Real Estate Broker's Commission—Broker Claimed Seller "Cheated" It Out of Its Commission—After Defendant Received Sale Proceeds, Defendant Allegedly Transferred Proceeds to the Personal Account of Defendant's Principal for the Principal's Own Personal Use—Defendant's Principal Admitted That Although Some Funds Were Used To Pay Off Debts, He Was "Living Off" the Remaining Funds—Plaintiff Sufficiently Stated a Claim for Fraudulent Conveyance Under Debtor Creditor Law §273—Court Granted Motion To Amend Complaint To Assert Fraudulent Conveyance Claim

This decision involved a dispute about a real estate brokers' commission. The plaintiff alleged that it is a real estate broker and the defendant LLC (defendant) "cheated it out of a commission related to the sale of the building owned by defendant." The defendant claimed that the subject agreement is "unenforceable." The plaintiff had moved to amend the complaint to add the defendant's principal ("A") as a defendant.

The plaintiff alleged that the defendant had received $331,855 in proceeds from the sale of the subject building and that notwithstanding defendant's knowledge that the plaintiff was seeking a commission, the defendant "transferred the entire amount of the proceeds to an account held by ("A")." The plaintiff asserted that the transfer rendered the defendant "insolvent and nothing remains in the defendant's bank account."