FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`NYSCEF DOC. NO. 119
`
`INDEX NO. 650277/2020
`
`RECEIVED NYSCEF: 07/21/2020
`
`AFFIDAVIT
`
`OF SERVICE
`
`ss.:
`
`) )
`
`)
`
`State
`
`of New York
`
`County
`
`of New York
`
`Raphyel
`Rozon,
`in the County
`
`of
`
`swor
`being
`duly
`k#5 h‰ bf
`
`1. deposes
`and State
`
`that
`says
`and
`of New York,
`
`he is over
`the
`and
`he is not
`
`age
`a party
`
`of
`
`and
`18 years
`to this
`action.
`
`resides
`
`That
`
`on the
`
`12th
`
`day
`
`of
`
`June
`
`2020,
`
`he served
`
`a copy
`
`of
`
`the within:
`
`•
`
`•
`
`DATED
`JUNE
`LETTER
`COPY OF DOCUMENT
`
`12, 2020
`113 FILED
`NO.
`
`ON NYSCEF
`
`ON JUNE
`
`1, 2020
`
`By First
`postpaid
`
`custody
`
`Class Mail,
`addressed
`of
`the United
`
`upon Maximo
`
`wrappers,
`States
`
`in
`Postal
`
`Sanchez,
`a post
`Service
`
`Jr., by depositing
`copy
`under
`office/official
`depository
`of New York,
`within
`the State
`
`a true
`
`thereof
`in properly
`exclusive
`the
`addressed
`
`sealed
`care
`and
`as follows:
`
`Maximo
`5517
`
`Bronx,
`
`Sanchez,
`
`Broadway
`New York
`
`Jr.
`471
`Suite
`10463
`
`to before
`Sworn
`st day
`of
`
`July
`
`me this
`2020
`
`u
`
`1C
`
`F BRY AN
`REGGlONI
`NOTARY PUBUC. STATE OF NEW YORK
`Registralton No 01BR6051846
`Qualified in Kmgs County
`Commission Expires February 10.2023
`
`Raphyel
`
`Rozon
`
`1 of 41
`
`

`

`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`NYSCEF DOC. NO. 119
`
`INDEX NO. 650277/2020
`
`RECEIVED NYSCEF: 07/21/2020
`
`U en
`
`an
`
`LLP
`
`Cullen an d Dykman
`....
`New York, NY 10005
`T: 212.732.2000
`F: 212.825.1531
`
`DEBRAMARCH
`ASSOCIATE
`DIRECT:212-510-2298
`DIRECTFAx: 212-742-1219
`EMAIL: dmarch@cullenilp.com
`
`VIA
`Maximo
`5517
`
`Bronx,
`
`US MAIL
`
`Sanchez,
`
`Broadway
`New York
`
`Jr.
`471
`Suite
`10463
`
`June
`
`12, 2020
`
`Re:
`
`Sandra
`
`Marie
`
`Kassem
`
`v. Maximo
`
`Sanchez,
`
`Jr.,
`
`Index
`
`No.
`
`650277/2020
`
`Mr.
`
`Sanchez:
`
`Marie
`Index
`FILING
`
`Jr.,
`
`Sandra
`
`We represent
`v. Maximo
`cover
`
`Kassem
`the
`with
`SANCHEZ,
`CONTEMPT
`AND MOTION
`ATTACHED"
`
`to Plaintiff's
`document
`respond
`Defendant
`the Court
`
`that
`because
`could
`to amend
`
`Sanchez,
`"EMERGENCY
`CONSOLIDATED
`JR's
`FOR WANT
`ACTION
`FOR DISMISSAL
`filed
`as Docket
`No.
`Plaintiff
`Complaint,
`on
`June
`you
`filed
`date
`this
`on the
`not
`amend
`as of
`right,
`to CPLR
`pursuant
`
`Kassem
`No.
`
`that
`
`it.
`
`and
`
`has not
`
`1, 2020),
`leave
`from
`
`matter
`above-menened
`the
`Marie
`Sandra
`in
`("Plaintiff")
`papers
`your
`to the
`extent
`be advised
`Please
`650277/2020.
`MAXIMO
`DEFENDANT
`19 PANDEMIC:
`COVID
`DURING
`AND CRIMINAL
`TO SHOW CAUSE
`FOR
`RESPONSE
`CIVIL
`AND WANT
`OF DUE NOTICE,
`OF PERFECTION
`OF SERVICE
`NUNC PRO TUNC
`AND RETURN
`OF FUNDS WRONGFULLY
`Proceeding"
`113 under
`in Special
`are supposed
`to be an answer
`"Answer
`A copy
`objects
`to
`this
`and
`rejects
`of
`the
`as untimely,
`answer
`filed
`as we are
`is enched,
`it back
`to you.
`Plaintiff
`will
`not
`1, 2020
`scñdiñg
`Proceeding"
`document
`was
`as an "Answer
`in Special
`(June
`filed
`has not
`consent
`to am-4,
`sought
`sought
`our
`3025.
`
`this
`Moreover,
`under
`CPLR3022.
`nullity
`and Dykman
`were
`both
`verified."
`shall
`also
`not
`a proper
`
`verification
`
`be
`
`and we intend
`as required
`verified
`is not
`answer
`purported
`properly
`by Adam Kalish
`to Counterclaims
`filed
`and the Reply
`The Answer
`each
`"where
`is verified,
`a pleading
`verified.
`Under
`CPLR3020,
`answer
`must
`be verified.
`This
`"Affidavit
`of Truth
`As
`your
`such,
`because
`it
`is not
`a sworn
`notarized
`affidavit.
`
`it as a
`to treat
`filed
`by Cullen
`subsequet
`pbÆr.g
`Verification"
`in
`
`is
`
`we reserve
`right
`our
`Accordiñgly,
`we are compelled
`extent
`to answer.
`
`the
`
`to supple:nent
`
`and/or
`
`further
`
`object
`
`to this
`
`doenment,
`
`including
`
`to
`
`/Enclosures
`
`Very
`
`truly
`
`yours,
`
`Michael
`Debra
`
`J. Lane
`March
`
`FO U N D E D 1850
`
`NEW YORK
`
`NEWJERSEY
`
`WASHINGTON DC
`
`2 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`BEFORE
`
`THE SUPREME
`
`COURT
`
`OF THE STATE
`
`OF NEW YORK
`
`COMMERCIAL
`
`DIVISION,
`
`COUNTY
`
`OF NEW YORK
`
`60 CENTRE ST, NEW YORK, NEW YORK
`
`10007
`
`SANDRA MARIE
`
`KASEM
`
`PLAINTIFF
`
`V.
`
`MAXIMO
`
`SANCHEZ,
`
`JR
`
`DEFENDANT
`
`Index
`
`no.: 650277/2020
`
`EMERGENCY
`
`FILING DURING
`
`COVID
`
`19 PANDEMIC:
`
`DEFENDANT
`
`MAXIMO
`
`CRIMINAL
`
`CONTEMPT
`
`TO SHOW CAUSE FOR CIVIL AND
`RESPONSE
`JR's CONSOLIDATED
`SANCHEZ,
`FOR WANT OF PERFECTION
`OF SERVICE AND WANT OF DUE NOTICE,
`ACTION
`
`AND MOTION
`
`FOR DISMISSAL
`
`NUNC PRO TUNC AND RETURN OF FUNDS WRONGFULLY
`
`ATTACHED
`
`Honorable
`
`Supreme
`
`Court:
`
`Comes
`
`now MAXIMO
`
`SANCHEZ,
`
`JR, Pro Se,
`
`(hereafter
`
`SANCHEZ")
`
`in this
`
`his EMERGENCY
`
`FILING
`
`DURING
`
`COVID 19 PANDEMIC:
`
`DEFENDANT
`
`MAXIMO
`
`SANCHEZ,
`
`JR's CONSOLIDATED
`
`RESPONSE
`
`TO
`
`SHOW CAUSE FOR CIVIL AND CRIMINAL
`
`CONTEMPT
`
`ACTION
`
`FOR WANT OF PERFECTION
`
`OF SERVICE AND
`
`WANT OF DUE NOTICE,
`
`AND MOTION
`
`FOR DISMISSAL
`
`NUNC PRO TUNC AND JSEEKING
`
`IMMEDIATE]
`
`RETURN OF FUNDS WRONGFULLY
`
`ATTACHED.
`
`As a preliminary
`
`matter
`
`it must
`
`be stated
`
`that
`
`the
`
`authority,
`
`basis,
`
`and
`
`legal
`
`theory
`
`for
`
`this
`
`suit
`
`is very
`
`foggy,
`
`Plaintiffs
`
`basis
`
`for
`
`the
`
`suit
`
`is untenable
`
`and makes
`
`no sense
`
`such
`
`that
`
`it makes
`
`a true
`
`answer
`
`or
`
`1
`
`1 of
`39
`3 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`response
`
`impossible
`
`such
`
`that
`
`in its present
`
`state
`
`the
`
`case must
`
`be dismissed
`
`and all
`
`requests
`
`for
`
`relief
`
`which
`
`were
`
`built
`
`upon
`
`the
`
`initial
`
`suit
`
`are inaccurate
`
`record/incomplete
`
`record-based
`
`applications
`
`for
`
`adverse
`
`decisions
`
`against
`
`SANCHEZ
`
`which
`
`violate
`
`Federally
`
`Required
`
`Substantive
`
`Due Process
`
`of
`
`the
`
`Law, Equal
`
`Protection,
`
`First Amendment
`
`Rights
`
`to accurate
`
`and complete
`
`records
`
`where
`
`adverse
`
`decisions
`
`will
`
`be made,
`
`and in breach
`
`of Federal
`
`rights
`
`respecting
`
`property,
`
`assets,
`
`and the
`
`rights
`
`of
`
`persons
`
`to be secure
`
`in their
`
`and
`
`personal
`
`effects.
`
`Further,
`
`the
`
`action
`
`person,
`
`property,
`
`by and through
`
`against
`
`SANCHEZ
`
`all
`
`involved
`
`and
`
`using
`
`the
`
`state mechanisms
`
`by and through
`
`the
`
`court may
`
`be
`
`interfering
`
`with
`
`and
`
`impairing
`
`the Private
`
`and Jural
`
`rights,
`
`duties,
`
`and
`
`legal
`
`relations
`
`under
`
`and secured
`
`by Private
`
`Contracts
`
`and/or
`
`commercial
`
`agreements
`
`in breach
`
`of
`
`the State
`
`and Federal
`
`Constitutional
`
`Injunctions
`
`against
`
`doing
`
`so and
`
`in violation
`
`and
`
`breach
`
`of
`
`International
`
`Common
`
`Law and the
`
`International
`
`TRUST and
`
`International
`
`Real Estate
`
`Trust
`
`Laws. Matters
`
`well
`
`beyond
`
`authority
`
`of
`
`this
`
`court
`
`under
`
`the totality
`
`of
`
`the
`
`circumstances.
`
`SANCHEZ
`
`of
`
`has been
`
`notified
`
`the
`
`filing
`
`of a motion
`
`to cite for
`
`contempt
`
`and order
`
`to show cause
`
`that
`
`no lawyer
`
`nor party
`
`involved
`
`in the case
`
`told
`
`him of nor made
`
`him aware
`
`of prior
`
`to this
`
`instant
`
`submission,
`
`and which
`
`nobody
`
`told
`
`him the
`
`ramifications
`
`of, prior
`
`to the
`
`expiration
`
`of
`
`the
`
`date
`
`for
`
`response
`
`thereon.
`
`Here
`
`he replies
`
`timely
`
`to that,
`
`as under
`
`the jurisdictional
`
`limitations
`
`clause
`
`of
`
`this
`
`court
`
`the
`
`'Motion
`
`to Cite for Contempt
`
`and Order
`
`to show
`
`cause'
`
`mechanisms
`
`are PROCEDURAL
`
`CREATIONS
`
`which
`
`have
`
`their
`
`root
`
`in procedural
`
`rules
`
`solely
`
`or principally.
`
`The jurisdictional
`
`limitations
`
`REAL substantive
`
`rights
`
`nor
`
`to
`
`clause
`
`provides
`
`that
`
`no rule may
`
`be used
`
`to extinguish
`
`a litigants
`
`magically
`
`create
`
`any which
`
`did not
`
`exist
`
`and the
`
`laws
`
`says specifically
`
`that
`
`procedure
`
`"shall
`
`not"
`
`be used
`
`to create,
`
`alter,
`
`or amend
`
`rights
`
`of
`
`litigants.
`
`As such
`
`because
`
`SANCHEZ
`
`had no clue
`
`about
`
`the
`
`attempt
`
`to invoke
`
`criminal
`
`procedure
`
`against
`
`him,
`
`nor
`
`civil
`
`contempt
`
`leading
`
`to criminal
`
`process,
`
`he presents
`
`this
`
`timely
`
`response
`
`to the
`
`court
`
`in honor
`
`of
`
`its order
`
`seeking
`
`his reply.
`
`Noting
`
`first
`
`and foremost
`
`that
`
`the
`
`action
`
`was
`
`began
`
`based
`
`on inaccuracy
`
`and
`
`2
`
`of
`2
`39
`4 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`misrepresentation,
`
`the
`
`accusations
`
`against
`
`SANCHEZ
`
`are premature,
`
`the
`
`contracts
`
`involved
`
`require
`
`NOTICE to SANCHEZ
`
`which
`
`was
`
`not
`
`issued
`
`before
`
`initiation
`
`of action
`
`against
`
`him,
`
`the
`
`contracts
`
`require
`
`MEDIATION
`
`AND ARBITRATION
`
`exclusively
`
`should
`
`a difference
`
`between
`
`the
`
`parties
`
`arise
`
`and that
`
`has
`
`not
`
`happened
`
`such
`
`that
`
`this
`
`court
`
`has (1)
`
`lack of subject
`
`matter
`
`jurisdiction,
`
`and
`
`(2) no claim is stated
`
`over which
`
`this
`
`court may
`
`exercise
`
`jurisdiction.
`
`order
`
`for
`
`reasons
`
`above
`
`and
`
`below
`
`and as
`
`As such
`
`the
`
`to show cause was
`
`ultra
`
`vires
`
`it appears
`
`the
`
`such was
`
`both
`
`extra-jurisdictional
`
`and extra-judicial.
`
`Any
`
`resulting
`
`warrant
`
`was without
`
`authority
`
`and
`
`is
`
`void,
`
`and any hearings
`
`held were
`
`in violation
`
`of equal
`
`protection
`
`and due
`
`process
`
`of
`
`the
`
`law in violation
`
`of
`
`federal
`
`laws.
`
`Inasmuch
`
`as it addresses
`
`either
`
`or both
`
`(1)
`
`foreign
`
`originating
`
`contract,
`
`or
`
`(2)
`
`foreign
`
`originating
`
`marriage
`
`it
`
`is premature
`
`and
`
`in the wrong
`
`venue
`
`and jurisdiction
`
`over
`
`ones
`
`not
`
`subject
`
`in this
`
`transaction
`
`of
`
`this
`
`court.
`
`to the
`
`authority
`
`BACKGROUND
`
`SANCHEZ
`
`and the Plaintiff
`
`are HUSBAND
`
`AND WIFE. Married
`
`Islamically
`
`under
`
`the
`
`laws
`
`of Shariah
`
`as
`
`applied
`
`in the Muslim
`
`Faith
`
`and Registered
`
`in the Rolls and Under
`
`the
`
`laws
`
`of Australia,
`
`NSW.
`
`SANCHEZ
`
`entered
`
`into
`
`a contract
`
`with
`
`the Plaintiff
`
`to create
`
`a realty
`
`company
`
`for
`
`their mutual
`
`benefit
`
`and
`
`prosperity
`
`and to -
`
`if conditions
`
`permit
`
`-
`
`to use a portion
`
`of
`
`the
`
`funds
`
`to buy them a primary
`
`residence.
`
`The funds
`
`($2M)
`
`were
`
`allocated,
`
`thereby
`
`creating
`
`the TRUST
`
`in which
`
`SANCHEZ
`
`was
`
`principal
`
`in execution
`
`under
`
`in December
`
`trustee
`
`with
`
`express
`
`broad
`
`discretion
`
`of his duties
`
`the
`
`established
`
`trust,
`
`2019
`
`in Australia.
`
`It should
`
`be noted
`
`that
`
`SANCHEZ
`
`and the Plaintiff
`
`were
`
`CO-GRANTORS
`
`of
`
`the
`
`established
`
`trust.
`
`Indeed
`
`they
`
`are husband
`
`and wife married
`
`under
`
`Sharia
`
`law and under
`
`the
`
`laws
`
`applicable
`
`of Australia,
`
`NSW.
`
`There
`
`is no prenuptial
`
`agreement
`
`between
`
`the two.
`
`There
`
`has been
`
`no
`
`divorce.
`
`No divorce
`
`is agreed
`
`to nor
`
`sought
`
`by SANCHEZ.
`
`SANCHEZ
`
`does
`
`not
`
`know
`
`of any divorce
`
`initiated
`
`by his wife
`
`the Plaintiff
`
`herein
`
`or elsewhere.
`
`3
`
`of
`39
`3
`5 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`The marriage
`
`contract,
`
`and the Business
`
`contract
`
`involving
`
`the
`
`realty
`
`company,
`
`are separate
`
`and
`
`distinct
`
`entities
`
`and endeavors.
`
`They
`
`intertwine
`
`necessarily
`
`because
`
`of
`
`the manner
`
`of
`
`their
`
`origin.
`
`SANCHEZ
`
`came
`
`to the U.S. as step
`
`one
`
`showing
`
`intent
`
`to honor
`
`the
`
`project
`
`parameters
`
`and trust
`
`responsibilities.
`
`He informed
`
`his wife,
`
`incident
`
`to his executing
`
`their
`
`plan,
`
`that
`
`because
`
`of CORONA
`
`and
`
`national
`
`the ENTIRE WORLD
`
`it was
`
`"touch
`
`and
`
`go"
`
`VIRUS disaster
`
`emergency
`
`effecting
`
`becoming
`
`because
`
`New York
`
`-where
`
`he was
`
`located
`
`as his base of operations
`
`for
`
`the
`
`project
`
`moving
`
`forward
`
`-
`
`was
`
`sort
`
`of a US Ground
`
`Zero.
`
`By March
`
`21, 2020 New York was declared
`
`a disaster
`
`area.
`
`Closings
`
`were
`
`in full
`
`effect
`
`and a stay
`
`at
`
`home
`
`order
`
`had issued.
`
`Much
`
`of
`
`the
`
`same was occurring
`
`all over
`
`the U.S. See
`
`https://www.theguardian.com/us-news/2020/mar/21/coronavirus-new-york-disaster-ventilators.
`
`The time
`
`lapse
`
`between
`
`becoming
`
`available
`
`and
`
`deposited
`
`to start
`
`the
`
`project
`
`about
`
`the money
`
`which
`
`this
`
`case and adversarial-type
`
`proceeding
`
`was
`
`initiated
`
`and the COVID 19 disaster
`
`going
`
`to full
`
`blown
`
`scale
`
`in the U.S. was
`
`roughly
`
`less than
`
`90 days.
`
`And
`
`oddly
`
`before
`
`that
`
`time
`
`passing
`
`a suit was
`
`initiated
`
`apparently
`
`indicating
`
`that
`
`- primarily
`
`- SANCHEZ
`
`has mismanaged
`
`the funds
`
`or
`
`failed
`
`or
`
`intends
`
`to fail
`
`to execute
`
`the
`
`duties
`
`as agreed
`
`to as to the
`
`purpose
`
`of
`
`the
`
`trust
`
`and the monies
`
`vested
`
`in said
`
`trust.
`
`"On March
`
`pursuant
`
`of
`
`13, 2020,
`
`President
`
`Trump
`
`declared
`
`a nationwide
`
`emergency
`
`to Sec. 501(b)
`
`Stafford
`
`Act
`
`to avoid
`
`governors
`
`needing
`
`to request
`
`individual
`
`emergency
`
`declarations.
`
`All 50 states,
`
`the District
`
`of Columbia,
`
`and 4 territories
`
`have
`
`been
`
`approved
`
`for major
`
`disaster
`
`declarations
`
`to assist with
`
`additional
`
`needs
`
`identified
`
`under
`
`the
`
`nationwide
`
`emergency
`
`declaration
`
`for
`
`COVID-19.
`
`Additionally,
`
`32 tribes
`
`are working
`
`directly
`
`with
`
`FEMA under
`
`the
`
`emergency
`
`declaration."
`
`See https://www.fema.gov/coronavirus/disaster-declarations.
`
`Also, See https://www.fema.gov/news-
`
`release/2020/03/20/president-donald-j-trump-approves-major-disaster-declaration-new-york
`
`4
`
`of
`4
`39
`6 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`"Release
`
`date:
`
`March
`
`20, 2020.
`
`Release
`
`Number:
`
`HQ-20-019
`
`WASHINGTON
`
`-
`
`FEMA announced
`
`that
`
`federal
`
`emergency
`
`aid has been made
`
`available
`
`for
`
`the
`
`state
`
`of
`
`New York
`
`to supplement
`
`states,
`
`tribes
`
`and
`
`local
`
`recovery
`
`efforts
`
`in the
`
`areas
`
`affected
`
`by the
`
`Coronavirus
`
`Disease
`
`2019
`
`(COVID-19)
`
`pandemic
`
`beginning
`
`on January
`
`20, 2020,
`
`and continuing.
`
`The President's
`
`action
`
`makes
`
`federal
`
`funding
`
`available
`
`for Crisis Counseling
`
`for affected
`
`individuals
`
`in all
`
`areas
`
`of
`
`the
`
`state
`
`of New York.
`
`Federal
`
`funding
`
`is also available
`
`to state,
`
`tribal,
`
`and eligible
`
`local
`
`governments
`
`and certain
`
`private
`
`nonprofit
`
`organizations
`
`on a cost-sharing
`
`basis
`
`for emergency
`
`protective
`
`measures
`
`(Category
`
`B),
`
`including
`
`direct
`
`federal
`
`assistance
`
`under
`
`Public
`
`Assistance,
`
`for all areas
`
`affected
`
`by COVID-19
`
`in the
`
`state
`
`of New York.
`
`The federal
`
`cost
`
`share
`
`is 75 percent.
`
`Seamus
`
`K. Leary
`
`has been
`
`named
`
`as the Federal
`
`Coordinating
`
`Officer
`
`for
`
`federal
`
`recovery
`
`operations
`
`in
`
`the
`
`affected
`
`area.
`
`Leary
`
`said additional
`
`designations
`
`may
`
`be made
`
`at a later
`
`date
`
`if
`
`requested
`
`by the
`
`state
`
`and warranted
`
`by the
`
`results
`
`of
`
`further
`
`assessments."
`
`The states
`
`that were
`
`considered
`
`for
`
`real estate
`
`investments
`
`to initiate
`
`the
`
`business
`
`venture
`
`that
`
`the
`
`Trust
`
`of SANCHEZ
`
`and Plaintiff
`
`was
`
`initiated
`
`to develop
`
`were GEORGIA
`
`and NORTH CAROLINA.
`
`The full
`
`closing
`
`process,
`
`from the
`
`initial
`
`offer
`
`acceptance
`
`to the
`
`closing
`
`date,
`
`takes
`
`an average
`
`of 50
`
`days,
`
`according
`
`to Realtor.com.
`
`If you
`
`sell
`
`to Opendoor,
`
`you
`
`can close
`
`on your
`
`timeline,
`
`whether
`
`it's 14
`
`days
`
`or 60 days.
`
`In a traditional
`
`sale,
`
`the
`
`buyer's
`
`lender
`
`will
`
`be originating
`
`and
`
`underwriting
`
`the
`
`loan.
`
`5
`
`of
`39
`5
`7 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`See https://www.opendoor.com/w/guides/house-closing-process-for-seller.
`
`It
`
`is not always
`
`about
`
`how
`
`fast
`
`the Buyer
`
`can facilitate
`
`closing.
`
`There
`
`are other
`
`considerations.
`
`The date
`
`on the Show cause Order
`
`that
`
`SANCHEZ
`
`has received
`
`says February
`
`2020
`
`on it as the
`
`date
`
`that
`
`it was
`
`authored
`
`and/or
`
`issued
`
`or sought.
`
`That
`
`is only
`
`30 days
`
`beyond
`
`the
`
`date
`
`that
`
`the money
`
`was
`
`released
`
`to SANCHEZ
`
`and
`
`placed
`
`in trust
`
`thereby
`
`to take
`
`the
`
`steps
`
`required
`
`to carry
`
`out
`
`his duties
`
`-
`
`within
`
`which
`
`broadest
`
`discretion
`
`- which
`
`the
`
`presumptive
`
`date
`
`of
`
`the
`
`suit
`
`he was given
`
`the
`
`would
`
`make
`
`being
`
`filed
`
`and summonses
`
`issued
`
`in late January
`
`or early
`
`February.
`
`Some measly
`
`30-40
`
`days
`
`after
`
`the
`
`funds
`
`were
`
`vested
`
`and entrusted
`
`to SANCHEZ
`
`and
`
`he arrived
`
`in the U.S. amid
`
`a developing
`
`pandemic
`
`disaster!
`
`The Order
`
`expressly
`
`mentions
`
`therein
`
`that
`
`on January
`
`23, 2020
`
`an Order
`
`issued
`
`that
`
`SANCHEZ
`
`produce
`
`bank
`
`records
`
`to this
`
`court.
`
`Then
`
`in some weird
`
`manner
`
`a third
`
`party,
`
`later
`
`discovered
`
`to be at
`
`the
`
`behest
`
`of
`
`this
`
`courts
`
`employees
`
`(subject
`
`to the HR Employee
`
`of Ethics
`
`and Candor
`
`Rules
`
`of
`
`and Duty
`
`the Municipality
`
`of origin),
`
`took monies
`
`entrusted
`
`to SANCHEZ
`
`under
`
`the
`
`color
`
`of authority
`
`and
`
`under
`
`color
`
`of a legitimate
`
`lawsuit
`
`which
`
`could
`
`only
`
`be premature
`
`at best.
`
`That money
`
`has now been
`
`appropriated
`
`and
`
`placed
`
`beyond
`
`SANCHEZ
`
`access
`
`and reach,
`
`and such was done
`
`on the
`
`premise
`
`that
`
`he
`
`was
`
`at
`
`risk of making
`
`a "bad
`
`investment"
`
`and
`
`losing money
`
`on bad deals.
`
`Yet since many
`
`Americans
`
`have
`
`lost
`
`their
`
`investments
`
`and
`
`invested
`
`funds
`
`have
`
`been
`
`devalued
`
`for
`
`the
`
`reasons
`
`that
`
`SANCHEZ
`
`has
`
`which
`
`of
`
`and
`
`lost money
`
`is within
`
`the
`
`parameters
`
`the trusteeship
`
`and what
`
`is to be expected
`
`investing
`
`as to operational
`
`costs
`
`for R & D and Prospecting,
`
`etcetera.
`
`Upon
`
`learning
`
`about
`
`this
`
`case,
`
`but
`
`unfortunately
`
`not
`
`from the Attorney
`
`that
`
`SANCHEZ
`
`hired who was
`
`later
`
`fired
`
`for
`
`conflict
`
`of
`
`interest
`
`and duty
`
`of candor
`
`violations
`
`which
`
`are being
`
`researched
`
`for
`
`suit
`
`and
`
`sanctions
`
`applications
`
`presently
`
`against
`
`the
`
`attorney,
`
`SANCHEZ
`
`filed
`
`Pro Se the
`
`document
`
`annexed
`
`hereto
`
`as an exhibit.
`
`The annexed,
`
`incorporated
`
`fully
`
`herein
`
`by reference
`
`as if set
`
`forth
`
`more
`
`fully
`
`6
`
`6 of
`39
`8 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`herein
`
`at
`
`length
`
`was
`
`presented
`
`on or about
`
`4/3/2020
`
`to the
`
`clerk
`
`for
`
`filing with
`
`express
`
`request
`
`for
`
`such
`
`and the
`
`document
`
`was
`
`not
`
`filed.
`
`The same
`
`should
`
`have
`
`been
`
`accepted
`
`but was
`
`not, most
`
`likely
`
`due to a default
`
`set against
`
`him which
`
`he is unaware
`
`of, or some
`
`contempt
`
`hearing
`
`and
`
`proceeding
`
`which
`
`has closed
`
`the
`
`records
`
`to him for
`
`filing
`
`in this matter,
`
`however
`
`the
`
`clerk
`
`stated
`
`that
`
`only EMERGENCY
`
`matters
`
`may
`
`be filed.
`
`This is such
`
`an emergency.
`
`It
`
`impacts
`
`freedoms,
`
`it
`
`impacts
`
`duties,
`
`it
`
`impacts
`
`private
`
`contracts,
`
`it
`
`impacts
`
`judicial
`
`resources
`
`being
`
`wasted
`
`during
`
`a pandemic,
`
`it
`
`involves
`
`interference
`
`in a marriage
`
`by third
`
`parties
`
`to
`
`plunder
`
`the assets
`
`of
`
`the couple
`
`through
`
`misleading
`
`the wife
`
`against
`
`the wishes
`
`and
`
`express
`
`request
`
`desist"
`
`and
`
`that
`
`received
`
`to date.
`
`to "cease
`
`by SANCHEZ
`
`they
`
`UNREASONABLENESS/UNCONSCIONABLENESS
`
`It
`
`is unreasonable
`
`to believe
`
`that
`
`SANCHEZ
`
`should
`
`be subject
`
`to suit within
`
`50 days
`
`of his accepting
`
`the
`
`funds
`
`and vesting
`
`of
`
`funds
`
`in a Trust within
`
`which
`
`he has broad
`
`and even SOLE discretion
`
`as to the
`
`management
`
`and carrying
`
`out
`
`the functions
`
`of
`
`the trust
`
`and etcetera.
`
`So long
`
`as he does,
`
`and was
`
`doing,
`
`what
`
`he agreed
`
`and contracted
`
`to do with
`
`his co-grantor
`
`who
`
`is also HIS WIFE he is well within
`
`his
`
`broad
`
`discretion
`
`under
`
`the trust.
`
`There
`
`is a board
`
`of beneficiaries
`
`and there
`
`is no consensus
`
`nor
`
`quorum
`
`present
`
`in this
`
`suit
`
`to warrant,
`
`justify,
`
`or
`
`legally
`
`found
`
`it. The present
`
`Plaintiff
`
`has no capacity
`
`to sue in the
`
`capacity
`
`that
`
`she has nor
`
`in her own
`
`name.
`
`It
`
`is unclear
`
`whether
`
`she is claiming
`
`suit
`
`rights
`
`as the
`
`beneficiary,
`
`for
`
`the
`
`board
`
`of beneficiaries,
`
`or as the wife
`
`of SANCHEZ
`
`or under
`
`pretenses
`
`that
`
`she
`
`is a co-trustee,
`
`power
`
`of attorney,
`
`or some
`
`other
`
`role
`
`as to SANCHEZ.
`
`7
`
`of
`7
`39
`9 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`SANCHEZ
`
`has formulated
`
`an answer
`
`in response
`
`to the
`
`allegations
`
`and the
`
`entire
`
`existence
`
`of
`
`the
`
`suit
`
`but
`
`he actually
`
`cannot
`
`be expected
`
`to formulate
`
`a clear
`
`and concise
`
`answer
`
`to such
`
`an ambiguous
`
`and
`
`ill-founded
`
`theory
`
`of suit
`
`and recovery.
`
`THE TRUST
`
`As far as SANCHEZ
`
`was aware
`
`this
`
`is an IRREVOCABLE
`
`TRUST that
`
`terminates
`
`only when
`
`the
`
`funds
`
`are
`
`exhausted
`
`or
`
`the
`
`parties
`
`all mutually
`
`agree
`
`in writing
`
`to terminate
`
`the
`
`existence
`
`of
`
`the trust
`
`and to
`
`divide
`
`the
`
`assets,
`
`proceeds,
`
`and etcetera.
`
`He was given
`
`broad
`
`discretion
`
`at
`
`the time
`
`of
`
`the
`
`formation
`
`and agreements
`
`creating
`
`the venture
`
`and trust
`
`to invest
`
`the funds
`
`in the
`
`best way
`
`he deemed
`
`to
`
`accomplish
`
`the
`
`objectives
`
`of
`
`the trust
`
`as per his knowledge,
`
`training,
`
`and experience
`
`personally
`
`and
`
`such
`
`network
`
`and maintain
`
`as needful
`
`using
`
`skill,
`
`connections,
`
`and
`
`that
`
`he could
`
`develop,
`
`bring
`
`to bear,
`
`to accomplish
`
`his full
`
`agenda
`
`toward
`
`the
`
`ends
`
`of
`
`the
`
`purpose
`
`of
`
`the trust
`
`which
`
`is to provide
`
`for
`
`his and
`
`his wifes
`
`financial
`
`success
`
`and well
`
`being
`
`jointly
`
`and severally.
`
`Any
`
`dispute
`
`is subject,
`
`exclusively,
`
`to arbitration
`
`and mediation
`
`after
`
`notice
`
`of grievance
`
`and a
`
`chance
`
`to cure
`
`the
`
`problem
`
`articulated
`
`to the member
`
`of
`
`the trust
`
`against
`
`whom
`
`the
`
`grievance
`
`was
`
`filed
`
`or expressed.
`
`The funds
`
`were
`
`not
`
`exhausted.
`
`The
`
`parties
`
`had not
`
`agreed
`
`in writing
`
`to extinguish
`
`the trust.
`
`The
`
`parties
`
`have
`
`not divided
`
`anything.
`
`The
`
`parties
`
`are not
`
`divorced
`
`to bring
`
`in issues
`
`of equitable
`
`division
`
`of marital
`
`assets
`
`and
`
`he does
`
`not
`
`wish
`
`it.
`
`8
`
`8 of
`39
`10 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`The
`
`parties
`
`have
`
`not
`
`had any discussion
`
`which
`
`occurred
`
`before
`
`any arbitrator
`
`nor mediator
`
`of any
`
`arbitration
`
`or mediation
`
`company
`
`prior
`
`to bringing
`
`of any
`
`court
`
`action.
`
`The trust
`
`creates
`
`no rights
`
`for any third
`
`party
`
`outside
`
`of
`
`the
`
`suit
`
`to sue or otherwise
`
`make
`
`any
`
`claim
`
`for
`
`recovery
`
`under
`
`any theory
`
`against
`
`the trustee
`
`or any other
`
`trust
`
`party,
`
`employee,
`
`or actor
`
`as he is
`
`broadly
`
`held-harmless
`
`and
`
`indemnified
`
`against
`
`any personal
`
`liability
`
`for
`
`his
`
`generally
`
`and specifically
`
`exercise
`
`of broad
`
`discretion
`
`in furtherance
`
`of doing
`
`all needful
`
`things
`
`to accomplish
`
`the
`
`agenda
`
`of
`
`the
`
`Trust
`
`and the
`
`reason
`
`for
`
`its existence
`
`which
`
`-again
`
`-was
`
`to provide
`
`for
`
`the
`
`economic
`
`health,
`
`well
`
`being,
`
`and financial
`
`needs
`
`and success
`
`jointly
`
`and severally
`
`as to the
`
`parties
`
`thereto
`
`INCLUDING
`
`ESPECIALLY
`
`AND SPECIFICALLY
`
`THE PRINCIPAL
`
`TRUSTEE Mr. Sanchez.
`
`IRREVOCABILITY
`
`OF THE TRUST AND ITS IMPACT
`
`Under
`
`Estates
`
`Powers
`
`and Trusts
`
`a trust
`
`that
`
`does
`
`not
`
`whether
`
`or not
`
`New York's
`
`Law (EPTL),
`
`specify
`
`it
`
`is revocable
`
`is irrevocable.
`
`See NY CLS EPTL § 7-1.16.
`
`Trusts
`
`can be classified
`
`according
`
`to a number
`
`of
`
`different
`
`criteria,
`
`one of which
`
`is revocability.
`
`A trust
`
`is revocable
`
`if
`
`the
`
`settlor
`
`has under
`
`the trust
`
`agreement
`
`retained
`
`the
`
`right,
`
`either
`
`unilaterally
`
`or with
`
`the
`
`consent
`
`of another
`
`party,
`
`to revoke
`
`the
`
`trust
`
`and
`
`reclaim
`
`the trust
`
`assets.
`
`Revocable
`
`trusts
`
`are typically
`
`also amendable
`
`by the
`
`settlor,
`
`even
`
`if
`
`for
`
`reason
`
`settlor
`
`revoke
`
`the trust
`
`and
`
`not
`
`expressly
`
`stated
`
`to be so,
`
`the
`
`obvious
`
`that
`
`the
`
`could
`
`always
`
`re-settle
`
`the trust
`
`assets
`
`into
`
`a different
`
`trust,
`
`so the
`
`settlor
`
`should
`
`be able
`
`to achieve
`
`the
`
`same
`
`result
`
`by just
`
`amending
`
`the first
`
`trust.
`
`Trusts
`
`can be classified
`
`according
`
`to a number
`
`of different
`
`criteria,
`
`one
`
`of which
`
`is revocability.
`
`A
`
`trust
`
`is revocable
`
`if
`
`the
`
`settlor
`
`has under
`
`the trust
`
`agreement
`
`retained
`
`the
`
`right,
`
`either
`
`unilaterally
`
`or
`
`9
`
`9 of
`39
`11 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`with
`
`the
`
`consent
`
`of another
`
`party,
`
`to revoke
`
`the
`
`trust
`
`and
`
`reclaim
`
`the trust
`
`assets.
`
`Revocable
`
`trusts
`
`are
`
`typically
`
`also amendable
`
`by the
`
`settlor,
`
`even
`
`if not expressly
`
`stated
`
`to be so,
`
`for
`
`the
`
`obvious
`
`reason
`
`that
`
`the
`
`settlor
`
`could
`
`always
`
`revoke
`
`the
`
`trust
`
`and
`
`re-settle
`
`the
`
`trust
`
`assets
`
`into
`
`a different
`
`trust,
`
`so the
`
`settlor
`
`should
`
`be able
`
`to achieve
`
`the
`
`same
`
`result
`
`the
`
`first
`
`trust.
`
`THIS TRUST
`
`by just
`
`amending
`
`ESTABISHED,
`
`AND BROUGHT
`
`TO ISSUE BY THIS CASE,
`
`IS NOT REVOCABLE.
`
`Thusly
`
`there
`
`was
`
`no provision
`
`allowing
`
`the Plaintiff
`
`to sue as the Grantor
`
`and she has not
`
`sued
`
`as nor
`
`for
`
`the Trust
`
`itself.
`
`There
`
`is no
`
`law allowing
`
`amendment
`
`retroactively
`
`to make
`
`(a) what
`
`SANCHEZ
`
`did previously
`
`illegal
`
`where
`
`he has
`
`broad
`
`discretion
`
`to pay himself
`
`and others
`
`and to make
`
`such
`
`other
`
`needful
`
`decisions
`
`and choices
`
`for
`
`the
`
`furtherance
`
`of
`
`the
`
`purposes
`
`of
`
`the
`
`trust
`
`nor
`
`to make
`
`to the
`
`irrevocable
`
`trust
`
`such
`
`otherwise,
`
`(b) changes
`
`that
`
`it would
`
`now allow
`
`her
`
`to sue in her own
`
`name
`
`as if she is hurt
`
`personally
`
`somehow
`
`where
`
`it
`
`appears
`
`- until
`
`she or
`
`the Husband
`
`dies
`
`-
`
`they
`
`have
`
`no rights
`
`as grantors
`
`establishing
`
`the
`
`trust
`
`nor as
`
`settlors.
`
`It
`
`is unclear
`
`what
`
`her
`
`theory
`
`of
`
`recovery
`
`is exactly.
`
`Nor
`
`is it clear
`
`under
`
`what
`
`theory
`
`she
`
`intends
`
`to
`
`"dethrone"
`
`or
`
`replace
`
`the trustee
`
`where
`
`her
`
`litigation,
`
`this
`
`court,
`
`her
`
`lawyers
`
`and third
`
`actors,
`
`and COVID 19 (an act of God),
`
`are what
`
`is preventing
`
`him from executing
`
`his duties
`
`faithfully.
`
`party
`
`RECONCILIATION
`
`Notwithstanding
`
`that
`
`it
`
`is not
`
`any
`
`issue
`
`relevant
`
`in this
`
`litigation:
`
`If
`
`there
`
`is considered
`
`to be a
`
`romantic
`
`rift or divide
`
`between
`
`husband
`
`and wife
`
`the Husbands
`
`intent,
`
`in keeping
`
`with
`
`his religious
`
`beliefs
`
`and faith,
`
`and
`
`his love
`
`for
`
`his wife,
`
`is reconciliation
`
`and
`
`he sees all parties
`
`who
`
`have
`
`created
`
`and
`
`facilitated
`
`strife
`
`between
`
`he and she as interlopers,
`
`tortious
`
`interferers,
`
`ones
`
`acting
`
`to alienate
`
`10
`
`of
`39
`10
`12 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`and
`
`in violation
`
`of his private
`
`rights
`
`and their mutual
`
`and joint
`
`contract
`
`obligations
`
`one to the
`
`affections,
`
`other.
`
`This
`
`is fair warning
`
`of
`
`the
`
`intent
`
`to sue for
`
`loss of business
`
`revenue
`
`due to trespass
`
`on the
`
`contract
`
`and
`
`interference
`
`as well
`
`as due to other
`
`related
`
`claims
`
`having
`
`arisen
`
`as a result.
`
`PENDING
`
`PROJECTS/HOME
`
`PURCHASES
`
`SANCHEZ
`
`has been
`
`prospecting
`
`since
`
`he arrived
`
`in the U.S. and
`
`had done
`
`homework
`
`on several
`
`approaches
`
`to the
`
`agenda
`
`of
`
`the trust
`
`before
`
`arriving
`
`in the U.S. and even
`
`now he continues
`
`diligently
`
`in
`
`his work
`
`toward
`
`the
`
`ends
`
`and agendas
`
`of
`
`the TRUST and
`
`his trust
`
`duties.
`
`The
`
`board
`
`is a body
`
`and
`
`no
`
`single
`
`person
`
`has the
`
`sole vote.
`
`However,
`
`he as principal
`
`trustee
`
`(which
`
`role
`
`survives
`
`to date without
`
`change)
`
`with
`
`broad
`
`discretion
`
`and
`
`leading
`
`member
`
`of
`
`the
`
`board
`
`of Trustees
`
`running
`
`the trust,
`
`basically
`
`is the
`
`FACE, MIND,
`
`and CARRIES FORTH THE INERTIA OF THE TRUST.
`
`SANCHEZ
`
`initiated
`
`deals,
`
`one such
`
`deal will
`
`be annexed
`
`for
`
`the
`
`courts
`
`consideration.
`
`The deal
`
`is ready
`
`to be moved
`
`upon.
`
`See attached.
`
`The seller
`
`is motivated
`
`in three
`
`instances,
`
`there
`
`is broad
`
`room for
`
`negotiation
`
`favorable
`
`to the TRUST and
`
`parties
`
`to the trust
`
`as COVID 19 is scaring
`
`many
`
`homeowners
`
`who were
`
`downsizing
`
`from mid
`
`to larger
`
`style
`
`single
`
`family
`
`homes.
`
`Further,
`
`multi-family
`
`dwellings
`
`are
`
`listing
`
`like crazy with
`
`existing
`
`income
`
`due to the COVID 19 result
`
`that
`
`nobody
`
`is paying
`
`rent
`
`and
`
`mortgages.
`
`SANCHEZ
`
`is held
`
`up from moving
`
`on this,
`
`further
`
`losing money
`
`of
`
`the TRUST and
`
`benefits
`
`to
`
`himself
`
`from the trust
`
`and thusly
`
`for all
`
`intents
`
`and
`
`purposes
`
`his paycheck
`
`for management
`
`of
`
`the trust
`
`and
`
`its endeavors.
`
`This
`
`is a trust
`
`endeavor.
`
`This
`
`is what
`
`Lexis Nexis
`
`and
`
`law professors
`
`esteemed
`
`by the National
`
`center
`
`for State Courts
`
`had to say:
`
`11
`
`of
`11
`39
`13 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`[FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`"...The
`
`trustee
`
`is the
`
`legal
`
`owner
`
`of, and
`
`is therefore
`
`tasked
`
`with
`
`administering,
`
`the trust
`
`assets,
`
`but
`
`the
`
`trustee
`
`does
`
`so only
`
`on behalf
`
`of
`
`the
`
`beneficiaries.
`
`The trustee
`
`can get no personal
`
`benefit
`
`from the
`
`trust
`
`assets
`
`(unless
`
`of course
`
`the trustee
`
`is also a beneficiary),
`
`though
`
`trustees
`
`are entitled
`
`to
`
`trustees'
`
`commissions
`
`as compensation
`
`for
`
`their
`
`efforts.
`
`The trustee's
`
`role
`
`is an active
`
`one,
`
`in contrast
`
`to that
`
`of
`
`the
`
`beneficiaries,
`
`which
`
`is primarily
`
`a passive
`
`one: merely
`
`to receive
`
`the
`
`benefits
`
`of
`
`the trust
`
`in the form
`
`of distributions
`
`when
`
`needed.
`
`Beneficiaries
`
`can play
`
`a more
`
`active
`
`role
`
`at
`
`times,
`
`however.
`
`They
`
`can
`
`properly.
`
`enforce
`
`the trust
`
`by bringing
`
`a legal
`
`action
`
`against
`
`a trustee
`
`who
`
`is not administering
`
`the
`
`trust
`
`And
`
`if
`
`the
`
`terms
`
`of
`
`the trust
`
`instrument
`
`provide
`
`them with
`
`authority
`
`to do so,
`
`they may
`
`have
`
`a role
`
`in
`
`certain
`
`aspects
`
`of
`
`the trust
`
`administration,
`
`for example,
`
`by exercising
`
`rights
`
`of withdrawal
`
`or other
`
`powers
`
`over
`
`distributions,
`
`or by naming
`
`successor
`
`trustees.
`
`What
`
`about
`
`the
`
`settlor
`
`of
`
`trust;
`
`what
`
`role
`
`does
`
`he or she have?
`
`In fact,
`
`beyond
`
`creating
`
`the trust
`
`and
`
`transferring
`
`property
`
`to it, usually
`
`the
`
`settlor
`
`has very
`
`little
`
`role. As noted
`
`above
`
`with
`
`respect
`
`to
`
`of
`
`provide
`
`the
`
`settlor
`
`with
`
`certain
`
`beneficiaries,
`
`the terms
`
`the
`
`trust
`
`agreement
`
`may
`
`ongoing
`
`authority,
`
`for example
`
`in naming
`
`successor
`
`trustees.
`
`And with
`
`revocable
`
`trusts,
`
`the
`
`settlor
`
`typically
`
`reserves
`
`the
`
`unfettered
`
`right
`
`to amend
`
`or
`
`revoke
`
`the trust.
`
`But
`
`in most
`
`irrevocable
`
`trusts,
`
`the
`
`settlor
`
`has no
`
`authority
`
`to influence
`
`the
`
`administration
`
`of
`
`the
`
`trust,
`
`at
`
`least
`
`not directly.
`
`This
`
`can come
`
`as a surprise
`
`to
`
`clients,
`
`who
`
`often
`
`view the trust
`
`assets
`
`as "their
`
`money"
`
`even
`
`after
`
`they
`
`transfer
`
`those
`
`assets
`
`to a trust.
`
`The fact
`
`that
`
`settlors
`
`often misunderstand
`
`their
`
`role
`
`in a trust
`
`context
`
`gives
`
`rise to two
`
`key takeaways
`
`for
`
`explain
`
`to them
`
`you
`
`as attorneys.
`
`First, where
`
`you
`
`represent
`
`clients
`
`setting
`
`up irrevocable
`
`trusts,
`
`clearly
`
`and often
`
`that
`
`transfers
`
`of assets
`
`to the trusts
`
`are irrevocable,
`
`and once
`
`they
`
`transfer
`
`assets,
`
`they
`
`do not own
`
`those
`
`assets
`
`anymore.
`
`And
`
`second,
`
`where
`
`you
`
`represent
`
`trustees
`
`who
`
`are being
`
`pressured
`
`by settlors
`
`to act
`
`in a certain
`
`way,
`
`advise
`
`them that
`
`if
`
`they
`
`allow
`
`the
`
`settlor
`
`to influence
`
`them
`
`to act
`
`in a manner
`
`contrary
`
`to the
`
`best
`
`interests
`
`of
`
`the
`
`beneficiaries,
`
`they may
`
`be personally
`
`liable
`
`to
`
`those
`
`damaged
`
`beneficiaries.
`
`That
`
`can be very
`
`tricky,
`
`because
`
`the
`
`settlor
`
`usually
`
`chooses
`
`the
`
`trustee,
`
`12
`
`of
`12
`39
`14 of 41
`
`

`

`CLERK
`COUNTY
`NEW YORK
`06/01/2020
`08:31
`FILED: NEW YORK COUNTY CLERK 07/21/2020 05:00 PM
`(FILED:
`PM)
`NYSCEF
`DOC.
`NO.
`113
`NYSCEF DOC. NO. 119
`
`INDEX
`650277/2020
`NO.
`INDEX NO. 650277/2020
`RECEIVED
`NYSCEF:
`06/01/2020
`RECEIVED NYSCEF: 07/21/2020
`
`and often
`
`chooses
`
`a particular
`
`trustee
`
`because
`
`of
`
`that
`
`trustee's
`
`loyalty
`
`to the
`
`settlor;
`
`yet,
`
`once
`
`the
`
`trustee
`
`accepts
`
`his or her office,
`
`legally,
`
`his or her
`
`sole
`
`loyalty
`
`must
`
`be to the
`
`beneficiaries.
`
`No one
`
`ever
`
`said
`
`being
`
`a trustee
`
`was easy!
`
`..."
`
`The Trustee
`
`is not only
`
`an operator,
`
`but
`
`a manager,
`
`and also a compensated
`
`employee
`
`as well
`
`as a
`
`member
`
`of
`
`the Board
`
`of Beneficiaries.
`
`He does
`
`not owe
`
`any duty
`
`to the Grantors
`
`that
`
`he is aware
`
`of.
`
`Nothing
`
`expressly
`
`provides
`
`for
`
`it. And
`
`his role
`
`is not a function
`
`of his marriage
`
`or
`
`role
`
`as a husband
`
`though
`
`his rights
`
`of
`
`involvement
`
`were
`
`borne
`
`of
`
`it. Right
`
`now he is out
`
`of a paycheck
`
`and
`
`his deals
`
`are on
`
`hold
`
`his job
`
`and thusly
`
`creating
`
`the
`
`basis
`
`of
`
`the
`
`suit which
`
`did not
`
`in fact
`
`preventing
`
`him from doing
`
`exis