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Elavon Inc. v. Silverton of NY Inc.

Estoppel, Agent Status Compel Arbitration in Action for Contract Breach, Fraud

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MEMORANDUM & ORDER Plaintiff Elavon Inc., commenced the above-captioned action on February 20, 2020, against Defendants Silvertown of NY Inc. (“Silvertown”), Ester Werzberger, Chan Friedman, John Does 1-10 (“John Does”), and ABC Companies 1-10 (“ABC Defendants”), alleging breach of contract, breach of guaranty, fraud, unjust enrichment, and violations of New York Business Corporation Law §1006(b) (“N.Y. BCL §1006(b)”). (Compl., Docket Entry No. 1.) On August 28, 2020, Defendants moved to compel arbitration, (Defs.’ Mot. to Compel Arbitration (“Defs.’ Mot.”), Docket Entry No. 29; Defs.’ Mem. in Supp. of Defs.’ Mot. (“Defs.’ Mem.”), Docket Entry No. 29-1; Defs.’ Reply in Supp. of Defs.’ Mot. (“Defs.’ Reply”), Docket Entry No. 30), and Plaintiff opposed, (Pl.’s Opp’n to Defs.’ Mot. (“Pl.’s Opp’n”), Docket Entry No. 31). For the reasons explained below, the Court grants Defendants’ motion to compel arbitration. I. Background Plaintiff is a wholly-owned subsidiary of U.S. Bank National Association.1 Silvertown is a dissolved corporation that sold and manufactured silver goods in Brooklyn, New York.2 (Compl. 4.) According to New York State records, Friedman is the Chief Executive Officer (“CEO”) of Silvertown and resides in the state of New York. (Id.

7-8.) Werzberger owns one hundred percent of Silvertown and resides in the state of New Jersey. (Id.

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