TNT Petroleum, Inc. v. Sea Petroleum, Inc.

• Decision Date: 06 April 2010
• Citation: 72 A.D.3d 694,897 N.Y.S.2d 646
• Parties: In the Matter of TNT PETROLEUM, INC., petitioner-respondent, v. SEA PETROLEUM, INC., et al., respondents, Yahya Bayat, appellant.
• Court: New York Supreme Court — Appellate Division

897 N.Y.S.2d 646 72 A.D.3d 694 In the Matter of TNT PETROLEUM, INC., petitioner-respondent, v. SEA PETROLEUM, INC., et al., respondents, Yahya Bayat, appellant. Supreme Court, Appellate Division, Second Department, New York. April 6, 2010.

[72 A.D.3d 695, 897 N.Y.S.2d 647]

Contrary to the appellant's contention, it was proper for the petitioner to bring a summary proceeding pursuant to CPLR 5225(b), rather than a plenary action pursuant to article 10 of the Debtor and Creditor Law, to set aside allegedly fraudulent conveyances (see Matter of WBP Cent. Assoc., LLC v. DeCola, 50 A.D.3d 693, 694, 855 N.Y.S.2d 210; O'Brien-Kreitzberg & Assoc. v. K.P., Inc., 218 A.D.2d 519, 520, 630 N.Y.S.2d 76; Planned Consumer Mktg. v. Coats & Clark, 127 A.D.2d 355, 371-372, 513 N.Y.S.2d 417, affd71 N.Y.2d 442, 527 N.Y.S.2d 185, 522 N.E.2d 30; Gelbard v. Esses, 96 A.D.2d 573, 575, 465 N.Y.S.2d 264).

In a turnover proceeding pursuant to CPLR 5225(b), inter alia, to set aside allegedly fraudulent conveyances of assets, Yahya Bayat appeals from a judgment of the Supreme Court, Nassau County (Martin, J.), entered July 23, 2009, which, upon an order of the same court dated March 12, 2009, inter alia, granting the petition to set aside fraudulent conveyances of assets of Sea Petroleum, Inc., by Yahya Bayat to himself, to pierce the corporate veils of Sea Petroleum, Inc., and True Value Gas Corp., and to compel Yahya Bayat to satisfy a money judgment entered against Sea Petroleum, Inc., and True Value Gas Corp., is in favor of the petitioner and against him in the principal sum of $275,171.59.

ORDERED that the judgment is affirmed, with costs.

In a summary proceeding, a court is authorized to "make a summary determination upon the pleadings, papers and admissions to the extent that no triable issues of fact are raised" (CPLR 409[b]; see Matter of Bahar v. Schwartzreich, 204 A.D.2d 441, 443, 611 N.Y.S.2d 619; Matter of Big Z Car Wash Corp. v. Moon Ja Oh, 149 A.D.2d 418, 419, 539 N.Y.S.2d 507; Matter of Garofano v. State of New York, 122 A.D.2d 209, 210, 504 N.Y.S.2d 742). Here, the petitioner satisfied its prima facie burden and, in opposition, the appellant failed to raise a triable issue of fact ( see CPLR 5225[b]; Debtor and Creditor Law §§ 273, 275; Matter of Morris v. New York State Dept. of Taxation & Fin., 82 N.Y.2d 135, 141, 603 N.Y.S.2d 807, 623 N.E.2d 1157; John John, LLC v. Exit 63 Dev., LLC, 35 A.D.3d 540, 541, 826 N.Y.S.2d 657; 9 E. 38th St. Assoc. v. Feher Assoc., ...