ATX DEBT FUND 2, LLC v. PAUL

Index No. 650728/20, Appeal Nos. 16244-16245 & M-1666, Case Nos. 2022-1131, 2022-00108.

206 A.D.3d 465 (2022)

168 N.Y.S.3d 303

2022 NY Slip Op 03865

ATX Debt Fund 2, LLC, Respondent, v. Natin Paul, Also Known as Nate Paul, Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided June 14, 2022.


Attorney(s) appearing for the Case

McShapiro Law Group PC, Great Neck ( Mitchell C. Shapiro , of counsel) for appellant.

Gibson, Dunn & Crutcher LLP, New York ( Mitchell A. Karlan , of counsel) for respondent.

Concur—Kapnick, J.P., Friedman, Moulton, Shulman, Pitt, JJ.


While defendant waived his affirmative defenses pursuant to the broad waiver provisions in the guaranties, he is entitled to serve the amended answer to the extent it asserts affirmative defenses based on fraudulent conduct that occurred after the execution of the guaranties. The guaranties include a waiver carveout provision that negates the broad waiver with respect to postclosing claims or defenses that sound in fraud (cf. North Fork Bank v Computerized Quality Separation...

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