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RCG LV Debt IV Non-Reit Assets Holdings, LLC v Ringel

Supreme Court of New York, New York County

December 22, 2016, Decided

156210/14

Opinion

Robert R. Reed, J.

In this guaranty collection action, plaintiff RCG LV Debt IV Non-Reit Assets Holdings, LLC seeks to enforce its rights under a guaranty issued by defendants Benjamin Ringel, Tibor Klein and Gershon Klein (collectively, defendants or the Guarantors), pursuant to which they personally guaranteed the payment and performance of AC I Manahawkin Mezz, LLC (the Mezzanine Borrower), an entity in which they hold indirect membership interests, under a mezzanine loan extended by plaintiff to the Mezzanine Borrower. The Mezzanine Borrower defaulted under certain of its obligations under the mezzanine loan, and plaintiff asserts that the  [**2]  Guarantors are jointly and severally personally liable for the payment in full of the principal balance, accrued interest, late charges and other applicable fees, penalties and charges due under the mezzanine loan.

Plaintiff now moves, pursuant to CPLR 3212, for summary judgment [*2]  on its first cause of action seeking a money judgment in the amount of $5,643,361.90, and setting plaintiff's claims for attorneys' fees, costs and disbursements down for a hearing.

Defendants Tibor and Gershon Klein cross-move for summary judgment dismissing plaintiff's amended complaint, and/or staying this action pending certain allegedly related Bankruptcy cases, and/or compelling discovery.

Defendant Ringel also cross-moves for summary judgment in his favor, and staying the action pending certain allegedly related Bankruptcy cases.

For the reasons set forth below, plaintiff's motion is granted, and the cross motions are denied.

Background

The Mortgage Loan and The Mezzanine Loan

On February 3, 2011, plaintiff loaned to AC I Manahawkin, LLC (the Mortgage Borrower) the amount of $36,630,000 (the Mortgage Loan). The Mortgage Loan was evidenced by a promissory note, dated February 3, 2011, in the principal amount of $36,630,000, made by the Mortgage Borrower for the benefit of plaintiff, and is secured by a mortgage encumbering the commercial real property known as The Commons at Manahawkin Village (the Property), located in Stafford Township, New Jersey (amended complaint, P 7). The Mortgage [*3]  Borrower owns the Property (id., P 8).

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2016 N.Y. Misc. LEXIS 4874 *; 2016 NY Slip Op 51848(U) **; 54 Misc. 3d 1205(A); 50 N.Y.S.3d 28

 [**1]  RCG LV Debt IV Non-Reit Assets Holdings, LLC, Plaintiff, against Benjamin Ringel, TIBOR KLEIN and GERSHON KLEIN, Defendants.

Notice: THIS OPINION IS UNCORRECTED AND WILL NOT BE PUBLISHED IN THE PRINTED OFFICIAL REPORTS.

PUBLISHED IN TABLE FORMAT IN THE NEW YORK SUPPLEMENT.

Subsequent History: Motion granted by RCG LV Debt IV Non-Reit Assets Holdings, LLC v. Ringel, 2018 N.Y. Misc. LEXIS 4581 (N.Y. Sup. Ct., Oct. 9, 2018)

CORE TERMS

Mezzanine, Borrower, Guarantors, Guaranty, Mortgage, default, bankruptcy proceedings, Collateral, Lender, recourse, loan documents, obligations, triggered, Forbearance, terms, rights, summary judgment, loan agreement, Pledge, unpaid, Intercreditor, costs, attorney's fees, Senior, amended complaint, remedies, alleges, notice, voluntary bankruptcy, Reaffirmation