G.F.A. Advanced Sys., Ltd. v. Local Ocean LLC

• Decision Date: 08 March 2016
• Citation: 137 A.D.3d 479,26 N.Y.S.3d 285
• Parties: G.F.A. ADVANCED SYSTEMS, LTD., et al., Plaintiffs–Respondents, v. LOCAL OCEAN LLC, et al., Defendants, Sanit LLC, Defendant–Appellant.
• Court: New York Supreme Court — Appellate Division

137 A.D.3d 479

26 N.Y.S.3d 285

G.F.A. ADVANCED SYSTEMS, LTD., et al., Plaintiffs–Respondents,

v. LOCAL OCEAN LLC, et al., Defendants,Sanit LLC, Defendant–Appellant.

Supreme Court, Appellate Division, First Department, New York.

March 8, 2016.

Cox Padmore Skolnik & Shakarchy LLP, New York (Steven D. Skolnik of counsel), for appellant.

Feldman Law Offices, PLLC, New York (Stephanie R. Feldman of counsel), for respondents.

TOM, J.P., ANDRIAS, MOSKOWITZ, RICHTER, JJ.

Order, Supreme Court, New York County (Eileen A. Rakower, J.), entered April 7, 2014, which, to the extent appealed from as limited by the briefs, denied Sanit LLC's motion to vacate a judgment entered against it, unanimously modified, on the law and the facts and in the interest of justice, to grant so much of the motion as sought to preclude enforcement against the " Sanit LLC" operating under tax identification number xx-xxx1024, and otherwise affirmed, without costs.

"Both the trial court and this court have inherent power, as well as statutory power under CPLR 5015, to set aside a judgment on appropriate grounds" ( McMahon v. City of New York, 105 A.D.2d 101, 104, 483 N.Y.S.2d 228 [1st Dept.1984] ). This unusual case, involving two commercial enterprises, with no business connection to each other, that conducted their operations using the same New York State limited liability company under different tax identification numbers, warrants the exercise of this Court's inherent power in the furtherance of justice to preclude the enforcement of the judgment against the Sanit, LLC operating under tax identification number xx-xxx1024.

On June 28, 2013, Supreme Court entered an order domesticating a $4 million Israeli judgment against defendants that was obtained in 2012 in connection with a failed fish farming venture in New York. One of the defendants, Sanit LLC, is associated with defendant Efraim Bason a/k/a Basson, who in his capacity as a member of Sanit LLC consented to both the Israeli judgment and its domestication.

Bason operated Sanit, LLC under tax identification number xx-xxx2986. After plaintiffs commenced proceedings to enforce the domesticated judgment, it came to light that Gili and Benjamin Haberberg and other entities also conducted business as Sanit LLC, under tax identification number xx-xxx1024 (Sanit 1024).

Sanit 1024, which was not involved with the fish farming venture, the related judgment, or any of the other parties to this action, established its entitlement to the limited relief indicated above, pursuant to CPLR 5015(a)(2). Sanit 1024 was not aware of the Israeli judgment or its domestication in New York until the judgment creditor attempted to execute on its assets. This qualifies as newly discovered evidence that, if known at the time of the domestication of the judgment, would...