The opinion
Wells Fargo Bank, N.A. v David Herzog LLC
2026 NY Slip Op 30723(U)
February 19, 2026
Supreme Court, New York County
Docket Number: Index No. 850222/2025
Judge: Francis A. Kahn III
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
Op 30001(U), are republished from various New York
State and local government sources, including the New
York State Unified Court System's eCourts Service.
This opinion is uncorrected and not selected for official
publication.
file:///LRB-ALB-FS1/Vol1/ecourts/Process/covers/NYSUP.8502222025.NEW_YORK.001.LBLX000_TO.html[03/10/2026 3:45:55 PM]
!FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 PM! INDEX NO. 850222/2025
NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026
SUPREME COURT OF THE STATE OF NEW YORK
NEW YORK COUNTY
PRESENT: HON. FRANCIS A. KAHN, Ill PART 32
Justice
---------------------------------------------------------------------------------X INDEX NO. 850222/2025
WELLS FARGO BANK, NATIONAL ASSOCIATION, AS
MOTION DATE
TRUSTEE, FOR THE BENEFIT OF THE REGISTERED
HOLDERS OF GS MORTGAGE SECURITIES TRUST
2020-GSA2 COMMERCIAL MORTGAGE PASSTHROUGH MOTION SEQ. NO. 002
CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER,
Plaintiff,
- V -
DECISION + ORDER ON
DAVID HERZOG LLC,MICHAEL HERZOG LLC,DAVID
HERZOG, MICHAEL HERZOG, CITY OF NEW YORK MOTION
DEPARTMENT OF FINANCE, CITY OF NEW YORK
ENVIRONMENTAL CONTROL BOARD , JOHN DOE , JANE
DOE, XYZ CORPORATION, ENDEAVOR GUIDANCE , LLC
Defendant.
-----------------------------------------------------------------------X
The following e-filed documents, listed by NYSCEF document number (Motion 002) 65, 66, 67, 68 , 69 ,
70, 71, 72 , 73 , 74, 75, 76, 77 , 78, 79, 80, 81, 82 , 83, 84 , 85 , 86 , 87, 88, 89, 90 , 91 , 92, 93, 94 , 95, 96 , 97,
98, 99, 100, 101, 102, 103
were read on this motion to/for APPOINT - FIDUCIARY
Upon the foregoing documents, the motion is determined as follows :
In this action, Plaintiff seeks to foreclose on an amended, restated and consolidated mortgage,
dated November 5, 2020, encumbering a parcel of improved real property located at 57 West 86 th Street,
New York, New York. Plaintiff commenced this action wherein it is alleged Defendants defaulted
under the loan documents by, inter alia, failing "to make full and timely monthly payments since at least
June 2024". Now, Plaintiff moves pursuant to RPL §254[10] and RPAPL §1325[1] for the appointment
of a temporary receiver of the rents of the mortgaged premises. Mortgagor and Guarantor Defendants
oppose the motion.
Under Real Property Law §254[1 0], the appointment of a receiver in the event of a default is
proper where the parties to the mortgage agree to same even without notice or without regard to the
sufficiency of security (see ADHY Advisors LLC. v 530 W 152nd St. LLC, 82 AD3d 619 [I5 1 Dept
2011]; 366 Fourth St. Corp. v Foxfire Enters., 149 AD2d 692 [2 nd Dept 1989]). Despite the parties'
assent, the appointment is not perfunctory and the Court, in the exercise of its equitable power, retains
the discretion to deny the appointment of a receiver (see ADHY Advisors LLC. v 530 W 152nd St. LLC,
supra; Nechadim Corp. v Simmons, 171 AD3d 1195, 1197 [2d Dept 2019]).
850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 1 of 5
BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2
COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER vs. DAVID HERZOG LLC ET AL
Motion No. 002
[* 1] 1 of 5
!FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025
NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026
Section l0[a][vii] of the Mortgage provides, in pertinent part, as follows:
(a) Upon the occurrence of any Event of Default, Mortgagee may take such action,
without notice or demand, as it deems advisable to protect and enforce its rights against
Mortgagor and in and to the Mortgaged Property, by Mortgagee itself or otherwise,
including the following actions, each of which may be pursued concurrently or otherwise,
at such time and in such order as Mortgagee may determine, in its sole discretion, without
impairing or otherwise affecting the other rights and remedies of Mortgagee:
(vii) apply for the appointment of a trustee, receiver, liquidator or conservator of the
Mortgaged Property, without notice and without regard for the adequacy of the security
for the Debt and without regard for the solvency of Mortgagor or of any person, firm or
other entity liable for the payment of the Debt.
In the present case, it is undisputed that the parties' mortgage provides that Plaintiff may apply
for the appointment of a receiver and Plaintiff pied that Defendants, inter alia , defaulted in repayment of
the indebtedness, a default event under the loan documents. Accordingly, Plaintiff established its
entitlement to the appointment of a receiver of the mortgaged premises (see eg SKW Hillside Bleeker
Lender LLC v 145 Bleeker LLC, 217 AD3d 536 [1 st Dept 2023]; CSFB 2004-CJ Bronx Apts LLC v
Sinckler, Inc., 96 AD3d 680 [l5t Dept 2012]). In opposition, Defendants have not demonstrated that
denial of the appointment of a receiver is an appropriate exercise of the Court' s discretion (see id.; US
Bank, NA. v Rufai, 202 AD3d 719, 721 [2d Dept 2022]; Shaw Funding, LP v Bennett, 185 AD3d 857,
858 [2 nd Dept 2020]).
In opposition, Defendants have not demonstrated that denial of the appointment of a receiver is
an appropriate exercise of the Court' s discretion (se e id.; US Bank, NA. v Rufai, 202 AD3d 719, 721 [2d
Dept 2022]; Shaw Funding, LP v Bennett, 185 AD3d 857, 858 [2 nd Dept 2020]). To the extent
Defendants' opposition is based on cases where appointment of a receiver was sought pursuant to CPLR
§640 I it is unavailing (see eg Groh v Halloran, 86 AD2d 30 [1 st Dept 1982]). The Appellate Division
cases are clear that where, as here, the mortgage contains a provision that a lender may apply for a
receiver, the mortgagor may seek such relief "' regardless of proving the necessity for the appointment'"
(see GECMC 2007-C 1 Ditmars Lodging, LLC v Mohola, LLC, 84 AD3d 1311 , 1312 [2d Dept 2011 ],
citing Naar v. I.J Litwak & Co., 260 AD2d 613 [2d Dept 1999]; see also SKW Hillside Bleeker Lender
LLC v 145 Bleeker LLC, supra).
The claim that presently unpled defenses and other purported deficiencies in Plaintiffs action
defeat this motion is without merit. A plaintiff "may apply for the appointment of a receiver, without
notice and without regard for adequacy of the security for the debt, and without requirement that
plaintiff demonstrate more than what is required by Real Property Law § 254(1 0)" (SKW Hillside
Bleecker Lender, LLC v 145 Bleecker LLC, 217 AD3d 536, 537 [l st Dept 2023][emphasis added]).
Indeed, "[c]ases hold that a receiver may be appointed so long as an action has been commenced"
(HSBC Bank USA, NA. v Rubin, 210 AD3d 73 , 83 [2d Dept 2022]).
Accordingly, it is
850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 2 of 5
BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2
COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER vs. DAVID HERZOG LLC ET AL
Motion No. 002
2 of 5
[* 2]
!FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025
NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026
ORDERED that the motion for the appointment of a Temporary Receiver is granted; and it is
further
ORDERED that Michael Besin (FID #986171) is hereby appointed with the usual powers and
directions of a Temporary Receiver for the benefit of Plaintiff of all the rents and profits now due and
unpaid or become due during the pendency of this action and issuing out the mortgaged property
mentioned located at 57 West 86th Street, New York, New York; and it is further
ORDERED that the Temporary Receiver is authorized to take charge and enter into possession
of the property; and it is further
ORDERED that before entering her/his duties, the Temporary Receiver shall be sown to fairly
and faithfully discharge the duties committed to him and shall execute to the People of the State of New
York and file with the Clerk of the Court an undertaking in the sum of $200,000.00 conditioned for the
faithful discharge of the duties of Temporary Receiver; and it is further
ORDERED that the Temporary Receiver is hereby directed to demand, collect and receive from
the occupants, tenants and licensees in possession of said premises, or other persons liable therefor,
inclusive of the mortgagor, all the rents and license fees thereof now due or unpaid or hereafter that
become fixed or due and the Temporary Receiver is authorized to institute and carry on all legal
proceedings necessary for the protection of said premises or to recover possession of the whole, or any
part thereof, and apply to this Court to fix reasonable rental value and license fee value and to compel
the tenants and occupants to attorn to the Temporary Receiver; and it is further
ORDERED that the Temporary Receiver may institute and prosecute suits for the collection of
rent, license fees and other charges now due or hereafter to become due and fixed, and summary
proceedings for the removal of any tenants or licensees or other persons therefrom; and it is further
ORDERED that pursuant to the General Obligation Law section 7-105 , anybody holding
any deposits or advances of rental as security under any lease or license agreement affecting space in the
premises affected by this action shall turn same over to said Temporary Receiver within five (5) days
after said Temporary Receiver shall be qualified; and thereupon the said Temporary Receiver shall hold
such security subject to such disposition thereof as shall be provided in an Order of the Court to be made
and entered in this action; and it is further
ORDERED that anybody in possession of same shall turn over to said Temporary Receiver all
rent lists, orders, unexpired and expired leases, agreements, correspondence, notices and registration
statements relating to rental spaces or facilities in the premises; and it is further
ORDERED that notwithstanding anything to the contrary contained in this order, the
Temporary Receiver shall not, without the further, prior order of this Court, upon prior notice to the
plaintiff, make improvements or substantial repairs to the property at a cost in excess of $5,000.00,
except that in an emergency, if funds need to be expended in excess of $5,000.00 or would otherwise
require Court intervention, no Court approval will be necessary if counsel for plaintiff agrees in writing
that the receiver may make such disbursement; and it is further
850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page J of 5
BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2
COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER vs. DAVID HERZOG LLC ET AL
Motion No. 002
[* 3] 3 of 5
!FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025
NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026
ORDERED that the Temporary Receiver shall deposit all monies received by her/him into any
FDIC-insured bank where she has an account for this purpose and such account shall show the name of
this action and the Temporary Receiver shall furnish plaintiff's attorneys with monthly statements of the
receipts and expenditures of the Receivership together with a photocopy of the monthly statements
received from said depository and no withdrawals shall be made therefrom except as directed by the
Court or on a draft or check signed by the Temporary Receiver; and it is further
ORDERED that the Temporary Receiver is authorized from time to time to rent and lease any
part of the premises for terms not exceeding five (5) years or such longer terms as may be required by
applicable laws or regulations; to keep the premises insured against loss by damage or fire; to pay the
taxes, assessments, water rates, sewer rates, vault rents, salaries of employees, supplies and other
charges; to comply with all lawful requirements of any municipal department or other authority of the
municipality in which the mortgaged premises are situated and to procure such fire, liability and other
insurance as may be reasonably necessary; and it is further
ORDERED, that the tenants, licensees or other persons in possession of said premises attorn to
the Temporary Receiver and pay over to the Temporary Receiver all rents, license fees, and other
charges of such premises now due and unpaid or that may hereafter become due; and that the defendants
be enjoined and restrained from collecting the rents, license fees and other charges of said premises from
interfering in any manner with the property or its possession; and from transferring, removing or in any
way disturbing and of the occupants or employees; and that all tenants, occupants, employees and
licensees of the premises and other persons liable for the rents be and hereby are enjoined and restrained
from paying any rent or license fees or other charges for such premises to the defendants, their agents,
servants or attorneys; and it is further
ORDERED that the Temporary Receiver is prohibited from incurring obligations in excess of the
monies in her hands without further Order of this Court or written consent of Plaintiff's attorney and
Plaintiff may advance money, which can be recouped in this litigation; and it is further
ORDERED that the Owner turn over to the Temporary Receiver all rents collected from and
after the date of this Order; and it is further
ORDERED that all persons now and hereafter in possession of said premises, or any part
thereof, and not holding such possession under valid and existing leases or tendencies, do forthwith
surrender such possession to the Temporary Receiver, subject to emergency laws, if any, and it is further
ORDERED that the Temporary Receiver after paying the expenses of the management and care
of the said premises as above provided retain the balance of the monies which may come into his hands
until the sale of the said premises under the judgment to be entered in this action and/or until further
Order of this Court, and it is further
ORDERED that the Temporary Receiver, or any party hereto, may at any time, on proper notice
to all parties who have appeared in this action, apply to the Court for further and other instructions or
powers necessary to enable the Temporary Receiver to properly fulfill her duties or for interim fee
payments; and it is further
850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 4 of 5
BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2
COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER vs. DAVID HERZOG LLC ET AL
Motion No. 002
4 of 5
[* 4]
!FILED: NEW YORK COUNTY CLERK 02/26/2026 04:38 P~ INDEX NO. 850222/2025
NYSCEF DOC. NO. 105 RECEIVED NYSCEF: 02/26/2026
ORDERED that the appointed named herein shall comply with Section 35a of the Judiciary Law,
Sections 6401-6404 of the CPLR, Section 1325 of RP APL and Rule 36 of the Chief Judge; and it is
further
ORDERED that notwithstanding any other provision of this order, the Temporary Receiver shall
not appoint an attorney, managing agent, appraiser, auctioneer or accountant without prior order of this
Court, and that the receiver shall apply to the court and file a separate application for appointment of a
managing agent, attorney or other managing services pursuant to 36.1 of the Uniform Court Rules.
2/19/2026
DATE FANCIS A. KAHN, Ill, A.J.S.C.
CHECK ONE: CASE DISPOSED WO~lrsRAWCIS A. KAHN Ill
GRANTED □ DENIED GRANTED IN PART □ OTHJ. S . C .
APPLICATION: SETTLE ORDER SUBMIT ORDER
CHECK IF AP PR OP RIA TE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT □ REFERENCE
850222/2025 WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, FOR THE Page 5 of 5
BENEFIT OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES TRUST 2020-GSA2
COMMERCIAL MORTGAGE PASSTHROUGH CERTIFICATES, SERIES 2020-GSA2, AND THE RR
INTEREST OWNER vs. DAVID HERZOG LLC ET AL
Motion No. 002
5 of 5
[* 5]