-
SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW
YORK------------------------------------------------------------------------)(HANOVERHOLDINGS
I, LLC, Index No.
Date purchased:Plaintiff,
- against-SUMMONS
YIPPY, INC., MAHOMA INVESTING LTD.,and RICHARD GRANVILLE,
Plaintiff designatesNew York Countyas the place for trial
Defendants. Basis for Venue:Choice of venue terms
incontracts
------------------------------------------------------------------------)(TO
THE ABOVENAMED DEFENDANTS:
YOU ARE HEREBY SUMMONED to answer the complaint in this action
and to serve
a copy of your answer, or, if the complaint is not served with
this Summons, to serve a notice of
appearance, on the undersigned attorneys for Plaintiff within 20
days after the service of this
summons, exclusive of the day of service (or within 30 days
after the service is complete if this
summons is not personally delivered to you within the State of
New York); and in case of your
failure to appear or answer, judgment will be taken against you
by default for the relief
demanded in the complaint.
Dated: New York, New YorkJuly 30,2014
::CHENZIA~CE LLP
Daniel Scott Furst, Esq.61 Broadway, 32ndFloorNew York, New York
10006(212) 930-9700
Attorneys for Plaintiff Hanover Holdings L LLC
FILED: NEW YORK COUNTY CLERK 07/31/2014 04:40 PM INDEX NO.
652363/2014NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/31/2014
-
SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW
YORK------------------------------------------------------------------------xHANOVERHOLDINGS
I, LLC, Index No.
Plaintiff, Date Purchased:
- against- VERIFIED COMPLAINT
YIPPY, INC., MAHOMA INVESTING LTD.,and RICHARD GRANVILLE,
Defendants.------------------------------------------------------------------------x
Plaintiff Hanover Holdings I, LLC ("Plaintiff'), by and through
their counsel, Sichenzia
Ross Friedman Ference LLP, alleges for its Complaint against
Defendants Yippy, Inc.
("Yippy"), Mahoma Investing Ltd. ("Mahoma") and Richard
Granville ("Granville"),
(collectively, the "Defendants"), as follows:
SUMMARY OF THE ACTION
1. This is a breach of contract action seeking to recover
damages caused by Yippy's
failure to repay Plaintiff approximately $648,319.24 pursuant to
three (3) promissory notes, other
defendants' breaches of various pledge, security and guaranty
agreements related to these
promissory notes and to foreclose on collateral pledged by other
defendants to secure Yippy's
obligations to Plaintiff under these promissory notes.
PARTIES
2. Plaintiff Hanover is, and at all times relevant herein was, a
New York Limited
Liability Company, with its current principal place of business
located at 5 Hanover Square, New
York, New York 10004.
-
3. On information and belief, Defendant Yippy is, and at all
times relevant herein
was, a Nevada corporation with its principal place of business
located at 17595 S. Tamiami Trail,
Suite 270, Fort Myers, Florida 33908.
4. On information and belief, Defendant Mahoma Investing Ltd.,
is, and at all times
relevant herein was, a corporation organized and existing under
the laws of Belize. Mahoma is a
private investment company that engages in a variety of
investment and trading strategies for the
benefit of its investors, a shareholder of Yippy and a recipient
of certain benefits under the
promissory notes with a principal place of business located at 5
Whaleneck Drive, Merrick, New
York, 11566.
5. On information and belief, Defendant Granville is, and at all
times relevant herein
was, an individual residing at 6076 Dogleg Drive, Naples,
Florida 34113 and is the Chief
Executive Officer, Chairman ofthe Board of Directors of Yippy
and a recipient of certain
benefits under the promissory notes.
JURISDICTION AND VENUE
6. Jurisdiction and venue is proper based upon the operative
transactional
documents, including a Consolidating Original Issue Discount
Secured Convertible Promissory
note, dated June 12,2012 (the "June 2012 Note"), and an Original
Consolidated Discount
Secured Convertible Promissory Note, dated September 26,2012
(the "September 2012 Note"),
which promissory notes each provide, in pertinent part, that
the:
New York State Supreme Court located in the County of NewYork,
State of New York shall have exclusive jurisdiction inconnection
with any dispute concerning or arising out of this Noteor otherwise
relating to the parties relationship.
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7. Jurisdiction and venue are also proper in the County of New
York, New York,
because it is the county which all or a substantial part of the
acts or omissions giving rise to
Plaintiff s causes of action occurred, Plaintiff s principal
place of business is located in New
York, New York, and all of the Defendants, by their acts and
omissions, caused injury to
Plaintiff in New York, New York as described herein.
FACTS RELEVANT TO ALL CLAIMS
Plaintiff Loans $615,000.00To Yippy Pursuant To The Notes
8. Between June 13,2012 and November 12,2012, Plaintiff loaned
and/or extended
the loans to Yippy the total sum of$615,000.00 pursuant to the
terms of the three promissory
notes: the June 2012 Note, the September 2012 Note and a
Convertible Promissory Note, dated
November 12,2012 (the "November 2012 Note").
9. Pursuant to the June 2012 Note, and at the request of Yippy,
Plaintiff agreed to
"roll-over" and consolidate certain prior loans totaling
$475,000.00 for which a new note in
principal amount of $475,000.00 was issued and payable, in full,
by June 11,2013.
10. Pursuant to the terms of the June 2012 Note, Yippy also
agreed, inter alia, to pay
Plaintiff the sum of 125% times the sum of the unpaid face
amount of the June 2012 Note
($475,000.00) in the event that Yippy did not make full payment
within 5 days of an "Event of
Default," which was defined as any default in the payment of
principal, interest and any other
charges in respect of the June 2012 Note.
11. Pursuant to the September 2012 Note, Plaintiff loaned
$49,500.00 to Yippy in
exchange for a promissory note obligating Yippy to pay Plaintiff
the principal sum of $55,000.00
together with contractual interest at 15%until the promissory
note's maturity on December 26,
2012.
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12. Pursuant to the November 2012 Note, Plaintiff loaned
$75,000.00 to Yippy in
exchange for a promissory note obligating Yippy to pay Plaintiff
the principal sum of $85,000.00
together with contractual interest at 18% until the promissory
note's maturity on June 12,2013.
13. Plaintiff fulfilled all of its obligations under the June
2012 Note, the September
2012 Note and the November 2012 Note.
The Guaranties
14. On or about June 12,2012, as an inducement for Plaintiff to
enter into the June
2012Note, Granville executed a personal guaranty in Plaintiffs
favor (the "Granville
Guaranty").
15. In Paragraph 1of the Granville Guaranty, Granville agreed,
in pertinent part, to:
unconditionally and irrevocably, guarantees to [Plaintiff],
itssuccessors, endorsees, transferees or assigns, the due and
punctualpayment in full of all obligations of [Yippy] under the
Notes andany other additional obligation of [Yippy] to [Plaintiff]
now orhereafter incurred by [Yippy] to [Plaintiff], regardless of
anydefense or set-off counterclaim with [Yippy] or any other
personmay have or assert, and regardless of whether or not
[Plaintiff] oranyone on behalf of the [Plaintiff] shall have
instituted any suit,action or proceeding or exhausted its remedies
or taken any stepsto enforce any rights against [Yippy] or any
other person to compelany such performance or observance or to
collect all or part of anysuch amount, either pursuant to the
provisions of the Notes or atlaw or in equity, and regardless of
any other condition orcontingency. The obligations and liabilities
of [Yippy] under theNotes are collectively referred to as the
"Obligations."
16. Paragraph 2 of the Granville Guaranty confirms as
follows:
This Guaranty is irrevocable, continuing, indivisible
andunconditional and shall remain in full force and effect until
suchtime as either (i) all amounts due to [Plaintiff] pursuant to
theNotes are paid in full, or (ii) the Notes are deemed to be paid
in fullas a result of [Plaintiff] exercising other security
instrumentssecuring [Yippy's] obligations pursuant to the
Notes.
17. Paragraph 4 of the Granville Guaranty provides that:
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----------------------------- - --------------------------
All remedies of [Plaintiff] by reason of or under this Guaranty
areseparate and cumulative remedies, and it is agreed that no one
ofsuch remedies shall be deemed in exclusion of any other
remediesavailable to [Plaintiff].
18. On or about June 12,2012, as an inducement for Plaintiff to
enter into the June
2012 Note, Mahoma also executed a limited recourse guaranty in
Plaintiffs favor (the "Mahoma
Guaranty").'
19. Under Paragraph 1 of the Mahoma Guaranty, Mahoma
"unconditionally and
irrevocably guarantees to [Plaintiff] and it successors,
transferees and assigns, the prompt
payment and performance by [Yippy] when due (whether at the
stated maturity, by acceleration
or otherwise) of its payment obligations pursuant to the Notes
and any other additional obligation
of [Yippy] to [Plaintiff] now or hereafter incurred by [Yippy]
to [Plaintiff].
The Pledge And Security Agreement And The Security Agreement
20. In consideration of and as a further inducement for
Plaintiff to enter into the June
12,2012 Note, Mahoma executed a Pledge and Security Agreement,
dated June 12,2012 (the
"Pledge and Security Agreement") in Plaintiffs favor whereby
Mahoma agreed to secure
Yippy's obligations to Plaintiff under the June 2012 Note.
21. Specifically, under the Pledge and Security Agreement,
Mahoma agreed to re-
affirm certain prior pledges as well as affirmatively assign and
grant to Plaintiffs a security
interest and lien in certain collateral, which includes shares
in Yippy's common stock ... to
secure all ofYippy's obligations to Plaintiff under the June
2012 Note.
22. Under the Pledge and Security Agreement, Mahoma pledged all
of the collateral
as defined therein.
1 The Granville Guaranty and the Mahoma Guaranty are
collectively referred to herein as the"Guaranties."
-5 -
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23. Paragraph 4 of the Pledge and Security Agreement further
provided that it
"secures the payment and performance by [Yippy] of all of its
obligations to [Plaintiff] pursuant
to the Notes and any other additional obligation of [Yippy] to
[Plaintiff] now or hereafter
incurred by [Yippy] to [Plaintiff]."
24. Similarly, the June 2012 Note likewise provided that, in the
event of nonpayment,
which was a defined "Event of Default," Plaintiff had the right,
inter alia, to take possession of
the collateral, as defined in the Pledge and Security Agreement,
and to assign, sell, lease or
otherwise dispose of and deliver all or any part of the
collateral.
25. As an additional inducement for Plaintiff to enter into the
June 2012 Note, Yippy
also executed a Security Agreement, dated June 12,2012 (the
"Security Agreement"), granting
Plaintiff a first priority security interest in certain
collateral, which was defined as "all tangible
and intangible assets of [Yippy] of whatever kind and nature ...
in each case whether now owned
or hereafter acquired and wherever located, and all proceeds
thereof, together with all additional,
accessions, proceeds, products, replacements and renewals
thereof."
26. Section 5 provides that:
This Security Agreement secures the payments and performance
ofall obligations to [Plaintiff] under the Notes and the
TransactionDocuments and other additional obligations of [Yippy]
to[Plaintiff], whether now existing or hereafter arising and
whetherfor principal, interest, costs, fees or otherwise
(collectively the"Obligations").
27. Furthermore, the Security Agreement provides that "[a]ll
rights of [Plaintiff] and
the security interests granted to [Plaintiff] hereunder shall be
absolute and unconditional. ... "
Yippy's Breach Of The June 2012 Note
28. Yippy failed to repay all amounts due and owing under the
June 2012 Note by
June 11, 2013 as required.
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-----------------------_._-----------------_ ..._------- - --
-----
29. On the June 2012 Note, Yippy currently owes Plaintiff
$424,522, inclusive of
interest and penalties.
30. On October 28,2013, Plaintiff provided Yippy with written
notice of the Event of
Default on the June 2012 Note.
31. Yippy's Event of Default triggered the June 2012 Note's
default penalty equal to
the sum of 125%times the sum of the unpaid face amount of the
June 2012 Note.
32. Accordingly, Yippy owes a default penalty payment to
Plaintiff in the amount of
$118,750, together with statutory default interest that
continues to accrue at the rate of9% per
annum.
Yippy's Breach Of The September 2012 Note
33. Yippy failed to repay all amounts due and owing under the
September 2012 Note
by December 26,2012 as required. The nonpayment was a defined
"Event of Default."
34. On the September 2012 Note, Yippy currently owes
Plaintiff$90,111.48,
inclusive of contractual interest at the rate of 15%per annum
and penalties.
35. On October 28,2013, Plaintiff provided Yippy with written
notice of the Event of
Default on the September 2012 Note.
36. Yippy's Event of Default triggered the September 2012 Note's
default penalty
equal to the sum of 125% times the sum of the unpaid face amount
of the September 2012 Note.
37. Accordingly, Yippy owes a default penalty payment to
Plaintiff in the amount of
$15,812.50, together with statutory default interest that
continues to accrue at the rate of9% per
annum.
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- -------
Yippy's Breach Of The November 2012 Note
38. Yippy failed to repay all amounts due and owing under the
November 2012 Note
by June 12,2013 as required. The nonpayment was a defined "Event
of Default."
39. On the November 2012 Note, Yippy currently owes Plaintiff
$133,683.75,
inclusive of contractual interest at the rate of 18%per annum
and penalties.
40. On October 28,2013, Plaintiff provided Yippy with written
notice of the Event of
Default on the November 2012 Note.
41. Yippy's Event of Default triggered the November 2012 Note's
default penalty
equal to the sum of 125% times the sum of the unpaid face amount
of the November 2012 Note.
42. Accordingly, Yippy owes a default penalty payment to
Plaintiff in the amount of
$25,075, together with statutory default interest that continues
to accrue at the rate of9% per
annum.
Mahoma's And Granville's Breach Of The Guaranties
43. Plaintiff satisfied all of its obligations to Yippy under
each of the June 2012 Note,
the September 2012 Note and the November 2012 Note.
44. Yippy failed to repay all amounts due and owing under the
June 2012 Note, the
September 2012 Note and the November 2012 Note when due by June
11,2013, December 26,
2012 and June 12,2013, respectively.
45. Under the Guaranties, Mahoma and Granville each agreed to
satisfy all of
Yippy's obligations due and owing to Plaintiff at the time of
entering into the June 2012 Note
and thereafter at the time of entering into the September 2012
Note and the November 2012
Note.
- 8 -
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46. Mahoma and Granville have each breached the Guaranties by
failing to satisfy
Yippy's obligations due and owing to Plaintiff.
47. Plaintiff has been damaged, and continues to suffer damages,
resulting from
Mahoma and Granville's respective breaches of the
Guaranties.
Mahoma's And Yippy's Breaches Of The Pledgeand Security
Agreement and Security Agreement
48. Under the Pledge and Security Agreement, Mahoma secured
Yippy's obligations
to Plaintiff under the June 2012 Note by re-affirming prior
pledges shares ofYippy common
stock and affirmatively pledging certain other shares of Yippy
common stock as collateral.
49. Yippy's failure to repay Plaintiff under the June 2012 Note
was an "Event of
Default" under the Pledge and Security Agreement, which adopted
the "Event of Default"
definition contained in the June 2012 Note.
50. Despite Yippy's breach of its obligation to repay the June
2012 Note in full,
Mahoma has failed, inter alia, to turn over the collateral to
Plaintiff in order to secure and satisfy
Yippy's outstanding obligations.
51. Accordingly, under the Pledge and Security Agreement,
Plaintiff is entitled to
foreclose on the collateral, sell it, and apply the sales
proceeds towards the outstanding
obligations due and owing from Yippy under the June 2012
Note.
52. Similarly, under the Security Agreement, Yippy secured its
obligations to Plaintiff
under the June 2012 Note by providing first priority security
interests in certain collateral to
Plaintiff.
53. Yippy's failure to repay Plaintiff under the June 2012 Note
was an "Event of
Default" under the Security Agreement, which also adopted the
"Event of Default" definition
contained in the June 2012 Note.
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---------------------
54. Despite Yippy's breach of its obligation to repay the June
2012 Note in full,
Yippy has failed, inter alia, to tum over the collateral to
Plaintiff in order to secure and satisfy
Yippy's outstanding obligations despite due demand by
Plaintiff.
55. Accordingly, under the Security Agreement, Plaintiff is
entitled to foreclose on
the collateral, sell it, and apply the sale proceeds towards the
outstanding obligations due and
owing from Yippy under the June 2012 Note.
AS AND FOR A FIRST CAUSE OF ACTIONBreach of Contract - The June
2012 Note
(As Against Yippy. Inc.)
56. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
57. Plaintiff has satisfied all of its obligations under the
June 2012 Note.
58. Yippy has breached the June 2012 Note by failing to repay
Plaintiff the June 2012
Note's outstanding balance of principal, default penalty and
statutory default interest at the rate
of 9% per annum.
59. Accordingly, Plaintiff has been damaged, and continues to
suffer damages, as a
result ofYippy's breach of the June 2012 Note in the amount of
$424,522.
AS AND FOR A SECOND CAUSE OF ACTIONBreach of Contract - The
September 2012 Note
(As Against Yippy. Inc.)
60. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
61. Plaintiff has satisfied all of its obligations under the
September 2012 Note.
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62. Yippy has breached the September 2012 Note by failing to
repay Plaintiff the
September 2012 Note's outstanding balance of principal,
contractual interest at the rate of 15%
per annum, default penalty and statutory default interest at the
rate of 9% per annum.
63. Accordingly, Plaintiff has been damaged, and continues to
suffer damages, as a
result ofYippy's breach of the September 2012 Note in the amount
of$90,111.48.
AS AND FOR A THIRD CAUSE OF ACTIONBreach of Contract - The
November 2012 Note
(As Against Yin nY, Inc.)
64. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
65. Plaintiff has satisfied all of its obligations under the
November 2012 Note.
66. Yippy has breached the November 2012 Note by failing to
repay Plaintiff the
November 2012 Note's outstanding balance of principal,
contractual interest at the rate of 18%
per annum, default penalty and statutory default interest at the
rate of 9% per annum.
67. Accordingly, Plaintiff has been damaged, and continues to
suffer damages, as a
result ofYippy's breach of the November 2012 Note in the amount
of$133,683.75.
AS AND FOR A FOURTH CAUSE OF ACTIONBreach of Contract - The
Mahoma Guaranty
(As Against Mahoma)
68. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
69. Mahoma has breached, and continues to breach, the Mahoma
Guaranty by failing
to satisfy Yippy's outstanding obligations due and owing to
Plaintiff under the June 2012 Note,
and, pursuant to Paragraph 1 (a) of the Mahoma Guaranty, under
the September 2012 Note and
November 2012 Note.
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70. Accordingly, Mahoma is liable to Plaintiff for the
obligations on the June 2012
Note, September 2012 Note and November 2012 Note in the amount
of $648,317.23.
AS AND FOR A FIFTH CAUSE OF ACTIONBreach of Contract - The
Granville Guaranty
(As Against Granville)
71. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
72. Granville has breached, and continues to breach, the
Granville Guaranty by
failing to satisfy Yippy's outstanding obligations due and owing
to Plaintiff under the June 2012
Note and, pursuant to Paragraph 1 of the Granville Guaranty,
under the September 2012 Note
and November 2012 Note.
73. Accordingly, Granville is liable to Plaintiff for the
obligations on the June 2012
Note, September 2012 Note and November 2012 Note in the amount
of $648,317.23.
AS AND FOR A SIXTH CAUSE OF ACTIONEquitable Relief - The Pledge
and Security Agreement
(As Against Mahoma)
74. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
75. Under the Pledge and Security Agreement, Mahoma secured
Yippy's obligations
to Plaintiff under the June 2012 Note, September 2012 Note and
November 2012 Note by re-
affirming prior pledges for certain shares of Yippy common stock
and pledging certain shares of
Yippy common stock as the collateral.
76. Yippy's failure to repay Plaintiff under the June 2012 Note,
September 2012 Note
and November 2012 Note were "Events of Default" under the Pledge
and Security Agreement,
which again adopted the definition from each of these 3
promissory notes.
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77. Despite Yippy's breaches and due demand Mahoma has failed to
turn over the
collateral to satisfy Yippy's outstanding obligations due and
owing to Plaintiff. Accordingly,
under the Pledge and Security Agreement, Plaintiff is entitled
to foreclose on the collateral and
sell it to satisfy Yippy's obligations under the June 2012 Note,
September 2012 Note and
November 2012 Note.
AS AND FOR A SEVENTH CAUSE OF ACTIONEquitable Relief - The
Security Agreement
(As Against Yippy)
78. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
79. Under the Security Agreement, Yippy granted an absolute and
unconditional
security interest in certain property ofYippy to secure its
payment ofYippy's obligations under
the June 2012 Note and thereafter on the September 2012 Note and
November 2012 Note.
80. Yippy's failure to repay Plaintiff under the June 2012 Note,
September 2012 Note
and November 2012 Note constituted Events of Default under the
Security Agreement and the
promissory notes.
81. Despite Yippy's breaches, Yippy has failed to turn over the
collateral to satisfy
Yippy's outstanding obligations due and owing to Plaintiff.
Accordingly, under the Security
Agreement, Plaintiff is entitled to foreclose on the collateral
to satisfy Yippy's obligations under
the June 2012 Note, September 2012 Note and November 2012
Note.
AS AND FOR AN EIGHTH CAUSE OF ACTIONAttorneys' Fees
(As Against All Defendants)
82. Plaintiff repeats and realleges each and every allegation
contained in the above
paragraphs as if set forth fully herein.
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83. Section 12 of the June 2012 Note provides that "[i]n any
action, lawsuit or
proceeding brought to enforce or interpret the provisions of
this Note and/or arising out of or
relating to any dispute between the parties, [Plaintiff] shall
be entitled to recover all of its costs
and expenses relating [] collection and enforcement of this Note
(including without limitation,
reasonable attorney's fees and disbursements) in addition to any
other relief to which [Plaintiff]
may be entitled."
84. Paragraph 9 (e) of the Pledge and Security Agreement
provides that "[i]n any
action, lawsuit or proceeding brought to enforce or interpret
the provisions of this Agreement
and/or arising out of or relating to any dispute between the
parties, [Plaintiff] shall be entitled to
recover all of its costs and expenses relating [] collection and
enforcement of this Agreement
(including without limitation, reasonable attorney's fees and
disbursements) in addition to any
other relief to which [Plaintiff] may be entitled."
85. Paragraph 3 (h) of the Mahoma Guaranty provides that "[i]n
any action, lawsuit or
proceeding brought to enforce or interpret the provisions of
this Guaranty and/or arising out of or
relating to any dispute between the parties, [Plaintiff] shall
be entitled to recover all of its costs
and expenses relating [] collection and enforcement of this
Guaranty (including without
limitation, reasonable attorney's fees and disbursements) in
addition to any other relief to which
[Plaintiff] may be entitled."
86. Paragraph 9 of the Granville Guaranty, which
"unconditionally and irrevocably
guarantees to [Plaintiff] ... the due and punctual payment in
full of all; obligations of [Yippy]
under the [June 2012 Note] and any other additional obligation
of [Yippy] to [Plaintiff] now or
hereafter incurred by [Yippy] to [Plaintiff]," also provides
that "[i]n any action, lawsuit or
proceeding brought to enforce or interpret the provisions of
this Guaranty and/or arising out of or
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relating to any dispute between the parties, [Plaintiff] shall
be entitled to recover all of its costs
and expenses relating [] collection and enforcement of this
Guaranty (including without
limitation, reasonable attorney's fees and disbursements) in
addition to any other relief top which
[Plaintiff] may be entitled."
87. Section 11 of the September 2012 Note provides that "[i]n
any action, lawsuit or
proceeding brought to enforce or interpret the provisions of
this Note and/or arising out of or
relating to any dispute between the parties, [Plaintiff] shall
be entitled to recover all of its costs
and expenses relating [] collection and enforcement of this Note
(including without limitation,
reasonable attorney's fees and disbursements) in addition to any
other relief to which [Plaintiff]
may be entitled."
88. Pursuant to the terms of the June 2012 Note, the September
2012 Note, the
November 2012 Note, the Guaranties, the pledge and Security
Agreement and the Security
Agreement, Defendants are responsible to Plaintiff for all of
their reasonable attorneys' fees,
costs, expenses and disbursements incurred by Plaintiff in an
amount to be determined at trial.
89. Plaintiff has incurred, and continues to incur, attorneys'
fees and expenses in their
efforts to enforce their rights and to have Defendants comply
with the terms of the June 2012
Note, the September 2012 Note and the November 2012 Note.
WHEREFORE, Plaintiff demands judgment as follows:
i) On the First Cause of Action, for judgment in favor of
Plaintiff against Defendant
Yippy, Inc. in an amount no less than $424,522 calculated as
follows: (i) the June 2012 Note's
unpaid principal amount owed ($475,000); (ii) together with a
default penalty of ($205,453.48)
less trading proceeds from equity sales totaling $255,931.50;
(iii) and daily interest accruing
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thereon at the statutory default interest rate of 9% per annum
in an amount to be determined by
the Clerk;
ii) On the Second Cause of Action, for judgment in favor of
Plaintiff against
Defendant Yippy in an amount no less than $90,111.48 calculated
as follows: (i) the September
2012 Note's unpaid principal amount owed ($55,000); (ii)
together with contractual interest
thereon at the rate of 15%per annum ($8,250), together with a
default penalty of ($25,075); (iii)
and daily interest accruing thereon at the statutory default
interest rate of 9% per annum in an
amount to be determined by the Clerk;
iii) On the Third Cause of Action, for judgment in favor of
Plaintiff against
Defendant Yippy in an amount no less than $133,683.75 calculated
as follows: (i) the
November 2012 Note's unpaid principal amount owed ($85,000);
(ii) together with contractual
interest thereon at the rate of 18%per annum ($15,300), together
with a default penalty of
($25.075); (iii) and daily interest accruing thereon at the
statutory default interest rate of9% per
annum in an amount to be determined by the Clerk;
iv) On the Fourth Cause of Action, for judgment in favor of
Plaintiff against
Defendant Mahoma in the amount of $648,317.23 under the terms of
the Mahoma Guaranty;
v) On the Fifth Cause of Action, for judgment in favor of
Plaintiff against
Defendant Granville in the amount of$648,317.23 under the terms
of the Granville Guaranty;
vi) On the Sixth Cause of Action, for judgment in favor of
Plaintiff against
Defendant Mahoma for an order foreclosing on this Defendant's
interest in certain collateral
and directing the sale thereof, with the proceeds of such sale
to be applied towards the
outstanding payment obligations due and owing to Plaintiff under
the June 2012 Note,
September 2012 Note and November 2012 Note.
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vii) On the Seventh Cause of Action, for judgment in favor of
Defendant Yippy for
an order foreclosing on this Defendant's interest in certain
collateral and directing the sale
thereof, with the proceeds of such sale to be applied towards
the outstanding payment obligations
due and owing to Plaintiff under the June 2012 Note, September
2012 Note and November 2012
Note.
viii) On the Eighth Cause of Action, for judgment in favor of
Plaintiff and against all
Defendants, jointly and severally, for all of Plaintiffs
reasonable attorneys' fees, costs, expenses
and disbursements incurred in bringing this action.
ix) On all Causes of Action, interest and the costs and
disbursements ofthis action;
and
x) For such other, further, and different relief as the Court
shall deem just, equitable,
and proper.
Dated: New York, New YorkJuly 30,2014
SICHENZI~~ENCE LLP
By: "Michael H. Ference, Esq.Daniel Scott Furst, Esq.
61 Broadway, 32nd FloorNew York, New York 10006(212)
930-9700
Attorneys for Plaintiff Hanover Holding 1, LLC
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VERIFICATION
STATE OF NEW YORK )) ss.:
COUNTY OF NEW YORK )
ARI SASON being duly sworn, deposes and says:
1. I am the Managing Director of Plaintiff in the
above-captioned action.
2. I have read the foregoing Verified Complaint, and the same is
true to my own
knowledge except to those matters alleged upon information and
belief, and as to those matters, I
believe them to be true. The basis for my information and belief
is: review of documents
maintained by me and documents in the public records.
ARI SASON
Sworn to before me this2Q_ day of July, 2014/'---'\,L---
Notary Public, Staie of New YorkOU8!:ficd in Rlc:,ln-cnd
County
No. 0 1SM~32h8tr?9rJ~YCornnus sron Expires 03-1')-20-1(~