FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`STATE
`
`OF NEW YORK
`
`SUPREME
`COUNTY
`----------
`EMIL
`LLC,
`on behalf
`
`OF THE
`COURT
`OF NEW YORK
`--------------------------------------------X
`and
`derivatively,
`ASSOCIATES
`
`directly
`10839
`
`of
`
`Index
`
`No.
`
`651281/2017
`
`IAS
`
`Part
`
`61
`
`(Ostrager,
`
`J.)
`
`Motion
`
`Seq. No.
`
`8
`
`IAS
`
`Part
`
`61
`
`(Ostrager,
`
`J.)
`
`Index
`
`No.
`
`655091/2017
`
`:
`
`: :
`
`: :
`
`:
`:
`:
`:
`
`: :
`
`: :
`
`: :
`
`:
`
`: :
`
`:
`
`:
`:
`:
`
`: :
`
`:
`:
`:
`
`X
`
`:
`
`: :
`
`: :
`
`: :
`
`:
`:
`
`: :
`
`:
`
`Plaintiff,
`
`- against
`
`-
`
`BARRY
`J. JACOBSON,
`P. DAY REALTY
`JOSEPH
`& CHESNOV
`ROSENBERG
`
`LARRY
`
`A. WOHL,
`and
`
`LLP,
`
`CORP.,
`CPA'S
`
`Defendants,
`
`- and
`
`-
`
`ASSOCIATES
`10839
`108 WEST
`39TH
`
`and
`STREET
`
`ASSOCIATES,
`
`Nominal
`
`Defendants.
`
`------------------------------------------------------
`EMIL
`and
`LLC,
`directly
`derivatively
`of 2 WEST 45™
`STREET
`on behalf
`BUILDING
`OLYMPIC
`ASSOCIATES,
`STREET
`50 COURT
`and
`ASSOCIATES,
`
`LLC,
`
`Plaintiff,
`
`- against
`
`-
`
`BARRY
`LARRY
`J. JACOBSON,
`P. DAY REALTY
`JOSEPH
`and
`
`A. WOHL,
`CORP.,
`
`Defendants,
`
`- and
`
`-
`
`45™ STREET
`2 WEST
`BUILDING
`OLYMPIC
`STREET
`50 COURT
`and
`
`LLC,
`ASSOCIATES,
`ASSOCIATES,
`
`Nominal
`----------------------------------------------------------------X
`
`Defendants.
`
`1 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`----------------
`
`-----------------------------X
`
`Index
`
`No.
`
`650267/2018
`
`:
`
`: :
`
`: :
`
`: :
`
`: :
`
`: :
`
`: :
`
`:
`
`: :
`
`:
`
`EMIL
`LLC,
`on behalf
`
`of
`
`directly
`10839
`
`and
`derivatively
`ASSOCIATES,
`
`Plaintiff,
`
`- against
`
`-
`
`BARRY
`
`J. JACOBSON
`
`and LARRY
`
`A. WOHL,
`
`Defendants,
`
`- and
`
`-
`
`ASSOCIATES
`10839
`108 WEST
`39TH
`
`and
`STREET
`
`ASSOCIATES,
`
`-------------------------------------------------------X
`
`Nominal
`
`Defendants.
`
`DEFENDANTS'
`RULE
`TO PLAINTIFF'S
`RESPONSE
`TO SHOW CAUSE
`FOR PARTIAL
`OF ORDER
`
`IN SUPPORT
`
`STATEMENT
`19-A
`SUMMARY
`JUDGMENT
`
`Pursuant
`
`to Commercial
`
`Division
`
`Rule
`
`19-A(b),
`
`defendants
`
`Barry
`
`J. Jacobson
`
`A. Wohl
`
`("Wohl"),
`
`and
`
`Joseph
`
`Corp.
`
`("JPD
`
`("Jacobson"),
`
`Larry
`
`P. Day
`
`Realty
`
`Realty")
`
`(collectively,
`
`"Defendants")
`
`respond
`
`to the Rule
`
`19-A
`
`Statement
`
`of Material
`
`Facts,
`
`dated
`
`June
`
`12, 2019,
`
`submitted
`
`by plaintiff
`
`Emil
`
`LLC ("Emil"
`
`or
`
`"Plaintiff")
`
`in support
`
`of
`
`its order
`
`to show
`
`cause
`
`seeking
`
`partial
`
`summary
`
`judgment
`
`on its accounting
`
`claims,
`
`as follows:
`
`A.
`
`1.
`four
`
`The
`
`Entities
`
`Plaintiff's
`buildings
`
`("2W45");
`("50
`Court").
`properties
`
`they
`
`Actions
`Civil
`in New York:
`(3) Olympic
`10839,
`own
`
`entities
`four
`involve
`Associates
`10839
`("10839"),
`Associates
`("Olympic");
`Building
`50 Court
`and
`Olympic
`2W45,
`"Properties."
`are collectively
`
`(1)
`
`the
`
`established
`
`and
`are collectively
`
`estate
`interests
`real
`to hold
`LLC
`45th
`Street
`2 West
`Street
`Associates
`50 Court
`"Entities"
`and
`the
`the
`
`(2)
`(4)
`
`in
`
`real
`
`RESPONSE:
`
`Admit.
`
`2
`
`2 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`B.
`
`Emil's
`
`Interest
`
`in the
`
`Entities
`
`2.
`venturer
`
`late Arthur
`The
`in the
`predecessor
`
`D. Emil
`was
`to 2W45.
`
`a partner
`Affidavit
`
`in
`
`10839,
`of David
`
`Olympic,
`Emil
`
`and
`(Emil
`
`50 Court
`¶ 3.
`
`Aff.)
`
`and was
`
`a joint
`
`RESPONSE:
`
`Admit.
`
`3.
`
`Arthur
`
`D. Emil
`
`died
`
`in 2010.
`
`Id.
`
`RESPONSE:
`
`Admit.
`
`4.
`the
`hold
`Actions.
`
`Emil
`real
`Id.
`
`LLC ("Emil")
`is a Delaware
`investments
`in his
`property
`
`LLC that was
`estate
`(the
`
`formed
`
`after
`
`"Estate"),
`
`including
`
`Arthur
`those
`
`D. Emil's
`at
`issue
`
`death
`to
`in the Civil
`
`RESPONSE:
`
`Deny
`
`knowledge
`
`or
`
`information
`
`sufficient
`
`to form
`
`a belief
`
`as to the
`
`truth
`
`of
`
`the
`
`aver
`
`that
`
`statement
`
`and
`
`the
`
`limited
`
`liability
`
`company
`
`agreement
`
`of Emil
`
`LLC
`
`states
`
`that
`
`it was
`
`formed
`
`to "enable
`
`the Members
`
`to participate
`
`in investments
`
`they might
`
`not
`
`be able
`
`to make
`
`and
`
`to "serve
`
`as a mechanism
`
`to make
`
`transfers
`
`[of]
`
`Company
`
`assets."
`
`(Lerner
`
`Aff.
`
`individually"
`
`Ex.
`
`J, ¶ 3).
`
`5.
`
`The
`
`Estate
`
`transferred
`
`its
`
`interests
`
`in
`
`10839
`
`to Emil.
`
`Ex.
`
`28.
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`has
`
`not
`
`the
`
`documents
`
`the
`
`transfer
`
`was
`
`produced
`
`by which
`
`purportedly
`
`effectuated.
`
`(Lerner
`
`Aff.
`
`¶6).
`
`Instead
`
`Plaintiff
`
`relies,
`
`as support,
`
`on letters
`
`between
`
`representatives
`
`of Plaintiff
`
`and
`
`the Estate
`
`"confirming"
`
`the
`
`transfer.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`E).
`
`These
`
`letters
`
`were
`
`written
`
`in May
`
`2017,
`
`after
`
`Plaintiff
`
`had
`
`commenced
`
`litigation
`
`between
`
`the
`
`parties
`
`and
`
`after
`
`Defendants
`
`had
`
`served
`
`their
`
`first
`
`discovery
`
`request.
`
`(Lerner
`
`Aff.
`
`¶6).
`
`These
`
`letters
`
`but
`
`"we
`
`able
`
`recite
`
`that
`
`confirmation
`
`of
`
`the
`
`transfer
`
`was
`
`documented
`
`in April
`
`2014,
`
`are not
`
`to
`
`locate
`
`evidence
`
`of
`
`this
`
`after
`
`having
`
`moved
`
`twice
`
`in the
`
`interim."
`
`(Lerner
`
`Aff.
`
`Ex.
`
`E).
`
`Plaintiff
`
`has
`
`not
`
`taken
`
`the
`
`steps
`
`required
`
`by
`
`the
`
`10839
`
`Partnership
`
`Agreement
`
`to become
`
`a partner
`
`of
`
`10839.
`
`The
`
`10839
`
`Partnership
`
`Agreement
`
`requires,
`
`inter
`
`alia,
`
`that
`
`a party
`
`seeking
`
`to
`
`3
`
`3 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`become
`
`a partner
`
`of
`
`10839
`
`execute
`
`a writing
`
`agreeing
`
`to be bound
`
`by
`
`the
`
`10839
`
`Partnership
`
`Agreement
`
`(Lerner
`
`Aff.
`
`Ex.
`
`A,
`
`§14.02(a)).
`
`Plaintiff
`
`has
`
`not
`
`signed
`
`any
`
`such
`
`writing.
`
`(Jacobson
`
`Aff.
`
`¶8).
`
`Further,
`
`any
`
`transfer
`
`of
`
`that
`
`interest
`
`from
`
`the Estate
`
`to Emil
`
`is in violation
`
`of
`
`the
`
`right
`
`of
`
`first
`
`refusal
`
`held
`
`the
`
`by
`
`partnership
`
`and
`
`the managing
`
`partners.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`A,
`
`§14.02(b)).
`
`Per
`
`the
`
`right
`
`of
`
`first
`
`the Estate
`
`could
`
`not
`
`have
`
`transferred
`
`refusal,
`
`its partnership
`
`interest
`
`to Emil
`
`without
`
`first
`
`offering
`
`it
`
`to the
`
`partnership
`
`and
`
`its managing
`
`partners,
`
`which
`
`it did
`
`not
`
`do.
`
`(Jacobson
`
`Aff.
`
`¶ 9).
`
`Even
`
`if
`
`the
`
`10839
`
`Partnership
`
`Agreement
`
`could
`
`be read
`
`to permit
`
`such
`
`transfer,
`
`on the
`
`ground
`
`that
`
`the
`
`interest
`
`was
`
`going
`
`to immediate
`
`family
`
`members
`
`of Arthur
`
`there
`
`is a question
`
`of material
`
`fact
`
`as to whether
`
`the
`
`transfer
`
`to a limited
`
`liability
`
`company
`
`Emil,
`
`was
`
`intended
`
`to circumvent
`
`the
`
`right
`
`of
`
`first
`
`refusal.
`
`The
`
`use
`
`of a limited
`
`liability
`
`company
`
`as an
`
`the
`
`interest
`
`intermediary
`
`to acquire
`
`an interest
`
`in
`
`10839,
`
`as opposed
`
`to transferring
`
`directly
`
`to the
`
`Residuary
`
`Marital
`
`Trust,
`
`which
`
`is allegedly
`
`the
`
`sole member
`
`of Emil
`
`LLC,
`
`is the
`
`first
`
`step
`
`in a
`
`mechanism
`
`that would
`
`permit
`
`the Residuary
`
`Marital
`
`Trust
`
`to indirectly
`
`sell
`
`its
`
`interest
`
`in
`
`10839
`
`to a third
`
`party
`
`outside
`
`of Arthur
`
`Emil's
`
`immediate
`
`family.
`
`This
`
`would
`
`be accomplished
`
`by
`
`selling
`
`an interest
`
`in Emil
`
`LLC in circumvention
`
`of
`
`the
`
`agreement's
`
`right
`
`of
`
`first
`
`refusal.
`
`As
`
`the
`
`process
`
`set
`
`forth
`
`in the
`
`10839
`
`Partnership
`
`Agreement
`
`to become
`
`a partner
`
`is not
`
`their
`
`complete,
`
`Defendants
`
`retain
`
`contractual
`
`right
`
`to withhold
`
`their
`
`consent
`
`to Plaintiff's
`
`admission
`
`as a partner.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`A,
`
`§14.02(a)).
`
`Such
`
`consent
`
`could
`
`be withheld,
`
`reasonably
`
`and/or
`
`in good
`
`faith,
`
`on the
`
`basis
`
`of wrongful
`
`acts
`
`committed
`
`by Plaintiff's
`
`president
`
`and manager,
`
`David
`
`Emil.
`
`Plaintiff
`
`has
`
`recently
`
`falsely
`
`claimed
`
`in these
`
`litigations
`
`without
`
`a
`
`shred
`
`of
`
`supporting
`
`evidence
`
`that
`
`the managing
`
`and/or
`
`general
`
`partners
`
`of
`
`the Entities
`
`"paid
`
`millions
`
`of dollars
`
`to contractors
`
`for work
`
`that was
`
`never
`
`performed."
`
`(ECF
`
`No.
`
`168
`
`at p. 1
`
`4
`
`4 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`(Index
`
`No.
`
`655091/17),
`
`see also
`
`Pl. Mem.
`
`at 6 and
`
`17-18).
`
`Defendants
`
`have
`
`also
`
`recently
`
`learned
`
`through
`
`discovery
`
`that David
`
`Emil
`
`levied
`
`the
`
`same
`
`unfounded
`
`accusation
`
`in
`
`communications
`
`with
`
`other
`
`members
`
`of
`
`the Entities.
`
`(Jacobson
`
`Aff,
`
`¶l
`
`1.)
`
`The
`
`injuries
`
`that
`
`such
`
`an accusation
`
`can
`
`cause
`
`to
`
`10839
`
`and
`
`to its
`
`reputation
`
`is obvious.
`
`Plaintiff
`
`has
`
`also
`
`refused
`
`to
`
`extend
`
`the
`
`partnership
`
`term
`
`for Olympic,
`
`which
`
`hampers
`
`that
`
`entity's
`
`to refinance
`
`its
`
`mortgage
`
`thus
`
`injuring
`
`the
`
`partnership
`
`and
`
`its partners.
`
`Thus,
`
`even
`
`if Plaintiff
`
`were
`
`to decide
`
`to
`
`sign
`
`a writing
`
`agreeing
`
`to be bound
`
`by
`
`the
`
`10839
`
`Partnership
`
`Agreement,
`
`the managing
`
`partners
`
`of
`
`10839
`
`are well
`
`within
`
`their
`
`rights
`
`to refuse
`
`Plaintiff's
`
`admission
`
`as a partner
`
`as a result
`
`of
`
`ability
`
`these
`
`bad
`
`acts.
`
`6.
`
`The
`
`Estate
`
`transferred
`
`its
`
`interests
`
`in Olympic
`
`to Emil.
`
`Ex.
`
`33.
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`has
`
`not
`
`produced
`
`the
`
`documents
`
`by which
`
`the
`
`transfer
`
`was
`
`purportedly
`
`(Lerner
`
`effectuated.
`
`Aff.
`
`¶6.)
`
`Instead
`
`Plaintiff
`
`relies,
`
`as support,
`
`on letters
`
`between
`
`representatives
`
`of Plaintiff
`
`"confirming"
`
`the
`
`transfer.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`E).
`
`These
`
`letters
`
`were
`
`written
`
`in June
`
`2017,
`
`after
`
`Plaintiff
`
`had
`
`commenced
`
`litigation
`
`between
`
`the
`
`parties
`
`and
`
`after
`
`Defendants
`
`had
`
`served
`
`their
`
`first
`
`discovery
`
`request.
`
`(Lerner
`
`Aff.
`
`¶6).
`
`These
`
`letters
`
`recite
`
`that
`
`confirmation
`
`of
`
`the
`
`transfer
`
`was
`
`documented
`
`in April
`
`2014,
`
`but
`
`"we
`
`are not
`
`able
`
`to locate
`
`interim."
`
`(Lerner
`
`E).
`
`evidence
`
`of
`
`this
`
`after
`
`having
`
`moved
`
`twice
`
`in the
`
`Aff.
`
`Ex.
`
`Plaintiff
`
`has
`
`not
`
`taken
`
`the
`
`steps
`
`required
`
`the Amendment
`
`by
`
`to and Restatement
`
`of
`
`Agreement
`
`and Articles
`
`of Limited
`
`Partnership
`
`of Olympic
`
`Building
`
`Associates
`
`(the
`
`"Olympic
`
`LP Agreement")
`
`to become
`
`a partner
`
`of Olympic.
`
`The Olympic
`
`LP Agreement
`
`requires,
`
`inter
`
`alia,
`
`that
`
`a party
`
`seeking
`
`to become
`
`a partner
`
`of Olympic
`
`execute
`
`a writing
`
`agreeing
`
`to be bound
`
`by
`
`the Olympic
`
`LP Agreement.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`B, Art.
`
`IX(A)(2)).
`
`Plaintiff
`
`has
`
`not
`
`signed
`
`any
`
`5
`
`5 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`such
`
`writing,
`
`despite
`
`appropriate
`
`documentation,
`
`prepared
`
`by
`
`the Entities,
`
`being
`
`sent
`
`to Plaintiff
`
`for
`
`execution
`
`by
`
`letter
`
`dated
`
`January
`
`25,
`
`2018.
`
`(Lerner
`
`Aff.
`
`¶¶8-9,
`
`Ex. H).
`
`Instead
`
`of executing
`
`the
`
`documentation
`
`sent
`
`to it, Plaintiff
`
`crafted
`
`signed
`
`and
`
`delivered
`
`its own
`
`document,
`
`dated
`
`March
`
`1, 2018,
`
`entitled
`
`"Notice
`
`of
`
`Transfer."
`
`(Lerner
`
`Aff.
`
`¶10,
`
`Ex.
`
`I).
`
`The
`
`notice
`
`does
`
`not
`
`recite
`
`either
`
`the
`
`date
`
`of
`
`the
`
`transfer
`
`or Plaintiff's
`
`agreement
`
`to be bound
`
`as of
`
`that
`
`date.
`
`Rather,
`
`the
`
`transfer
`
`the
`
`notice
`
`recites
`
`that
`
`occurred
`
`no
`
`later
`
`than
`
`April
`
`14, 2014,
`
`and Plaintiff
`
`agrees
`
`to
`
`be bound
`
`as of
`
`that
`
`date.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`I)
`
`Per
`
`this
`
`notice,
`
`the
`
`alleged
`
`transfer
`
`could
`
`have
`
`occurred
`
`any
`
`time
`
`after
`
`Arthur
`
`Emil's
`
`death
`
`in 2010
`
`up to and
`
`including
`
`April
`
`14, 2014,
`
`leaving
`
`open
`
`the
`
`possibility
`
`that
`
`there
`
`will
`
`be a period
`
`of
`
`time
`
`preceding
`
`that
`
`date
`
`as to which
`
`Plaintiff
`
`purports
`
`to have
`
`received
`
`its
`
`interests
`
`but
`
`has
`
`not
`
`agreed
`
`to be bound.
`
`This
`
`does
`
`not meet
`
`LP Agreement.
`
`Plaintiff's
`
`obligations
`
`under
`
`the Olympic
`
`As
`
`the
`
`process
`
`set
`
`forth
`
`in the Olympic
`
`LP Agreement
`
`to become
`
`a partner
`
`is not
`
`complete,
`
`Defendants
`
`retain
`
`their
`
`contractual
`
`right
`
`to withhold
`
`their
`
`consent
`
`to Plaintiff's
`
`admission
`
`as a partner.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`B, Art.
`
`IX(B)).
`
`Such
`
`consent
`
`could
`
`be withheld,
`
`reasonably
`
`and/or
`
`in good
`
`faith,
`
`on the
`
`basis
`
`of wrongful
`
`acts
`
`committed
`
`by Plaintiff's
`
`president
`
`and manager,
`
`David
`
`Emil.
`
`Plaintiff
`
`has
`
`recently
`
`falsely
`
`claimed
`
`in these
`
`litigations
`
`without
`
`a
`
`shred
`
`of
`
`supporting
`
`evidence
`
`that
`
`the managing
`
`and/or
`
`general
`
`partners
`
`of
`
`the Entities
`
`"paid
`
`millions
`
`of dollars
`
`to contractors
`
`for work
`
`that was
`
`never
`
`performed."
`
`(ECF
`
`No.
`
`168
`
`at p. 1
`
`(Index
`
`No.
`
`655091/17),
`
`see also
`
`Pl. Mem.
`
`at 6 and
`
`17-18).
`
`Defendants
`
`have
`
`also
`
`recently
`
`learned
`
`through
`
`discovery
`
`that David
`
`Emil
`
`levied
`
`the
`
`same
`
`unfounded
`
`accusation
`
`in
`
`communications
`
`with
`
`other
`
`members
`
`of
`
`the Entities.
`
`(Jacobson
`
`Aff.
`
`¶ 11.)
`
`The
`
`injuries
`
`that
`
`such
`
`an accusation
`
`can
`
`cause
`
`to Olympic
`
`and
`
`to its
`
`reputation
`
`is obvious.
`
`Plaintiff
`
`has
`
`also
`
`refused
`
`to extend
`
`the
`
`partnership
`
`term for Olympic,
`
`which
`
`hampers
`
`that
`
`entity's
`
`ability
`
`to
`
`6
`
`6 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`refinance
`
`its mortgage
`
`thus
`
`injuring
`
`the
`
`partnership
`
`and
`
`its partners.
`
`Thus,
`
`even
`
`if Plaintiff
`
`were
`
`to decide
`
`to sign
`
`a writing
`
`agreeing
`
`to be bound
`
`the Olympic
`
`by
`
`LP Agreement,
`
`the
`
`general
`
`partners
`
`of Olympic
`
`are well
`
`within
`
`their
`
`rights
`
`to refuse
`
`Plaintiff's
`
`admission
`
`as a partner
`
`as a
`
`result
`
`of
`
`these
`
`bad
`
`acts.
`
`7.
`
`The
`
`Estate
`
`transferred
`
`its
`
`interests
`
`in 50 Court
`
`to Emil.
`
`Ex.
`
`35.
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`has
`
`not
`
`produced
`
`the
`
`documents
`
`by which
`
`the
`
`transfer
`
`was
`
`purportedly
`
`effectuated.
`
`(Lerner
`
`¶6).
`
`Plaintiff
`
`Aff.
`
`Instead
`
`relies,
`
`as support,
`
`on letters
`
`between
`
`representatives
`
`of Plaintiff
`
`"confirming"
`
`the
`
`transfer.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`E).
`
`These
`
`letters
`
`were
`
`written
`
`in June
`
`2017,
`
`after
`
`Plaintiff
`
`had
`
`commenced
`
`litigation
`
`between
`
`the
`
`parties
`
`and
`
`after
`
`Defendants
`
`had
`
`served
`
`their
`
`first
`
`discovery
`
`request.
`
`(Lerner
`
`Aff.
`
`¶6).
`
`These
`
`letters
`
`recite
`
`that
`
`confirmation
`
`of
`
`the
`
`transfer
`
`was
`
`documented
`
`in April
`
`2014,
`
`but
`
`"we
`
`are not
`
`able
`
`to locate
`
`evidence
`
`of
`
`this
`
`after
`
`moved
`
`twice
`
`in the
`
`interim."
`
`(Lerner
`
`Ex.
`
`having
`
`Aff.
`
`E).
`
`Plaintiff
`
`has
`
`not
`
`taken
`
`the
`
`steps
`
`required
`
`the
`
`Limited
`
`by
`
`Partnership
`
`Agreement
`
`of 50
`
`Court
`
`Street
`
`Associates
`
`(the
`
`"50
`
`Court
`
`LP Agreement")
`
`to become
`
`a partner
`
`of
`
`50 Court.
`
`The
`
`50
`
`Court
`
`LP Agreement
`
`requires,
`
`inter
`
`alia,
`
`that
`
`a party
`
`seeking
`
`to become
`
`a partner
`
`of 50 Court
`
`execute
`
`a writing
`
`agreeing
`
`to be bound
`
`by
`
`the
`
`50 Court
`
`LP Agreement.
`
`(Lerner
`
`Aff.
`
`Ex. C,
`
`§15.02).
`
`Plaintiff
`
`has
`
`not
`
`signed
`
`any
`
`such
`
`writing,
`
`despite
`
`appropriate
`
`documentation,
`
`prepared
`
`for
`
`execution
`
`letter
`
`dated
`
`(Lerner
`
`by
`
`the Entities,
`
`being
`
`sent
`
`to Plaintiff
`
`by
`
`January
`
`25,
`
`2018.
`
`Aff.
`
`¶¶8-9,
`
`Ex. H).
`
`Instead
`
`of executing
`
`the
`
`documentation
`
`sent
`
`to it, Plaintiff
`
`crafted
`
`signed
`
`and
`
`delivered
`
`its own
`
`document,
`
`dated
`
`March
`
`1, 2018,
`
`entitled
`
`"Notice
`
`of
`
`Transfer."
`
`(Lerner
`
`Aff.
`
`¶10,
`
`Ex.
`
`I).
`
`The
`
`notice
`
`does
`
`not
`
`recite
`
`either
`
`the
`
`date
`
`of
`
`the
`
`transfer
`
`or Plaintiff's
`
`agreement
`
`to
`
`be bound
`
`as of
`
`that
`
`date.
`
`Rather,
`
`the
`
`notice
`
`recites
`
`that
`
`the
`
`transfer
`
`occurred
`
`no later
`
`than
`
`April
`
`7
`
`7 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`14,
`
`2014,
`
`and Plaintiff
`
`agrees
`
`to be bound
`
`as of
`
`that
`
`date.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`I).
`
`Per
`
`this
`
`notice,
`
`the
`
`alleged
`
`transfer
`
`could
`
`have
`
`occurred
`
`any
`
`time
`
`after
`
`Arthur
`
`Emil's
`
`death
`
`in 2010
`
`up to and
`
`including
`
`April
`
`14, 2014,
`
`leaving
`
`open
`
`the
`
`possibility,
`
`that
`
`there
`
`will
`
`be a period
`
`of
`
`time
`
`preceding
`
`that
`
`date
`
`as to which
`
`Plaintiff
`
`purports
`
`to have
`
`received
`
`its
`
`interests
`
`but
`
`has
`
`not
`
`agreed
`
`not meet
`
`Plaintiff's
`
`obligations
`
`under
`
`the
`
`to be bound.
`
`This
`
`does
`
`50 Court
`
`LP Agreement.
`
`As
`
`the
`
`process
`
`set
`
`forth
`
`in the
`
`50 Court
`
`LP Agreement
`
`to become
`
`a partner
`
`is not
`
`complete,
`
`Defendants
`
`retain
`
`their
`
`contractual
`
`right
`
`to withhold
`
`their
`
`consent
`
`to Plaintiff's
`
`admission
`
`as a partner.
`
`(Lerner
`
`Aff.
`
`Ex. C, §15.02).
`
`Such
`
`consent
`
`could
`
`be withheld,
`
`reasonably
`
`and/or
`
`in good
`
`faith,
`
`on the
`
`basis
`
`of wrongful
`
`acts
`
`committed
`
`by Plaintiff's
`
`president
`
`and
`
`manager,
`
`David
`
`Emil.
`
`Plaintiff
`
`has
`
`recently
`
`falsely
`
`claimed
`
`in these
`
`litigations
`
`without
`
`a shred
`
`general
`
`of
`
`"paid
`
`millions
`
`of
`
`of
`
`supporting
`
`evidence
`
`that
`
`the managing
`
`and/or
`
`partners
`
`the Entities
`
`dollars
`
`to contractors
`
`for work
`
`that was
`
`never
`
`performed."
`
`(ECF
`
`No.
`
`168
`
`at p. 1 (Index
`
`No.
`
`655091/17),
`
`see also
`
`Pl. Mem.
`
`at 6 and
`
`17-18).
`
`Defendants
`
`have
`
`also
`
`recently
`
`learned
`
`through
`
`discovery
`
`that David
`
`Emil
`
`levied
`
`the
`
`same
`
`unfounded
`
`accusation
`
`in communications
`
`with
`
`other
`
`members
`
`of
`
`the Entities.
`
`(Jacobson
`
`Aff.
`
`¶l 1.)
`
`The
`
`injuries
`
`that
`
`such
`
`an accusation
`
`can
`
`cause
`
`to
`
`reputation
`
`is obvious.
`
`Plaintiff
`
`has
`
`also
`
`refused
`
`to extend
`
`the
`
`term
`
`50 Court
`
`and
`
`to its
`
`partnership
`
`for Olympic,
`
`which
`
`hampers
`
`that
`
`entity's
`
`ability
`
`to refinance
`
`its mortgage
`
`thus
`
`injuring
`
`the
`
`partnership
`
`and
`
`its partners.
`
`Thus,
`
`even
`
`if Plaintiff
`
`were
`
`to decide
`
`to sign
`
`a writing
`
`agreeing
`
`to
`
`be bound
`
`by
`
`the
`
`50 Court
`
`LP Agreement,
`
`the
`
`general
`
`partners
`
`of 50 Court
`
`are well
`
`within
`
`their
`
`rights
`
`to refuse
`
`Plaintiff's
`
`admission
`
`as a partner
`
`as a result
`
`of
`
`these
`
`bad
`
`acts.
`
`8.
`
`The
`
`Estate
`
`transferred
`
`its
`
`interests
`
`in 2W45
`
`to Emil.
`
`Ex.
`
`38.
`
`RESPONSE:
`
`Deny.
`
`8
`
`8 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`Plaintiff
`
`has
`
`not
`
`taken
`
`the
`
`steps
`
`required
`
`the 2W45
`
`by
`
`Operating
`
`Agreement
`
`to become
`
`a
`
`member
`
`of 2W45.
`
`The
`
`2W45
`
`Operating
`
`Agreement
`
`requires,
`
`inter
`
`alia,
`
`that
`
`a party
`
`seeking
`
`to
`
`become
`
`a member
`
`of 2W45
`
`execute
`
`a writing
`
`agreeing
`
`to be bound
`
`by
`
`the 2W45
`
`Agreement.
`
`(Lerner
`
`Aff.
`
`Ex. D,
`
`§18,
`
`as revised
`
`in Amendment
`
`No.
`
`1 to Operating
`
`Agreement,
`
`effective
`
`November
`
`2013).
`
`Plaintiff
`
`has
`
`not
`
`signed
`
`any
`
`such
`
`writing,
`
`despite
`
`appropriate
`
`documentation,
`
`prepared
`
`the Entities,
`
`sent
`
`to Plaintiff
`
`for
`
`execution
`
`letter
`
`dated
`
`January
`
`25,
`
`2018.
`
`by
`
`being
`
`by
`
`(Lerner
`
`Aff.
`
`¶¶8-9,
`
`Ex. H).
`
`Instead
`
`of executing
`
`the
`
`documentation
`
`sent
`
`to it, Plaintiff
`
`crafted
`
`signed
`
`and
`
`delivered
`
`its own
`
`document,
`
`dated March
`
`1, 2018,
`
`entitled
`
`"Notice
`
`of
`
`Transfer."
`
`(Lerner
`
`Aff.
`
`¶10,
`
`Ex.
`
`I).
`
`The
`
`notice
`
`does
`
`not
`
`recite
`
`either
`
`the
`
`date
`
`of
`
`the
`
`transfer
`
`or Plaintiff's
`
`agreement
`
`to be bound
`
`as of
`
`that
`
`date.
`
`Rather,
`
`the
`
`notice
`
`recites
`
`that
`
`the
`
`transfer
`
`occurred
`
`no
`
`later
`
`than
`
`April
`
`14, 2014,
`
`and Plaintiff
`
`agrees
`
`to be bound
`
`as of
`
`that
`
`date.
`
`(Id.)
`
`Per
`
`this
`
`notice,
`
`death
`
`in 2010
`
`the
`
`alleged
`
`transfer
`
`could
`
`have
`
`occurred
`
`any
`
`time
`
`after
`
`Arthur
`
`Emil's
`
`up to and
`
`including
`
`April
`
`14, 2014,
`
`leaving
`
`open
`
`the
`
`possibility,
`
`that
`
`there
`
`will
`
`be a period
`
`of
`
`time
`
`preceding
`
`that
`
`date
`
`as to which
`
`Plaintiff
`
`purports
`
`to have
`
`received
`
`its
`
`interests
`
`but
`
`has
`
`not
`
`agreed
`
`to be bound.
`
`This
`
`does
`
`not meet
`
`Plaintiff's
`
`obligations
`
`under
`
`the 2W45
`
`Operating
`
`Agreement.
`
`As
`
`the
`
`process
`
`set
`
`forth
`
`in the 2W45
`
`Operating
`
`Agreement
`
`to become
`
`a member
`
`is not
`
`complete,
`
`Defendants
`
`retain
`
`their
`
`right
`
`to withhold
`
`their
`
`consent
`
`to Plaintiff's
`
`admission
`
`as a
`
`of
`
`member.
`
`Such
`
`consent
`
`could
`
`be withheld,
`
`reasonably
`
`and/or
`
`in good
`
`faith,
`
`on the
`
`basis
`
`wrongful
`
`acts
`
`committed
`
`by Plaintiff's
`
`president
`
`and manager,
`
`David
`
`Emil.
`
`Plaintiff
`
`has
`
`recently
`
`falsely
`
`claimed
`
`in these
`
`litigations
`
`without
`
`a shred
`
`of
`
`supporting
`
`evidence
`
`that
`
`the
`
`managing
`
`and/or
`
`general
`
`partners
`
`of
`
`the Entities
`
`"paid
`
`millions
`
`of dollars
`
`to contractors
`
`for work
`
`that was
`
`never
`
`performed."
`
`(ECF
`
`No.
`
`168
`
`at p. 1 (Index
`
`No.
`
`655091/17),
`
`see also
`
`Pl. Mem.
`
`at 6
`
`and
`
`17-18).
`
`Defendants
`
`have
`
`also
`
`recently
`
`learned
`
`through
`
`discovery
`
`that David
`
`Emil
`
`levied
`
`the
`
`9
`
`9 of 17
`
`

`

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`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`same
`
`unfounded
`
`accusation
`
`in communications
`
`with
`
`other
`
`members
`
`of
`
`the Entities.
`
`(Jacobson
`
`Aff.
`
`¶l
`
`1.)
`
`The
`
`injuries
`
`that
`
`such
`
`an accusation
`
`can
`
`cause
`
`to 2W45
`
`and
`
`to its
`
`reputation
`
`is
`
`obvious.
`
`Plaintiff
`
`has
`
`also
`
`refused
`
`to extend
`
`the
`
`partnership
`
`term
`
`for Olympic,
`
`which
`
`hampers
`
`that
`
`entity's
`
`ability
`
`to refinance
`
`its mortgage
`
`thus
`
`injuring
`
`the
`
`partnership
`
`and
`
`its partners.
`
`Thus,
`
`even
`
`if Plaintiff
`
`were
`
`to decide
`
`to sign
`
`a writing
`
`agreeing
`
`to be bound
`
`the 2W45
`
`by
`
`Operating
`
`member
`
`within
`
`Agreement,
`
`the managing
`
`of 2W45
`
`is well
`
`its
`
`rights
`
`to refuse
`
`Plaintiff's
`
`admission
`
`as a partner
`
`as a result
`
`of
`
`these
`
`bad
`
`acts.
`
`9.
`
`Then
`
`the Estate
`
`transferred
`
`all
`
`beneficial
`
`interest
`
`in Emil
`
`to the Residuary
`
`Marital
`
`Trust
`
`created
`
`under
`
`the
`
`terms
`
`of Arthur
`
`D. Emil's
`
`will.
`
`Ex.
`
`27.
`
`RESPONSE:
`
`Admit,
`
`but
`
`aver
`
`that,
`
`as to
`
`10839,
`
`such
`
`transfer
`
`was
`
`in violation
`
`of
`
`the
`
`company's
`
`right
`
`of
`
`first
`
`refusal
`
`and
`
`therefore
`
`void.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`A,
`
`§ 14.02(b)).
`
`in its own
`
`name.
`
`47.
`
`10.
`
`Emil
`
`purchased
`
`a member
`
`interest
`
`in 2W45
`
`Ex.
`
`RESPONSE:
`
`Admit
`
`that
`
`Emil
`
`purchased
`
`a portion
`
`of
`
`the
`
`partnership
`
`interest
`
`formerly
`
`held
`
`by
`
`Larry
`
`Wohl,
`
`but
`
`deny
`
`that
`
`Emil
`
`is a member
`
`of 2W45
`
`for
`
`all
`
`of
`
`the
`
`same
`
`reasons
`
`set
`
`forth
`
`in
`
`Response
`
`to No.
`
`8, above,
`
`which
`
`is incorporated
`
`herein.
`
`11.
`
`Since
`
`2013,
`
`10839
`
`has
`
`recognized
`
`Emil
`
`as a partner
`
`on annual
`
`K-1
`
`forms.
`
`Ex.
`
`29.
`
`RESPONSE:
`
`that
`
`10839
`
`has
`
`issued
`
`K-1
`
`forms
`
`and
`
`legal
`
`Admit
`
`only
`
`to Plaintiff,
`
`deny
`
`the
`
`conclusion
`
`that
`
`by
`
`doing
`
`so 10839
`
`has
`
`recognized
`
`Plaintiff
`
`as a partner.
`
`12.
`
`Since
`
`2013,
`
`Olympic
`
`has
`
`recognized
`
`Emil
`
`as a partner
`
`on annual
`
`K-1
`
`forms.
`
`Ex.
`
`34.
`
`RESPONSE:
`
`Admit
`
`only
`
`that Olympic
`
`has
`
`issued
`
`K-1
`
`forms
`
`to Plaintiff,
`
`and
`
`deny
`
`the
`
`legal
`
`conclusion
`
`that
`
`by
`
`doing
`
`so Olympic
`
`has
`
`recognized
`
`Plaintiff
`
`as a partner.
`
`13.
`
`Since
`
`2013
`
`50 Court
`
`has
`
`recognized
`
`Emil
`
`as a partner
`
`on annual
`
`K-1
`
`forms.
`
`Ex.
`
`37.
`
`10
`
`10 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`RESPONSE:
`
`Admit
`
`only
`
`that
`
`50 Court
`
`has
`
`issued
`
`K-1
`
`forms
`
`to Plaintiff,
`
`and
`
`deny
`
`the
`
`legal
`
`conclusion
`
`that
`
`by
`
`doing
`
`so 50 Court
`
`has
`
`recognized
`
`Plaintiff
`
`as a partner.
`
`14.
`
`Since
`
`2013,
`
`2W45
`
`has
`
`recognized
`
`Emil
`
`as a partner
`
`on annual
`
`K-1
`
`forms.
`
`Ex.
`
`39.
`
`RESPONSE:
`
`Admit
`
`only
`
`that
`
`2W45
`
`has
`
`issued
`
`K-1
`
`forms
`
`to Plaintiff,
`
`and
`
`deny
`
`the
`
`legal
`
`conclusion
`
`that
`
`by
`
`doing
`
`so 2W45
`
`has
`
`recognized
`
`Plaintiff
`
`as a partner.
`
`C.
`
`Defendants'
`
`Interests
`
`in the
`
`Entities
`
`15.
`partner
`
`Defendant
`in 50 Court,
`
`Barry
`and
`
`Jacobson
`a manager
`
`is a Managing
`of 2W45.
`
`Partner
`
`in
`
`Ex.
`
`40,
`
`42,
`
`45,
`
`10839
`48.
`
`and Olympic,
`
`a general
`
`RESPONSE:
`
`Admit.
`
`16.
`partner
`
`Wohl
`
`Larry
`Ex.
`
`Partner
`
`in
`
`10839
`
`and Olympic,
`
`and
`
`a limited
`
`Defendant
`in 50 Court.
`
`is a Managing
`45.
`
`40,
`
`42,
`
`RESPONSE:
`
`Admit.
`
`D.
`
`Emil
`
`is_Entitled
`
`to Book
`
`and
`
`Records
`
`1.
`
`10839
`
`17.
`
`10839
`
`is a New York
`
`general
`
`partnership.
`
`Ex.
`
`40.
`
`RESPONSE:
`
`Admit.
`
`18.
`
`Article
`
`13 of
`
`10839's
`
`Partnership
`
`Agreement,
`
`dated
`
`July
`
`19,
`
`1983,
`
`reads,
`
`in part:
`
`shall
`
`There
`designate
`transaction
`
`be kept
`correct
`of
`the
`
`at such
`and
`true
`partnership.
`
`office
`books
`
`of
`the Partnership
`in which
`of account,
`partner
`shall
`Each
`have
`
`as the Managing
`shall
`be entered
`access
`thereto
`
`Partners
`each
`and
`at
`reasonable
`
`may
`every
`
`times.
`
`[...]
`
`Id.
`
`at Art.
`
`13.
`
`RESPONSE:
`
`Admit.
`
`19.
`
`Emil
`
`has
`
`repeatedly
`
`requested
`
`books
`
`and
`
`records
`
`for
`
`10839.
`
`Emil
`
`Aff.
`
`¶ 19, Ex.
`
`41.
`
`RESPONSE:
`
`Admit,
`
`and
`
`further
`
`aver
`
`that:
`
`(a) Plaintiff
`
`insists
`
`on inspecting
`
`"a complete
`
`set"
`
`of
`
`10839's
`
`books
`
`and
`
`records
`
`over
`
`its 30-year
`
`plus
`
`history
`
`(Jacobson
`
`Aff.
`
`¶5)
`
`and
`
`b) Plaintiff's
`
`11
`
`11 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`request
`
`seeks
`
`documents
`
`far
`
`beyond
`
`those
`
`permitted
`
`under
`
`the
`
`10839
`
`Partnership
`
`Agreement,
`
`which
`
`permits
`
`access
`
`to book
`
`of account
`
`only.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`A,
`
`§13).
`
`20.
`Aff.
`
`Defendants
`¶ 21.
`
`have
`
`refused
`
`to permit
`
`Emil
`
`to inspect
`
`the
`
`10839
`
`books
`
`and
`
`records.
`
`Emil
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`receives
`
`voluminous
`
`financial
`
`information
`
`from
`
`10839
`
`including
`
`annual
`
`financial
`
`statements,
`
`and,
`
`on a monthly
`
`basis,
`
`monthly
`
`income
`
`and
`
`expense
`
`statements,
`
`general
`
`ledgers,
`
`tenant
`
`collections
`
`and
`
`charges
`
`(which
`
`delineate
`
`the
`
`payments
`
`collected
`
`from
`
`10839's
`
`tenants)
`
`and
`
`payment
`
`detail
`
`statements
`
`(which
`
`delineate
`
`the
`
`payments
`
`made
`
`by
`
`10839)
`
`(Jacobson
`
`Aff.
`
`¶3).
`
`10839
`
`has
`
`also
`
`offered
`
`on numerous
`
`occasions
`
`identified
`
`documents
`
`to Plaintiff
`
`(Jacobson
`
`Aff.
`
`¶5).
`
`Plaintiff
`
`has
`
`also
`
`received,
`
`in the
`
`course
`
`of
`
`discovery
`
`in these
`
`actions,
`
`invoices
`
`from
`
`Celtic
`
`General
`
`Contractors,
`
`Inc.
`
`("Celtic")
`
`showing
`
`the
`
`work
`
`performed
`
`by Celtic
`
`and
`
`accompanying
`
`payment
`
`detail
`
`statements,
`
`comprising
`
`over
`
`1,110
`
`to supply
`
`specifically
`
`pages.
`
`(Jacobson
`
`Aff.
`
`¶4;
`
`Lerner
`
`Aff.
`
`¶18).
`
`2.
`
`Olympic
`
`21.
`
`Olympic
`
`is a New York
`
`limited
`
`partnership.
`
`Ex.
`
`42.
`
`RESPONSE:
`
`Admit.
`
`22.
`Article
`of September
`
`VIII
`
`of
`
`1, 1979,
`
`the Agreement
`as amended
`
`and Articles
`restated
`
`of Limited
`as of May
`
`Partnership
`provides:
`1, 1984,
`
`and
`
`of Olympic,
`
`made
`
`as
`
`and Accounts.
`Complete
`Books
`B.
`in accordance
`be maintained
`shall
`shall
`include
`separate
`practices
`and
`
`accurate
`
`and
`with
`generally
`for
`accounts
`
`and
`
`accounts
`
`books
`accepted
`accounting
`each
`Partner.
`
`the Partnership
`for
`principles
`and
`
`Partner
`Each
`such
`books
`
`of,
`
`shall,
`and
`
`reasonable
`at
`accounts.
`
`times,
`
`have
`
`access
`
`to and may
`
`inspect
`
`and make
`
`copies
`
`Id.
`
`at Art.
`
`VII.
`
`RESPONSE:
`
`Admit.
`
`12
`
`12 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`23.
`Emil
`
`On a number
`Aff.
`¶ 23, Ex.
`
`of occasions,
`and
`43
`44.
`
`Emil
`
`requested
`
`to inspect
`
`the Olympic
`
`books
`
`and
`
`records.
`
`RESPONSE:
`
`Admit,
`
`and
`
`further
`
`aver
`
`that:
`
`(a) Plaintiff
`
`insists
`
`on inspecting
`
`"a complete
`
`set"
`
`of
`
`Olympic's
`
`books
`
`and
`
`records
`
`over
`
`its 30-year
`
`plus
`
`history
`
`(Jacobson
`
`Aff.
`
`¶5)
`
`and
`
`b) Plaintiff's
`
`request
`
`seeks
`
`documents
`
`far
`
`beyond
`
`those
`
`permitted
`
`under
`
`the Olympic
`
`LP Agreement,
`
`which
`
`permits
`
`access
`
`to books
`
`and
`
`accounts
`
`for Olympic
`
`only.
`
`(Lerner
`
`Aff.
`
`Ex.
`
`B, Art.
`
`B)).
`
`VIII(
`
`24.
`
`By
`
`correspondence
`
`dated May
`
`10, 2017
`
`and May
`
`23,
`
`2017,
`
`counsel
`
`for Emil
`
`wrote
`
`Olympic,
`
`Barry
`
`Jacobson,
`
`Frank
`
`Zimbaro,
`
`and
`
`Larry
`
`Wohl
`
`requesting
`
`that
`
`Emil
`
`be permitted
`
`to
`
`inspect
`
`the Olympic
`
`books
`
`and
`
`records.
`
`Ex.
`
`43
`
`and
`
`44.
`
`RESPONSE:
`
`Admit
`
`that
`
`counsel
`
`for Emil
`
`sent Defendants
`
`the
`
`referenced
`
`correspondence
`
`and
`
`refer
`
`the Court
`
`to same
`
`for
`
`a complete
`
`and
`
`accurate
`
`description
`
`of
`
`the
`
`contents
`
`thereof.
`
`denied
`
`Emil's
`
`request
`
`for
`
`25.
`inspection
`
`By
`
`correspondence
`of
`the Olympic
`
`dated
`books
`
`June
`and
`
`8, 2017,
`records.
`
`counsel
`Emil
`Aff.
`
`for Defendants
`48.
`¶ 26, Ex.
`
`RESPONSE:
`
`Admit
`
`that
`
`counsel
`
`for Defendants
`
`sent
`
`Emil's
`
`counsel
`
`the
`
`referenced
`
`correspondence
`
`and
`
`refer
`
`the Court
`
`to same
`
`for
`
`a complete
`
`and
`
`accurate
`
`description
`
`of
`
`the
`
`contents
`
`thereof.
`
`26.
`and
`
`To
`records.
`
`Jacobson
`Defendants
`date,
`Emil
`48.
`¶ 26, Ex.
`Aff.
`
`and Wohl
`
`have
`
`denied
`
`Emil
`
`access
`
`to the Olympic
`
`Books
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`receives
`
`voluminous
`
`financial
`
`information
`
`from
`
`Olympic
`
`including
`
`annual
`
`financial
`
`statements,
`
`and,
`
`on a monthly
`
`basis,
`
`income
`
`and
`
`expense
`
`monthly
`
`statements,
`
`general
`
`ledgers,
`
`tenant
`
`collections
`
`and
`
`charges
`
`(which
`
`delineate
`
`the
`
`payments
`
`collected
`
`from
`
`Olympic's
`
`tenants)
`
`and
`
`payment
`
`detail
`
`statements
`
`(which
`
`delineate
`
`the
`
`payments
`
`made
`
`by Olympic)
`
`(Jacobson
`
`Aff.
`
`¶3).
`
`Olympic
`
`has
`
`also
`
`offered
`
`on numerous
`
`occasions
`
`to
`
`supply
`
`specifically
`
`identified
`
`documents
`
`to Plaintiff
`
`(Jacobson
`
`Aff.
`
`¶5).
`
`Plaintiff
`
`has
`
`also
`
`received,
`
`in the
`
`course
`
`of discovery
`
`in these
`
`actions,
`
`invoices
`
`from
`
`Celtic
`
`General
`
`Contractors,
`
`13
`
`13 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`Inc.
`
`("Celtic")
`
`showing
`
`the work
`
`performed
`
`by Celtic
`
`and
`
`accompanying
`
`payment
`
`detail
`
`statements,
`
`comprising
`
`over
`
`1,110
`
`pages.
`
`(Jacobson
`
`Aff.
`
`¶4;
`
`Lerner
`
`Aff.
`
`¶18).
`
`3.
`
`50 Court
`
`27.
`
`50 Court
`
`is a New York
`
`limited
`
`partnership.
`
`Ex.
`
`45.
`
`RESPONSE:
`
`Admit.
`
`28.
`
`provides,
`
`14.01
`Section
`in pertinent
`
`the
`of
`part:
`
`Limited
`
`Partnership
`
`Agreement
`
`of
`
`50 Court
`
`dated
`
`March
`
`29,
`
`1984
`
`shall
`
`There
`designate
`
`accurately
`thereto
`
`every
`
`at such
`be kept
`and
`true
`correct
`each
`and
`reasonable
`at all
`
`of
`office
`the Partnership
`in which
`of account,
`books
`transaction
`of
`the Partnership.
`times.
`
`Partners
`as the General
`shall
`be entered
`Each
`partner
`
`fully
`shall
`
`may
`and
`have
`
`access
`
`[....]
`
`Id.
`
`at § 14.01.
`
`RESPONSE:
`
`Admit.
`
`29.
`Emil
`
`On a number
`¶ 28, Ex.
`Aff.
`
`of occasions,
`47.
`46 and
`
`Emil
`
`requested
`
`to inspect
`
`the
`
`50 Court
`
`books
`
`and
`
`records.
`
`RESPONSE:
`
`and
`
`further
`
`aver
`
`that:
`
`insists
`
`"a complete
`
`set"
`
`of
`
`Admit,
`
`(a) Plaintiff
`
`on inspecting
`
`50 Court's
`
`books
`
`and
`
`records
`
`over
`
`its
`
`30-year
`
`plus
`
`history
`
`(Jacobson
`
`Aff.
`
`¶5)
`
`and
`
`b) Plaintiff's
`
`request
`
`seeks
`
`documents
`
`far
`
`beyond
`
`those
`
`permitted
`
`under
`
`the
`
`50 Court
`
`LP Agreement,
`
`which
`
`permits
`
`access
`
`to books
`
`of account
`
`only.
`
`(Lerner
`
`Aff.
`
`Ex. C,
`
`§14.01).
`
`By
`
`30.
`Defendants
`and
`records.
`
`dated May
`correspondence
`10, 2017
`and Wohl
`that
`Jacobson
`requesting
`Ex.
`46 and
`47.
`
`and May
`2017,
`23,
`Emil
`be permitted
`
`counsel
`to inspect
`
`wrote
`for Emil
`the
`50 Court
`
`to
`books
`
`RESPONSE:
`
`Admit
`
`that
`
`counsel
`
`for Emil
`
`sent Defendants
`
`the
`
`referenced
`
`correspondence
`
`and
`
`refer
`
`the Court
`
`to same
`
`for
`
`a complete
`
`and
`
`accurate
`
`description
`
`of
`
`the
`
`contents
`
`thereof.
`
`31.
`inspection
`
`By
`
`correspondence
`of
`the
`50 Court
`
`dated
`books
`
`June
`and
`
`8, 2017,
`records.
`
`counsel
`51.
`
`Ex.
`
`for Defendants
`
`denied
`
`Emil's
`
`request
`
`for
`
`14
`
`14 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`RESPONSE:
`
`Admit
`
`that
`
`counsel
`
`for Defendants
`
`sent Emil's
`
`counsel
`
`the
`
`referenced
`
`correspondence
`
`and
`
`refer
`
`the Court
`
`to same
`
`for
`
`a complete
`
`and
`
`accurate
`
`description
`
`of
`
`the
`
`contents
`
`thereof.
`
`32.
`and
`
`To
`records.
`
`date,
`Emil
`
`Jacobson
`Defendants
`Aff.
`¶ 31, Ex.
`51.
`
`and Wohl
`
`have
`
`denied
`
`Emil
`
`access
`
`to the
`
`50 Court
`
`books
`
`RESPONSE:
`
`Deny.
`
`Plaintiff
`
`receives
`
`voluminous
`
`financial
`
`information
`
`from
`
`50 Court
`
`including
`
`annual
`
`financial
`
`statements,
`
`and,
`
`on a monthly
`
`basis,
`
`monthly
`
`income
`
`and
`
`expense
`
`statements,
`
`general
`
`ledgers,
`
`tenant
`
`collections
`
`and
`
`charges
`
`(which
`
`delineate
`
`the
`
`payments
`
`collected
`
`from
`
`50 Court's
`
`tenants)
`
`and
`
`payment
`
`detail
`
`statements
`
`(which
`
`delineate
`
`the
`
`payments
`
`made
`
`(Jacobson
`
`also
`
`offered
`
`on numerous
`
`occasions
`
`to
`
`by
`
`50 Court)
`
`Aff.
`
`¶3).
`
`50 Court
`
`has
`
`supply
`
`specifically
`
`identified
`
`documents
`
`to Plaintiff
`
`(Jacobson
`
`Aff.
`
`$5).
`
`Plaintiff
`
`has
`
`also
`
`received,
`
`in the
`
`course
`
`of discovery
`
`in these
`
`actions,
`
`invoices
`
`from
`
`Celtic
`
`General
`
`Contractors,
`
`Inc.
`
`("Celtic")
`
`showing
`
`the work
`
`performed
`
`by Celtic
`
`and
`
`accompanying
`
`payment
`
`detail
`
`statements,
`
`comprising
`
`over
`
`1,110
`
`pages.
`
`(Jacobson
`
`Aff.
`
`¶4;
`
`Lerner
`
`Aff.
`
`¶18).
`
`4.
`
`245W
`
`33.
`
`2W45
`
`is a New York
`
`limited
`
`liability
`
`company.
`
`Ex.
`
`48.
`
`RESPONSE:
`
`Admit.
`
`34.
`of
`
`July
`
`Section
`1, 1982
`
`9 of
`and
`
`Venture
`Joint
`the
`as of February
`
`28,
`
`Agreement,
`which
`2012,
`
`as of April
`dated
`governs
`
`2W45,
`
`1, 1978,
`provides:
`
`and
`
`as amended
`
`as
`
`-- Accountant's
`The Managers
`Determination.
`Maintenance
`with
`and
`to the Premises
`respect
`and
`records
`have maintained
`books
`employed
`certified
`venture
`as directed
`the
`accountant
`public
`independent
`by
`paragraph
`which
`and
`records
`books
`in accordance
`with
`to the Premises
`6.12,
`shall
`be maintained
`in a location
`or vouchers)
`designated
`receipts
`of New York
`inspection
`shall
`and
`be available
`for
`within
`the City
`hours.
`reasonable
`or his
`agent
`at
`times
`business
`designated
`
`of Records
`such
`
`underlying
`Manager
`Venturer
`
`during
`
`shall maintain
`the joint
`with
`(and
`
`or
`
`respect
`
`any
`the
`
`by
`by any
`
`Joint
`
`Id.
`
`at § 9.
`
`15
`
`15 of 17
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/01/2019 03:08 PM
`NYSCEF DOC. NO. 254
`
`INDEX NO. 655091/2017
`
`RECEIVED NYSCEF: 07/01/2019
`
`RESPONSE:
`
`Admit.
`
`35.
`Aff.
`
`On a number
`49 and
`¶ 33, Ex.
`
`of occasions,
`50.
`
`Emil
`
`requested
`
`to inspect
`
`the 2W45
`
`books
`
`and
`
`records.
`
`Emil
`
`RESPONSE:
`
`Admit,
`
`and
`
`further
`
`aver
`
`that
`
`Plaintiff's
`
`request
`
`to inspect
`
`"a complete
`
`set"
`
`of
`
`2W45's
`
`books
`
`and
`
`records
`
`over
`
`its
`
`30-year
`
`plus
`
`history
`
`(Jacobson