throbber
FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`SUPREME
`COUNTY
`
`OF THE STATE
`COURT
`OF NEW YORK
`
`OF NEW YORK
`
`TTC MEZZ
`
`LLC,
`
`Index
`
`No.
`
`Plaintiff,
`
`-against-
`
`MSC-TWO
`
`TOWER HOLDCO,
`
`LLC,
`
`Defendant.
`
`VERIFIED
`
`COMPLAINT
`
`Plaintiffs
`
`TTC Mezz
`
`LLC ("TTC
`
`Mezz"),
`
`as and
`
`for
`
`its Verified
`
`Complaint
`
`against MSC-
`
`Two
`
`Tower
`
`Hold
`
`Co,
`
`LLC ("Defendant"),
`
`respectfully
`
`allege
`
`as follows,
`
`upon
`
`knowledge
`
`with
`
`respect
`
`to its own
`
`acts
`
`and
`
`upon
`
`information
`
`and
`
`belief
`
`with
`
`respect
`
`to all other matters:
`
`THE
`
`PARTIES
`
`1.
`
`TTC Mezz
`
`is a limited
`
`liability
`
`company
`
`organized
`
`and
`
`existing
`
`under
`
`the
`
`laws
`
`of
`
`the State
`
`of Delaware.
`
`2.
`
`TTC Mezz's
`
`principal
`
`place
`
`of business
`
`is at 9 Jeffrey
`
`Place,
`
`Monsey,
`
`New York
`
`10952.
`
`3.
`
`Upon
`
`information
`
`and
`
`belief,
`
`Defeñdañt
`
`is an Oregon
`
`limited
`
`liability
`
`company
`
`with
`
`its principal
`
`place
`
`of business
`
`at 121 SW Morrison,
`
`Suite
`
`200,
`
`Portland,
`
`Oregon
`
`97204.
`
`BACKGROUND
`
`The
`
`Property
`
`TTC Mezz
`
`is the
`
`sole member
`
`of Tower
`
`Two Center
`
`LLC ("Tower
`
`Two").
`
`Tower
`
`A.
`
`4.
`
`Two
`
`is the
`
`owner
`
`of
`
`certain
`
`real
`
`property
`
`commonly
`
`known
`
`as 2 Tower
`
`Center
`
`Boulevard,
`
`East
`
`Brunswick,
`
`New Jersey
`
`08816
`
`(the
`
`"Property").
`
`5.
`
`The Property
`
`consists
`
`of, amoñg
`
`other
`
`things,
`
`an approximately
`
`400,000
`
`square
`
`foot
`
`office
`
`tower.
`
`1 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`6.
`
`In January
`
`2020,
`
`the Property
`
`was
`
`appraised
`
`as having
`
`an "as
`
`is"
`
`market
`
`value
`
`of
`
`over
`
`$83,000,000.
`
`B.
`
`7.
`
`The
`
`Loan
`
`On or about
`
`August
`
`31, 2018,
`
`Benefit
`
`Street
`
`Partners
`
`Realty
`
`Operating
`
`Partnership,
`
`L.P.
`
`("Benefit
`
`Street")
`
`made
`
`a loan
`
`to TTC Mezz
`
`in the
`
`original
`
`principal
`
`balance
`
`of $12,000,000
`
`(the
`
`"Loan").
`
`The
`
`terms
`
`of
`
`the
`
`Loan
`
`are
`
`set
`
`forth
`
`in a Mezzanine
`
`Loan
`
`Agreement
`
`dated
`
`as of
`
`Agreement").
`
`August
`
`31,
`
`2018
`
`(the
`
`"Loan
`
`8.
`
`To
`
`evidence
`
`its
`
`indebtedness
`
`under
`
`the
`
`Loan,
`
`on or about
`
`August
`
`31,
`
`2018,
`
`TTC
`
`Mezz
`
`executed
`
`and
`
`delivered
`
`to Benefit
`
`Street
`
`a certain
`
`Mezzanine
`
`Promissory
`
`Note
`
`(the
`
`"Note")
`
`in the
`
`original
`
`principal
`
`amount
`
`of $12,000,000.
`
`9.
`
`To secure
`
`repayment
`
`of
`
`the Note,
`
`on or about
`
`August
`
`31, 2018,
`
`TTC Mezz
`
`executed
`
`and
`
`delivered
`
`to Benefit
`
`Street
`
`a Pledge
`
`and
`
`Agreement
`
`(the
`
`"Pledge
`
`and
`
`Security
`
`Agreement"),
`
`whereby
`
`TTC Mezz
`
`pledged
`
`all of
`
`its right,
`
`title,
`
`and
`
`interest
`
`in Tower
`
`Two,
`
`as well
`
`as to certain
`
`other
`
`property
`
`owned
`
`by TTC Mezz
`
`within
`
`the meaning
`
`of
`
`the Uniform
`
`Commercial
`
`Security
`
`Code
`
`(the
`
`"Collateral").
`
`10.
`
`Also
`
`on or about
`
`August
`
`31,
`
`2018,
`
`to further
`
`secure
`
`repayment
`
`of
`
`the Note,
`
`Aaron
`
`Berger,
`
`an
`
`indirect
`
`owner,
`
`executed
`
`and
`
`delivered
`
`to Benefit
`
`Street
`
`a Mezzanine
`
`Guarañty
`
`of
`
`Obligations
`
`(the
`
`he
`
`guaranteed
`
`TTC
`
`Mezz's
`
`payment
`
`Recourse
`
`"Guaranty")
`
`whereby
`
`and
`
`performance
`
`of
`
`its obligations
`
`under
`
`the
`
`Loan
`
`Agreement.
`
`11.
`
`The
`
`Loan
`
`Agreement,
`
`the Note,
`
`the Pledge
`
`and Security
`
`Agreement,
`
`the Guaranty,
`
`and
`
`all
`
`related
`
`loan
`
`documents
`
`shall
`
`be referred
`
`to collectively
`
`herein
`
`as the
`
`"Loan
`
`Documents."
`
`12.
`
`The
`
`Loan
`
`Documents
`
`provide
`
`that
`
`if TTC Mezz
`
`fails
`
`to make
`
`any
`
`payments
`
`required
`
`by
`
`the
`
`Loan
`
`Documents,
`
`such
`
`failure
`
`shall
`
`coñstitute
`
`an event
`
`of default.
`
`2
`
`2 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`13.
`
`Upon
`
`information
`
`and
`
`belief,
`
`on some
`
`date
`
`prior
`
`to March
`
`9, 2020,
`
`Benefit
`
`Street
`
`assigned
`
`its interests
`
`under
`
`the Loan
`
`Documents
`
`to Defendant.
`
`14.
`
`On or about March
`
`9, 2020,
`
`Defendant
`
`issued
`
`to TTC Mezz
`
`and Berger
`
`a Notice
`
`of
`
`Events
`
`of Default
`
`and
`
`Demand
`
`for
`
`Payment
`
`(the
`
`"Default
`
`Notice").
`
`In
`
`the Default
`
`Notice,
`
`Defêñdañt
`
`asserts
`
`that TTC Mezz
`
`failed
`
`to repay
`
`the Loan
`
`on or before
`
`the March
`
`9, 2020 maturity
`
`and that
`
`such
`
`failure
`
`constitutes
`
`an event
`
`of default.
`
`date,
`
`C.
`
`15.
`
`The
`
`COVID-19
`
`Pandemic
`
`In late
`
`2019,
`
`a novel
`
`coronavirus
`
`was
`
`first
`
`identified
`
`as the cause
`
`of an outbreak
`
`of
`
`respiratory
`
`illness
`
`in Wuhan,
`
`China.
`
`On March
`
`11, 2020,
`
`the World
`
`Health
`
`Organization
`
`declared
`
`the
`
`disease
`
`caused
`
`by the
`
`novel
`
`coronavirus,
`
`COVID-19,
`
`a pandemic.
`
`16.
`
`To
`
`date,
`
`over
`
`3.25 million
`
`people
`
`worldwide
`
`have
`
`been
`
`diagnosed
`
`with
`
`COVID-
`
`19,
`
`including
`
`over
`
`1 million
`
`people
`
`in the United
`
`States.
`
`The New York
`
`metropolitan
`
`area
`
`is now
`
`the global
`
`epicester
`
`of
`
`the pandemic,
`
`with
`
`over
`
`304,000
`
`cases
`
`having
`
`been
`
`diagnosed
`
`in New York
`
`and
`
`over
`
`119,000
`
`cases
`
`having
`
`been
`
`diagnosed
`
`in New Jersey.
`
`17.
`
`As a result
`
`of
`
`the COVID-19
`
`pandemic,
`
`New York's
`
`governor
`
`issued
`
`an executive
`
`order
`
`closing
`
`all non-essential
`
`businesses
`
`statewide
`
`and
`
`cancelling
`
`all non-essential
`
`gatherings
`
`of
`
`individuals
`
`of any
`
`size
`
`for
`
`any
`
`reason
`
`effective
`
`March
`
`22,
`
`2020.
`
`New Jersey's
`
`governor
`
`issued
`
`a
`
`executive
`
`order
`
`effective
`
`March
`
`similar
`
`21,
`
`2020.
`
`18.
`
`The COVID-19
`
`pandemic,
`
`as well
`
`as the executive
`
`orders
`
`mandating
`
`the closure
`
`of
`
`non-essential
`
`businesses,
`
`have
`
`had
`
`significant
`
`eceñomic
`
`impacts.
`
`With
`
`respect
`
`to Plaintiffs,
`
`their
`
`efforts
`
`to refinance
`
`the
`
`Loan
`
`were
`
`hindered
`
`and
`
`delayed
`
`by
`
`and
`
`due
`
`to,
`
`among
`
`other
`
`things,
`
`the
`
`uncertainty
`
`of
`
`the
`
`ññãñcial
`
`markets
`
`and
`
`the
`
`closure
`
`of
`
`various
`
`lending
`
`offices
`
`in the New York
`
`metropolitan
`
`area.
`
`3
`
`3 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`19.
`
`Notwithstâüdiñg
`
`the foregoing,
`
`in or about
`
`April
`
`2020,
`
`Tower
`
`Two executed
`
`a term
`
`sheet
`
`with
`
`a prospective
`
`lender
`
`for
`
`a $59,000,000
`
`loan
`
`secured
`
`by
`
`the
`
`Property
`
`(the
`
`"First
`
`Refinance
`
`Loan").
`
`The
`
`closing
`
`of
`
`the First
`
`Refinance
`
`Loan
`
`would
`
`allow
`
`Plaintiffs
`
`to repay
`
`the
`
`Loan
`
`to Defendant
`
`in its entirety.
`
`D.
`
`20.
`
`The
`
`Initially
`
`Schedalêd
`
`Sale
`
`under
`
`the UCC
`
`On or about
`
`April
`
`20, 2020,
`
`Defendant
`
`issued
`
`a Notice
`
`of Disposition
`
`of Collateral
`
`in accordance
`
`whereby
`
`it notified
`
`Plaintiff
`
`of
`
`its intention
`
`to conduct
`
`a public
`
`sale
`
`of
`
`the Collateral
`
`with
`
`the
`
`provisions
`
`of N.Y.
`
`UCC
`
`Section
`
`9-601,
`
`et
`
`s_eg
`
`(the
`
`"Initially
`
`Scheduled
`
`Sale"),
`
`by
`
`telephone
`
`at Mâññian
`
`Auctions,
`
`LLC,
`
`305 Broadway,
`
`Suite
`
`200, New York,
`
`New York
`
`on May
`
`5, 2020
`
`at 2:00
`
`pm (Eastern
`
`Time).
`
`21.
`
`On or about
`
`April
`
`20,
`
`2020,
`
`Defeñdañt
`
`issued
`
`a sale
`
`notice
`
`whereby
`
`it notified
`
`the
`
`of
`
`intention
`
`to coñduct
`
`the Scheduled
`
`Sale
`
`telephone
`
`Michaelson
`
`Magaliff
`
`public
`
`its
`
`by
`
`at Rich
`
`LLC,
`
`335 Madison
`
`Avenue,
`
`9th Floor,
`
`New York,
`
`New York
`
`on May
`
`5, 2020
`
`at 2:00
`
`pm (Eastern
`
`Time).
`
`22.
`
`On April
`
`30,
`
`2020,
`
`counsel
`
`for
`
`Plaintiff
`
`requested
`
`that
`
`Defendant
`
`adjourn
`
`the
`
`Initially
`
`Scheduled
`
`Sale
`
`so as to allow
`
`Plaintiff
`
`to close
`
`on the First Refinance
`
`Loan,
`
`at which
`
`time
`
`the
`
`Loan
`
`could
`
`be repaid
`
`in its entirety.
`
`Though
`
`Defendant
`
`initially
`
`refused
`
`to do so,
`
`it ultimately
`
`consented
`
`to adjournment
`
`of
`
`the
`
`Scheduled
`
`Sale
`
`until
`
`June
`
`19, 2020.
`
`Initially
`
`Plaintiffs'
`
`Efforts
`
`to Refinance
`
`the
`
`Loan
`
`Following
`
`the
`
`adjournment
`
`of
`
`the
`
`Initially
`
`Scheduled
`
`Sale,
`
`Plaintiff
`
`endeavored
`
`E.
`
`23.
`
`secure
`
`the
`
`First
`
`Refinance
`
`Loan.
`
`The
`
`prospective
`
`lender
`
`ultimately
`
`offered
`
`a cenieúanent
`
`to
`
`to
`
`Plaintiff.
`
`Before
`
`receipt
`
`of
`
`the
`
`proposed
`
`cens±ont
`
`for
`
`the First
`
`Refinance
`
`Loan,
`
`Plaintiff
`
`also
`
`undertook
`
`to explore
`
`other
`
`options
`
`for
`
`refiñanciñg
`
`the Loan
`
`so as to enable
`
`them to repay
`
`all
`
`sums
`
`4
`
`4 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`due
`
`and
`
`owing
`
`to Defendant.
`
`Unfoitüñãtely,
`
`Plaintiff's
`
`efforts
`
`in this
`
`regard
`
`were
`
`delayed
`
`when
`
`Berger's
`
`mother
`
`became
`
`ill
`
`from COVID
`
`19, and
`
`then,
`
`tisgicãlly,
`
`passed
`
`away
`
`on May
`
`26,
`
`2020.
`
`24.
`
`Notwithstanding
`
`this
`
`horrible
`
`misfortune,
`
`Plaintiff
`
`continued
`
`their
`
`disenssions
`
`with
`
`a different
`
`prospective
`
`lender
`
`for
`
`a $60 million
`
`loan
`
`secured
`
`by
`
`the
`
`Property
`
`(the
`
`"Second
`
`terms
`
`for
`
`the Second
`
`Refinance
`
`Loan
`
`are
`
`far more
`
`attractive
`
`than
`
`those
`
`Refinance
`
`Loan").
`
`The
`
`offered
`
`for
`
`the First
`
`Refinance
`
`Loan.
`
`The
`
`appraisal
`
`necessary
`
`for
`
`the
`
`underwriting
`
`of
`
`the Second
`
`Refinance
`
`Loan
`
`has
`
`already
`
`been
`
`received,
`
`and
`
`we
`
`are
`
`advised
`
`that
`
`the
`
`prospective
`
`lender
`
`anticipates
`
`that,
`
`barring
`
`any
`
`unexpected
`
`delays,
`
`the Second
`
`Refinance
`
`Loan
`
`should
`
`close
`
`in early-
`
`to mid-July
`
`2020.
`
`25.
`
`Notably,
`
`the
`
`due
`
`diligence
`
`conducted
`
`by
`
`the
`
`prospective
`
`lender
`
`for
`
`the
`
`Second
`
`Refinance
`
`Loan
`
`confirmed
`
`that
`
`there
`
`is more
`
`than
`
`âdequate
`
`equity
`
`to fully
`
`repay
`
`Defendant,
`
`as
`
`well
`
`as to repay
`
`the
`
`first mortgage
`
`secured
`
`by
`
`the Property.
`
`26.
`
`In the
`
`interim,
`
`on or about
`
`June
`
`3, 2020,
`
`Defendant
`
`issued
`
`a Notice
`
`of Disposition
`
`of Collateral
`
`whereby
`
`it notified
`
`Plaintiffs
`
`of
`
`its intention
`
`to conduct
`
`a public
`
`sale
`
`of
`
`the Collateral
`
`in accordance
`
`with
`
`the
`
`provisions
`
`of N.Y.
`
`UCC Section
`
`9-601,
`
`el seg
`
`(the
`
`"Scheduled
`
`Sale"),
`
`by
`
`telephonic
`
`conference
`
`or other
`
`remote
`
`means
`
`at Maññioñ
`
`Auctions,
`
`305
`
`Suite
`
`LLC,
`
`Broadway,
`
`200, New York,
`
`New York
`
`on June
`
`19, 2020
`
`at 2:00
`
`pm (Eastern
`
`Time).
`
`F.
`
`27.
`
`The
`
`Defendant
`
`Is More
`
`Than
`
`Adequately
`
`Secured
`
`A January
`
`2020
`
`appraisal
`
`found
`
`the
`
`approximate
`
`value
`
`of
`
`the Property
`
`to be $83
`
`million,
`
`or
`
`$24 million
`
`more
`
`than
`
`the
`
`combined
`
`outstanding
`
`indebtedness
`
`owed
`
`under
`
`the
`
`first
`
`mortgage
`
`loan
`
`and
`
`the Defêñdañt's
`
`mezzanine
`
`loan.
`
`This
`
`equity
`
`will
`
`be lost
`
`to the Plaintiff
`
`if
`
`the
`
`Defendant
`
`proceeds
`
`with
`
`the UCC sale.
`
`5
`
`5 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`28.
`
`The
`
`first mortgage
`
`lender
`
`previously
`
`filed
`
`a foreclosure
`
`complaint
`
`in the Superior
`
`Court
`
`of New Jersey,
`
`which
`
`complaint
`
`was
`
`dismissed
`
`by
`
`that
`
`lender
`
`after
`
`the
`
`borrower
`
`entered
`
`into
`
`a forbearance
`
`agreement
`
`under
`
`which
`
`the
`
`first mortgage
`
`lender
`
`is not
`
`charging
`
`any
`
`default
`
`interest
`
`or other
`
`penalties
`
`during
`
`the
`
`forbearãñce
`
`period,
`
`which
`
`extends
`
`through
`
`August
`
`1, 2020.
`
`The
`
`Defendant
`
`is
`
`thus
`
`not
`
`at
`
`risk
`
`of
`
`its
`
`loan
`
`foreclosed
`
`the
`
`first
`
`mortgage.
`
`On
`
`having
`
`by
`
`information
`
`and belief,
`
`the first
`
`lender
`
`agreed
`
`to forbear
`
`because
`
`it
`
`is aware
`
`that
`
`there
`
`is significant
`
`equity
`
`in the Property
`
`and
`
`its security
`
`is not
`
`at significant
`
`risk.
`
`29.
`
`The
`
`Defendant
`
`also
`
`has
`
`additional
`
`security
`
`in
`
`the
`
`form
`
`of
`
`the Guarañty.
`
`The
`
`Defendant
`
`is thus
`
`over-secured
`
`and
`
`not
`
`at any
`
`immediate
`
`risk
`
`of non-payment
`
`of
`
`the mezzanine
`
`loan
`
`or
`
`loss
`
`of
`
`its
`
`security.
`
`30.
`
`On
`
`June
`
`2020,
`
`counsel
`
`for
`
`Plaintiff
`
`requested
`
`that
`
`Defendant
`
`adjourn
`
`the
`
`9,
`
`Scheduled
`
`Sale
`
`so as to allow
`
`Plaintiff
`
`to close
`
`on the Second
`
`Rennance
`
`Loan,
`
`at which
`
`time
`
`the
`
`Loan
`
`would
`
`be repaid
`
`in its entirety.
`
`At
`
`that
`
`time,
`
`Defendant
`
`was
`
`advised
`
`that
`
`a commitment
`
`had
`
`been
`
`offered
`
`for
`
`the First
`
`Refinance
`
`Loan,
`
`and that
`
`the Second
`
`Refinance
`
`Loan,
`
`expected
`
`to be on
`
`far more
`
`favorable
`
`terms,
`
`was
`
`entering
`
`the
`
`underwriting
`
`stage.
`
`Defendant
`
`refused
`
`to adjourn,
`
`and
`
`then
`
`refused
`
`a second
`
`request
`
`where
`
`Plaintiff
`
`offered
`
`to
`
`provide
`
`compensation
`
`for
`
`such
`
`an
`
`intends
`
`with
`
`adjournment,
`
`indicated
`
`that
`
`it
`
`to proceed
`
`the UCC Sale
`
`on June
`
`19, 2020.
`
`AS AND FOR A FIRST
`
`CAUSE
`
`OF ACTION
`
`(Declaratory
`
`Relief)
`
`31.
`
`Plaintiff
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in the
`
`foregoing
`
`paragraphs
`
`of
`
`this Verified
`
`Complaint
`
`as if same were
`
`fully
`
`set
`
`forth
`
`herein.
`
`32.
`
`Section
`
`9-610
`
`of
`
`the New York
`
`Uniform
`
`Commercial
`
`Code
`
`provides
`
`that
`
`"[e]very
`
`aspect
`
`of a disposition
`
`of
`
`collateral,
`
`including
`
`the method,
`
`maññcr,
`
`time,
`
`place,
`
`and
`
`other
`
`terms,
`
`must
`
`be commercially
`
`reasonable."
`
`6
`
`6 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`33.
`
`The method
`
`in the midst
`
`of a global
`
`pandemic
`
`and terms
`-
`
`of
`
`the S4ad''lad
`
`Sale
`
`-
`
`on approximately
`
`days'
`
`15
`
`notice
`
`are not
`
`commercially
`
`reasonable.
`
`34.
`
`By
`
`reason
`
`of
`
`the
`
`foregoing,
`
`a real
`
`and
`
`actual
`
`controversy
`
`exists
`
`between
`
`the parties
`
`with
`
`regard
`
`to the
`
`reasonableness
`
`of
`
`the Scheduled
`
`Sale.
`
`AS AND FOR A SECOND
`
`CAUSE
`
`OF ACTION
`
`(VieLation
`
`of New York
`
`Commercial
`
`Code)
`
`35.
`
`Plaintiff
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`allegation
`
`set
`
`forth
`
`in the
`
`every
`
`foregoing
`
`paragraphs
`
`of
`
`this Verified
`
`Complaint
`
`as if same were
`
`fully
`
`set
`
`forth
`
`herein.
`
`36.
`
`New
`
`York's
`
`Uniform
`
`Commercial
`
`Code
`
`requires
`
`that
`
`"[e]very
`
`aspect
`
`of
`
`a
`
`disposition
`
`of
`
`collateral,
`
`includiñg
`
`the method,
`
`esëñer,
`
`time,
`
`place,
`
`and
`
`other
`
`terms,
`
`must
`
`be
`
`commercially
`
`reasonable."
`
`37.
`
`38.
`
`The
`
`terms
`
`of
`
`the Scheduled
`
`Sale
`
`are not
`
`commercially
`
`reasonable.
`
`If
`
`the
`
`Scheduled
`
`Sale
`
`Plaintiff
`
`will
`
`be
`
`harmed
`
`because
`
`Defendant
`
`will
`
`thereby
`
`improperly
`
`secure
`
`control
`
`of an asset
`
`from
`
`Plaintiff
`
`that
`
`is worth
`
`at
`
`least
`
`proceeds,
`
`irreparably
`
`$83 million
`
`for
`
`a fraction
`
`of
`
`that
`
`amount.
`
`39.
`
`Additionally,
`
`if
`
`the Scheduled
`
`Sale
`
`proceeds,
`
`Plaintiff
`
`will
`
`be irreparably
`
`harmed
`
`became
`
`TCC Mezz's
`
`interests
`
`in Two
`
`Tower
`
`and
`
`its
`
`concomitant
`
`control
`
`over
`
`the Property
`
`are
`
`unique
`
`assets
`
`that
`
`cannot
`
`be replaced
`
`for
`
`any
`
`price.
`
`40.
`
`For
`
`the
`
`if
`
`Plaintiff
`
`will
`
`suffer
`
`foregoing
`
`reasons,
`
`the
`
`Scheduled
`
`Sale
`
`proceeds,
`
`damages
`
`that
`
`cannot
`
`be reasonably
`
`ca'cdated.
`
`As
`
`such,
`
`Plaintiffs
`
`lack
`
`an âdequate
`
`remedy
`
`at
`
`law.
`
`AS AND FOR A THIRD
`
`CAUSE
`
`OF ACTION
`
`(Breach
`
`of
`
`the
`
`Implied
`
`Covenant
`
`of Good
`
`Faith
`
`and
`
`Fair
`
`Dealing)
`
`41.
`
`Plaintiff
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in the
`
`foregoing
`
`paragraphs
`
`of
`
`this
`
`Verified
`
`Complaint
`
`as if same were
`
`fully
`
`set
`
`forth
`
`herein.
`
`7
`
`7 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`42.
`
`43.
`
`The
`
`Loan
`
`Documents
`
`cantain
`
`an implied
`
`covenant
`
`of good
`
`faith
`
`and
`
`fair
`
`dealing.
`
`As
`
`a party
`
`to the
`
`Loan
`
`Documents,
`
`Defendant
`
`has
`
`a duty
`
`to Plaintiff
`
`not
`
`to act
`
`in
`
`bad
`
`faith
`
`or engage
`
`in unfair
`
`dealing.
`
`44.
`
`In violation
`
`of
`
`this
`
`duty,
`
`Defendant
`
`structured
`
`a commercially
`
`unreasonable
`
`sale
`
`in
`
`the midst
`
`of a global
`
`pandemic
`
`in an improper
`
`to secure
`
`control
`
`of Tower
`
`Two
`
`and
`
`the
`
`-
`
`Property
`
`valued
`
`at approximately
`
`$83,000,000
`
`Notice,
`
`it
`
`is owned
`
`less
`
`than
`
`$13,000,000.
`
`atterñpt
`-
`
`when,
`
`according
`
`to Defendant's
`
`own Default
`
`45.
`
`Through
`
`the
`
`Scheduled
`
`Sale,
`
`Defendant
`
`is attempting
`
`to
`
`deprive
`
`Plaintiff
`
`of
`
`the
`
`fundamertwil
`
`rights
`
`and benefits
`
`to which
`
`they
`
`are entitled
`
`under
`
`the Loan
`
`Documêñts.
`
`46.
`
`By
`
`its
`
`aforesaid
`
`conduct,
`
`Defendant
`
`has breached
`
`the
`
`duty
`
`of
`
`good
`
`faith
`
`and
`
`fair
`
`dealing
`
`that
`
`it owes
`
`to Plaintiff.
`
`47.
`-
`
`caused
`
`Defendant's
`
`breach
`
`of
`
`the
`
`implied
`
`and,
`
`if
`
`not
`
`remedied,
`
`will
`
`continue
`
`to
`
`covenant
`-
`
`cause
`
`of
`
`good
`
`faith
`
`and
`
`fair
`
`dealing
`
`has
`
`damages
`
`that
`
`cannot
`
`be
`
`reasonably
`
`calculated.
`
`As
`
`such,
`
`Plaintiff
`
`lacks
`
`an adequate
`
`remedy
`
`at
`
`law.
`
`AS AND FOR A FOURTH
`
`CAUSE
`
`OF ACTION
`
`(Unjust
`
`Enrichment)
`
`48.
`
`Plaintiff
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in the
`
`foregoing
`
`paragraphs
`
`of
`
`this Verified
`
`Complaint
`
`as if same were
`
`fully
`
`set
`
`forth
`
`herein.
`
`49.
`
`The
`
`Scheduled
`
`Sale will
`
`result
`
`in the transfer
`
`of company
`
`interests
`
`and
`
`unique
`
`real
`
`property
`
`valued
`
`at approximately
`
`$83,000,000
`
`to Defendant
`
`when,
`
`according
`
`to Defêüdâñt's
`
`own
`
`Notice
`
`of Default,
`
`it
`
`is owed
`
`no more
`
`than
`
`$13,000,000
`
`by Plaintiff.
`
`50.
`
`Defendant
`
`will,
`
`therefore,
`
`be irsproperly
`
`enriched
`
`as a result
`
`of
`
`the Scheduled
`
`Sale,
`
`and Plaintiffs
`
`will
`
`suffer
`
`a corresponding
`
`loss.
`
`8
`
`8 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`51.
`
`It would
`
`violate
`
`equity
`
`and good
`
`conscience
`
`if Defendant
`
`were
`
`permitted
`
`to proceed
`
`with
`
`the Scheduled
`
`Sale
`
`under
`
`the
`
`current
`
`circumstances
`
`(including,
`
`but
`
`not
`
`limited
`
`to,
`
`the
`
`global
`
`COVID-19
`
`pandemic
`
`delaying
`
`Plaintiff's
`
`efforts
`
`to obtain
`
`the Refinance
`
`Loan).
`
`52.
`
`Defendant's
`
`unjust
`
`enrichment,
`
`at Plaintiff's
`
`expense,
`
`will
`
`cause
`
`Plaintiff
`
`damages
`
`that
`
`cannot
`
`be reasonably
`
`calculated.
`
`As
`
`such,
`
`Plaintiff
`
`lacks
`
`an adequate
`
`remedy
`
`at
`
`law.
`
`AS AND FOR A FIFTH
`
`CAUSE
`
`OF ACTION
`
`(Conversion)
`
`53.
`
`Plaintiff
`
`repeats
`
`and
`
`realleges
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in the
`
`foregoing
`
`paragraphs
`
`of
`
`this
`
`Verified
`
`Complaint
`
`as if same were
`
`fully
`
`set
`
`forth
`
`herein.
`
`54.
`
`of
`
`the Scheduled
`
`proposes
`
`upon
`
`By way
`
`Sale, Defendant
`
`to improperly
`
`foreclose
`
`the Collateral.
`
`55.
`
`The
`
`Scheduled
`
`Sale
`
`thus
`
`amounts
`
`to
`
`a willfully
`
`improper
`
`scheme
`
`by
`
`which
`
`Defendant
`
`will
`
`wrongfully
`
`exercise
`
`doreirdoñ
`
`and
`
`control,
`
`to the
`
`exclusion
`
`of Plaintiff,
`
`over
`
`the
`
`Collateral.
`
`56.
`
`Defendant's
`
`wrongful
`
`exercise
`
`of dominion
`
`and control,
`
`if not
`
`remedied,
`
`will
`
`cause
`
`Plaintiff
`
`damages
`
`that
`
`cannot
`
`be
`
`reas0ñably
`
`calculated.
`
`As
`
`such,
`
`Plaintiff
`
`lacks
`
`an
`
`adequate
`
`remedy
`
`at
`
`law.
`
`WHEREFORE,
`
`Plaintiff
`
`demands
`
`judgment
`
`against
`
`Defendant
`
`as follows:
`
`a.
`
`b.
`
`Declaring
`
`that
`
`the
`
`terms
`
`of
`
`the
`
`Scheduled
`
`Sale
`
`are
`
`not
`
`commercially
`
`reasonable;
`
`Preliminary
`
`injüñctive
`
`relief
`
`barring
`
`Defendant
`
`from
`
`conducting
`
`the
`
`Scheduled
`
`Sale;
`
`9
`
`9 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`c.
`
`Permanent
`
`injunctive
`
`relief
`
`barring
`
`Defendant
`
`from conducting
`
`the any
`
`sale
`
`of
`
`the Collateral
`
`on terms
`
`substenally
`
`similar
`
`to those
`
`of
`
`the
`
`Schedded
`
`Sale;
`
`d.
`
`Actual
`
`damages
`
`incurred
`
`by Plaintiff
`
`as a result
`
`of
`
`the wrongful
`
`conduct
`
`of
`
`Defendant
`
`as described
`
`herein
`
`and,
`
`if
`
`the
`
`Scheduled
`
`Sale
`
`proceeds,
`
`as a
`
`result
`
`of
`
`the
`
`commercially
`
`unreasonable
`
`nature
`
`of
`
`the
`
`sale;
`
`e.
`
`f.
`
`Awarding
`
`Granting
`
`Dated:
`
`New York,
`New York
`15, 2020
`June
`
`attorneys'
`
`fees
`
`and
`
`costs
`
`of
`
`suit;
`
`and
`
`such
`
`other
`
`and
`
`further
`
`relief
`
`as the Court
`
`deems
`
`just
`
`and
`
`proper.
`
`HERRICK,
`
`FEINSTEIN
`
`LLP
`
`By:
`
`R. King,
`Esq.
`M. Sekowski,
`for Plaintiff
`
`David
`Michelle
`Attorneys
`Two Park
`Avenue
`New York,
`New York
`592-1400
`(212)
`
`10016
`
`Esq.
`
`10
`
`10 of 11
`
`

`

`FILED: NEW YORK COUNTY CLERK 06/15/2020 12:06 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 652311/2020
`
`RECEIVED NYSCEF: 06/15/2020
`
`VERIFICATION
`
`STATE OF NEW YORK
`
`COUNTY
`
`OF ROCKLAND
`
`)
`
`)
`
`AARON
`
`BERGER
`
`, being
`
`duly
`
`sworn,
`
`deposes
`
`and
`
`says:
`
`1.
`
`2.
`
`I am the owner
`
`of
`
`the managing
`
`member
`
`of
`
`the plaintiff
`
`in the within
`
`action.
`
`I have
`
`read
`
`the foregoing
`
`Verified
`
`Complaint
`
`and know
`
`the centents
`
`thereof
`
`to
`
`be true
`
`to my knõwledge
`
`with
`
`respect
`
`to my acts,
`
`and with
`
`respect
`
`to all other matters
`
`which
`
`are
`
`set
`
`forth
`
`upon
`
`informaticñ
`
`and
`
`belief,
`
`I believe
`
`them
`
`to
`
`be
`
`true.
`
`The
`
`basis
`
`for
`
`such
`
`allegations
`
`made
`
`on information
`
`and
`
`belief
`
`is my involvement
`
`relating
`
`to the matters
`
`set
`
`forth
`
`in the Verified
`
`Cer-p!±t
`
`and documents
`
`contained
`
`in the files
`
`f
`
`Mezz
`
`LLÓ
`
`BEROER
`
`Swom to before
`15*
`of
`
`day
`
`this
`
`o
`
`1
`
`8
`
`o Ne
`
`ork
`
`NF13259774v.2
`
`11
`
`11 of 11
`
`

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