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Global Merchant Cash Inc. v. Rome-Aire Servs. Inc.

Breach, RICO Counterclaims May Be Reasserted in Suit Over 'Receivables' Purchase

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OPINION & ORDER In the present action, plaintiff Global Merchant Cash Inc. (“GMC”) brings suit against defendants Rome-Aire Services, Inc.; Don Green Electric LLC; Emerald Management Group LLC; Emerald Law, PLLC; and Kiel Joseph Green. Initial Pleadings at 2, ECF No. 2-1 (“Complaint”). GMC’s claims are premised on defendants’ alleged breach of a contract (the “Agreement”) between the parties, see Merchant Agreement, ECF No. 27-2 (“Agreement”), in which GMC purported to purchase a portion of defendants’ receivables in exchange for immediate delivery of a specified purchase price, Complaint 6. Defendants asserted three counterclaims against GMC for (1) declaratory judgment, (2) breach of contract, and (3) civil RICO. Amended Answer

105-85, ECF No. 22 (“Answer”). Before me now is GMC’s fully briefed motion to dismiss defendants’ counterclaims.¹ For the reasons set forth below, I grant GMC’s motion to dismiss. I. Parties Plaintiff GMC is a company engaged in the “merchant cash advance” (“MCA”) industry. Answer 50. “MCA agreements are financial products, often marketed to small businesses through high-pressure sales operations…, that purport to purchase at a discount a portion of a business’s future receivables.” Haymount Urgent Care PC v. GoFund Advance, LLC, 609 F. Supp. 3d 237, 241 (S.D.N.Y. 2022). GMC is owned and operated by Jay Keller, who is “responsible for the day-to-day operations” of GMC and has “final say on all [of its] business decisions.” Answer

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