The opinion of the court was delivered by: Sweet, District Judge.
Plaintiffs Louis Varsames, Jr. and Paul Varsames
(collectively, "the Varsames") move for appointment of a
receiver pendente lite for Townsend Management I & II Corp.
("Townsend") and the real property located at 621-623 and
625-627 Manida Street, Bronx, New York (the "Manida Street
Property") or, in the alternative, for an interim order granting
them possession, management, and control of Townsend and the
Manida Street Property during the pendency of this action. This
motion is opposed by defendants Joseph Mangi, Eric Gladstein
("Gladstein"), Frank Bochicchio ("Bochicchio"), John Perykasz
("Perykasz"), Mangi Gladstein Properties Corp. ("Mangi Gladstein
Properties"), and Townsend Management I & II Corp. ("Townsend")
(collectively, the "Mangi Defendants"). For the reasons set
forth below, the motion for appointment of a receiver is denied,
and the motion for an interim order granting the Varsames
possession of the Townsend stock and, therefore, the right to
manage and control of Townsend and the Manida Street property is
Plaintiff Louis Varsames, Jr., is a resident of Florida.
Plaintiff Paul Varsames is a resident of Connecticut. The
Varsames are in the construction business.
Defendants Mangi and Gladstein are residents of New York.
Mangi and Gladstein are in the business of assisting persons in
purchasing properties and thereafter managing said properties.
Defendants Bochicchio and Perykasz are residents of New York.
Defendant Mangi Gladstein Properties is a corporation existing
under the laws of New York with its offices in Scarsdale, New
Defendant Townsend is a corporation existing under the laws of
New York with its principal place of business in Scarsdale, New
The complaint in the instant action was filed on February 22,
2000 alleging breach of contract, unjust enrichment, fraud,
violations of the Racketeer Influenced and Corrupt Organizations
Act ("RICO"), civil conspiracy, tortious interference with
contract relations, conversion, and negligent misrepresentation.
In their complaint the Varsames seek appointment of a receiver
over Townsend and the Manida Street Property, damages, and
rescission of the contract.
Oral argument was heard on the motion for a receiver on March
15, 2000 by this Court. The Court reserved decision on the
motion and scheduled an expedited trial for May 1, 2000. At a
hearing held on April 5, 2000, however, the Court informed the
parties that the trial would have to be postponed and that the
Court would consider a renewed request for appointment of a
The Varsames filed the instant motion on April 17, 2000. The
parties had previously submitted pleadings, affidavits, and
exhibits in relation to the motion. No evidentiary hearing was
held or required with respect to the motion in the alternative
for injunctive relief. The evidence in the form of affidavits
and exhibits was sufficient based on the circumstances of the
case and, moreover, the underlying facts upon which the motion
turns are either undisputed or resolution of any existing
disputes will not affect the Varsames' entitlement to the relief
granted herein. See Drywall Tapers & Pointers Local 1974 v.
Local 530, 954 F.2d 69, 76-77 (2d Cir. 1992); Brown v.
Giuliani, 158 F.R.D. 251, 254 (E.D.N.Y. 1994). Oral argument
was heard on May 3, at which time the matter was deemed fully
Also pending before the Court is a motion joined in by all
defendants to dismiss the RICO and civil conspiracy claims in
the Varsames complaint, and a motion by the Varsames to dismiss
the Mangi Defendants' counterclaims.*fn1 The Court reserves
decision on these motions.
In or about February 1999, discussions occurred between the
Varsames and Gladstein, Mangi, and Frank Palazzolo ("Palazzolo")
about a real estate investment involving the purchase and
management of an apartment complex located ...