Woodcock Capital LLC v. Schildr Inc.
2024 NY Slip Op 33809(U)
N.Y. Sup. Ct., New York Cty.
2024
Check Treatment
Opinion Summary

Facts

  1. Walter Joey Overstreet was involved in a car crash in Park County, Montana, resulting in one fatality and multiple charges against him, including negligent vehicular homicide. [lines="46-52"]
  2. Overstreet claimed he was not driving the vehicle and faced two trials, both resulting in hung juries. [lines="53-56"]
  3. During the second trial, evidence regarding a hair found at the scene was not disclosed to Overstreet by the prosecution. [lines="70-71"]
  4. After a third round of charges were filed against him, Overstreet filed a civil lawsuit seeking damages for the unsuccessful prosecutions. [lines="91-95"]
  5. The District Court dismissed Overstreet’s claims based on prosecutorial immunity and failure to state a cognizable legal theory. [lines="101-105"]

Issues

  1. Whether the State of Montana is the only proper defendant for Overstreet's claims against the prosecutors and officers involved. [lines="119-124"]
  2. Whether prosecutorial immunity shields the individual defendants from civil liability regarding their actions in the prosecution of Overstreet. [lines="172-184"]
  3. Whether Overstreet's claims against Officer Fetterhoff regarding investigative actions are barred by the statute of limitations. [lines="258-272"]

Holdings

  1. The court held that the State of Montana is the only proper defendant for the claims against the individually named defendants involved in the prosecution. [lines="171-172"]
  2. The court affirmed that prosecutorial immunity protects prosecutors Becker and Piccolo from civil liability for their actions related to the case. [lines="210-211"]
  3. The court found that claims against Fetterhoff were barred by the statute of limitations, as Overstreet knew of the alleged acts by March 2018 and did not file his complaint until March 2021. [lines="270-272"]

OPINION

Case Information

*1 Woodcock Capital LLC v Schildr Inc.

2024 NY Slip Op 33809(U) October 23, 2024

Supreme Court, New York County Docket Number: Index No. 650636/2024 Judge: Margaret A. Chan

Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service.

This opinion is uncorrected and not selected for official publication.

SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK: COMMERCIAL DIVISION PART 49M - - - - - - - - - - - - - - - - - - - -X

WOODCOCK CAPITAL LLC, individually and derivatively 650636/2024 INDEX NO. on behalf of PERGOLA ROOF LLC, and PERGOLA ROOF USA LLC, 05/30/2024 MOTION DATE

Plaintiff, MOTION SEQ. NO. 001 -v- DECISION+ ORDER ON SCHILDR INC. and KHAYYAM AHMADOV,

MOTION Defendants,

and

PERGOLA ROOF LLC,

Nominal Defendant.

- - - - - - - - - - - - - - - - - - - -X

HON. MARGARET A CHAN: The following e-filed documents, listed by NYSCEF document number (MS001) 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

were read on this motion to/for DISMISSAL

In this action concerning an alleged exploitation and abuse of a contractual relationship between defendant Schildt Inc. (Schildr) and nominal defendant Pergola Roof, LLC (Roo:O orchestrated by defendant Khayyam Ahmadov (Ahmadov, and together with Schildr and Roof, defendants), plaintiffs Woodcock Capital LLC (Woodcock) and Pergola Roof USA LLC (PRUSA) (collectively, plaintiffs) move pursuant to CPLR 3211(a)(l), (a)(4), and (a)(7) for an order dismissing defendants' counterclaims (NYSCEF # 3 - CC or Counterclaims). Defendants oppose the motion

At the outset, the court briefly summarizes the allegations set forth in the Counterclaims, which are assumed true solely for purposes of this motion. According to defendants, on or around February 1, 2018, Ahmadov and non-party Khalig Isgandarov (Isgandarov), the sole member of Woodcock who was acting on its behalf, formed Roof to distribute prefabricated commercial and residential awnings to customers (see CC ,r,r 8, 13). Both Ahmadov and Woodcock owned a 50% interest in Roof through their respective capital contributions (see id ,r,r 14-17). Later, on or about January 17, 2020, Ahmadov and Isgandarov formed Schildr for the purpose of importing and supplying Roof with materials for various customer projects (id ,r 18). Ahmadov held a 60% interest in the company, while Woodcock held a 40% interest (id).

650636/2024 WOODCOCK CAPITAL LLC ET AL vs. SCHILDR INC. ET AL Page 1 of 4 Motion No. 001 Eventually, on June 11, 2023, Isgandarov sought to buy out Ahmadov's 50% interest in Roof for $2,400,000 (the Proposed Acquisition) (CC ,r 19). The Proposed Acquisition was memorialized through a written purchase agreement that, among other things, obligated Isgandarov to pay Ahmadov $1,500,000 at the time of closing, with the remaining balance to be paid in equal monthly installments over a six·month period (id ,r,r 19·20). As part of the Proposed Acquisition, Isgandarov also agreed to transfer Woodcock's 40% interest in Schildr to Ahmadov (id ,r 21).

Although the parties had agreed to its terms, the Proposed Acquisition ultimately never closed (see CC ,r 22). Instead, Isgandarov (1) terminated negotiations, (2) began to unilaterally treat Ahmadov as if he was no longer a member of Roof, (3) formed, without Ahmadov's knowledge or consent, PRUSA to take over Roofs assets, employees, and business operations, and (4) refused to include Ahmadov in business decisions relating to Roof and PRUSA (see id ,r,r 22· 25). Defendants separately maintain that plaintiffs are indebted to Schildr in an amount of $155,899.80 but have, to date, failed and refused to pay back that amount (see id ,r,r 33-34).

On December 15, 2023, in the wake of the Proposed Acquisition's collapse and Isgandarov's alleged misconduct, defendants issued a letter demanding an accounting from plaintiffs (see CC ,r,r 26·27). Plaintiffs responded by accusing Ahmadov of wrongdoing and, in turn, refusing to provide any accounting based on those accusations (see id ,r,r 29·32). Plaintiffs' contentions against Ahmadov seemingly resulted in them commencing this action on February 6, 2024 (see NYSCEF # 2 ,r,r 162-385).

Defendants responded to plaintiffs' claims on April 1, 2024, by filing the Counterclaims (NYSCEF # 3). The Counterclaims rely on the above-referenced factual background to assert eight causes of action for (1) dissolution of Roof pursuant to New York Business Corporation Law (BCL) § 1104-A; (2) an accounting; (3) breach of BCL § 720; (4) breach of fiduciary duty; (5) conversion; (6) breach of the implied covenant of good faith and fair dealing; (7) breach of contract; and (8) unfair competition (CC ,r,r 35·78). This is, however, not the first time defendants have asserted these specific claims against plaintiffs. To the contrary, on January 30, 2024-approximately one week prior to plaintiffs commencing this action-defendants filed a lawsuit before the New York State Supreme Court, New York County, captioned Khayyam Ahmadov et al. v Khalig lsgandarov et al., Docket No. 650495/2024 (see NYSCEF # 6 - the Prior Action).

Given this fact, plaintiffs moved to dismiss pursuant to, inter alia, CPLR 32ll(a)(4) (NYSCEF # 4). In support of their motion, plaintiffs argue that dismissal is warranted because the Prior Action was filed before the Counterclaims, the partes are virtually identical between the Prior Action and the Counterclaims, the causes of action asserted in these two actions are identical, and their allegations

650636/2024 WOODCOCK CAPITAL LLC ET AL vs. SCHILDR INC. ET AL Page 2 of 4 Motion No. 001 a nd c l a i m s a r i s e fr o m t h e s a m e f ac t s a nd c i r c u m s t a n ce s ( NY S C E F # 12 a t 6 ; NY S C E F # 18 a t 3 ) . A s e xp l a i n e d , t h e c ou r t a g r ee s .

C P L R 3211 ( a )( 4 ) p r ov i d e s t h a t a p a r t y m a y m ov e t o d i s m i ss a n ac ti on i f " t h e r e i s a no t h e r ac ti on p e nd i ng b e t w ee n t h e s a m e p a r ti e s f o r t h e s a m e ca u s e o f ac ti on i n a c ou r t o f a ny s t a t e o r t h e U n it e d S t a t e s . " W h e n c on s i d e r i ng s u c h a m o ti on , c ou r t s a ss e ss w h e t h e r t h e t w o ac ti on s h a v e a ' " s u ff i c i e n t i d e n tit y ' o f p a r ti e s " ( S y n c o r a G ua r . I n c . vJ . P . M o r gan S ec . LL C , 110 AD 3d 87 , 96 [ 1 s t D e p t 2013 ]) . C ou r t s a l s o l ook a t w h e t h e r t h e t w o ac ti on s a r i s e '' ou t o f t h e s a m e s ub j ec t m a tt e r o r s e r i e s o f a ll e g e d w r ong s " a nd s ee k s i m il a r r e li e f ( s ee Shah v RB C C ap it a l M k t s . LL (! , 115 AD 3d 444 , 444 · 445 [ 1 s t D e p t 2014 ] , c iti ng W h it n ey v W h it n ey , 57 NY 2d 731 , 732 [ 1982 ] ; S t eve n s v L a w O ff . o f B l an k & S t a r , P LL C , 155 AD 3d 917 , 918 [ 2d D e p t 2017 ] [ " W h e r e t h e r e i s a s ub s t a n ti a l i d e n tit y o f t h e p a r ti e s , t h e t w o ac ti on s a r e s u ff i c i e n tl y s i m il a r , a nd t h e r e li e f s ough t i s s ub s t a n ti a ll y t h e s a m e , a c ou r t h a s b r o a d d i s c r e ti on i n d e t e r m i n i ng w h e t h e r a n ac ti on s ho u l d b e d i s m i ss e d pu r s u a n t t o C P L R 32 ll ( a )( 4 ) on t h e g r ound t h a t t h e r e i s a no t h e r ac ti on p e nd i ng '' ]) .

H e r e , t h e C oun t e r c l a i m s a nd t h e P r i o r A c ti on a ss e r t n ea r l y i d e n ti ca l f ac t u a l a l l e g a ti on s a g a i n s t n ea r l y i d e n ti ca l p a r ti e s . [1] F o r e x a m p l e , bo t h p l ea d i ng s r e f e r t o t h e s a m e f a i l e d ac qu i s iti on o f R oo f s m e m b e r s h i p i n t e r e s t s fr o m A h m a dov , t h e s a m e m i s c ondu c t und e r l y i ng t h e c r ea ti on o f l > R U S A , t h e s a m e d e m a nd s f o r a n acc oun ti ng by A h m a dov , a nd t h e s a m e pu r po r t e d l y f a l s e acc u s a ti on s l e v i e d a g a i n s t A h m a dov i n r e s pon s e t o h i s d e m a nd f o r a n acc oun ti ng ( c o m pa r e CC , r , r 19 · 34 w it h P r i o r A c ti on , r , r 19 · 34 ) . T h e s e n ea r l y i d e n ti ca l f ac t u a l a l l e g a ti on s a r e , i n t u r n , u s e d t o s uppo r t t h e n ea r l y i d e n ti ca l ca u s e s o f ac ti on ( c o m pa r e CC , r , r 35 · 78 w it h P r i o r A c ti on , r , r 35 - 78 )) . G i v e n t h e s e c i r c u m s t a n ce s , t h e C oun t e r c l a i m s a nd t h e P r i o r A c t i on p l a i n l y " s ee k t h e s a m e r e li e f f o r t h e s a m e a l l e g e d i n j u r i e s , " a nd t hu s d i s m i ss a l o f t h e C oun t e r c l a i m s und e r C P L R 321 l ( a )( 4 ) i s w a rr a n t e d ( s ee B r oo k v Z u cke r m an , 155 AD 3d 415 , 415 [ 1 s t D e p t 2017 ] ; s ee a l s o P e n and P e n c il P ub i s ., I n c . v L e m b eck , 2014 W L 840406 , *3 [ S up C t , NY C oun t y , F e b . 28 , 2014 ] [ d i s m i ss i ng c l a i m ~ h e r e p l a i n ti ff " s ee k s t o liti g a t e a n i d e n ti ca l c l a i m t h a t h a s a l r ea dy b ee n r a i s e d i n a r e l a t e d ac ti on b e f o r e t h e C ou r t . . . " ]) .

D e f e nd a n t s ' l on e r e s pon s e i n oppo s iti on i s t h a t d i s m i ss a l o f t h e C oun t e r c l a i m s pu r s u a n t t o C P L R 3211 ( a )( 4 ) w ou l d b e p r e j ud i c i a l b eca u s e p l a i n ti ff s c ho s e t o i n iti a t e t h i s ac ti on r a t h e r t h a n f il e c oun t e r c l a i m s i n t h e P r i o r A c ti on ( s ee NY S C E F # 17 a t 7 ) . T h e c ou r t d i s a g r ee s . N o t a b l y , " N e w Y o r k f o ll o w s a ' p e r m i ss i v e c oun t e r c l a i m r u l e , ' w h i c h a ll o w s ' c oun t e r c l a i m s t o b e r a i s e d t h r ough s e p a r a t e ce n e u t t h i s i s 6 , r 6 ) . [1] B s ee NY S C E F # e f e nd a n t ( nd a r ov a s a d a m e s I s g a A c ti on n o f no c on s e qu e on l y a pp a r i o r h a t t h e P r l a i m s i s t h e C oun t e r c r A c ti on a nd t n t h e P r i o e n ce b e t w ee e n t d i ff e r h T [1] b eca u s e " s ub s t a n ti a l , no t c o m p l e t e , i d e n ti t y o f p a r ti e s i s a l l t h a t i s r e q u i r e d t o i n vok e C P L R 3211 ( a )( 4 ) " ( S y n c o r a , 110 AD 3d a t 96 ) . A t a ny r a t e , t h e " c r iti ca l e l e m e n t [ t o s uppo r t d i s m i ss a l und e r C P L R 321 l ( a )( 4 )] i s t h a t bo t h s u it s a r i s e ou t o f t h e s a m e s ub j ec t m a tt e r o r · s e r i e s o f a ll e g e d w r ong s " ( C h e r i c o , C h e r i c o & A ss o c . v M i do ll o , 67 AD 3d 622 , 622 [ 2d D e p t 2009 ] [ i n t e r n a l quo t a ti on s o m itt e d ]) . T h a t i s e x ac tl y t h e s it u a ti on h e r e .

[650636] / [2024] W OO DC O CK CA P I T A L LL C ET A L v s . S CH I L DR I NC . ET A L o on N i t o M [001] . f o g a [3] e [4] P liti g a ti on " ' ( s ee 214 L a f a ye tt e H ou s e LL C v A k a s a H o l d i ng s LL C , 227 AD 3d 7 5 , 81 [ 1 s t D e p t 2024 ]) . A s a r e s u lt , p l a i n ti ff s a r e w e ll w it h i n t h e i r r i gh t t o a ss e r t t h e i r c l a i m s t h r ough t h i s l a w s u it r a t h e r t h a n do i ng s o t h r ough c oun t e r c l a i m s i n t h e P r i o r A c ti on ( s ee e . g ., G r ee nbau m v C o m g r oup H o l d i ng s LL C , 2013 W L 6714098 , a t *1 [ S up C t , NY C oun t y , J u l y 9 , 2013 ] [ ho l d i ng t h a t p l a i n ti ff " w a s no t r e q u i r e d t o i n t e r po s e h e r c oun t e r c l a i m f o r e m p l o y m e n t d i s c r i m i n a ti on o r a ny o t h e r ca u s e o f ac ti on a s a c oun t e r c l a i m a g a i n s t d e f e nd a n t " b eca u s e " [ a ] ll c oun t e r c l a i m s a r e p e r m i ss i v e i n N e w Y o r k " ]) . C on s e qu e n tl y , a s d e f e nd a n t s o ff e r no o t h e r b a s i s t o c on c l ud e t h a t p l a i n ti ff s ' i n iti a ti on o f t h i s ac ti on w a s i m p r op e r , t h e i r c l a i m o f p r e j ud i ce upon d i s m i ss a l o f t h e C oun t e r c l a i m s i s w it hou t m e r it .

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O R D E R E D t h a t p l a i n ti ff s ' m o ti on t o d i s m i ss t h e C o un t e r c l a i m s pu r s u a n t t o C P L R 3211 ( a )( 4 ) i s g r a n t e d a nd t h e C oun t e r c l a i m s a r e d i s m i ss e d ; a nd it i s f u r t h e r

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O R D E R E D t h a t t h a t a p r e li m i n a r y c on f e r e n ce s h a ll b e h e l d v i a M i c r o s o f t T ea m s on D ece m b e r 18 , 2024 , a t 10 : 30 A M o r a t s u c h o t h e r ti m e t h a t t h e p a r ti e s s h a ll s e t w it h t h e c ou r t ' s l a w c l e r k . P r i o r t o t h e c on f e r e n ce , t h e p a r ti e s s h a ll f i r s t m ee t a nd c on f e r t o s ti pu l a t e t o a p r e li m i n a r y c on f e r e n ce o r d e r , a v a il a b l e a t h tt p s :// www . ny c ou r t s . gov / L e g ac y P D FS / c ou r t s / c o m d i v / NY / P D F s / p a r t 49 - P C - O r d e r · f ill a b l e . pd f , i n li e u o f a c on f e r e n ce ; a nd it i s f u r t h e r

O R D E R E D t h a t c oun s e l f o r p l a i n ti ff s i s d i r ec t e d t o s e r v e a c opy o f t h i s o r d e r , t og e t h e r w it h no ti ce o f e n t r y , upon d e f e nd a n t s a nd t h e C l e r k o f t h e C ou r t w it h i n 10 d a y s o f t h i s o r d e r .

10 / 23 / 2024 § N O N - F I N A L D I SP O S I T I O N DA T E M AR G AR E T A .· CHAN , J . S . C . CH E C K O N E : C ASE D I SP O SE D

G RAN T E D □ D E N I E D □ O T H E R G RAN T E D I N P AR T A PP L I CA T I O N : SE TT L E O RD E R S U B M I T O RD E R CH E CK I F A PP R O P R I A T E : □ R E F E R E NC E I NC L UD ES T R A N S F E R / R EASS I G N F I DUC I A R Y APP O I N T M E N T [650636] / [2024] W OO DC O CK CA P I T A L LL C E T A L v s . S CH I L DR I NC . E T A L on t i M o N [001] . o P o ge a [4] f [4]