On December 15, 2021, Balanced Bridge Funding LLC (“Plaintiff”), represented by Jacob S. Perskie of Fox Rothschild LLP, filed a property lawsuit against Mitnick Law Office, LLC, Craig Mitnick, Fern Mitnick, Carol M. Mitnick, and Luxury Mortgage Corporation (“Defendants”), seeking damages and declaratory judgment along with costs and other relief for the alleged unlawful actions of Defendants. This case was filed in the United States District Court in the District of New Jersey with Judges Robert B. Kugler and Ann Marie Donio presiding.
In the complaint, Plaintiff alleged that, “This case concerns the misappropriation of funds to purchase property located at 109 N. Clermont Avenue, Margate City, New Jersey, 08402 (the “Property”) and the fraudulent transfer of the Property for the purpose of avoiding payment obligations to Plaintiff and without receiving a reasonably equivalent value, in violation of the New Jersey Uniform Fraudulent Transfer Act” and “After purchasing the Property with misappropriated funds, Defendant Mitnick Law Office, LLC (“Mitnick Law”), of which Craig Mitnick is the principal, fraudulently transferred the Property to Craig and Fern Mitnick, husband and wife, for far less than market value and amidst a payment dispute between Plaintiff and Mitnick Law.”
Plaintiff further alleged that, “That payment dispute prompted an arbitration that resulted in a substantial award in favor of Plaintiff and against Mitnick Law” and “Plaintiff asks the Court to impose a constructive trust over the misappropriated funds and proceeds, declare the transfers and subsequent encumbrances of the Property void and/or subordinate to Plaintiff’s interest, and unwind the transactions so that Plaintiff can execute against Mitnick Law by scheduling the Property for Sheriff’s Sale” and “Beginning in September 2015, Plaintiff and Mitnick Law entered into successive funding agreements, one supplanting the previous, and culminating in a Master Non-Recourse Purchase and Sale Agreement dated June 2, 2017.”
Plaintiff also alleged that, “Under the Master Agreement, Mitnick Law sold its rights to legal fees it collected in the NFL Concussion Class Action to Plaintiff in exchange for millions of dollars in cash advances” and “Mitnick Law breached the Master Agreement by, among other things, failing to pay over to Plaintiff legal fees received from the NFL Concussion Settlement Administrator on Mitnick Law cases and/or from the Locks Law Firm on cases that Mitnick Law referred.”
Plaintiff also alleged that, “Mitnick Law knew or, alternatively, should have known that it would be unable to pay its debt and liabilities to Plaintiff at the time of the transfer” and “Mitnick Law has not paid the amounts owed to Plaintiff under the Final Award” and “Mitnick Law’s willful and knowing transfer of the Property in order to evade judgments against it was outrageous and without justification and warrants the imposition of punitive damages.”
There are four claims of relief laid down by Plaintiff. The first claim is for the alleged violation of Fraudulent Transfer Pursuant to N.J.S.A. § 25:2-25. The second claim is for the alleged Declaratory Judgment, 28 U.S.C. § 2201, 2202. The third claim is for the alleged constructive trust. The fourth claim is for the alleged civil conspiracy.
In the prayer for relief, Plaintiff requested the court for injunctive relief and declaratory relief along with compensatory and punitive damages, attorneys’ fees and costs, along with any and all further relief that the Court shall deem appropriate.
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Pending - Other Pending
Robert B. Kugler
Ann Marie Donio
BALANCED BRIDGE FUNDING LLC
MITNICK LAW OFFICE, LLC
CAROL M. MITNICK
JACOB S. PERSKIE
Attorney at FOX ROTHSCHILD LLP
1301 Atlantic Avenuesuite 400
Atlantic City, NJ 08401
Civil Cover Sheet Civil Cover Sheet
(#2) Corporate Disclosure Statement by BALANCED BRIDGE FUNDING LLC. (PERSKIE, JACOB) (Entered: 12/15/2021)
(#3) SUMMONS ISSUED as to LUXURY MORTGAGE, CAROL M. MITNICK, CRAIG MITNICK, FERN MITNICK, MITNICK LAW OFFICE, LLC. Attached is the official court Summons, please fill out Defendant and Plaintiffs attorney information and serve. (alb) (Entered: 12/15/2021)
Docket(#3) SUMMONS ISSUED as to LUXURY MORTGAGE, CAROL M. MITNICK, CRAIG MITNICK, FERN MITNICK, MITNICK LAW OFFICE, LLC. Attached is the official court Summons, please fill out Defendant and Plaintiffs attorney information and serve. (alb) (Entered: 12/15/2021)Read MoreRead Less
DocketJudge Robert B. Kugler and Magistrate Judge Ann Marie Donio added. (mmb, ) (Entered: 12/15/2021)Read MoreRead Less
Docket(#2) Corporate Disclosure Statement by BALANCED BRIDGE FUNDING LLC. (PERSKIE, JACOB) (Entered: 12/15/2021)Read MoreRead Less
Docket(#1) COMPLAINT against All Defendants ( Filing and Admin fee $ 402 receipt number ANJDC-13044732) with JURY DEMAND, filed by BALANCED BRIDGE FUNDING LLC. (Attachments: #1 Civil Cover Sheet Civil Cover Sheet, #2 Summons Summons)(PERSKIE, JACOB) (Entered: 12/15/2021)Read MoreRead Less