FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`OF THE
`COURT
`SUPREME
`COUNTY
`OF QUEENS
`___...________---.....---------
`AND
`MANAGEMENT
`EROS
`MANAGEMENT
`PIONEER
`JOHN
`SHARMA,
`
`STATE
`
`OF NEW YORK
`
`-----------------X
`
`REALTY,
`AND
`
`LLC,
`REALTY,
`
`LLC,
`
`and
`
`INDEX
`
`NUMBER
`
`VERIFIED
`
`COMPLAINT
`
`-against-
`
`AC35
`
`HOTELPARTNERSLLC,
`
`-------
`
`----------------------------------------------------X
`
`Plaintiffs,
`
`Defendant.
`
`The
`
`Plaintiffs
`
`EROS MANAGEMENT
`
`AND
`
`REALTY,
`
`LLC
`
`MANAGEMENT
`
`AND
`
`REALTY,
`
`LLC
`
`("Pioneer"),
`
`and
`
`JOHN
`
`("EROS"),
`SHARMA
`
`PIONEER
`
`("Sharma")
`
`(collectively
`
`allege
`
`as for
`
`referred
`
`Plaintiffs'
`
`to as "Plaintiffs"),
`
`by
`
`its
`
`attorneys,
`
`The
`
`Scher
`
`Law
`
`Firm,
`
`LLP,
`
`respectfully
`
`Verified
`
`Complaint
`
`as follows:
`
`L
`
`PARTIES,
`
`JURISDICTION
`
`AND VENUE
`
`The
`
`Plaintiff
`
`EROS MANAGEMENT
`
`LLC
`
`and
`
`1,
`
`AND REALTY,
`
`("EROS")
`
`was
`
`still
`
`is a domestic
`
`limited
`
`liability
`
`company
`
`with
`
`its
`
`principal
`
`place
`
`of business
`
`in the County
`
`of
`
`New York,
`
`State
`
`of New York.
`
`2.
`
`The
`
`Plaintiff
`
`PIONEER
`
`MANAGEMENT
`
`AND REALTY,
`
`LLC ("Pioneer")
`
`was
`
`and
`
`still
`
`is a domestic
`
`limited
`
`liability
`
`company
`
`with
`
`its principal
`
`place
`
`of business
`
`in the County
`
`of New York,
`
`State
`
`of New York.
`
`3.
`
`The
`
`Plaintiff
`
`JOHN
`
`SHARMA
`
`domiciled
`
`and
`
`resides
`
`in the County
`
`of Queens,
`
`and
`was
`("Sharma")
`of New York.1
`
`State
`
`still
`
`is a natural
`
`person
`
`who
`
`is
`
`EROS, Pioneer,
`
`and Shanna will
`
`collectively
`
`be referred
`
`to as "Plaintiffs".
`
`1 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`4.
`
`Upon
`
`information
`
`and
`
`belief,
`
`the
`
`Defendant
`
`AC35
`
`HOTEL
`
`PARTNERS
`
`LLC,
`
`("AC35")
`
`was
`
`and
`
`still
`
`is a domestic
`
`limited
`
`liability
`
`company,
`
`with
`
`its principal
`
`place
`
`of business
`
`in the County
`
`of New York,
`
`State
`
`of New York.
`
`5.
`
`6.
`
`Jurisdiction
`
`of
`
`this Court
`
`is proper
`
`pursuant
`
`to CPLR
`
`§ 301.
`
`Venue
`
`in
`
`this
`
`Court
`
`is appropriate
`
`pursuant
`
`to CPLR
`
`§ 503(a),
`
`since
`
`Sharma's
`
`domicile
`
`and
`
`residence
`
`is located
`
`in the County
`
`of Queens.
`
`IL
`
`FACTS
`
`7.
`
`EROS
`
`is the owner
`
`of
`
`the
`
`real
`
`property
`
`located
`
`at 345 West
`
`35th
`
`Street,
`
`New York,
`
`New York
`
`("Real
`
`Property")
`
`and
`
`owns
`
`the TRYP
`
`by Wyndham
`
`New York
`
`City
`
`Times
`
`Square
`
`South
`
`hotel
`
`("TRYP
`
`Hotel"),
`
`which
`
`operates
`
`on the Real
`
`Property.
`
`8.
`
`As
`
`a result
`
`the TRYP
`
`Hotel's
`
`business
`
`has
`
`dropped
`
`between
`
`of COVID-19,
`
`98%
`
`and
`
`100%,
`
`depending
`
`upon
`
`the New York
`
`State
`
`regulations
`
`imposed
`
`the Governor's
`
`by
`
`Executive
`
`Orders
`
`and
`
`depending
`
`upon
`
`regulations
`
`placed
`
`upon
`
`hotels
`
`and
`
`gatherings
`
`by
`
`the Mayor
`
`of New
`
`York
`
`and
`
`the
`
`availability
`
`of guests.
`
`9.
`
`COVID-19
`
`has devasted
`
`the TRYP
`
`Hotel's
`
`business.
`
`10.
`
`The
`
`devastating
`
`effects
`
`of almost
`
`the
`
`complete
`
`shutdown
`
`of
`
`the TRYP
`
`Hotel
`
`from
`
`March
`
`7, 2020
`
`through
`
`today
`
`has made
`
`keeping
`
`any
`
`financial
`
`commitments
`
`impossible
`
`for
`
`the
`
`Plaintiffs.
`
`I 1.
`
`The
`
`effects
`
`of COVID-19
`
`can
`
`best
`
`be shown
`
`as it
`
`relates
`
`to July
`
`2020
`
`bookings
`
`at
`
`the TRYP
`
`Hotel.
`
`12.
`
`As
`
`July
`
`2020
`
`approached,
`
`the TRYP
`
`Hotel
`
`was
`
`reflecting
`
`what
`
`was
`
`going
`
`to be a
`
`ten
`
`percent
`
`(10%)
`
`occupancy
`
`rate.
`
`2
`
`2 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`13.
`
`However,
`
`in July
`
`2020,
`
`Governor
`
`Cuomo
`
`issued
`
`travelling
`
`warnings
`
`and quarantine
`
`regulations
`
`requiring
`
`people
`
`from
`
`out-of-State
`
`to quarantine
`
`for
`
`two
`
`weeks
`
`upon
`
`arrival
`
`into New
`
`York.
`
`14.
`
`This
`
`quarantine
`
`requirement
`
`also
`
`placed
`
`a burden
`
`on hotels,
`
`like
`
`the TRYP
`
`Hotel,
`
`to monitor
`
`its guests
`
`to ensure
`
`proper
`
`quarantining.
`
`15.
`
`the TRYP
`
`Hotel
`
`was
`
`required
`
`to create
`
`of all guests
`
`and
`
`contact
`
`tracers
`
`In fact,
`
`a log
`
`regularly
`
`contacted
`
`the TRYP
`
`Hotel
`
`to make
`
`sure
`
`any
`
`guests
`
`were
`
`properly
`
`quarantining
`
`16.
`
`Once
`
`the
`
`quarantine
`
`requirements
`
`were
`
`imposed,
`
`the
`
`TRYP
`
`Hotel's
`
`occupancy
`
`crashed
`
`to zero
`
`percent
`
`(0%)
`
`occupancy.
`
`17.
`
`18.
`
`In addition,
`
`the TRYP
`
`Hotel
`
`obtains
`
`a lot
`
`of business
`
`from
`
`international
`
`travelers.
`
`However,
`
`since
`
`international
`
`travel
`
`is essentially
`
`non-existent,
`
`but
`
`to the
`
`extent
`
`it
`
`had
`
`is on-going
`
`there
`
`are
`
`quarantine
`
`reañdates,
`
`the TRYP
`
`Hotel
`
`has
`
`not
`
`any
`
`international
`
`guests
`
`since
`
`essentially
`
`March
`
`2020.
`
`19.
`
`But AC35
`
`knows
`
`about
`
`the
`
`effects
`
`Hotel
`
`because
`
`its hotels,
`
`the Even,
`
`Marriot
`
`Courtyard
`
`the COVID-19
`on 30*
`
`pandemic
`
`has had
`
`on the TRYP
`
`Street,
`
`and
`
`the Hotel
`
`Shocard
`
`have
`
`all been
`
`shut
`
`down
`
`and
`
`are not
`
`accepting
`
`reservations.
`
`20.
`
`the Hotel
`
`Shocard's
`
`a hotel
`
`owned
`
`the owners
`
`of AC35
`
`In fact,
`
`website,
`
`partially
`
`by
`
`states
`
`that
`
`they
`
`"look
`
`forward
`
`to welcoming
`
`you
`
`back
`
`to our
`
`hotel
`
`on May
`
`15,
`
`202l!"
`
`Exhibit
`
`A,
`
`a copy
`
`of
`
`the Hotel
`
`Shocard's
`
`website.
`
`21.
`
`22.
`
`out
`
`in Manhattan.
`
`What
`
`happeñêd
`
`to the TRYP
`
`Hotel
`
`as a result
`
`of COVID-19
`
`has been
`
`devastating.
`
`If
`
`the
`
`pandemic
`
`effects
`
`were
`
`not
`
`bad
`
`enough,
`
`in the Summer
`
`of
`
`2020,
`
`riots
`
`broke
`
`3
`
`3 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`23.
`
`8*
`
`between
`
`Since
`
`the TRYP
`
`Hotel
`
`sits
`
`next
`
`to the Midtown
`
`South
`
`Police
`
`Precinct
`
`on 35*
`
`Street,
`
`9*
`
`and
`
`Avenues,
`
`the
`
`street
`
`was
`
`barricaded
`
`for
`
`approximately
`
`two months
`
`because
`
`the
`
`police
`
`precinct
`
`received
`
`bomb
`
`threats.
`
`24.
`
`While
`
`it
`
`is
`
`unclear
`
`how
`
`much
`
`effect
`
`the
`
`street
`
`closing
`
`had
`
`on
`
`business
`
`since
`
`business
`
`did
`
`not
`
`even
`
`exist
`
`in the Summer
`
`of
`
`2020
`
`because
`
`of
`
`the
`
`travel
`
`restrictions
`
`and
`
`really
`
`quarantine
`
`orders
`
`imposed
`
`the New York
`
`by
`
`State Governor,
`
`the closing
`
`was
`
`just
`
`another
`
`problem
`
`faced
`
`by
`
`the TRYP
`
`Hotel
`
`that makes
`
`it
`
`impossible
`
`for
`
`the Plaintiffs
`
`to live
`
`up to their
`
`contractual
`
`obligation.
`
`25.
`
`Before
`
`the COVID-19
`
`pandemic
`
`was
`
`ever
`
`known
`
`or expected,
`
`on or about
`
`October
`
`31,
`
`2019,
`
`the Plaintiffs
`
`entered
`
`into
`
`a Settlement
`
`Agreement
`
`and Release
`
`and
`
`a Purchase
`
`and Sale
`
`Agreement
`
`with
`
`AC35.
`
`See, Exhibit
`
`B,
`
`a copy
`
`of
`
`the Settlement
`
`Agreemcat.
`
`See,
`
`Exhibit
`
`C,
`
`a
`
`of
`
`the Purchase
`
`and Sale
`
`Agreement.
`
`copy
`
`26.
`
`The
`
`Settlement
`
`Agreement
`
`and
`
`the Purchase
`
`and Sale Agreement
`
`and
`
`the Purchase
`
`and
`
`Sale
`
`Agreement
`
`required
`
`Pioneer
`
`to purchase
`
`AC35's
`
`32.5%
`
`membership
`
`interest
`
`in EROS
`
`for
`
`the
`
`total
`
`sum of $8,150,000.00.
`
`27.
`
`The
`
`payment
`
`schedule
`
`in
`
`the
`
`Settlement
`
`Agreement
`
`required
`
`Pioneer
`
`to
`
`pay
`
`$1,000,000
`
`on
`
`or
`
`before
`
`November
`
`1, 2019;
`
`$337,593.13
`
`on
`
`or
`
`before
`
`December
`
`15,
`
`2019;
`
`$500,000
`
`on
`
`or before
`
`March
`
`15, 2020;
`
`$500,000
`
`on or before
`
`July
`
`15, 2020;
`
`and
`
`$6,150,000
`
`on
`
`November
`
`or before
`
`15, 2020.
`
`See, Exhibit
`
`B, at ¶ 2. See, Exhibit
`
`C,
`
`at ¶ l(b).
`
`28.
`
`Once
`
`the
`
`$1,000,000
`
`was
`
`paid
`
`on November
`
`1, 2019,
`
`AC35
`
`no longer
`
`owned
`
`any
`
`membership
`
`interests
`
`in EROS.
`
`See, Exhibit
`
`B, at ¶ 2.
`
`29.
`
`The
`
`Plaintiffs
`
`timely
`
`made
`
`the
`
`payments
`
`for
`
`November
`
`2019,
`
`December
`
`2019,
`
`March
`
`2020,
`
`and
`
`July
`
`2020.
`
`30.
`
`The
`
`Plaintiffs,
`
`however,
`
`cannot
`
`make
`
`the
`
`November
`
`15,
`
`2020
`
`payment
`
`in
`
`the
`
`amount
`
`of $6,150,000.00
`
`because
`
`COVID-19
`
`closed
`
`down
`
`the TRYP
`
`Hotel.
`
`4
`
`4 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`31.
`
`When
`
`the
`
`deal
`
`was
`
`struck
`
`in October
`
`2019,
`
`AC35
`
`knew
`
`that
`
`the Plaintiffs
`
`needed
`
`to borrow
`
`the money
`
`for
`
`the November
`
`15, 2020
`
`payment.
`
`32.
`
`AC35
`
`knew
`
`that
`
`the
`
`Plaintiffs
`
`did
`
`not
`
`have
`
`the
`
`cash
`
`to make
`
`a $6.15
`
`million
`
`payment
`
`in November
`
`2020.
`
`33.
`
`Despite
`
`have
`
`conversations
`
`with
`
`EROS'
`
`lender
`
`beginning
`
`in
`
`February
`
`2020
`
`to
`
`structure
`
`the
`
`Plaintiffs
`
`to make
`
`the November
`
`2020
`
`as a
`
`a borrowing
`
`enabling
`
`15,
`
`payment,
`
`consequence
`
`of
`
`the COVID-19
`
`pandemic,
`
`all
`
`the
`
`conversations
`
`ceased
`
`and
`
`there
`
`is no
`
`likelihood
`
`that
`
`the
`
`Plaintiffs
`
`will
`
`be
`
`able
`
`to
`
`borrow
`
`the money
`
`to
`
`pay
`
`AC35
`
`for
`
`the November
`
`15,
`
`2020
`
`payment
`
`of $6.15
`
`million.
`
`34.
`
`As
`
`a result
`
`of COVID-19,
`
`the mortgage
`
`and
`
`financing
`
`market
`
`has
`
`dried
`
`up.
`
`The
`
`Plaintiffs
`
`own
`
`a hotel
`
`in Manhattan
`
`with
`
`no
`
`"light
`
`at
`
`the
`
`of
`
`tunnel"
`
`35.
`
`end
`
`the
`
`when
`
`the
`
`operations
`
`of
`
`the
`
`hotel
`
`will
`
`get
`
`back
`
`to normal.
`
`36.
`
`There
`
`is
`
`simply
`
`no
`
`one
`
`lending
`
`money
`
`to
`
`the
`
`Plaintiffs
`
`because
`
`the
`
`business
`
`prospects
`
`are
`
`so speculative.
`
`37.
`
`Despite
`
`every
`
`effort
`
`by
`
`the Plaintiffs
`
`it has become
`
`clear
`
`that
`
`it will
`
`be impossible
`
`for
`
`the Plaintiffs
`
`to make
`
`the
`
`$6.15
`
`million
`
`payment
`
`on November
`
`15, 2020.
`
`38.
`
`As a result
`
`of
`
`the COVID-19
`
`there
`
`has been
`
`a frustration
`
`with
`
`respect
`
`to the Settlement
`
`Agreement.
`
`pandemic,
`
`of purpose
`
`39.
`
`40.
`
`The
`
`Plaintiffs
`
`are not
`
`trying
`
`to evade
`
`or never
`
`pay AC35
`
`the
`
`$6.15
`
`million.
`
`The Plaintiffs
`
`just
`
`need
`
`time
`
`to pay
`
`and request
`
`that
`
`the Court
`
`delay
`
`the
`
`enforcement
`
`of
`
`the Settlement
`
`Agreement
`
`and
`
`its default
`
`provisions,
`
`including
`
`the:
`
`(1) Promissory
`
`Note
`
`issued
`
`by
`
`the
`
`Plaintiffs
`
`(see,
`
`Exhibit
`
`D);
`
`and
`
`(2) Confessions
`
`of
`
`Judgment
`
`executed
`
`by
`
`the
`
`Plaintiffs.
`
`See, Exhibit
`
`E.
`
`5
`
`5 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`41.
`
`The
`
`Plaintiffs
`
`are
`
`not
`
`asking
`
`the Court
`
`to
`
`void
`
`the Settlement
`
`Agreement
`
`or
`
`the
`
`Purchase
`
`and Sale
`
`Agreement,
`
`only
`
`to delay
`
`the
`
`enforcement
`
`of
`
`the
`
`default
`
`provisions
`
`to enable
`
`the Plaintiffs
`
`to make
`
`payment,
`
`either
`
`by a payment
`
`schedule
`
`or delaying
`
`the
`
`lump
`
`sum payment
`
`of
`
`$6.15
`
`million
`
`until
`
`the COVID-pañdemic's
`
`effects
`
`on
`
`the TRYP
`
`Hotel's
`
`business
`
`becomes
`
`clearer.
`
`HL
`
`CAUSES
`
`OF ACTION
`
`AS AND FOR A FIRST
`
`THE DEFENDANT
`
`FOR
`
`OF ACTION
`CAUSE
`DECLARATORY
`
`AGAINST
`JUDGMENT
`
`42.
`
`Plaintiffs
`
`repeat,
`
`reiterate
`
`and
`
`reallege
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`paragraphs
`
`üürobered
`
`"1"
`
`forth
`
`herein.
`
`through
`
`"41",
`
`with
`
`the
`
`same
`
`force
`
`and
`
`effect
`
`as though
`
`more
`
`fully
`
`in
`
`set
`
`40.
`
`On November
`
`15, 2020,
`
`the Plaintiffs
`
`are required
`
`to make
`
`a payment
`
`to AC35
`
`in
`
`the
`
`amount
`
`of
`
`$6.15
`
`million
`
`under
`
`the
`
`terms
`
`of
`
`the Settlement
`
`Agreement
`
`and
`
`the Purchase
`
`and
`
`Sale
`
`Agreement.
`
`See, Exhibit
`
`B, at 12.d.
`
`See, Exhibit
`
`C,
`
`at ¶ 1.(b)5..
`
`41.
`
`The
`
`doctrine
`
`of
`
`impossibility
`
`excuses
`
`the Plaintiffs
`
`from making
`
`the November
`
`15,
`
`2020
`
`paymêñt
`
`because
`
`the COVID-19
`
`pandemic,
`
`the economic
`
`effects
`
`as a result
`
`of
`
`the pandemic,
`
`and
`
`the New York
`
`State
`
`and New York
`
`City
`
`regulations
`
`destroyed
`
`the
`
`economic
`
`viability
`
`of
`
`the
`
`TRYP
`
`Hotel
`
`and made
`
`it
`
`impossible
`
`for
`
`the Plaintiffs
`
`to obtain
`
`financing
`
`to fund
`
`the November
`
`15, 2020
`
`payment.
`
`the means
`
`of
`
`Plaintiffs'
`
`42.
`
`The
`
`COVID-19
`
`pandemic
`
`destroyed
`
`the
`
`performance
`
`objectively
`
`impossible.
`
`43.
`
`The COVID-19
`
`pandemic,
`
`an act of God,
`
`was
`
`an unanticipated
`
`event
`
`that
`
`could
`
`not
`
`have
`
`been
`
`foreseen
`
`or
`
`guarded
`
`against
`
`in
`
`the
`
`Settlement
`
`Agreement
`
`or
`
`the
`
`Purchase
`
`and
`
`Sale
`
`Agreement.
`
`44.
`
`The
`
`Plaintiffs'
`
`performance
`
`is
`
`excused
`
`because
`
`the
`
`Plaintiffs'
`
`performance
`
`is
`
`rendered
`
`impossible
`
`by
`
`intervening,
`
`unforeseen
`
`governmental
`
`activities.
`
`6
`
`6 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`45.
`
`The
`
`intervening.
`
`unforeseen
`
`governmental
`
`activities
`
`were
`
`the New York
`
`State
`
`Governor's
`
`Executive
`
`Orders
`
`limited
`
`the number
`
`of people
`
`in a given
`
`space.
`
`requiring
`
`out-of-State
`
`visitors
`
`to quarantine
`
`for
`
`fourteen
`
`days.
`
`and the New York
`
`City Mayor's
`
`restrictions,
`
`including
`
`but
`
`not
`
`limited
`
`to closing
`
`down
`
`West
`
`35*
`
`Street
`
`to protect
`
`the TRY P Hotel's
`
`neighbor,
`
`the Midtown
`
`South
`
`Police
`
`Precinct.
`
`46.
`
`There
`
`can
`
`be no dispute
`
`that
`
`on October
`
`31,
`
`2019
`
`when
`
`the Settlement
`
`Agreement
`
`an
`
`that
`
`not
`
`was
`
`executed,
`
`the COVID-19
`
`pandemic
`
`was
`
`unanticipated
`
`event
`
`could
`
`have
`
`been
`
`foreseen
`
`or guarded
`
`against
`
`in the Settlement
`
`Agreement.
`
`47.
`
`48.
`
`There
`
`can
`
`be no dispute
`
`that
`
`the COVID-19
`
`pandemic
`
`was
`
`an act of God.
`
`There
`
`can
`
`be
`
`no
`
`dispute
`
`that
`
`the Governor's
`
`Executive
`
`Orders
`
`and
`
`the Mayor's
`
`restrictions
`
`placed
`
`upon
`
`businesses
`
`and
`
`gatherings
`
`beginning
`
`in March
`
`2020
`
`were
`
`acts
`
`of
`
`law that
`
`made
`
`performance
`
`of
`
`the
`
`Settlement
`
`Agreement
`
`impossible
`
`because
`
`the TRYP
`
`Hotel
`
`was
`
`down
`
`by
`
`orders
`
`of
`
`the Governor
`
`and
`
`the Mayor
`
`and when
`
`the
`
`restrictions
`
`were
`
`partially
`
`lifted,
`
`the
`
`business
`
`of
`
`the TRYP
`
`Hotel
`
`has
`
`remained
`
`weak
`
`and
`
`to some
`
`extent
`
`non-existent.
`
`shut
`
`49.
`
`The
`
`government
`
`actions
`
`taken
`
`by
`
`the New York
`
`State Governor
`
`and the New York
`
`City Mayor
`
`as a result
`
`of
`
`the COVID-19
`
`pandemic
`
`were
`
`not
`
`foreseeable.
`
`50.
`
`AC35
`
`knew
`
`that
`
`the Plaintiffs
`
`needed
`
`to obtain
`
`financing
`
`and
`
`borrowing
`
`to make
`
`the November
`
`15, 2020
`
`payment.
`
`51.
`
`that
`
`needed
`
`In February,
`
`2020,
`
`knowing
`
`the Plaintiffs
`
`to obtain
`
`financing
`
`to make
`
`the November
`
`15,
`
`2020
`
`payment,
`
`the
`
`Plaintiffs
`
`began
`
`the
`
`process
`
`of
`
`seeking
`
`borrowing
`
`from
`
`EROS's
`
`current
`
`lender
`
`to obtain
`
`additional
`
`cash
`
`to fund
`
`the November
`
`15, 2020
`
`payment.
`
`52.
`
`In February
`
`2020,
`
`the
`
`Plaintiff
`
`had
`
`extensive
`
`conversations
`
`with
`
`EROS's
`
`lender
`
`and
`
`had
`
`actual
`
`began
`
`the
`
`application
`
`process
`
`to obtain
`
`the
`
`funding
`
`to pay
`
`for
`
`the Novcmber
`
`15,
`
`2020
`
`payment.
`
`7
`
`7 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`53.
`
`However,
`
`once
`
`the March
`
`20,
`
`2020
`
`shut
`
`down
`
`of
`
`the New York
`
`economy
`
`occurred,
`
`all
`
`conversations
`
`with
`
`the
`
`lender
`
`ceased,
`
`the loan was
`
`transferred
`
`to a new loan
`
`servicer,
`
`and EROS
`
`began
`
`to be in technical
`
`default
`
`of
`
`the
`
`loan
`
`as a result
`
`of
`
`the
`
`lack
`
`of business
`
`at
`
`the TRYP
`
`Hotel.
`
`54.
`
`Through
`
`the months
`
`of March,
`
`April,
`
`May,
`
`June,
`
`July,
`
`August,
`
`September,
`
`October,
`
`and November
`
`2020,
`
`the Plaintiffs
`
`have
`
`been
`
`working
`
`tirelessly
`
`to obtain
`
`the
`
`financing
`
`the
`
`November
`
`15, 2020
`
`payment
`
`in the
`
`amount
`
`of $6.15
`
`million.
`
`to pay
`
`55.
`
`Despite
`
`all
`
`efforts
`
`made
`
`by
`
`the
`
`Plaintiffs,
`
`as a consequence
`
`of
`
`the COVID-19
`
`pandemic,
`
`all
`
`funding
`
`sources
`
`have
`
`dried
`
`up and
`
`the Plaintiffs
`
`have
`
`been
`
`unable
`
`to obtain
`
`financing
`
`to fund
`
`the November
`
`15, 2020
`
`payment
`
`in the
`
`amount
`
`of $6.15
`
`million.
`
`56.
`
`The COVID-19
`
`pandemic
`
`along
`
`with
`
`the State
`
`and City
`
`governments'
`
`restrictions
`
`and
`
`regulations
`
`caused
`
`a highly
`
`significant
`
`downturn
`
`in
`
`the TRYP
`
`Hotel's
`
`business,
`
`which
`
`has
`
`made
`
`borrowing
`
`objectively
`
`impossible.
`
`57.
`
`Therefore,
`
`the Plaintiffs
`
`demand
`
`a declaratory
`
`judgment
`
`order
`
`declaring
`
`that
`
`the
`
`Plaintiffs'
`
`perfonnance,
`
`i.e.. making
`
`the November
`
`15, 2020
`
`payment
`
`to AC35
`
`in the
`
`amount
`
`of
`
`|
`
`$6.15
`
`million
`
`is excused
`
`because
`
`of
`
`the
`
`doctrine
`
`of
`
`impossibility.
`
`AS AND FOR A SECOND
`
`OF ACTION
`CAUSE
`DECLARATORY
`
`AGAINST
`JUDGMENT
`
`THE DEFENDANT
`
`FOR
`
`58.
`
`Plaintiffs
`
`repeat,
`
`reiterate
`
`and
`
`reallege
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in
`
`paragraphs
`
`numbered
`
`"1"
`
`through
`
`with
`
`the
`
`same
`
`force
`
`and
`
`effect
`
`as though
`
`forth
`
`herein.
`
`"57",
`
`more
`
`fully
`
`set
`
`59.
`
`The
`
`doctrine
`
`of
`
`frustrated
`
`purpose
`
`requires
`
`that
`
`the purpose
`
`must
`
`be so completely
`
`the
`
`basis
`
`of
`
`the
`
`contract
`
`that,
`
`as both
`
`parties
`
`understood,
`
`without
`
`it,
`
`the
`
`transaction
`
`would
`
`have
`
`made
`
`little
`
`sense.
`
`60.
`
`The
`
`doctrine
`
`of
`
`frustrated
`
`purpose
`
`requires
`
`that
`
`the event
`
`that
`
`causes
`
`the
`
`fi·ustration
`
`of purpose
`
`was
`
`not
`
`foreseeable
`
`and
`
`provision
`
`could
`
`not
`
`have
`
`been made
`
`for
`
`its occurrence.
`
`8
`
`8 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`61.
`
`The
`
`economic
`
`effects
`
`of
`
`the COVID-19
`
`pandemic,
`
`which
`
`resulted
`
`in the New York
`
`State
`
`Governor's
`
`and New York
`
`City
`
`Mayor's
`
`Executive
`
`Orders,
`
`regulations,
`
`and
`
`restricting
`
`the
`
`TRYP
`
`Hotel's
`
`business
`
`strongly
`
`adversely
`
`impacted
`
`the TRYP
`
`Hotel's
`
`business.
`
`62.
`
`COVID-19
`
`and
`
`its
`
`effects
`
`on
`
`the TRYP
`
`Hotel's
`
`business
`
`were
`
`not
`
`foreseeable
`
`on
`
`2019
`
`when
`
`the
`
`Settlement
`
`Agreement
`
`and
`
`the
`
`Purchase
`
`and
`
`Sale
`
`October
`
`31,
`
`executed.
`
`Agreement
`
`was
`
`63.
`
`There
`
`was
`
`no way
`
`for
`
`the
`
`parties
`
`to
`
`the
`
`Settlement
`
`Agreement
`
`to
`
`have
`
`made
`
`provision
`
`for
`
`a pandemic
`
`and
`
`the
`
`subsequent
`
`effects
`
`on the TRYP
`
`Hotel's
`
`business.
`
`64.
`
`AC35
`
`knew
`
`that
`
`in order
`
`for
`
`the Plaintiffs
`
`to make
`
`the November
`
`15, 2020
`
`payment
`
`under
`
`the Settlement
`
`Agreement,
`
`the Plaintiffs
`
`had
`
`to borrow
`
`money
`
`from
`
`a lender
`
`because
`
`the
`
`not
`
`$6.15
`
`million
`
`in cash.
`
`Plaintiffs
`
`did
`
`have
`
`65.
`
`As
`
`a result
`
`of
`
`the
`
`COVID-19
`
`pandemic
`
`and
`
`the
`
`effects
`
`the New
`
`York
`
`State
`
`Governor's
`
`and New York
`
`City
`
`Mayor's
`
`regulations
`
`and
`
`restrictions
`
`had
`
`upon
`
`the TRYP
`
`Hotel's
`
`business,
`
`the mortgaging
`
`and
`
`lending
`
`market
`
`has
`
`completely
`
`dried
`
`up.
`
`66.
`
`As
`
`a consequence
`
`of
`
`the
`
`lack
`
`of
`
`a borrowing
`
`market,
`
`the
`
`complete
`
`basis
`
`of
`
`the
`
`the November
`
`payment
`
`million
`
`has
`
`been
`
`Settlement
`
`Agreement,i.e.,
`
`15, 2020
`
`of $6.15
`
`frustrated
`
`by
`
`the COVID-19
`
`pandemic
`
`and
`
`its effect
`
`on the TRYP
`
`Hotel's
`
`business.
`
`67.
`
`68.
`
`Plaintiffs'
`
`Without
`
`the
`
`lump
`
`sum payment
`
`of $6.15
`
`million,
`
`the transaction
`
`made
`
`little
`
`sense.
`
`Therefore,
`
`the Plaintiffs
`
`demand
`
`a declaratory
`
`judgment
`
`order
`
`declaring
`
`that
`
`the
`
`performance,
`
`i.e., making
`
`the November
`
`15, 2020
`
`payment
`
`to AC35
`
`in the
`
`amount
`
`of
`
`$6.15
`
`million
`
`is excused
`
`because
`
`of
`
`the
`
`doctrine
`
`of
`
`frustrated
`
`purpose.
`
`9 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`AS AND FOR A THIRD
`
`OF ACTION
`CAUSE
`PROMISSORY
`
`AGAINST
`ESTOPPEL
`
`THE DE FENDANT
`
`FOR
`
`69.
`
`Plaintiffs
`
`repeat,
`
`reiterate
`
`and
`
`reallege
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`paragraphs
`
`numbered
`
`"1"
`
`forth
`
`herein.
`
`through
`
`"68",
`
`with
`
`the
`
`same
`
`force
`
`and
`
`effect
`
`as though
`
`more
`
`fully
`
`in
`
`set
`
`70.
`
`The
`
`Settlement
`
`Agreement
`
`and
`
`the
`
`Purchase
`
`and
`
`Sale
`
`Agreement
`
`required
`
`the
`
`as
`
`follows:
`
`$1,000,000
`
`on
`
`or
`
`before
`
`November
`
`Plaintiffs
`
`to make
`
`payments
`
`(1)
`
`1, 2019;
`
`$500,000
`
`on
`
`or
`
`before
`
`March
`
`15,
`
`2020;
`
`(3)
`
`$500,000
`
`on
`
`or
`
`before
`
`July
`
`15,
`
`2020;
`
`and
`
`$6,150,000
`
`on or before
`
`November
`
`15, 2020.
`
`See, Exhibit
`
`B, at ¶ 2. See, Exhibit
`
`C, at 1 2.
`
`(2)
`
`(4)
`
`71.
`
`72.
`
`The
`
`Plaintiffs
`
`made
`
`the November
`
`payment
`
`on time.
`
`The
`
`Plaintiffs
`
`made
`
`the March
`
`payment
`
`on
`
`time,
`
`despite
`
`the
`
`fact
`
`that
`
`it was
`
`due
`
`of
`
`pandemic
`
`and
`
`after
`
`the TRYP
`
`Hotel
`
`right
`
`at
`
`the
`
`beginning
`
`the COVID-19
`
`was
`
`closed
`
`down
`
`by
`
`the New York
`
`State Governor's
`
`Executive
`
`Order.
`
`See, Exhibit
`
`F, a copy
`
`of Governor
`
`Cuomo's
`
`March
`
`20,
`
`2020
`
`Executive
`
`Order.
`
`73.
`
`The
`
`Plaintiffs
`
`made
`
`the
`
`July
`
`payment
`
`on time,
`
`despite
`
`it being
`
`paid
`
`in the midst
`
`of
`
`COVID-19.
`
`74.
`
`75.
`
`The TRYP
`
`Hotel
`
`was
`
`closed
`
`down
`
`in July
`
`2020.
`
`But
`
`it was made
`
`under
`
`the
`
`assumption
`
`and
`
`based
`
`upon
`
`promises
`
`made
`
`by AC35
`
`be re-negotiated.
`
`that
`
`the November
`
`2020
`
`payment
`
`would
`
`76.
`
`In
`
`conversations
`
`and
`
`negotiations
`
`over
`
`the
`
`Plaintiffs'
`
`attempts
`
`to
`
`postpose
`
`and
`
`extend
`
`or pay
`
`out
`
`the
`
`July
`
`payment,
`
`AC35
`
`promised
`
`that
`
`if
`
`the
`
`July
`
`payment
`
`was made,
`
`AC35
`
`would
`
`work
`
`with
`
`the Plaintiffs
`
`to extend
`
`and modify
`
`the November
`
`2020
`
`payment.
`
`See, Exhibit
`
`G,
`
`copies
`
`of emails
`
`relating
`
`to the July
`
`2020
`
`payment
`
`and promises
`
`to negotiate
`
`over
`
`the November
`
`2020
`
`payment.
`
`l o
`
`10 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`77.
`
`Now that
`
`the November
`
`2020
`
`payment
`
`is due, AC35
`
`has not
`
`acted
`
`in good
`
`faith
`
`in
`
`negotiating
`
`a reasonable
`
`deal
`
`to avert
`
`a default
`
`under
`
`the
`
`terms
`
`of
`
`the Settlement
`
`Agreement.
`
`78.
`
`AC35
`
`has
`
`demanded
`
`financial
`
`records,
`
`an exorbitant
`
`down
`
`payment
`
`and monthly
`
`payments
`
`while
`
`the
`
`TRYP
`
`Hotel's
`
`business
`
`struggles
`
`under
`
`the
`
`weight
`
`of
`
`the
`
`COVID-19
`
`pandemic.
`
`79.
`
`The
`
`doctrine
`
`estoppel
`
`the Court
`
`from
`
`holding
`
`the Plaintiffs
`
`in default
`
`because
`
`the Plaintiffs
`
`relied
`
`upon
`
`AC35's
`
`promises
`
`and made
`
`of promissory
`
`should
`
`be imposed
`
`by
`
`to estop
`
`AC35
`
`the
`
`July
`
`2020
`
`payment.
`
`80.
`
`There
`
`was
`
`a clear
`
`and
`
`unambiguous
`
`promise
`
`by AC35
`
`that
`
`if
`
`the Plaintiffs
`
`made
`
`the July
`
`2019
`
`payment
`
`in full
`
`timely,
`
`then AC35
`
`would
`
`negotiate
`
`an extension
`
`of deadline
`
`to make
`
`the payment.
`
`See, Exhibit
`
`G.
`
`81.
`
`upon
`
`this
`
`the
`
`Plaintiffs
`
`made
`
`the
`
`Relying
`
`promise,
`
`July
`
`2020
`
`payment
`
`of
`
`$500.000.00
`
`timely.
`
`82.
`
`83.
`
`The
`
`Plaintiff's
`
`reliance
`
`upon
`
`AC35's
`
`promise
`
`was
`
`foreseeable
`
`by AC35.
`
`In essence,
`
`AC35
`
`induced
`
`the Plaintiffs
`
`to make
`
`the
`
`July
`
`2020
`
`payment
`
`with
`
`the
`
`promise
`
`that
`
`they
`
`would
`
`negotiate
`
`an extension
`
`of
`
`the November
`
`2020
`
`payment.
`
`84.
`
`85.
`
`However,
`
`AC35
`
`has not
`
`acted
`
`in good
`
`faith.
`
`AC35
`
`has made
`
`unreasonable
`
`demands
`
`like
`
`financial
`
`regarding
`
`the
`
`Plaintiffs
`
`financial
`
`condition
`
`as
`
`a pre-condition
`
`to
`
`the
`
`discussion
`
`regarding
`
`an
`
`extension
`
`of
`
`the November
`
`2020
`
`deadline.
`
`statements
`
`and
`
`infonnation
`
`86.
`
`AC35
`
`has made
`
`unreasonable
`
`down
`
`payment
`
`demands
`
`and
`
`payment
`
`terms
`
`that
`
`it
`
`knows
`
`the
`
`Plaintiffs
`
`cannot
`
`afford
`
`and
`
`cannot
`
`agree
`
`to
`
`under
`
`the
`
`current
`
`economic
`
`struggles
`
`effecting
`
`the TRYP
`
`Hotel
`
`during
`
`COVID-19.
`
`L I
`
`11 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`87.
`
`All
`
`of
`
`these
`
`demands
`
`is not
`
`acting
`
`in good
`
`faith.
`
`but
`
`backing
`
`the Plaintiffs
`
`into
`
`a
`
`corner
`
`without
`
`a way
`
`out.
`
`88.
`
`As
`
`a result
`
`of AC35's
`
`promise
`
`and
`
`the
`
`Plaintiffs'
`
`reasonable
`
`reliance
`
`upon
`
`the
`
`promise,
`
`the Plaintiffs
`
`will
`
`be injured
`
`if AC35
`
`does
`
`not
`
`negotiate
`
`in good
`
`faith
`
`in negotiating
`
`an
`
`extension
`
`of
`
`the November
`
`15, 2020
`
`deadline.
`
`89.
`
`and
`
`This
`
`injury
`
`will
`
`be devastating
`
`because
`
`it will
`
`result
`
`in a judgment
`
`enforcement
`
`proceedings
`
`despite
`
`a promise
`
`not
`
`to take
`
`on these
`
`undertakings
`
`if
`
`the Plaintiffs
`
`paid
`
`the July
`
`2020
`
`payment.
`
`90.
`
`Therefore,
`
`the Plaintiffs
`
`demand
`
`judgment
`
`against
`
`in the
`
`amount
`
`to be determined
`
`at
`
`trial,
`
`but
`
`in no event
`
`less
`
`than
`
`FIVE
`
`DOLLARS
`
`($500,000.00).
`
`promissory
`THOUSAND
`HUNDRED
`
`AC35
`
`for
`
`estoppel
`
`AS AND FOR A FOURTH
`CAUSE
`OF THE COVENANT
`BREACH
`
`OF ACTION
`AGAINST
`OF GOOD FAITH
`
`THE DEFENDANT
`AND FAIR
`DEALING
`
`FOR
`
`Plaintiffs
`
`reiterate
`
`reallege
`
`91.
`
`repeat,
`
`and
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`paragraphs
`
`numbered
`
`"l"
`
`forth
`
`herein.
`
`through
`
`"90",
`
`with
`
`the
`
`same
`
`force
`
`and
`
`effect
`
`as though
`
`more
`
`fully
`
`in
`
`set
`
`92.
`
`93.
`
`AC35
`
`has
`
`not
`
`acted
`
`in good
`
`faith
`
`in its dealings
`
`with
`
`the Plaintiffs.
`
`The
`
`Plaintiffs
`
`have
`
`made
`
`every
`
`payment
`
`due
`
`and
`
`owing
`
`under
`
`the
`
`Settlement
`
`Agreement
`
`The
`
`and the Purchase
`
`and Sale Agreement.
`
`Plaintiffs
`
`made
`
`payments
`
`at
`
`the beginning
`
`of COVID-19
`
`in March
`
`2020
`
`and
`
`at
`
`the height
`
`of COVID-19
`
`in July
`
`2020.
`
`94.
`
`The
`
`Plaintiffs
`
`have
`
`acted
`
`in good
`
`faith
`
`since
`
`the October
`
`31,
`
`2019
`
`contracts
`
`were
`
`executed.
`
`95.
`
`AC35
`
`has
`
`promised
`
`to
`
`extend
`
`the
`
`November
`
`2020
`
`payment
`
`if
`
`the
`
`July
`
`2019
`
`payment
`
`was made
`
`timely
`
`and
`
`in full.
`
`12
`
`12 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`96.
`
`Now,
`
`when
`
`it
`
`comes
`
`time
`
`to negotiate
`
`the November
`
`2020
`
`extension,
`
`AC35
`
`has
`
`made
`
`unreasonable
`
`demands
`
`for
`
`financial
`
`disclosure
`
`and
`
`financial
`
`documents
`
`before
`
`addressing
`
`offer
`
`to extend
`
`the November
`
`2020
`
`payment.
`
`97.
`
`AC35
`
`has demanded
`
`that
`
`the Plaintiffs
`
`make
`
`a large
`
`lump
`
`sum payment
`
`to obtain
`
`a
`
`new payment
`
`schedule
`
`in amounts
`
`that
`
`AC35
`
`knows
`
`the Plaintiffs
`
`cannot
`
`meet.
`
`98.
`
`AC35
`
`threatened
`
`the Plaintiffs
`
`with
`
`immediate
`
`default
`
`if payment
`
`was
`
`not made,
`
`of
`
`of
`
`while
`
`at
`
`the
`
`same
`
`time
`
`offering
`
`condolences
`
`for
`
`the
`
`loss
`
`one
`
`the members
`
`of EROS.
`
`Sce.
`
`Exhibit
`
`H,
`
`a copy
`
`of
`
`the
`
`July
`
`1, 2020
`
`email.
`
`99.
`
`AC35
`
`has
`
`not
`
`acted
`
`in
`
`good
`
`faith
`
`despite
`
`the
`
`Plaintiffs'
`
`good
`
`faith
`
`actions
`
`(by
`
`making
`
`every
`
`payment
`
`timely
`
`under
`
`the
`
`Settlement
`
`Agreement
`
`and
`
`the
`
`Purchase
`
`and
`
`Sale
`
`Agreement)
`
`and
`
`by making
`
`offers
`
`to AC35
`
`to extend
`
`the November
`
`2020
`
`payment.
`
`for
`
`an extension
`
`of
`
`100.
`
`AC35's
`
`bad
`
`faith
`
`has
`
`hindered
`
`any
`
`negotiation
`
`the November
`
`2020
`
`payment.
`
`101.
`
`Accordingly,
`
`the
`
`Plaintiffs
`
`demand
`
`judgment
`
`against
`
`AC35
`
`for
`
`breach
`
`of
`
`the
`
`covenant
`
`of good
`
`faith
`
`than
`
`FIVE
`
`HUNDRED
`
`and
`
`fair
`
`dealing
`THOUSAND
`
`in the
`
`amount
`
`to be determined
`
`at
`
`trial,
`
`but
`
`in no event
`
`less
`
`DOLLARS
`
`($500,000.00).
`
`OF ACTION
`AS AND FOR A FIFTH
`CAUSE
`FOR A PERMANENT
`
`AGAINST
`INJUNCTION
`
`ALL
`
`DEFENDANTS
`
`102.
`
`Plaintiffs
`
`repeat,
`
`reiterate
`
`and
`
`reallege
`
`each
`
`and
`
`every
`
`allegation
`
`set
`
`forth
`
`in
`
`"1"
`
`and
`
`effect
`
`paragraphs
`
`numbered
`
`through
`
`"101",
`
`with
`
`the
`
`same
`
`force
`
`as though
`
`more
`
`fully
`
`set
`
`forth
`
`herein.
`
`103.
`
`The
`
`Plaintiffs
`
`have
`
`a high
`
`likelihood
`
`of
`
`success
`
`on
`
`the merits
`
`on
`
`their
`
`causes
`
`of
`
`action,
`
`including
`
`their
`
`declaratory
`
`judgment
`
`causes
`
`of action,
`
`promissory
`
`estoppel
`
`cause
`
`of action,
`
`and
`
`breach
`
`of
`
`the
`
`covenant
`
`for
`
`good
`
`faith
`
`and
`
`fair
`
`dealing
`
`cause
`
`of action,
`
`104.
`
`If no injunction
`
`is issued,
`
`the Plaintiffs
`
`will
`
`suffer
`
`irreparable
`
`injury.
`
`l3
`
`13 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`105.
`
`The
`
`balance
`
`of
`
`the
`
`equities
`
`weighs
`
`in favor
`
`of
`
`the Plaintiffs.
`
`106.
`
`The
`
`Plaintiffs
`
`do not
`
`have
`
`an adequate
`
`remedy
`
`at
`
`law.
`
`WHEREFORE,
`
`the Plaintiffs
`
`demand
`
`judgment
`
`against
`
`the Defendants
`
`as follows:
`
`(i)
`
`(ii)
`
`(iii)
`
`(iv)
`
`(v)
`
`(vi)
`
`On the
`First
`that
`declaring:
`payment
`2020
`of
`the doctrine
`
`On the Second
`that
`declaring
`payment
`2020
`the doctrine
`of
`
`of Action
`Plaintiffs'
`
`Cause
`the
`to AC35
`of
`
`in the
`
`impossibility;
`
`Cause
`of Action
`Plaintiffs'
`the
`to AC35
`of
`frustrated
`
`in the
`
`purpose;
`
`against
`perfonnance,
`amount
`
`of
`
`AC35
`
`for
`Judgment
`a Declaratory
`the November
`15,
`i.e.. making
`$6.15
`million
`is excused
`because
`
`against
`
`performance,
`amount
`
`Judgment
`AC35
`for
`a Declaratory
`the November
`15,
`i.e.. making
`of $6.15
`because
`is excused
`million
`
`On the Third
`of Action
`Cause
`to be determined
`amount
`at
`THOUSAND
`DOLLARS
`
`trial,
`($500,000.00);
`
`against
`but
`
`AC35
`for
`in no event
`
`promissory
`less
`than
`
`in the
`estoppel
`HUNDRED
`
`FIVE
`
`On the Fourth
`faith
`and
`good
`than
`event
`less
`
`Cause
`fair
`FIVE
`
`of Action
`in the
`dealing
`HUNDRED
`
`breach
`for
`AC35
`against
`to be determined
`amount
`THOUSAND
`DOLLARS
`
`of
`
`the
`at
`
`covenant
`but
`
`trial,
`($500,000.00);
`
`of
`in no
`
`On the
`
`Fifth
`
`Cause
`
`restraining
`Settlement
`
`and
`enjoining
`Agreement
`
`a permanent
`against
`of Action
`for
`AC35
`injunction,
`of
`the default
`from enforcing
`provisions
`AC35
`the Purchase
`and
`and Sale Agreement;
`
`or
`
`the
`
`of Action
`all Causes
`on
`attorneys'
`incurred
`fees
`be just,
`as may
`
`relief
`
`interest
`in bringing
`and
`proper,
`
`and
`
`disbursements,
`costs,
`this
`action
`and
`such
`equitable.
`
`and
`other
`
`reasonable
`and
`further
`
`Dated:
`
`Carle
`Place,
`November
`
`New York
`10, 2020
`
`espectfu
`The Scher
`Atto
`
`ubmitted,
`v ·
`Firm,
`f
`ey
`
`r
`
`LLP
`the Plaint
`
`ffs
`
`Graf
`
`, Esq.
`One Old
`Road,
`Country
`New York
`Carle
`Place,
`Telephone:
`746-5040
`
`(516)
`
`385
`
`Suite
`1 1514
`
`14
`
`14 of 16
`
`

`

`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`RECEIVED NYSCEF: 11/10/2020
`
`INDEX
`
`NUMBER
`
`VERIFICATION
`
`OF NEW YORK
`
`COURT OF THE STATE
`SUPREME
`OF QUEENS
`COUNTY
`-----------------------··-------------------------------
`EROS MANAGEMENT
`AND REALTY,
`LLC,
`MANAGEMENT
`AND
`PIONEER
`REALTY,
`SHARMA,
`and JOHN
`LLC,
`
`X
`
`Plaintiffs,
`
`Defendant.
`-----X
`
`-against-
`
`AC35
`
`HOTEL
`
`PARTNERS
`
`LLC,
`
`----------------------------------------------
`
`ss.:
`
`) )
`
`)
`
`STATE
`
`OF NEW YORK
`
`COUNTY
`
`OF NASSAU
`
`JOHN SHARMA,
`
`being
`
`duly
`
`sworn,
`
`deposes
`
`and
`
`says:
`
`Deponent
`
`is one
`
`of
`
`the
`
`COMPLAINT
`
`and
`
`knows
`
`the
`
`contents
`
`Plaintiffs,
`
`thereof;
`
`dep0ñent
`
`has
`
`read
`
`the
`
`foregoing
`
`VERIFIED
`
`the
`
`same
`
`is true
`
`to deponent's
`
`own
`
`knowledge,
`
`except
`
`as to the matters
`
`therein
`
`alleged
`
`upon
`
`information
`
`and
`
`belief,
`
`and
`
`those
`
`matters
`
`deponent
`
`believes
`
`to be true.
`
`JT)HN
`
`SHARMA
`
`rn to before m this
`O ay of Novem
`r 2020
`
`Nota
`
`Notary
`
`AUSTIN GRAFF
`State Of New York
`Public,
`No. 02GRa067404
`Q ualified
`In Nassau
`County
`Commission
`10, 20-
`Expiret
`Decernber
`
`15 of 16
`
`

`

`2—050 ‘02": 38 "p NYSC 3F DOC. NO.
`FILED: QUEENS COUNTY CLERK 11/10/2020 02:38 PM
`2
`NYSCEF DOC. NO. 2
`
`INDEX NO. 721351/2020
`
`
` fiIV
`
`
`RECEIVED NYSCEF: 11/10/2020
`
`16 of 16
`16 of 16
`
`