Atalaya Asset Income Fund II LLP v. Ringel

JOEL M. COHEN, J.S.C.

Unpublished Opinion

MOTION DATE 12/17/2024

DECISION + ORDER ON MOTION

JOEL M. COHEN, J.S.C.

The following e-filed documents, listed by NYSCEF document number (Motion 020) 76, 78, 79, 82, 83, 84, 85, 86, 87, 88, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 542, 543, 544, 545, 546, 547, 548, 549, 550, 551, 552, 553, 554, 555, 556, 557, 558, 559, 560, 561, 562, 563, 564, 565, 571, 573, 574, 578 were read on this motion to SUBSTITUTE PARTY, TRANSFER RECEIVER, AWARD FEES

JDWC Fund IV, LLC ("JDWC"), an assignee of Plaintiff Atalaya Asset Income Fund II, LLP ("Atalaya"), moves for an order substituting JDWC Fund for Atalaya in this action, transferring the appointment of Atalaya as Receiver to JDWC, and awarding fees and costs incurred by Atalaya. The motion is unopposed. For the reasons discussed below, the motion is granted.

Atalaya has assigned to JDWC its interest in the judgment this Court previously entered in favor of Atalaya (NYSCEF 32, 558), as well as its interest in the guaranty upon which the judgment was based (NYSCEF 559). Accordingly, JDWC's motion to be substituted for Atalaya is granted. For the same reasons, JDWC's motion to transfer the appointment of Atalaya as Receiver (NYSCEF 511) is also granted.

The guaranty provides that "[i]n the event that Guarantor should breach or fail to timely perform any provisions of this Guaranty, Guarantor shall, immediately upon demand by Lender, pay Lender all costs and expenses (including court costs and reasonable attorneys' fees) incurred by Lender in the enforcement hereof or the preservation of Lender's rights hereunder" (NYSCEF 14 [Guaranty] § 1.8). "The determination of what constitutes a reasonable attorney's fee is a matter within the sound discretion of the Supreme Court" (Lancer Indent. Co. v JKH Realty Group, LLC, 127 A.D.3d 1035, 1035-36 [2d Dept 2015]). "The attorney bears the burden of establishing the reasonable value of the services rendered, based upon a showing of the hours reasonably expended and the prevailing hourly rate for similar legal work in the community" (id. at 1036). Appropriate factors include "the time and labor required, the difficulty of the issues involved, and the skill and effectiveness of counsel" (JK Two LLC v Garber, 171 A.D.3d 496, 496 [1st Dept 2019], citing In re Estate of Freeman, 34 N.Y.2d 1, 9 [1974]). When reviewing the overall reasonableness of a fee application, the "court is not required to set forth item-by item findings concerning what may be countless objections to individual billing items[.]" (Reveyoso v Town Sports Int'l. LLC, 2018 NY Slip Op 32939[U], *7 [Sup Ct, NY County 2018] [internal citations and quotations omitted]).

JDWC submits a bill of costs in the amount of $426,184.40, representing more than 1, 200 hours spent litigating seven motions, appearing in at least six legal proceedings in New Jersey and multiple U.S. Bankruptcy Courts, and performing other tasks in furtherance of collecting the amount owed and carrying out responsibilities related to the receivership (NYSCEF 564 [Bill of Costs]; NYSCEF 563 [Attorney Invoices]). The bill of costs also reflects that the sum sought was discounted from the amount billed by approximately 40% (NYSCEF 564). In light of the substantial amount of time reasonably spent pursuing satisfaction of the judgment across multiple forums, and upon review of the contemporaneous invoices submitted (NYSCEF 563), the Court concludes that the fee award sought is reasonable.

JDWC also seeks attorneys' fees and costs in the amount of $12,326.49 pursuant to this Court's prior decision awarding fees incurred in connection with Atalaya's motion to compel (Mot. Seq. 2) (NYSCEF 76). Having reviewed Plaintiffs bill of costs for that motion and supporting documentation (NYSCEF 82-87), the Court concludes that an additional award of attorneys' fees and costs in the amount of $12,326.49 is reasonable.

Accordingly, it is ORDERED that Motion Sequence 20 is GRANTED; it is further

ORDERED that JDWC Fund IV, LLC shall be substituted into the caption in the place and stead of the captioned plaintiff, and JDWC Fund IV, LLC shall serve a copy of this order on the Clerk of the Court, and that the Clerk of the Court shall amend the docket and electronic docket of the Court accordingly; it is further

ORDERED that JDWC Fund IV, LLC shall be substituted for Atalaya Asset Income Fund II, LLP as the Receiver appointed pursuant to this Court's decision and order filed as NYSCEF Document Number 511; it is further

ORDERED that Defendants Benjamin Ringel, Yael Ringel, and BCR Realty Investments II, LLC, jointly and severally, shall reimburse Plaintiff for attorneys' fees and costs in the amount of $438,510.89; it is further

ORDERED that payment of these costs shall be delivered to counsel for Plaintiff and written proof of such payment shall be provided to the Clerk of Part 3 within 30 days after service of a copy of this order with notice of entry; and it is further

ORDERED that proof of payment shall be provided to the Clerk of the Part and such service upon the Clerk of the Court shall be made in accordance with the procedures set forth in the Protocol on Courthouse and County Clerk Procedures for Electronically Filed Cases (accessible at the "E-Filing" page on the court's website).

This constitutes the decision and order of the Court.