Gluco Perfect, LLC et al v. Perfect Gluco Products, Inc. et al

Filing 37

ORDER re 34 Letter filed by Gluco Perfect, LLC, 35 Letter filed by Perfect Gluco Products, Inc., Francine Freiman, William J. Gillen, USHH Products, Inc. Ordered by Judge Kiyo A. Matsumoto on 3/26/2014. (Keefe, Reed)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
------------------------------------x
GLUCO PERFECT, LLC, U.S. HEALTH &
HOME CARE, INC., and JOY MERNONE,
Individually and in her capacity
as Executor of the Estate of Kevin R.
Mernone, and derivatively on behalf
of PERFECT CARE, INC.,

ORDER
14-CV-1678 (KAM)

Plaintiffs,
-againstPERFECT GLUCO PRODUCTS, LLC, USHH
PRODUCTS, INC., FRANCINE FREIMAN,
WILLIAM J. GILLEN, ANDRE RAMNAUTH
and JOHN AND JANE DOES 1 THROUGH 10,
Defendants.
------------------------------------x
MATSUMOTO, United States District Judge
By letter dated March 25, 2014, plaintiffs Gluco
Perfect, LLC, U.S. Health & Home Care, Inc., and Joy Mernone,
individually and in her capacity as Executor of the Estate of
Kevin R. Mernone and derivatively on behalf of Perfect Care,
Inc. (collectively “plaintiffs”) request that the court order
the transfer of all of defendants’ 1 inventory located in a
warehouse at 1370 Frankton Street, Valley Stream, NY (“the
Valley Stream warehouse”) to plaintiffs.

Plaintiffs have

provided information, and defendants do not dispute, that
plaintiffs’ suppliers and customers have outstanding and time-

1

For the purposes of this order only, “defendants” refers to Perfect Gluco
Products, LLC, USHH Products, Inc., Francine Freiman, William J. Gillen, and
John and Jane Does 1 through 10, but not Andre Ramnauth, who is also named as
a defendant in the Complaint.

sensitive orders and that non-expired inventory exists in the
Valley Stream Warehouse to fill these orders.

(See Pls. Ltr.

dated Mar. 25, 2014, Ex. 1, ECF No. 34; Defs. Ltr. dated March
26, 2014, ECF No. 35.)

Both parties acknowledged at the TRO

hearing before the court that time is of the essence in this
case because much of the inventory at issue will expire in the
near future, and the court notes that defendant Freiman has
caused further delay of the case by dismissing her counsel of
record and requesting additional time to retain a new attorney.
(See Minute Entry of Proceedings Before Magistrate Judge Reyes
dated Mar. 25, 2014.)
As the parties know, it is a violation of the Order to
Show Cause and Temporary Restraining Order entered by the court
respectively on March 13 and 19, 2014 for defendants to, inter
alia, engage in any business related to any products originally
procured by plaintiffs or produced by plaintiffs’ vendors or
suppliers; represent that defendants, or any products or
services offered by defendants, or any activities undertaken by
defendants, are in any way associated with or related to
plaintiffs, or any products or services offered by plaintiffs;
represent that defendants manage, operate or participate in the
management or operation of the plaintiffs or any entities
associated with plaintiffs; use the name or otherwise infringe
upon the trade names or trademarks of any of the plaintiff
2

parties; use the name Perfect Gluco or USHH or similar names;
solicit any clients, suppliers or vendors of plaintiffs; and
transfer any assets or business interests to or from plaintiffs.
(Order to Show Cause ¶¶ 1-4, 7-11, ECF No. 4; TRO ¶¶ 2-4, 7-10,
ECF No. 25.)
Therefore, the court hereby orders that defendant
Francine Freiman, who appears to have sole control of the Valley
Stream warehouse, allow plaintiffs and their counsel access to
defendants’ inventory at the Valley Stream warehouse forthwith,
in the presence of both parties, and provide an accounting of
all inventory in the warehouse.

The court further orders that

defendants provide plaintiffs with all of defendants’ inventory
that is the subject of outstanding orders by plaintiffs’
customers; all inventory bearing any of plaintiffs’ marks; and
all inventory that has been obtained under the name Perfect
Gluco or USHH or that customers have ordered from Perfect Gluco
or USHH.

Plaintiffs shall account for this inventory and hold

any proceeds from the sale of such inventory in escrow, pending
further application by the parties.
The court will address the apparent violation of the
Temporary Restraining Order by Francine Freiman on a future
date, upon notice and an application by plaintiffs.

In the

interim, defendant Freiman shall ensure that she has provided
any records of the March 14, 2014 transaction identified by
3

plaintiffs to plaintiffs’ counsel, if she has not already done
so.

In addition to complying with the court’s order, the

parties shall submit a proposed modified schedule for
preliminary injunction briefing and hearing by March 28, 2014 if
they seek an adjournment of the hearing.

Because Joshua Siegel,

Esq. is still counsel of record for the Perfect Gluco
defendants, he shall serve the Perfect Gluco defendants with
this order immediately and file proof of service by March 27,
2014.

Plaintiffs shall also serve a copy of this order on all

defendants and file proof of service by close of business on
March 27, 2014.

SO ORDERED.

Dated:

March 26, 2014
Brooklyn, New York
___________/s/ _____________
Kiyo A. Matsumoto
United States District Judge
Eastern District of New York

4