KJY Investment LLC v. Noblesse Nail & Spa, Inc.

Background

KJY Investment LLC and Beautiful Spa, LLC sued Noblesse Nail & Spa, Inc., Kwi Young Shim, and Jae Woong Choi. The dispute concerns four loans under which KJY loaned Noblesse $725,000, along with a management agreement and an asset purchase agreement concerning a nail salon in Scarsdale, New York. Under those agreements, Noblesse sold salon-related assets to Beautiful Spa, and Beautiful Spa retained Noblesse to manage the salon.

Plaintiffs asserted claims involving promissory notes, the loan agreements, personal guaranties, a settlement and forbearance agreement, and security agreements. They also sought specific performance of the asset purchase agreement and a declaration concerning the management agreement.

Motion and Analysis

Plaintiffs moved for summary judgment, which asks the court to resolve claims when there is no genuine dispute about important facts. They filed the motion before the parties had conducted discovery. The court explained that summary judgment before discovery is allowed only in the clearest cases because the opposing party generally must have an opportunity to obtain information needed to oppose the motion.

The court found that this was not such a rare case. The parties had taken no depositions and engaged in no discovery. The court identified factual issues requiring further development, including the status and maturity dates of the loans, extension-fee provisions in the promissory notes, and whether Defendants had made payments toward principal or interest. The court also noted that Plaintiffs needed to develop the factual record concerning the claimed interest and late charges.

Disposition

The court denied Plaintiffs’ Motion for Summary Judgment without prejudice. It ordered an initial pretrial conference for October 20, 2021, at 11:30 a.m., and directed the Clerk of Court to terminate the pending motion. Judge Kenneth M. Karas did not resolve the underlying claims in this order.