thereafter sought return of the remainder of the security deposit. No payment has been
forthcoming. Plaintiff then commenced this action to recover $115,944.19 [FN1], the balance of its $400,000
security payment that it alleges defendant Developer was obligated to maintain in a segregated
escrow account, pursuant to the Lease Agreement, and sues for conversion. Developer
counterclaims and alleges that plaintiff remained liable for rent, taxes and insurance for an
additional three months after plaintiff vacated, pursuant to the First Rider of the Lease
Agreement.
Plaintiff now moves for summary judgment, pursuant to CPLR 3212, contending that
defendants' failure to deposit plaintiff's $400,000 security deposit into a segregated bank account,
as required by section 7-103 of the General Obligations Law, constitutes a conversion and [*3]entitles plaintiff to judgment as a matter of law. Plaintiff attaches
email correspondence between defendant Bruce Benjamin, one of Developer's members, and
Allen Gutterman, plaintiff's president, wherein Bruce Benjamin acknowledges that the security
deposit was never placed into a segregated bank account. Id., Exh L. In addition, plaintiff
contends that not only is defendant Developer liable for the conversion, but so are the individual
members of the LLC.
Further, movants seeks dismissal of defendants' counterclaim asserted against them for rent
and other charges under the Lease Agreement for the three months following plaintiff's vacatur
from the building, in the amount of $246,212.12. Plaintiff contends that it vacated the building in
accordance with the provisions of the Lease Agreement, by giving at least 90 days' notice and
vacating subsequent to the one year anniversary of the tenancy, and therefore no further amount