Court Grants Motion For Summary Judgment In Lieu of Complaint

On September 6, 2024, Justice Melissa A. Crane granted, in part, plaintiff’s motion for summary judgment in lieu of complaint. In Oxford Finance LLC v. Nesian Jean Makesh, Index No. 651051/2024, plaintiff sought judgment against defendants under a Limited Payment Guaranty and Surety Agreement. The Court explained:

Plaintiff has established prima facie entitlement to summary judgment in lieu of complaint. Here, the Guaranty is an instrument for the repayment of money only and thus qualifies for CPLR 3213 relief. Plaintiff submits the Loan Agreement, the Guaranty, and the affidavit of Patrick Mc Lenahan, the Executive Director of Oxford Finance LLC (Doc 3 [Affidavit or Affirmation in Support of Motion]). McLenahan sets forth the basis for those amounts owed and defendants nonpayment (id. at ¶ 13-15).

Plaintiff is entitled to recover the liability limit under the Guaranty. Plaintiff's evidence demonstrates that the defendants agreed to responsible for the loan debt (up to $5 million plus enforcement costs), that the borrowers defaulted on the loan and never repaid the amounts owed, and that defendants did not pay the outstanding sums. However, Plaintiff has not established that it is entitled to enforcement costs because it has not submitted proof of any costs or fees it has incurred. Accordingly, the motion is denied with respect to enforcement costs.

The attorneys at Schlam Stone & Dolan frequently litigate motions for summary judgment in lieu of complaint. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such motions.