`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`INDEX NO~ 608071/2017
`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`A
`A R«.C«.IV«.D \IYSCEF: 10/05/2017
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`SUPREME COURT OF THE STATE OF NEW YORK
`
`COUNTY OF NASSAU
`
`_____________________________________________________________________X
`
`MATTHEW TROCCOLI and CHRISTOPHER LAZOS,
`
`Index No. 608071/2017
`
`Plaintiffs,
`
`-against—
`
`DANIEL VOLK, JONATHAN EISENBERG d/b/a
`SPARK HOSPITALITY GROUP and
`
`B.O.B. KITCHEN LLC,
`
`_____________________________________________________________________X
`
`Defendants.
`
`Assigned Justice:
`Hon. John M. Galasso
`
`AFFIRMATION
`IN OPPOSITION
`
`Philip Siege], pursuant to CPLR 2106, hereby affirms under penalties of perjury as follow:
`
`1.
`
`I am a partner in the law firm of Siegel & Sitler, PLLC, attorneys for Daniel Volk and
`
`B.O.B. Kitchen LLC, two of the defendants in the above-referenced case (“the Responding
`
`Defendants”) and am fully familiar with the facts herein.
`
`2.
`
`I respectfully submit this affirrnation a) requesting that the motion for an order of
`
`attachment, brought on by an Order to Show Cause, granted on September 22, 2017 (“the Order”),
`
`be dismissed on the grounds that plaintiffs failed to comply with the service requirements
`
`contained in the Order; and b) in opposition to plaintiffs’ motion to the extent it is not dismissed.
`
`3.
`
`In further opposition to plaintiffs’ motion, we submit the annexed affidavit of Daniel Volk,
`
`sworn to on October 4, 2017, and the exhibits annexed hereto.
`
`I.
`
`The Motion Should be Dismissed Because Plaintiffs Failed to Serve Defendants
`
`in Compliance With the Order.
`
`4.
`
`- As a threshold matter, plaintiffs’ motion should be dismissed on the grounds that plaintiffs
`
`failed to comply with the service requirements contained in the Order. As a result, plaintiffs have
`
`failed to provide this Court with jurisdiction. “The method of service provided for in an order to
`
`show cause is jurisdictional in nature and must be strictly complied with” (El Greco Soc. of Visual
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`Arts, Inc. v. Diamantidis, 47 A.D.3d 929; see also, Codrington v. Citimortgage, Inc., 118 A.D.3d
`
`843).
`
`5.
`
`The Order states that “a copy of this Order to Show Cause, and all supporting papers, be
`
`served upon Defendants’ attorneys via overnight on or before the 2nd day of October, 2017 or if
`
`unrepresented, upon the defendants personally, pursuant to CPLR §§ 308 or 311, shall be deemed
`
`good and sufficient service thereof.”
`
`6.
`
`Based on the Order, plaintiffs were required to serve your affirmant, as attorney for
`
`Responding Defendants, via overnight on or before October 2, 2017. In addition, plaintiffs were
`
`required to serve the Order, and all supporting papers, upon the unrepresented defendant, Jonathan
`
`Eisenberg, personally by October 2, 2017.
`
`7.
`
`Contrary to the specific service directions in the Order, plaintiffs failed to serve your
`
`affirmant with the Order, and all supporting papers, via overnight delivery by October 2, 2017.
`
`Instead, plaintiffs served the Order via overnight on October 3, 2017, and your affirmant received
`
`said delivery on October 4, 2017. A copy of the plaintiffs’ shipping label, showing the October 3,
`
`2017, shipping date, is annexed hereto as Exhibit A.
`
`8.
`
`Additionally, on information and belief, plaintiffs also failed to serve Jonathan Eisenberg
`
`with the Order and supporting papers.
`
`9.
`
`The failure to serve all defendants in this case in strict compliance with the service
`
`requirements contained in the Order deprives the Court of jurisdiction to hear the motion and
`
`requires that the motion be dismissed.
`
`II.
`
`In Any Event, the Motion Should be Denied Its Entireg Because Plaintiffs
`Cannot Demonstrate 3 Probability of Success on the Merits of the Action or
`Any Fraud or Intent to Defraud by Defendants.
`To obtain an order of attachment, plaintiffs must demonstrate, among other things, a) a
`
`10.
`
`probability of success on the merits of the action; and b) that defendants acted or will act with
`
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`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
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`INDEX NO. 608071/2017
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`INDEX NO~ 608071/2017
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`intent to defraud plaintiffs (see, Benedict v. Browne, 289 A.D.2d 433). “The moving papers must
`
`contain evidentiary facts, as opposed to conclusions, proving the fraud” (1d,). “The mere removal,
`
`assignment or other disposition of property is not grounds for attachment” (Computer Strategies
`
`v. Commodore Bus. Machs., 105 A.D.2d 167, 173).
`
`In any event, the granting of an order of
`
`attachment lies within the discretion of the Court (Elliot Associates v. Republic of Peru, 948
`
`F.Supp. 1203, 1211).
`
`11.
`
`Plaintiffs have failed to demonstrate a probability of success in this case. The moving
`
`papers are replete with conclusory, speculative allegations and devoid of any specific facts
`
`showing fraud or an intent to deceive. Plaintiffs’ attempt to use the observations of dining activity
`
`on two particular Sunday mornings as proof that the restaurant at issue is profitable is baseless and
`
`completely speculative. Significantly, plaintiffs offer no evidence that defendants have stolen or
`
`misappropriated any money. On the contrary, as set forth in the annexed affidavit of Daniel Volk,
`
`defendants have continuously acted in good faith and maintained complete transparency since the
`
`inception of the restaurant at issue.
`
`12.
`
`In his affidavit, Mr. Volk convincingly explains that the business has continuously failed
`
`to be profitable despite his best efforts. A copy of the most recent profit and loss statement of the
`
`business is annexed hereto as Exhibit B.
`
`13.
`
`Mr. Volk’s transparency in this matter is substantiated by the numerous financial
`
`documents he provided to all the members over the past 3 years, including plaintiffs. Copies of
`
`these documents are annexed hereto collectively as Exhibit C.
`
`14.
`
`In his affidavit, Mr. Volk explains that any distributions by the company would necessarily
`
`be governed by the operating agreement and distributed to the individual members in proportion
`
`to his/her respective interests. Mr. Volk has not defrauded the plaintiffs, has not absconded with
`
`30f 62
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`FILED: NASSAU COUNTY CLERK 10w2017 11:45 AM
`
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`_
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`INDEX NO. 608071/2017
`INDEX NO- 608071/2017
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`
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`any funds, and is not attempting to leave the State or transfer funds outside the State. The mere
`
`fact that the restaurant at issue has been placed with a broker for sale is not a grounds for
`
`attachment.
`
`III.
`
`Conclusion
`
`15.
`
`For the reasons herein, and the accompanying papers, defendants respectfully request that
`
`plaintiffs’ motion for an order of attachment be dismissed and/or denied in its entirety.
`
`Dated: Hauppauge, New York
`October 4, 2017
`
`flan?
`
`
`
`Philip Sie e1, Esq.
`Siegel & Sitler, PLLC
`Attorneys for Defendants
`Daniel Volk and B.O.B. Kitchen LLC
`
`150 Motor Parkway, Suite 401
`Hauppauge, New York 11788
`631-467-5959
`
`To:
`
`Law Offices of Anthony A. Capetola
`Attorneys for Plaintiffs
`2C Hillside Avenue
`
`Williston Park, NY 11596
`
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`C V
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`mwmkuézx.
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`INDEX NO- 608071/2017
`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`
`
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`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`A
`M RMCMIVMD YSCEF: 10/05/2017
`
`
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NASSAU
`... ._
`.___.....................__.__..______.X
`
`MATTHEW TROCCOLI and CHRISTOPHER LAZOS,
`
`Index No. 608071/2017
`
`Plaintiffs,
`
`-against-
`
`DANIEL VOLK, JONATHAN EISENBERG d/b/a
`SPARK HOSPITALITY GROUP and
`
`B.O.B. KITCHEN LLC,
`
`Defendants.
`
`X
`
`Assigned Justice:
`Hon. John M. Galasso
`
`AFFIDAVIT
`mam
`
`COUNTY or NEW YORK )
`) ss.:
`)
`
`STATE or NEW YORK
`
`l.
`
`I am a defendant and the managing member of the corporate defendant, B.0.B. Kitchen
`
`LLC (“BOB"), in the above-captioned case and am fully familiar with the facts herein.
`
`2.
`
`I respectfiilly submit this affidavit in opposition to plaintiffs’ motion for an order of
`
`attachment to the extent it is not dismissed.
`
`3.
`
`BOB was formed on or about January 16, 2014, for the main purpose of opening and
`
`operating a testament and bar in Manhattan. BOB raised money for this purpose fiom numerous
`
`investors including the plaintifi's and myself.
`
`4.
`
`As set forth in the operating agreement of BOB, annexed to the moving papers as Exhibit
`
`F, I am the sole managing member of BOB and have "full and complete authority, power and
`
`discretion to manage and control the business, afiairs and properties of the Company.” As set
`
`forth in the confidential business plan of BOB, annexed to the moving papers as Exhibit B, I have
`
`experience successfillly opening and operating other restaurants and bars in the area.
`
`60f 62
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`608071/2017
`INDEX NO. 608071/2017
`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
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`INDEX NO-
`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`
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`10/05/2017
`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`A
`A RMCMIVMD YSCEF:
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`5.
`
`On or about October 1, 2014, BOB opened its restaurant and bar known as the Upsider in
`
`Manhattan. Since that time, I have personally operated the Upsider and made every reasonable
`
`effort to increase business and maximize profits.
`
`6.
`
`Unfortunately for all of us who invested, the business has been unable to realize a profit.
`
`A copy of the profit and loss statement of the business is annexed hereto As Exhibit B. As set
`
`forth below, this situation is the result ofnumerous factors beyond my or anyone’s control.
`
`7.
`
`For example, on November 1, 2014, only a month afier we opened. the landlord erected
`
`scaffolding on the exterior of the building while the Upsider was trying to attract new customers.
`
`The scaffolding remained in place for three months through January of 2015. The exterior of a
`
`testament is extremely important in attracting customers, especially to a new establishment like
`
`the Upsider. As a result, the scafi'olding adversely impacted the business and its bottom line.
`
`8.
`
`In addition, labor costs have also increased and negatively affected the bottom line of the
`
`business. As of December 31, 2015, New York State increased the minimum wages for tipped
`
`~ employees from $5.00 to $7.50 per hour, representing a 50% increase in wages paid by the
`
`business.
`
`9.
`
`It also seems that there is not enough physical space for the restaurant to be profitable in
`
`the colder months. During the months of May through October, the Upsider serves customers
`
`outside on the sidewalk under an awning. During those warmer months, with the additional 43
`
`seat sidewalk café, the business has generally been profitable. In contrast, the restaurant is unable
`
`to realize a profit during the months ofNovember through April, when the restaurant’s seating is
`
`limited to the indoor space it occupies.
`
`7 of 62
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`INDEX NO-
`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`
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`10/05/2017
`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`A
`A RMCMIVMD YSCEF:
`
`
`
`10.
`
`This unfortunate situation should not be completely unforeseen. Virtually no business can
`
`guarantee its profitability. In fact, the documents provided to plaintiffs specifically point out the
`
`risks associated with investing in BOB (see Exhibit B, paragraph 9 and Exhibit E, paragraph 2d).
`
`11.
`
`I have operated BOB in a completely honest and transparent way. On a consistent basis, I
`
`have prepared and delivered periodic reports to all the members, including the plaintiffs. Copies
`
`of many of these reports are annexed hereto collectively as Exhibit C. These reports consist of
`
`true and accurate operating costs and revenues related to the business together with my analysis.
`
`In addition, the books and records ofthe business are available to the members for viewing at the
`
`accountant‘s office in Manhattan at any reasonable time.
`
`12.
`
`Since its inception, I have operated the business in good faith and in the best way possible
`
`under the circumstances. I have never taken funds improperly and never misrepresented any facts
`
`related to the business to any of the members. including the plaintifi's. In short, I have not - and
`
`would never — steal money fiom the business or any of the members.
`
`13.
`
`To date, the business has not distributed any net profits to any members because there have
`
`not been enough profits to distribute.
`
`In the future, if the business generates net profits for
`
`distribution, I will make certain that such funds are distributed to each member ofthe company in
`
`the proper and proportionate amount to which he/she is entitled under the operating agreement of
`
`BOB.
`
`14.
`
`Because the business has not been a profitable venture, the restaurant was offered for sale
`
`through a broker and I have been in discussions with another entity about a possible transaction
`
`that would result in the rebranding of the Upsider. Should BOB receive fimds as a result of the
`
`transaction, such fimds would be distributed to each member of the company in the proper and
`
`proportionate amount to which he/she is entitled under the operating agreement of BOB. 0f
`
`8 of 62
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`INDEX NO-
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`10/05/2017
`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
`A
`A RMCMIVMD YSCEF:
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`
`
`course, any such distributions would be made only after payments are made to satisfy the
`
`company’s outstanding debt.
`
`15.
`
`I have not intentionally transferred, and do not intend on transferring, any money from the
`
`business out ofthe State ofNew York and do not intend on moving out ofthe State ofNew York.
`
`16.
`
`In their moving papers, plaintiffs offer the report of a private investigator who observed
`
`that the restaurant was busy on two different Sundays while brunch was being served outdoors. I
`
`do not dispute these observations.
`
`In fact, approximately 25% of the restaurant’s revenue is
`
`generated during Brunch hours. However, it is completely inappropriate and erroneous to project
`
`profits based on two visits during the restaurant’s well-known busiest time. On a Tuesday night,
`
`for example, the restaurant typically does not generate enough revenue to break even.
`
`17.
`
`As set forth herein, I have continuously acted in good faith and maintained complete
`
`transparency in the operation ofBOB since the formation ofBOB and opening ofthe Upsider. For
`
`these reasons it is respectfully requested that plaintiffs’ motion for an order of attachment be
`
`dismissed and/or denied in its entirety.
`
`/
`
`‘fl
`
`DANIEL VOLK
`
`Sworn to before me on the
`
`4th day of October, 2017
`
`it
`
`N DANNY MELENDEZ
`
`Notary Publle - State at New York
`NO. DlMEét74995
`Qualified In New York 0 My
`My Commisslon Expires
`' 2-9.9
`* mwyw-z‘ "A arr-"V “1 "—N'
`
`90f 62
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`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
`
`NYSCEF DOC. NO. 23
`NYSCEF DOC. NO. 23
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`INDEX NO. 608071/2017
`INDEX NO~ 608071/2017
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`R«.C«.IV«D \IYSCEF: 10/05/2017
`RECEIVED NYSCEF: 10/05/2017
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`ExhibitA
`
`10 of 62
`10 of 627
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`
`, INDEX NO. 608071/2017
`INDEX NO. 608071/2017
`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
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`FILED: NASSAU COUNTY CLERK 10m2017 11:45 AM
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`
`NYSCI
`R«.C«.IV«.D \iYSCEF: 10/05/2017
`*
`NO
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`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
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`NYSCEF DOC. NO. 23
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`INDEX NO. 608071/2017
`INDEX NO' 608071/2017
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`RECEIVED NYSCEF: 10/05/2017
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`Exhibit B
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`FILED
`NASSAU COUNTY CLERK 10
`2017 11
`45 AM
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`NYSC
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`
`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`FILED
`NASSAU COUNTY CLERK 10
`2017 11
`45 AM
`1.
`NYSC
`F DOC. NO. 23
`NYSCEF DOC. NO. 23
`F“
`
`D
`6
`INDEX NO. 608071/2017
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`.FO.3.NCSXYEV
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`14 of 62
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`
`
`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
`FILED
`NASSAU COUNTY CLERK 10
`2017 11
`45 AM
`1.
`NYSCI
`F DOC. NO. 23
`A
`NYSCEF DOC. NO. 23
`
`.3.D
`6
`INDEX NO. 608071/2017
`
`.FO.3.NCSXY
`ND.I4VICR
`
`
`
`
`
`
`RECEIVED NYSCEF: 10/05/2017
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`77ll002.2/./l5700/800l
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
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`
`NYSCEF DOC. NO.
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`NYSCEF DOC. NO. 23
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`NYSC 3F DOC. NO. 23
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`INDEX NO.
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`INDEX NO. 608071/2017
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`FILED: NASSAU COUNTY CLERK 10/05/2017 11:45 AM
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`10/05/2017
`RECEIVED NYSCEF: 10/05/2017
`NYSCEF DOC. NO. 23
`N¥SCEF DOC. NO. 23
`A
`A RMCMIVMD YSCEF:
`
`5/14/2015
`
`Dear Investor,
`
`We are now through the first two quarters of operations at The Upsider, and I
`wanted to provide you an update on the restaurant's progress thus far. Moving
`forward I plan to update everyone 3 - 4 weeks after the quarter ends. For example
`at the end of July we will send Q2 numbers.
`
`The Upsider has had tremendous positive press. Thrillist named The Upsider its
`"Best New Brunch”, and Zagat rated The Upsider’s burger as one o