HOF I Grantor Trust 5 v YLW Squared Inc. 2025 NY Slip Op 30681(U) February 26, 2025 Supreme Court, Kings County Docket Number: Index No. 531361/22 Judge: Lawrence Knipel is a mess. A foreclosure granted on default, late and multiple motions to vacate, a novel and intentional attempt to get around word limits in motions and a host of fraud claims all end in a motion denying the owners any relief.

“Upon the foregoing papers in this action to foreclose a commercial mortgage encumbering the property at 53 Madison Street in Brooklyn (Property). non-party Leon Watson (Watson), a self-represented litigant and a 50% shareholder in the corporate borrower defendant. YLW Squared Inc. (YL W Squared or Defendant Borrower), moves (in motion sequence [mot. seq.] four), by order to show cause (OSC), for an order: (1 )staying the foreclosure auction of the Property that was scheduled on June 13, 2024; 1 (2) vacating the February 29, 2024 judgment of foreclosure and sale,2 pursuant to CPLR 317, 5015 (a) (1), 5015 (a) (4), 1001 and in the substantial interest of justice; (3) vacating the June 6. 2023 order of reference. pursuant to CPLR 317, 5015 (a) (1). 5015 (a) (4). 1001 and in the substantial interest of justice; ( 4) dismissing this action for lack of personal jurisdiction, pursuant to CPLR 3211 (a) (8); and (5) awarding defendants actual, compensatory, punitive, statutory and treble damages (NYSCEF Doc No. 81 ). Defendant and guarantor of the mortgage. Yvonne Williams (Defendant Guarantor or Williams), a self-represented litigant, moves (in mot. seq. five), by OSC, for the identical relief that Watson seeks (NYSCEF Doc No. 82). Watson also moves (in mot. seq. seven) for an order: (1) granting him leave to intervene in this action: (2) vacating any default judgment entered against Defendant Borrower YL W Squared; and (3) dismissing the complaint as against YL W Squared (NYSCEF Doc No. 159). YL W Squared moves (in mot. seq. eight) for an order. pursuant to CPLR 5015 vacating any and all default judgments entered against it and Yvonne Williams and dismissing the complaint (NYSCEF Doc No. 247). Defendant YL W Squared also redundantly moves (in mot. seq. nine) for an order:

“dismissing the complaint, vacating all orders issued in this matter, for an order pursuant to CPLR § 5015 vacating any and all default judgments entered against (it] and Yvonne Williams. Dismissing the Summons and Complaint on the grounds that the pleadings were improperly served and verified by an attorney, and/or based on procedural and substantive deficiencies, including lack of standing, fraud, improper service, and lack of jurisdiction” (NYSCEF Doc No. 267).

After YL W Squared was “denied permission to submit an oversized brief . . ., ” defense counsel claims that she ·’was forced to proceed , with multiple motions so that the Court would be presented with the facts … ” (NYSCEF Doc No. 331 at, 3). YLW Squared moves in three separate motions (mot. seq. l 0, 11 and 12) for the identical relief previously sought in motion sequences eight and nine…”

“Plaintiff and its counsel at Deutsch & Schneider LLP cross-move (in mot. seq. 16) for an order: ( 1) awarding treble damages incurred by Plaintiff and its counsel as against defense counsel Theresa Gedeon for her violation of Judiciary Law§ 487: (2) awarding Plaintiff reasonable attorneys’ fees, pursuant to Part 130, incurred in responding to 11 frivolous post-judgment motions filed by YI ,W Squared, Williams and Watson.”

“Defense counsel further argues that Williams’ signature was forged on the promissory note (NYSCEF Doc No. 248 at~ 15 ). Williams, however, inconsistently admits (in an affidavit submitted in support of mot. seq. five) that she and Watson, as shareholders of YL W Squared, hired a loan consultant and ‘·secured financing for the purchase of 53 Madison Street through Insula … ” (NYSCEF Doc No. 86 at ~,,r 15-17). Defense counsel’s assertion that the loan documents were forged is unavailing since Williams admits that she and Watson knowingly obtained financing for YLW Squared’s purchase of the Property. The claim of forgery for the first time at this late juncture is indeed suspect. especially since Williams and YL W Squared do not deny that Williams made interest payments on the loan. In conclusion. neither YL W Squared and its counsel. nor Williams, provided any valid legal or factual ground to vacate their appearance defaults, the order of reference or the judgment of foreclosure and sale. Consequently, the motions to vacate and dismiss filed by Williams and YL W Squared in mot. seq. five and eight are denied, and the redundant and duplicative motions seeking the identical relief (mot. seq. nine, 10, 11 and 12) are denied as moot.”

“While YL W Squared and its counsel admittedly filed duplicitous motions for the same relief in an effort to circumvent this court’s denial of its request to submit oversized moving papers, the court, in its discretion, denies Plaintiffs cross-motion for the imposition of Part 130 sanctions. Defense counsel is admonished, however, that sanctions may be imposed ifYL W Squared continues with vexatious litigation and repetitive motions seeking the same relief to further delay the final stage of these proceedings. This court has reviewed the voluminous papers submitted by the parties and the redundant arguments that were previously raised, considered and rejected by this court. The court has also considered the merits of the remaining motions filed by the parties, including what appears to be a motion for a protective order.for defense counsel based on an unrelated prior action involving her former employer, a motion to disqualify Plaintiffs counsel and for the imposition of Part 130 sanctions against Plaintiffs counsel. The forgoing motions are each denied, as they have no merit and seem to have been filed in an obvious attempt to delay a foreclosure sale of the Property.”