IN RE: the LCF Group (2026)

NYSCEF docs. 1 through 12 were read and considered in deciding this petition.

Relief Requested

The petitioner commenced this proceeding pursuant to CPLR article 75 to confirm an arbitration award.

Background

This matter stems from a breach of contract ("the contract") entered into by the petitioner and the respondent Boyd's Steel Supply and Trailer Parts, LLC d/b/a Boyd's Steel Supply and Trailer Parts ("company respondent") on September 4, 2025, for the sale of future receivables. According to the contract, the respondent Jeremy Herring ("guarantor") executed a personal guaranty of all the obligations of the company respondent set forth in the contract. Additionally, the parties agreed to arbitrate any dispute arising from the contract. On or about October 31, 2025, the respondents allegedly defaulted by failing to comply with the terms of the contract.

According to the petition, the petitioner commenced arbitration on or about January 14, 2026. In an arbitration award dated April 7, 2026, the arbitrator, Andrew W. Levin, determined that the claimant (petitioner herein) is entitled to $54,913.50 (see Exhibit 1). The arbitrator stated in pertinent part:

Principal Balance. Respondents Boyd's Steel Supply and Trailer Parts, LLC d/b/a Boyd's Steel Supply and Trailer Parts and Jeremy Herring, jointly and severally, shall pay Claimant The LCF Group, Inc. the sum of $37,357.31 representing the outstanding purchased amount balance under the Agreement. Default Fee. Respondents shall pay Claimant the sum of $2,500.00 representing the contractual default fee under Section 1.14(II)(c) of the Agreement. Stop Payment Fee. Respondents shall pay Claimant the sum of $2,500.00 representing the contractual stop payment fee under Section 1.14(II)(b) of the Agreement. NSF Fees. Respondents shall pay Claimant the sum of $105.00 representing three NSF fees of $35.00 each under Section 1.14(II)(a) of the Agreement. Collection Fee. Respondents shall pay Claimant the sum of $12,451.19 representing the contractual collection fee, liquidated at 33.33% of the outstanding purchased amount balance, under Section 1.14(II) of the Agreement. Total Award. The total amount awarded is $54,913.50, exclusive of interest. Pre-Award Interest. Pre-award interest shall accrue on the principal balance of $37,357.31 at the rate of 9% per annum pursuant to CPLR §§ 5001 and 5004, calculated from October 31, 2025 through the date of this award. Post-Award Interest. Post award interest shall accrue on the total award at the rate of 9% per annum from the date of this award until paid in full. Guaranty. Jeremy Herring is jointly and severally liable for all amounts awarded herein pursuant to the Personal Guaranty of Performance executed September 4, 2025

(Id.).

On April 15, 2026, the petitioner commenced this proceeding to confirm the arbitration award. According to affirmations of service, the respondents were served with the verified petition and supporting papers (see NYSCEF docs. 10, 12). Service was effectuated upon the company respondent by leaving the commencement papers with the guarantor, a registered agent who is authorized by appointment or by law to accept service on behalf of the company respondent, and via first class mail (see NYSCEF doc. 10). Service was effectuated upon the guarantor by personally serving him with the commencement papers and via first class mail (see NYSCEF doc. 12).

The respondents did not submit opposition papers.

Law and Application

This Court finds that it does not have jurisdiction over the respondents. "Ordinarily a court can acquire jurisdiction of the person of a defendant only by service of process within the jurisdiction of the court; but that rule does not apply where the defendant has agreed in advance to accept, or does in fact accept, some other form of service as sufficient" (Matter of New Brunswick Theol. Seminary v Van Dyke, 184 AD3d 176, 179 [2d Dept 2020] [internal quotation marks omitted]; see Alfred E. Mann Living Trust v. ETIRC Aviation S.A.R.L., 78 AD3d 137, 140 [1st Dept 2010]; see also Putnam Leasing Co. v Sweet, 2015 NY Misc LEXIS 5896, at *3 [Sup Ct, Nassau County Aug. 4, 2015, No. 602836/15]).

Here, in paragraph 3.3 of the contract, the "notices" paragraph of the personal guaranty, and paragraph 18 of the security agreement, the parties agreed that "[e]ach of the signatories . . . irrevocably consents to service of process by Certified Mail at the address listed" in the relevant sections (Exhibit 2). Since the methods of service were contrary to the terms of the contract and guaranty, service was ineffective and therefore, this Court does not have jurisdiction over the respondents (see Matter of Republique Francaise [Cellosilk Mfg. Co.], 309 NY 269, 279 [1955] ["(t)he method of service by which parties have agreed to be bound must be complied with according to the exact terms thereof in order that the requirements of due process be satisfied"]; cf. Teresta v New York, 304 NY 440, 442 [1952]; Romer v W. Chamson Corp., 210 AD2d 7 [1st Dept 1994]).

In light of this determination, the petition must be denied.

Conclusion

Accordingly, it is hereby,

ORDERED, that the petition to confirm the arbitration award is DENIED.

This shall constitute a decision and order of this Court.

Dated: August 24, 2026

Mineola, New York

E N T E R:

HON. SARIKA KAPOOR, A.J.S.C.

Sarika Kapoor, J.