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NorVergence Lessee Gets Stay—Precedent?
This appears to be the first in many to follow in reaction to the class action suit in New Jersey receiving clearance, and also appears influenced by other decisions. The Honorable Rolando T. Acosta, Supreme Court Justice, Supreme Court of the State of New York decision was filed on September 9th , regarding Sterling National Bank as Assignee of NorVergence, Inc. against P.A. W. of Ocean, Inc. dba PAW of Ocean, Inc., and Paul Wishnick, individually. Judge Acosta “...dismissing the action as there are pending actions involving the same parties and subject matter. “Defendant P.A.W. of Ocean, Inc is a New Jersey Company that lease telecommunications equipment from NorVergence, Inc. a non-defunct New Jersey based corporation, apparently engaged in widespread fraud ( see Office of New York State Attorney General Elliot Spitzer, Press Release, December 6,2004) that is the • The Court has taken judicial notice of the fact the New York State Attorney General's Office negotiated a settlement with GE Capital Corporation, a financing institution, regarding its NorVergence fraud claims, whereby GE Capital will forgive over two million dollars in payments due from New York customers who subject of a Chapter 7 liquidation proceeding in the United States Bankruptcy Court for the District of New Jersey. NorVergence assigned the lease to plaintiff before bankruptcy. “Plaintiff has been named in a class-action in New Jersey, where the plaintiffs are seeking a finding that the financing companies participated in the fraud with NorVergence, and defendant fits squarely within the definition set forth in the complaint in the class-action. Moreover, defendant will undoubtedly be a party to the class-action once that action is certified. In addition, there are two other pending actions in New Jersey dealing with the alleged fraud... Ordered that the instant matter is stayed pending the determination by the New Jersey superior court on whether the New Jersey action will be certified as a class action (September 14,2005 http://www.leasingnews.org/archives/September%202005/9-16-05.htm#norv ) or Federal Trade Commission matter that would impact on this action. Defendant is granted leave to renew that portion of instant motion for an order dismissing the action following the above determination.” Attorney for P.A.W. of Ocean - Judge Acosta Ruling : http://leasingnews.org/PDF/Sept9_05_Order_Granting_Stay.pdf |
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