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Filed: New York County Clerk 02/26/2021 07:07 Pm Index No FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION MARY L. TRUMP, Index No. 654698/2020 Plaintiff, v. Justice O. Peter Sherwood DONALD J. TRUMP, in his personal capacity, Part 49 MARYANNE TRUMP BARRY, and SHAWN HUGHES, the executor of the ESTATE OF ROBERT S. Motion Sequences 001, 002 TRUMP, in his capacity as executor, ORAL ARGUMENT Defendants. REQUESTED PLAINTIFF MARY L. TRUMP’S OPPOSITION TO DEFENDANTS’ MOTIONS TO DISMISS Roberta A. Kaplan John C. Quinn Alexander J. Rodney KAPLAN HECKER & FINK LLP 350 Fifth Avenue, Suite 7110 New York, New York 10118 Counsel for Plaintiff Mary L. Trump 1 of 41 FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 TABLE OF CONTENTS TABLE OF AUTHORITIES ......................................................................................................... iii PRELIMINARY STATEMENT .................................................................................................... 1 FACTUAL BACKGROUND ......................................................................................................... 4 A. Mary Inherits Various Interests in the Trump Family Business ............................. 4 B. Defendants Seize Control of the Family Business .................................................. 4 C. Fraud #1: The Grift ................................................................................................ 5 D. Fraud #2: The Devaluing ....................................................................................... 6 E. Fraud #3: The Squeeze-Out ................................................................................... 7 F. The New York Times Investigative Report Begins to Reveal Defendants’ Frauds Years Later ................................................................................................ 10 STANDARD OF REVIEW .......................................................................................................... 11 ARGUMENT ................................................................................................................................ 11 I. DEFENDANTS DO NOT ESTABLISH UNTIMELINESS. ........................................... 11 A. Defendants Do Not Make a Prima Facie Case That Mary Was on Inquiry Notice of Her Claims Prior to October 2018. ....................................................... 13 B. Reasonable Diligence Would Not Have Uncovered the Fraud. ........................... 18 C. Mary’s Breach of Fiduciary Duty Claims Are Likewise Timely Under the Discovery Rule...................................................................................................... 20 II. DEFENDANTS DO NOT ESTABLISH THAT MARY’S CLAIMS WERE RELEASED. ..................................................................................................................... 21 A. Defendants Cannot Show That the Release Unambiguously Covers the Claims at Issue Here. ............................................................................................ 22 B. The Release Is Unenforceable in Any Event. ....................................................... 25 III. DEFENDANTS’ MISCELLANEOUS ARGUMENTS FOR PARTIAL DISMISSAL FAIL............................................................................................................ 27 A. Mary Has Standing to Assert Fiduciary Duty Claims Based on Conduct Before 2001. .......................................................................................................... 28 2 of 41 FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 B. The Complaint Properly Alleges Justifiable Reliance in Connection with Fraud in the Same Period. ..................................................................................... 30 C. The Complaint Properly Alleges a Civil Conspiracy. .......................................... 31 CONCLUSION ............................................................................................................................. 32 ii 3 of 41 FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 TABLE OF AUTHORITIES Page(s) Cases 6D Farm Corp. v. Carr, 63 A.D.3d 903 (2d Dep’t 2009) ................................................................................................ 12 Abrams v. Donati, 66 N.Y.2d 951 (1985) ............................................................................................................... 28 Am. Gen. Home Equity, Inc. v. Gjura, No. 102365/2009, 2010 WL 2984344 (Sup. Ct., N.Y. Cty. July 16, 2010) ............................. 31 Amsterdam Hospitality Group v. Marshall-Alan Assoc., 120 A.D.3d 431 (1st Dep’t 2014) ............................................................................................. 13 Anderson ex rel. Anderson, Weinroth & Co., L.P. v. Weinroth, 48 A.D.3d 121 (1st Dep’t 2007) ............................................................................................... 30 Aozora Bank, Ltd. v. Credit Suisse Grp., 144 A.D.3d 437 (1st Dep’t 2016) ................................................................................. 14, 15, 17 Arfa v. Zamir, 76 A.D.3d 56 (1st Dep’t 2010) ........................................................................................... 23, 27 Berman v. Holland & Knight, LLP, 156 A.D.3d 429 (1st Dep’t 2017) ............................................................................................. 17 Bloss v. Va’ad Harabonim of Riverdale, 203 A.D.2d 36 (1st Dep’t 1994) ............................................................................................... 27 Brawer v. Lepor, No. 652334/2017, 2019 WL 1901380 (Sup. Ct., N.Y. Cty. Apr. 29, 2019) ............................. 30 Brawer v. Lepor, 188 A.D.3d 482 (1st Dep’t 2020) ............................................................................................. 30 C&A Seneca Constructions LLC v. G Builders LLC, 67 Misc.3d 1241(A) (Sup. Ct., N.Y. Cty. July 10, 2020) ................................................... 21, 23 Cahill v. Regan, 5 N.Y.2d 292 (1959) ........................................................................................................... 22, 23 Center v. Hampton Affiliates, Inc., 66 N.Y.2d 782 (1985) ............................................................................................................... 17 iii 4 of 41 FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 Centro Empresarial Cempresa S.A. v. America Movil, S.A.B. de C.V., 17 N.Y.3d 269 (2011) ............................................................................................. 21, 22, 24, 25 Ciullo v. Orange & Rockland Utils., Inc., 271 A.D.2d 369 (1st Dep’t 2000) ............................................................................................. 28 Cohen Bros. Realty Corp. v. Mapes, 181 A.D.3d 401 (1st Dep’t 2020) ....................................................................................... 31, 32 CSAM Capital, Inc. v. Lauder, 67 A.D.3d 149 (1st Dep’t 2009) ............................................................................. 13, 17, 18, 20 D.K. Prop., Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, 168 A.D.3d 505 (1st Dep’t 2019) ............................................................................................. 11 Demian v. Calmenson, 156 A.D.3d 422 (1st Dep’t 2017) ............................................................................................. 11 Desiderio v. Geico Gen. Ins. Co., 107 A.D.3d 662 (2d Dep’t 2013) .............................................................................................. 21 Epiphany Cmty. Nursery Sch. v. Levey, 171 A.D.3d 1 (1st Dep’t 2019) ............................................................. 12, 13, 15, 16, 18, 19, 30 Erbe v. Lincoln Rochester Tr. Co., 3 N.Y.2d 321 (1957) ........................................................................................................... 13, 17 Estate of Mautner v. Alvin H. Glick Irrevocable Grantor Tr., No. 19 Civ. 2742, 2019 WL 6311520 (S.D.N.Y. Nov. 25, 2019) ............................................ 21 Faison v. Lewis, 25 N.Y.3d 220 (2015) ......................................................................................................... 11, 14 Flowers v. 73rd Townhouse LLC, 99 A.D.3d 431 (1st Dep’t 2012) ............................................................................................... 13 Fraternity Fund Ltd. v. Beacon Hill Asset Mgmt. LLC, 376 F. Supp. 2d 385 (S.D.N.Y. 2005)....................................................................................... 29 Gibli v. Kadosh, 279 A.D.2d 35 (1st Dep’t 2000) ............................................................................................... 25 Gjuraj v. Uplift Elevator Corp., 110 A.D.3d 540 (1st Dep’t 2013) ............................................................................................. 29 Hillman v. City of N.Y., 263 A.D.2d 529 (2d Dep’t 1999) .............................................................................................. 12 iv 5 of 41 FILED: NEW YORK COUNTY CLERK 02/26/2021 07:07 PM INDEX NO. 654698/2020 NYSCEF DOC. NO. 69 RECEIVED NYSCEF: 02/26/2021 IDT Corp. v. Morgan Stanley Dean Witter & Co., 12 N.Y.3d 132 (2009) ..............................................................................................................
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