hawaii. KKP has no basis for disturbing that peace.
8. Notably, at the time this Court entered the Stay Order, counsel for KKP
specifically asked for and was denied an exception to the stay for asset discovery:
Mr. Hranitsky: Your Honor, may I just make one point of
clarification? Does the stay apply to discovery?
The Court: I can't hear you.
Mr. Hranitsky: Does the stay apply to discovery?
5720-001 Doc# 286 2
The Court: Yeah. There is no discovery needed at this stage. Do
you want to do discovery here?
Mr. Hranitsky: Asset discovery.
The Court: I don't think it's necessary until you have a judgment -
Mr. Meister: Right.
The Court: -- that has full faith and credit and that has been finally
determined by the Hawaii Courts. At this stage, you do have a
judgment, I haven't vacated - I haven't rejected the full faith and
credit doctrine. I think that it's premature at this stage to do any of
that stuff. I rather you go ahead and have your energies in Hawaii
See May l3, 2013 Transcript, at p. 48, a true and correct copy of which is attached hereto as
Exhibit 2. Notably, KKP declined to attach this transcript to its moving papers.
9. Thereafter, KKP moved for reconsideration of the Stay Order, which this Court
denied on July 15,2013. A true and correct copy ofKKP's memorandum of law in support of its
May 24, 2013 motion for reconsideration is attached hereto as Exhibit 3. A true and correct
copy of the Court's Order denying KKP's motion for reconsideration is attached hereto as
Exhibit 4.
10. The appeals challenging the Hawaii Judgment in the Hawaii appellate courts
remain pending, as demonstrated by the docket sheets for each of the appeals that have been
provided by Fuchs' Hawaii counsel and are attached hereto as Exhibit 5. As is clear from
KKP's moving papers, it does not deny the pendency of the appeals.
11. Accordingly, KKP is barred from taking any steps in New York to enforce the
Hawaii Judgment, including asset discovery.
12. Nevertheless, KKP is now violating the Stay Order by serving the Subpoena,
which unquestionably seeks the exact asset discovery this Court explicitly held KKP could not
5720-001 Doc# 286 3
undertake. The document demands accompanying the Subpoena seek documents concerning
Fuchs' assets. Indeed, they are quintessential post-judgment asset discovery document demands.
KKP's thinly veiled use of CPLR 3119 to create the fiction that the Subpoena is somehow
discovery in Hawaii is patently without merit. It seeks documents and a deposition in New York,
all of which concerns Fuchs' assets. The Subpoena is therefore undeniably New York asset
discovery in violation of the Stay Order.
13. CPLR 2304 provides this Court with the authority to "quash, fix conditions or
modify a subpoena." In addition, CPLR 3103(a) empowers the Court to "make a protective
order denying, limiting, conditioning or regulating the use of any disclosure device." Therefore,
on behalf of Fuchs we filed a motion to quash, which is currently pending before the Court and
scheduled for argument simultaneously with the argument on the instant motion to compel on
March 24, 2014.
14. In order to preserve the efficacy of the Stay Order, this Court should issue an
order denying KKP's motion to compel and quashing the SUbpoena.
15. As set forth in the accompanying memorandum of law, the Subpoena violates an
order of this Court which barred KKP from enforcing in New York (the "Stay Order") a $21
million deficiency judgment entered in Hawaii against Fuchs in his role as the guarantor of a real
estate development loan following the foreclosure of the real estate in Hawaii that collateralized
the loan (the "Hawaii Judgment"). At the time the Court issued the Stay Order, the Court
explicitly found that the stay included a bar of asset discovery in New York. KKP's attempt to
cast the Subpoena as Hawaii discovery in an effort to circumvent the stay is without any legal or
factual basis. There is no doubt that the Subpoena seeks asset discovery in New York, and it is
therefore prohibited no matter how KKP characterizes the Subpoena. Moreover, Fuchs posted a
5720-001 Doc# 286 4
$2,402,037.11 bond in consideration for the Stay Order, and he IS entitled to the ongomg
protections it affords him within the State of New York.
~~'
Dated: New York, New York
March 7,2014
Christopher J. jb;
5720-001 Doc# 286 5
EXHIBIT
1
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NEW YORK COIJNTY
Cowmay Clerk and Clei'k of the Supreme Court
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Names of ptT.oru for whose benefit deposjted _______,___,__ ~.....- - -
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EXHIBIT
5
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49 cases found, displaying 10 case(s), from 31 to 40, Page 4 /5
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Ca.e Summary for CAAp·12-0000768
Ke Kailani Partners, LLC, a Hawaii limited liability company, Plaintiff-Appellee vs. Ke Kailani Development LLC, a Hawaii limited liabilUy company. Michael J, Fuchs, Individually,
Defendants-Appellants and Director of Finance. Real Property Division, County of Hawaii, Ke Kailani Community Association, the Association of Villa Owners of Ke Kailani, Mauna Lani
Resort Association, Defendants·Appellees and John Does 1-50, Jane Does 1-50, Doe Partnerships 1·50, Doe Corporations 1·50, Doe Limited Liability Companias 1·50, Doe Entities
1-50 and Doe Governmenta! Units 1-50, Defendants
Partl.s for CAAP·12·0000758
# PartytD Role Name Start Date End Date A •• oelated Party
Juv
A3181 Atlorney Gary V Dubin 31-AUG-2012 3,4 o
2 A8471 Marney Frederick John Arensmeyer 31-AUG-2012 3,4 o
3 @1793517 AppellantKe KaHani Development Lie 31-AUG-2012 o
4 @1793520 AppellantMichael J Fuchs 31-AUG·2012 o
5 @1793524 Appellee Ke Kailani Partners, Lie 31-AUG·2012 o
6 A1209 Attorney Terence J. O'Toole 31·AUG-2012 16,17,18,5 o
A5083 Attorney Sharon V. Lovejoy 31·AUG·2012 16, 17,1B, 5 o
8 A9054 Attorney Richard John Wallsgrove 31·AUG·2012 12·SEP-2012 o
9 A3744 Attorney Christian p, Porter 31-AUG-2012 11,12,13 o
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PartylO Role Name Start Date End Oato Associated Party
Juv
10 IA5698 IAttomey IRamona Laree Mcguire I31-AUG-2012 111 ,12,13 0
11 @1793526 Appellee Ke Kailani Community Association 31-AUG-2012 0
12 @1793527 Appellee Mauna Lani Resort Association 31-AUG-2012 0
13 @1793528 Appellee The Association Of Villa Owners Of Ke Kailani
31-AUG-2012 0
14 A3496 Attomey George W. Van Buren 31-AUG-2012 0
15 A1299 Attomey Nicholas C Dreher 31-AUG-2012 22-MAR-2013 0
16 @179353B Appellee Bank Of Hawaii 31-AUG-2012 0
17 @1793539 Appellee Central Pacific Bank 31-AUG-2012 0
18 @1793540 Appellee Finance Factors, Ltd 31-AUG-2012 0
19 A1724 Attomey Shelby A. Floyd 31-AUG-2012 21,22,23 0
20 A7B57 Attomey David D. Higgins 31-AUG-2012 21,22,23 0
21 @1793543 Appellee Mary Miles Morrison 31-AUG-2012 0
.22 @1793544 Appellee Robert Balinovich 31-AUG-2012 0
23 @1793545 Appellee Barry And Carol Shames 31-AUG-2012 0
24 ABB05 Attorney Andrew James Lautenbach 12-SEP-2012 16,17,18,5 0
25 A2997 Attorney Colin O.Miwa 05-0CT-2012 22-MAR-2013 0
.I~.
Dock.t. for CAAP-12-0000758
Ok!, Dkt, In
Description Filing Oato Filing Time Filing Party Sealed
# Code Camera
Notice of Appeal Ke Kailani Development Lie (@1793517),
NA 31-AUG-2012 15:45:31 N N
Filed OTC due to tech problems in JEFS Fuchs, Michael (@179352,,,
2 NEF NEF 31-AUG-2012 15:45:31 N N
Civil Appeal Docketing Statement Ke Kailani Development Llc (@1793517),
3 CA 31-AUG-2012 22:45:23 N N
EFile Document upload of type Civil Appeal Dockeling Statement Fuchs, Michael (@179352",
4 NEF NEF 31-AUG-2012 22:45:23 N N
Payment
5 PY 04-SEP-2012 08:09:09 N
Payment by CHK in the amount of $300.00
Appellate Mediation not Includ
6 AMNI 04-SEP-2012 10:20:25 N N
Excluded_
NEF NEF 04-SEP-2012 10:20:25 N N
Withdrawal & Substitution of
Nollce of Withdrawal of Wallsgrove and appearance of
8 WSC rOocket code NTCE was updated to docket code
Lautenbach 12-SEP-2012 09:21:35 Ke Kailani Partners, Ltc (@1793524)
N N
WSC on 09/1312012 by userid JOSHNCTJKH to correcl eFiling
Correction" I
NEF
9 NEF 12-SEP-2012 09:21 :35 N N
copy forwarded to 1CC. Appeals Clerk, via interoffice mail.
NOe
I' Docket code NTCE was updated to docket code WSC on
10 NOC 13-SEP-2012 17:21:36 N N
09/13/2012 by userid JOSHNCTJKH to correct eFiling Correclion
'/(Doc#6)
Receipt~Document
Transmitted
11 RC 13·SEP-2012 17:22:11 N N
fe Notice of wId & appear of counsel-filed 9/12/12
12 NEF NEF 13-SEP-2012 17:22:11 N N
Order 10 Consolidate Appeal
OR re Consolidation. 9/4/12 mIn to consolidate granted to extent
Ihat CAAP-12-70 conSOlidated under 758, and denied as to
13 OCON D5-0CT-2012 11:37:43 N N
CAAP-12-153 & 759 (dismissed on 10/1/12). Copy of Ihis OR
shall be filed in CAAP-12-70 & 758, thereafier all docs shall be
filed only in 75B, Briefing shall proceed per HRAP 28.
NEF
14 NEF NOTE-COpy of OR sent to Appeals Clerl<, First Circuit via
05-0CT-2012 11:37:43 N N
interOffice mail,
Receipt-Document Transmitted
15 RC OB-OCT -2012 17:11:12 N N
re Order filed 10/5/12
16 NEF NEF 08-0CT-2012 17:11:12 N N
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Ok!. Okt. In
Description Filing Date FIling Time FIling Party Sealed
#
17
Code
IRA
I
Record on Appeal
ROA (PART 1 OF 16)
I25·0CT-2012115:49:05 N
Camera
18 NEF NEF 25·0CT-2012 15:49:05 N N
Record on Appeal
19 RA 25·0CT -201215:50:22 N N
ROA (PART 2 OF 16)
20 NEF NEF 25·0CT-2012 15:50:22 N N
Record on Appeal
21 RA 25·0CT ·201215:51:52
ROA (PART 3 OF 16)
22 NEF NEF 25·0CT-2012 15:51:52 N
Record on Appeal
23 RA 25·0CT-2012 15:52:31 N N
ROA (PART 4 OF 16)
24 NEF NEF 25·0CT -201215:52:31 N N
Record on Appeal
25 RA 25·0CT-2012 15:53:26 N
ROA (PART 5 OF 16)
26 NEF NEF 25·0CT-2012 15:53:26 N N
Record on Appeal
27 RA 25·0CT-2012 15:54:09 N N
ROA (PART 6 OF 16)
28 NEF NEF 25·0CT-2012 15:54:09 N N
Record on Appeal
29 RA 25·0CT·2012 15:54:52 N N
ROA (PART 7 OF 16)
30 NEF NEF 25·0CT-2012 15:54:52 N N
Record on Appeal
31 RA 25-0CT-2012 15:55:43 N N
ROA (PART 8 OF 16)
32 NEF NEF 25-0CT-2012 15:55:43 Ii N
Record on Appeal
33 RA 25·0CT-2012 15:56:29 N N
ROA (PART 9 OF 16)
34 NEF NEF 25-0CT-2012 15:56:29 N N
Record on Appeal
35 RA 25-0CT-2012 15:57:34 N
ROA (PART 10 OF 16)
36 NEF NEF 25-0CT-2012 15:57:34 N N
Record on Appeal
37 RA 25-0CT -201215:58:38 N N
ROA (PART 11 OF 16)
38 NEF NEF 25·0CT-2012 15:58:38 N N
Record on Appeal
39 RA 25·0CT ·201215:59:27 N N
ROA (PART 12 OF 16)
40 NEF NEF 25·0CT·2012 15:59:27 N N
Record on Appeal
41 RA 25·0CT·2012 16:00:27 N N
ROA (PART 13 OF 16)
42 NEF NEF 25·0CT·2012 16:00:27 N N
Record on Appeal
43 RA
ROA (PART 14 OF 16)
25·0CT·2012 16:01:31 N
44 NEF NEF 25·0CT-2012 16:01:31 N N
Record on Appeal
45 RA 25·0CT-2012 16:02:39 N
ROA (PART 15 OF 16)
46 NEF NEF 25·0CT·2012 16:02:39 N N
Record on Appeal
47 RA 25·0CT·2012 16:03:44 N N
ROA (PART 16 OF 16)
48 NEF NEF 25·0CT-2012 16:03:44 N
Notice of Entrng Case on Clndr
49 NC 25·0CT·2012 17:13:42 N N
ODP Document generated on 25·0CT·2012
50 NEF NEF 25·0CT ·201217:13:42 N N
51 AMRA Amended Record on Appeal 26·0CT·2012 08:22:10 N N
52 NEF NEF 26·0CT-2012 08:22:10 N N
Jurisdictional Statement Ke Kailani Development Llc (@1793517),
53 JS 09·NOV·2012 19:38:56 N N
EFile Document upload of type Jurisdictional Statement Fuchs. Michael (@179352 ...
54 NEF NEF 09·NOV·2012 19:38:56 N N
Clerk's ExtenSion
Ke Kailani Development Lie (@1793517),
55 ex phone-Bessie (Gary Dubin) .. 30d Ext to Fi,e 08 from 121412012
03-DEC·2012 08:27:18
Fuchs, Michael (@179352 ...
N N
to 11312013.
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Ok\. Ok!. In
Description FIling Date Filing Time FIling Party Sealed
# Code Camera
55 INEF INEF 103-DEC-2012108:27:18 N N
Notice of Extension Ke Kailani Developmenl L1c (@1793517),
57 NEXT 09-DEC-2012 19:08:56 N N
EFile Document upload of type Notice of Extension Fuchs, M',chael (@179352 ..
58 NEF NEF 09-DEC-2012 19:08:56 N N
Motion for Extension of Time Ke Kailani Development L1c (@1793517),
59 MXT 03-JAN-2013 23:05:56 N N
EFlie Document upload of type Motion for Extension of Time Fuchs, Michael (@179352 ...
60 NEF NEF 03-JAN-2013 23:05:56 N N
Order_
61 ORD 07 -JAN-201309:40:03 N N
Apprvd and so Ordered, Ext to file 08 to 01/31/12.
62 NEF NEF 07-JAN·2013 09:40:03 N N
Motion for Reconsideration
Plainliff Ke Kailani Partners LLC's MoUon for ReconSideration of
63 MR 15·JAN·2013 12:07:35 N
Ke Kailani Partners, L1c (@1793524) N
ORder Granting Four-Week Extension of Time for Filing Opening
Brief
64 NEF NEF 15-JAN·2013 12:07:35 N N
Order
Ordered, MLn/Recon is grotd in part and denied in part Relief fr
default and leave to file late 08 deemed grntd, 08 due by
01/31/13. NFE will be gmtd, Further Ordered, w~n 15d of dte of
65 ORD 23-JAN·2013 12:47:04 N N
ord, Gary Victor Dubin show good cause why failed to file
OB/timely req ext Failure to show good cause/comply wIard may
result in sanctions. Further Ordered, Mtn denied in all other
respects,
66 NEF NEF 23-JAN·2013 12:47:04 N N
Motion for Reconsideration Ke Kailani Developmenl L1c (@1793517),
67 MR 29-JAN·2013 10:56:07 N N
EFlle Document upload of type Motion for Reconsideration Fuchs, Michael (@179352...
68 NEF NEF 29·JAN-2013 10:56:07 N N
Opening Brief
This document is STRICKEN pursuant to Order filed on 3/27/13,
docket no. 127, due to non-compliance of HRAP 28 AmOB shall • Ke Kailani Development L1c (@1793517),
69 08 31-JAN-2013 22:56:39 N N
be filed by 4/8/13 (4/6Sat). Fuchs, Michael (@179352 ...
. . . . . . . .6 . . . . . . . . ,. . . . . . . . . . . . . . . . . . . . . . . H' •• " • • -..~ • .., . . . . . . ~ • •
~.....
i • • • • •• ,. ........ ..
EFile Document upload of type Opening Brief
70 NEF NEF 31-JAN-2013 22:56:39 N N
Exhibit Ke Kailani Development L1c (@1793517),
71 EXH 31·JAN·2013 22:58:40 N N
EFile Document upload of type Ex:t1ibit Fuchs, Michael (@179352._
72 NEF NEF 31-JAN·2013 22:58:40 N N
Exhibit Ke Kailani Development L1c (@1793517),
73 EXH 31-JAN-2013 23:00:35 N N
EFile Document upload of type Exhibit Fuchs, Michael (@179352 ...
74 NEF NEF 31-JAN-2013 N N
Exllibit Ke Kailani Development L1c(@1793517),
75 EXH 31-JAN-2013 2302:48 N N
EFlle Document upload of type Exhibit Fuchs, Michael (@179352...
76 NEF NEF 31-JAN-2013 23:02:48 N N
Declaration Ke Kailani Development Lie (@1793517),
77 DEC 31-JAN-2013 23:04:41 N N
EFile Document upload of type Declaration Fuchs, Michael (@179352 . .,
78 NEF NEF 31·JAN-2013 23.04:41 N N
Exhibit Ke Kailani Development L1c (@1793517),
79 EXH 31·JAN·2013 23:06:29 N N
EFile Document upload of type Exhibit Fuchs, Michael (@179352 .
80 NEF NEF 31·JAN·2013 23:06:29 N N
Exhibit Ke Kailani Development L1c (@1793517),
01 EXH 31·JAN-2013 23:08:32 N N
EFile Document upload of type Exhibit Fuchs, Michael (@179352 ...
82 NEF NEF 31-JAN-2013 23:08:32 N N
Exhibit Ke Kallani Developmenl Llc (@1793517),
03 EXH