Category Archives: New York Law

Did Supreme Court Properly Dismiss Complaint as Failing to State a Cause of Action?

Plymouth Capital, LLC and Christian J. Woodcock commenced an action against Montage Financial Group, Inc. and Brett M. Smith, former vice president of Plymouth, seeking to recover damages for breach of contract, tortious interference with contract, tortious interference with prospective business relations, aiding and abetting breach of fiduciary duty, and unjust enrichment, and to recover in quantum meruit.

Plymouth alleged that, in August 2015, Plymouth entered into an exclusive agency agreement with Melton Mullinix, Jr., the owner of a life insurance policy and Melton Mullinix, Sr., the insured under the policy for Plymouth to serve as the exclusive agent of record with respect to the sale of the policy. Plymouth also alleged that, in September 2015, Montage presented an offer to purchase the policy for the sum of $1,500,000 to Smith, who was operating on behalf of Plymouth. In September 2015, Plymouth, by Woodcock, a life insurance settlement broker, executed and returned a contract request form for the sale of the policy to Montage. According to Plymouth, Smith then formed Sterling Settlements, LLC and procured an agreement signed by the Mullinix family naming Sterling, instead of Plymouth, as the exclusive agent of record for the sale of the policy. Plymouth and Woodcock further alleged that Montage wrongfully compensated Smith for the sale of the policy and that they were not compensated for the transaction.

Was Vehicle Legally Sold at Auction? Action Time-Barred?

Thomas Jackson sued Casino Towing Service, Inc. to recover for conversion, breach of a constructive bailment, negligence, unjust enrichment, and violation of the Lien Law in regards to his vehicle, which was seized by the New York State Police, towed by CTS February 7, 2017, and thereafter sold at auction on March 23, 2018.

Jackson moved to dismiss CTS’s affirmative defenses, including failure to state a cause of action and statute of limitations. In his affidavits in support of his motion, Jackson averred that he went to CTS’s place of business on February 8, 2017 demanding the return of his vehicle and providing a notice of recorded lien from his financing company which listed him as the owner of the vehicle. Jackson further averred that CTS refused to release the vehicle without proof of ownership in the form of a valid title or registration.

Court Determines Whether Vehicle Was Legally Sold At Auction For Non-Payment of Lien

In 2019, Georges Coly asserted a claim of replevin against Yorke & Sons Auto Inc. and Alive Auto Repair Inc. for the return of his 2015 Chevrolet Tahoe bearing VIN 1GNSCBKCXFR160546, as well as $1,200 in lost wages resulting from the allegedly unlawful detention of his vehicle. On May 9, 2023, the Court conducted a lengthy inquest on the record, during which it heard testimony from Coly and considered his documentary evidence. At the conclusion of the inquest, Coly orally amended his demand for damages to include $100,000 in lost wages, plus interest calculated at 20%, and a new 2023 Chevrolet Tahoe to be funded by Yorke and Alive.

Coly’s testimony was replete with substantial gaps and occasional inconsistencies. According to Coly, he was involved in an automobile accident on November 18, 2018, which damaged the front end of his vehicle and caused the airbag to deploy. The following day, on November 19, 2018, he brought his vehicle to Alive Auto Repair for repairs and was instructed to return the next day to receive an estimate. On November 20th, Coly returned to Alive and apparently was dissatisfied with the estimate; he claimed he told Alive not to repair his vehicle, but also that he could not take his vehicle that day and would return another day to retrieve it.