ADDITIONAL CASES In re: JVJ Pharmacy Inc. d/b/a University Chemists, Debtor; 16-10508 MEMORANDUM DECISION AND ORDER REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT Plaintiff Salvatore LaMonica, the chapter 7 trustee (“Trustee”) for the estate of JVJ Pharmacy Inc. d/b/a University Chemists (“Debtor”), filed an adversary proceeding against the defendant, Harrah’s Atlantic City Operating Company, LLC, d/b/a/ Harrah’s Resort Atlantic City (“Harrah’s”). The Trustee seeks to recover $859,040 in transfers (the “Transfers”) that the Debtor allegedly made to or for the benefit of Harrah’s when the Debtor’s principal, James F. Zambri, used the Debtor’s debit card to initiate cash advances at ATM’s on Harrah’s property. The Trustee makes his claims under fraudulent transfer and unjust enrichment theories. The Trustee and Harrah’s filed cross-motions for summary judgment. (Memorandum of Law in Support of Plaintiff’s Motion for Partial Summary Judgment on His Amended Complaint, dated April 10, 2020 (“Trustee’s Motion”) (ECF Doc. # 57-1); Harrah’s Atlantic City Operating Company LLC d/b/a Harrah’s Resort Atlantic City’s Memorandum of Law in Support of its Motion for Summary Judgment, dated April 10, 2020 (“Harrah’s Motion”) (ECF Doc. # 58).)1 The parties also filed a Joint Statement of Undisputed Fact in support of their cross-motions. (Joint Statement of Undisputed Facts in Support of Cross-Motions for Summary Judgment, dated February 28, 2020 (“Joint Statement”) (ECF Doc. # 48).) For the reasons that follow, the Trustee’s Motion is granted with respect to Count 2 of the of his Amended Complaint, dated June 7, 2019 (ECF Doc. # 25), he is awarded the sum of $850,449.60, and the Trustee’s Motion is otherwise denied. Harrah’s Motion is granted as to Counts 1 and 3 through 7 and is otherwise denied. BACKGROUND At all relevant times, the Debtor operated a specialty pharmacy located at 74 University Place, New York, NY 10003. ( 1.)2 Zambri was the Debtor’s president, (
2-3), and sole shareholder. (Voluntary Petition, List of Equity Security Holders (ECF Main Case Doc. # 1), at ECF p. 39 of 46.)3 The Debtor maintained an operating account at a branch of JPMorgan Chase Bank, N.A. located in the State of New York (the “Chase Account”). ( 5.) A debit card issued to the Debtor could be used to withdraw cash from Debtor’s Chase Account. ( 71.) Harrah’s operates the Harrah’s Resort located in Atlantic City, New Jersey, ( 8), and Zambri used the Debtor’s debit card to initiate cash advances at ATMs located on Harrah’s property. ( 70.) In the main, the Trustee seeks through this adversary proceeding to recover the transfers from the Chase Account that covered the cash advances received by Zambri as fraudulent transfers. A. Harrah’s Cash Advances To understand the disposition of the cross-motions, it is necessary to review how the cash advances and the corresponding repayments from the Chase Account worked. Caesars, Harrah’s affiliate4, contracted with Ultron Processing Services, Inc. (“Ultron”) pursuant to a Master Services Agreement (“Ultron MSA”)5 for services related to the ATMs on Harrah’s premises.6 (
