Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Simon v. Capital Merch. Servs. LLC

Judgment Debtor, Receiver Did Not Suffer Damages From Use of Seized Funds to Satisfy Debt

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OPINION AND ORDER   In February 2018, Defendant Capital Merchant Services, LLC (“Defendant” or “CMS”) obtained a judgment against FutureNet Group, Inc. (“FutureNet”) in New York State Supreme Court. CMS sought to collect on that judgment by obtaining funds that FutureNet had in its bank account with Comerica Bank. To that end, CMS caused the sheriff of Rockland County to levy on FutureNet’s Comerica bank account. Ultimately, Comerica withdrew funds that FutureNet had deposited in a Comerica bank account in Michigan, and delivered them to the sheriff, who then remitted them to CMS. Plaintiff Basil Simon (“Plaintiff” or the “Receiver”), in his capacity as receiver for FutureNet, now seeks to recover the funds CMS obtained from FutureNet’s Comerica bank account. The Receiver argues that the restraining notice, execution, and levy served on Comerica were void ab initio and brings three claims against CMS: (i) wrongful restraint and execution; (ii) conversion; and (iii) trespass to chattel. CMS responds by moving to dismiss the Amended Complaint. For the reasons detailed below, CMS’s motion is granted. BACKGROUND1 A. Factual Background In December 2017, FutureNet, a Michigan-based company, entered into an agreement with CMS, whereby CMS advanced FutureNet $550,000 in exchange for the purchase of $780,450 in future receivables to be repaid in 18 weeks through fixed daily payments. (Am. Compl.

2, 8). In February 2018, FutureNet failed to make its required daily payments to CMS. (Id. at 9). CMS declared FutureNet to be in default, and obtained a judgment (the “Judgment”) against FutureNet in the amount of $777,957.39 in an action entitled Capital Merchant Services LLC v. FutureNet Group, Inc., Index No. EF001637-2018, in the Supreme Court of the State of New York, County of Orange. (Id. at 10). FutureNet maintained one or more bank accounts with Comerica Bank, specifically, at a Comerica branch located in Redford, Michigan. (Am. Compl. 15). Comerica is based in Texas, and does not maintain any bank branches in New York. (Id. at

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
New York Legal Awards 2024
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
Pennsylvania Legal Awards 2024
May 15, 2024
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania and Delaware.


Learn More
Consulting Leaders in Technology 2024
May 16, 2024
Dallas, TX

Consulting Magazine recognizes leaders in technology across three categories Leadership, Client Service and Innovation.


Learn More
Go to Events Go to Webcasts
Attorney

Truly exceptional Bergen County New Jersey Law Firm is growing and seeks strong plaintiff's personal injury Attorney with 5-7 years plaintif...


Apply Now ›
ASSOCIATE: Commercial Litigation

Epstein Becker & Green is seeking an associate to joins its Commercial Litigation practice in our Columbus or Cincinnati offices. Ca...


Apply Now ›
Business Attorney with 5+ years experience -- Florida

Job Opportunity: Location: Prestigious Florida Law Firm seeks to hire a Business attorney with at least 5 years of experience for their Ft. ...


Apply Now ›
Go to Lawjobs
Clifford Law Offices, PC
04/29/2024
The National Law Journal

Professional Announcement


View Announcement ›
MELICK & PORTER, LLP
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
Apruzzese, McDermott, Mastro & Murphy, P.C.
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
Go to Professional Announcements