FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`VERIFIED COMPLAINT
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`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
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`Index Number
`ZIGI USA, LLC,
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`Plaintiff,
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` /2023
`-against-
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`AVENUE OF AMERICAS, LLC,
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`Defendant.
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`-----------------------------------------------------------------X
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`Plaintiff, by its attorneys, Jacobs P.C., as for its complaint against the
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`
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`defendant alleges as follows:
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`NATURE OF THIS ACTION
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`1. This action is for declaratory relief as a result of the Defendant’s
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`questionable tactics to disgorge Plaintiff of its lease.
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`PARTIES
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`2. At all relevant times, plaintiff ZIGI USA, LLC (“Zigi”) was and is a
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`Delaware limited liability company in good standing, existing under the
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`virtues of the law of the State of Delaware with its principal place of
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`business located at 14205 NE 18th Avenue, North Miami, FL 33181 and
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`maintaining a showroom and conducting business in the State of New
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`York and County of New York.
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`3. At all relevant times, upon information and belief, defendant AVENUE
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`OF AMERICAS, LLC is a Delaware Limited Liability Company and
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`1
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`1 of 8
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`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`
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`VERIFIED COMPLAINT
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`-----------------------------------------------------------------X
`Index Number
`ZIGI USA, LLC,
`
`
`
`
`
`
`
`
`
`Plaintiff,
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`
`
` /2023
`-against-
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`
`
`
`
`
`AVENUE OF AMERICAS, LLC,
`
`Defendant.
`
`
`
`
`-----------------------------------------------------------------X
`
`Plaintiff, by its attorneys, Jacobs P.C., as for its complaint against the
`
`
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`defendant alleges as follows:
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`NATURE OF THIS ACTION
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`1. This action is for declaratory relief as a result of the Defendant’s
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`questionable tactics to disgorge Plaintiff of its lease.
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`PARTIES
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`2. At all relevant times, plaintiff ZIGI USA, LLC (“Zigi”) was and is a
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`Delaware limited liability company in good standing, existing under the
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`virtues of the law of the State of Delaware with its principal place of
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`business located at 14205 NE 18th Avenue, North Miami, FL 33181 and
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`maintaining a showroom and conducting business in the State of New
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`York and County of New York.
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`3. At all relevant times, upon information and belief, defendant AVENUE
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`OF AMERICAS, LLC is a Delaware Limited Liability Company and
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`1
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`1 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`maintains offices and conducts business in the State of New York and
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`County of New York.
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`JURISDICTION AND VENUE
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`4. The jurisdiction of this Court is invoked pursuant to New York CIVIL
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`PRACTICE LAW & RULES (CPLR), §§ 301 and 302.
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`5. Venue of this action is proper in this Court pursuant to CPLR §§ 503(a)
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`and 509, based on this being the county in which a substantial part of the
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`events giving rise to the claim occurred.
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`FACTS
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`6. Zigi is a manufacturer and distributor of shoes.
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`7. Zigi uses leased space as a showroom at 1370 Avenue of the Americas,
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`16th floor, New York, New York 10019 pursuant to a First Amendment
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`of Lease, dated January 2, 2018, with Defendant as landlord.
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`8. Zigi made regular lease payments until the Spring of 2020, when the
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`COVID-19 pandemic forced New York’s Governor to issue Executive
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`Orders shutting down business activity for all but essential workers.
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`9. The pandemic and the Executive Orders brought Zigi’s ability to use the
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`leased premises to a halt.
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`2
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`2 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`10. As a result, there were simply no potential customers that would visit
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`Zigi’s showroom at the leased premises.
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`11. Zigi’s operations and income were drastically reduced.
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`12. On or about June 17, 2010, Zigi and the Defendant signed a lease for
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`premises on the 11th floor of 1370 Avenue of the Americas, New York,
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`New York 10019 (the “Original Lease”).
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`13. The Original Lease provides the leased premises was to be used for office
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`and showroom use.
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`14. On or about February 2, 2018, the parties amended the Original Lease to
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`provide that the leased premises would be relocated from the 11th floor
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`to the 16th floor of the same building (the “Lease Amendment” and
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`together with the Original Lease, the “Lease”).
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`15. Plaintiff presently uses the leased premises on the sixteenth floor as
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`showroom space.
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`16. Zigi used the leased premises as a showroom until the Spring of 2020,
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`when the COVID-19 pandemic forced New York’s Governor to issue
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`Executive Orders shutting down business activity for all but essential
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`workers.
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`17. Plaintiff made regular payments under the Lease until the Spring of 2020,
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`when the COVID-19 pandemic forced New York’s Governor to issue
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`3
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`3 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`Executive Orders shutting down business activity for all but essential
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`workers.
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`18. The pandemic and the Executive Orders brought Plaintiff’s ability to use
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`the leased premises to a halt. Plaintiff was legally prohibited from using
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`the leased premises from March 2020 until June 2020. (See Governor
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`Cuomo’s Executive Order 202.8, dated March 20, 2020, ordering all
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`nonessential businesses to reduce their in-person workforce by 100%).
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`19. Even after non-essential businesses were permitted to have an in-person
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`work force, the reluctance of business travelers to come to New York
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`(typically by airplane) after June 2020 made it economically impractical
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`for Plaintiff to use the leased premises as a showroom because of, among
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`other things, state and local quarantine requirements.
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`20. In addition, there were simply no potential customers to visit Plaintiff’s
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`showroom at the leased premises.
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`21. Despite these facts, Defendant insisted on attempting to collect full rent
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`during the New York City lockdown and pandemic periods.
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`22. Even worse, Defendant miscalculated the amount of rent allegedly due
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`by failing to credit Plaintiff for a $354,392.50 rent abatement that the
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`Lease provides.
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`4
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`4 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`23. On February 10, 2021, the Defendant commenced a lawsuit by filing a
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`Summons and Complaint with this Court. See Index No. 650932/2021.
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`24. On April 28, 2023, a Special Referee of the Court entered an Order
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`granting entry of judgment in favor of Defendant and against Plaintiff.
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`25. On May 10, 2023, the Judgment was entered with the New York County
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`Clerk’s Office in favor of Defendant and against Plaintiff in the amount
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`of $1,419,749.53, inclusive of interest thereon.
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`26. On May 15, 2023, Plaintiff received an information subpoena (the
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`“Subpoena”) from Defendant.
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`27. On May 17, 2023, Plaintiff received a Restraining Notice to Judgment-
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`Debtor, dated May 15, 2023, from Defendant.
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`28. The Restraining Notice provides that “A judgment debtor… served with
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`a restraining notice is forbidden to make or suffer any sale, assignment,
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`transfer or interference with any property in which he or she has an
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`interest….”
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`29. On May 17, 2023, Plaintiff filed a Petition with supporting
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`documentation for entry of an Order to Show Cause pursuant to CPLR
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`5240 for entry of a protective order staying Defendant’s enforcement of
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`its judgment against Plaintiff (the “Order to Show Cause”). See Index
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`No. 652412/2023.
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`5
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`5 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`30. While the Petition was pending before the Court, on May 18, 2023,
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`Defendant unexpectedly and without advance warning served a Notice of
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`Termination of the Lease on Plaintiff, setting May 25, 2023, as the
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`effective date of termination.
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`31. As a result, Plaintiff has filed the motion seeking the imposition of a
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`Yellowstone injunction to stay the termination and toll the period for
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`curing the default therein, because termination of the lease and loss of
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`use of the showroom – a critical business venue for the Plaintiff – would
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`be highly prejudicial to the business.
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`32. On May 22, 2023, the Court entered the Order to Show Cause, setting a
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`return date of June 13, 2023.
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`AS AND FOR A FIRST CAUSE OF ACTION
`DECLARATORY RELIEF
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`33. Plaintiff repeats and realleges every allegation contained in Paragraphs 1
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`through 32 with the same force and effect as if fully set forth herein.
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`34. Plaintiff has a leasehold interest in the leased premises.
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`35. Plaintiff requires protection from the pending Notice of Termination.
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`36. Plaintiff is entitled to a Yellowstone injunction and a preliminary
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`injunction.
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`37. Plaintiff has no other remedy at law.
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`6
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`6 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
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`RECEIVED NYSCEF: 05/24/2023
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`WHEREFORE, Plaintiff demands judgment in its favor and against
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`Defendant on the first cause of action for Declaratory Relief.
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`Dated: New York, New York
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` May 24, 2023
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`___________
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`JACOBS PC
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`/s/Ilevu Yakubov
`
`Ilevu Yakubov, Esq.
`595 Madison Avenue, 39th Fl
`New York, New York 10022
`(212) 229-0476
`Leo@jacobspc.com
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`7
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`7 of 8
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`FILED: NEW YORK COUNTY CLERK 05/24/2023 02:29 PM
`NYSCEF DOC. NO. 2
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`INDEX NO. 652617/2023
`
`RECEIVED NYSCEF: 05/24/2023
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`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`-----------------------------------------------------------------X
`Index Number
`ZIGI USA, LLC,
`
`
`
`
`
`
`
`
`
`Plaintiff,
`
`
`
` /2023
`-against-
`
`
`
`
`
`
`AVENUE OF AMERICAS, LLC,
`
`Defendant.
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`
`
`
`-----------------------------------------------------------------X
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`ATTORNEY
`VERIFICATION
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`ILEVU YAKUBOV, an attorney admitted to practice in the courts of the State
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`of New York, and not a party to this action, hereby affirms the following to be true
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`under the penalties of perjury, pursuant to CPLR § 2106.
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`I am an attorney for the Plaintiff in this action. I have read the annexed
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`Verified Complaint, and its factual contents are true to my personal knowledge,
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`except as to the matters alleged on information and belief, and as to those matters, I
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`believe them to be true.
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`The grounds for my belief as to all matters not stated upon my personal
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`knowledge are correspondence and other writings furnished to me by Defendant and
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`interviews with Defendant.
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`The reason why this verification is not made by Plaintiff is that Plaintiff is not
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`in the county where I have my office.
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`Dated: May 24, 2023
` New York, New York
`________/s/Ilevu Yakubovd
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` Ilevu Yakubov
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`8
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`8 of 8
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