Salveson v. Yi
- Katharine Parker
- 1:20-cv-06684
- U.S. District Court · Southern District of New York
- 23
In Salveson v. Yi, Judge Parker entered the parties’ consent judgment declaring Salveson sole owner of EQD and its assets as of July 2, 2016.
Kent Salveson and EQD, LLC received the declaration that Salveson owns 100% of EQD and that EQD’s assets were transferred free of contracts to sell them. Sung Yi consented to the judgment and was ordered to bear his own fees, expenses, and costs.
What happened
Kent Salveson and EQD, LLC sued Sung Yi seeking a declaration about the transfer of EQD and its assets. The parties agreed that Yi transferred EQD, including its condominium, to Salveson on July 2, 2016, after Salveson paid Yi almost $400,000.
The dispute involved an option contract Yi had signed personally with a third party concerning the condominium. The parties agreed that EQD had not signed that contract, no money had been paid under it, and EQD had not agreed to sell its assets to any third party.
Judge Katharine H. Parker granted the joint motion for entry of a consent judgment. The judgment declared that Salveson was EQD’s 100% member, that Yi transferred EQD to Salveson on July 2, 2016, and that EQD was not subject to contracts to sell its assets; each party was responsible for its own fees, expenses, and costs.
The detailed version
- Salveson v. Yi · No. 1:20-cv-06684
- Katharine Parker
- Jan. 22, 2021
Background
Kent Salveson and EQD, LLC brought a declaratory-relief action against Sung Yi. A declaratory judgment is a court ruling that establishes the parties’ legal rights or relationship. The parties said an actual dispute existed about whether Yi had transferred all of EQD and its assets to Salveson, and whether any contract could affect that transfer.
According to the consent judgment and Yi’s affidavit, EQD owned a condominium. Yi had acquired 100% of EQD in 2015 after agreeing to pay a $321,000 mortgage-related obligation. Yi later signed an option contract with Steve Woo in his individual capacity concerning the condominium. The parties stated that Woo never paid the required $10,000 option payment or any purchase money, and that EQD—the owner of the condominium—did not sign the option contract.
The parties agreed that Yi sold or transferred 100% of his interest in EQD, along with EQD’s assets, to Salveson on July 2, 2016, for approximately $400,000. They further agreed that Salveson did not know about the option contract, that EQD had not entered into a contract to sell its assets to a third party, and that Yi held no remaining interest in EQD or its assets. Yi participated without a lawyer and consented to the requested judgment.
Relief Requested
The parties jointly asked the court to enter a consent judgment under Federal Rule of Civil Procedure 57 and the federal Declaratory Judgment Act. They asked the court to declare that Salveson owned 100% of EQD, that EQD and its assets had been transferred to him on July 2, 2016, and that EQD was not subject to contracts, options, liens, or other restrictions concerning the sale of its assets. The requested judgment was to be entered as effective July 2, 2016.
Ruling
Judge Katharine H. Parker entered the consent judgment. The court held that the plaintiffs were entitled to declaratory relief and granted the parties’ joint motion for entry of the consent judgment and decree. The judgment states that Salveson is EQD’s 100% member, that Yi transferred 100% of EQD to Salveson on July 2, 2016, and that EQD is not subject to any contracts to sell its assets. The judgment was entered as effective July 2, 2016. Each party was ordered to bear its own fees, expenses, and costs.
Read the full 23-page opinion on CourtListener, the free public archive maintained by the Free Law Project.