Appellate Division of the Supreme Court of New York, 2012

Arbuzova v. Skalet

Appellate Division of the Supreme Court of New York · Decided February 21, 2012

92 A.D.3d 816; 938 N.Y.2d 811

Cases that cite this one

5 later published cases cite this decision.

Pepin v. Jani (Appellate Division of the Supreme Court of New York 2012)
Pepin v. Jani (Appellate Division of the Supreme Court of New York 2012)
Colonial Funding Network, Inc. v. Epazz, Inc. (District Court, S.D. New York 2017)
Fred Schutzman Co. v. Park Slope Advanced Medical, PLLC (Appellate Division of the Supreme Court of New York 2015)
Counsel Financial Services, Llc v. David McQuade Leibowitz and David McQuade Leibowitz, P. C. (Tex. App. 2013)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion of the Court

A corporation is prohibited from asserting the defense of civil usury (see General Obligations Law § 5-521; Schneider v Phelps, 41 NY2d 238, 242 [1977]; Tower Funding v Berry Realty, 302 AD2d 513, 514 [2003]). An individual guarantor of a corporate obligation is also precluded from raising such a defense (see Schneider v Phelps, 41 NY2d at 242; Tower Funding v Berry Realty, 302 AD2d at 514). Here, although the interest rate in *817the subject promissory note exceeded 16% per annum (see General Obligations Law § 5-501 [1], [2]; Banking Law § 14-a [1]; Tower Funding v Berry Realty, 302 AD2d at 514), the plaintiff established, prima facie, that the loan was made to the corporate defendant, Bais Seller Realty, with the defendant Yury Skalet as personal guarantor of the loan (see Tower Funding v Berry Realty, 302 AD2d at 514). In opposition to this prima facie showing, the defendants failed to raise a triable issue of fact (see generally Alvarez v Prospect Hosp., 68 NY2d 320, 324 [1986]).

Accordingly, the Supreme Court properly granted the plaintiff’s motion for summary judgment on her complaint and denied the defendants’ cross motion for summary judgment dismissing the complaint. Dillon, J.E, Florio, Chambers and Roman, JJ., concur.

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