VW Credit v. Big Apple Volkswagen


New York Law Journal


Judge Paul Engelmayer

Defendants Koeppel, Samborski and Salim guaranteed the 2006 Wholesale Loan Agreement and 2007 Capital Loan Agreement under which VW Credit Inc. (VCI) provided Big Apple Volkswagen $3.59 million in inventory financing and working credit. Under both pacts, Big Apple granted VCI a security interest in its inventory, chattel and proceeds (collectively collateral). Default under one agreement was default of the other. The court already granted VCI judgment as to liability against defendants on contract breach claim against them over Big Apples' and their failure to make accelerated payment of $3.9 million under the agreements following default of the Wholesale Loan Agreement. Granting VCI summary judgment on damages as against Koeppel, Samborski and Salim—based on VCI's documentary evidence—the court held them jointly and severally liable to VCI for $1,146,758. Like Koeppel, Samborski and Salim failed to raise any genuine issue of material fact. In addition to observing that invoices from the private security firm and management company hired to protect the collateral reflected the reasonable cost of doing so, the court independently reviewed VCI's attorney fee request, which it deemed facially adequate and reasonable.

What's being said

Comments are not moderated. To report offensive comments, click here.

Preparing comment abuse report for Article# 1202581048831

Thank you!

This article's comments will be reviewed.