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Clinton County Supreme Court Justice Paul E. Davenport recently granted Carter Ledyard's motion for reargument and renewal of a revenue purchase agreement ("RPA") funder's motion for summary judgment in Apollo Funding Co. v. Green Mountain Transportation LLC, Clinton Co. Sup. Ct. Index No. 2025-00024619.
The court had previously denied summary judgment based on a perceived ambiguity in the agreement's guaranty provisions concerning bankruptcy. The court initially believed that may render the agreement a loan subject to usury law—an issue the defendants never raised. Carter Ledyard moved for reconsideration and demonstrated that not only was the provision unambiguous, but the Appellate Division, Second Department, has held that a virtually identical agreement from the same funder was not a loan in Carter Ledyard's successful appeal in Apollo Funding Co. v. Dave Reilly Construction, LLC.
The court agreed, holding that it was bound by the Dave Reilly precedent, under which all three factors of the established test were clearly and unequivocally met and the agreement was a purchase of receivables that should be enforced.
"The decision illustrates the importance of creating favorable appellate precedent," said Carter Ledyard partner, Jacob H. Nemon. "New York's lower courts are bound to follow the decision we previously obtained for our client in Dave Reilly. Carter Ledyard has not only ensured greater predictability for litigation purposes, but also for RPA funders entering agreements with the confidence that they will be enforced."
Carter Ledyard partner Jacob H. Nemon represented Apollo Funding Co. on the motion.
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