Edelman Arts, Inc. v. Spoelstra et al

Filing 126

MEMORANDUM OPINION AND ORDER for 121 Report and Recommendations. The Court therefore adopts the Report and Recommendation in all respects except the calculation of the prejudgment interest. The Clerk is directed to enter judgment in favor of the plaintiffs and against the defendants in the amount of $5,700,000, of which $1,000,000 is to be retained in escrow by the Court until the plaintiff presents evidence that the plaintiff has satisfied the judgment against it in the amount of $1,000,000 entered in Edelman Arts, Inc. v. N.Y. Art World, LLC, No. 652017/2018, 2019 WL 6700444 (N.Y. Sup. Ct. Dec. 9, 2019). The judgment should also include prejudgment interest calculated by the Clerk at the annual rate of nine percent from December 15, 2016 to the date judgment is entered. The Clerk is also directed to close all pending motions and to close this case.SO ORDERED., (Signed by Judge John G. Koeltl on 3/7/21) (yv) Transmission to Finance Unit (Cashiers) for processing. Transmission to Orders and Judgments Clerk for processing.

Case 1:17-cv-04789-JGK-SN Document 126 Filed 03/07/21 Page 1 of 2

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
────────────────────────────────────
EDELMAN ARTS, INC.,
Plaintiff,
- against REMKO SPOELSTRA, JASON HOLLOWAY, SSR
INVEST SWITZERLAND, SWISS BUSINESS
COUNCIL and JOHN DOE,

17-cv-4789 (JGK)
MEMORANDUM OPINION
AND ORDER

Defendants.
────────────────────────────────────
JOHN G. KOELTL, District Judge:
The Court has reviewed the Report and Recommendation of
Magistrate Judge Netburn dated January 11, 2021. ECF No. 121.
The Magistrate Judge found that the defendants were liable to
the plaintiffs for $5,700,000 million, of which $1,000,000
should be retained in escrow by the Court, together with prejudgment interest.
No objections have been filed to the Report and
Recommendation, and the time for any objections has passed. In
any event, the Court finds that the detailed Report and
Recommendation is well reasoned and correct and should be
adopted with respect to the award of damages. However, with
respect to the prejudgment interest, the Report and
Recommendation erred in calculating the amount due based on the
prejudgment period from December 15, 2016 to April 24, 2019, the
date the Court determined that a default judgment should be

Case 1:17-cv-04789-JGK-SN Document 126 Filed 03/07/21 Page 2 of 2

entered against the defendants. The prejudgment period does not
end until the Court enters the final judgment. See FTI
Consulting, Inc. v. Rossi, 332 F. Supp. 2d 677, 678 (S.D.N.Y.
2004) (concluding that the prejudgment interest period did not
end until the date that the judgment was entered). Accordingly,
the prejudgment interest must be adjusted to reflect the period
through the entry of the judgment.
The Court therefore adopts the Report and Recommendation in
all respects except the calculation of the prejudgment interest.
The Clerk is directed to enter judgment in favor of the
plaintiffs and against the defendants in the amount of
$5,700,000, of which $1,000,000 is to be retained in escrow by
the Court until the plaintiff presents evidence that the
plaintiff has satisfied the judgment against it in the amount of
$1,000,000 entered in Edelman Arts, Inc. v. N.Y. Art World, LLC,
No. 652017/2018, 2019 WL 6700444 (N.Y. Sup. Ct. Dec. 9, 2019).
The judgment should also include prejudgment interest calculated
by the Clerk at the annual rate of nine percent from December
15, 2016 to the date judgment is entered. The Clerk is also
directed to close all pending motions and to close this case.
SO ORDERED.
Dated:

New York, New York
March 7, 2021

__

/s/ John G. Koeltl________
John G. Koeltl
United States District Judge

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