"RK Centers include an acceleration clause in their typical leases with their tenants"Have RK Centers included the same acceleration clause together with Raanan Katz "GOTCHA" clause in RK CENTERS "typical leases" with the large corporations such as CVS Pharmacy, Publix, Winn Dixie, Bank Of America, and etc. OR, Raanan Katz, RK Centers "GOTCHA", acceleration clauses are applicable exclusively to small businesses?
Below is Daniel Katz testimony done in Miami Court on May15, 2012.
"BY MR. LEVINE:
22 Q. For purposes of shorthand, I would like to call
23 the blog located at blogspot.com, the blog spot, or the
24 U.S. blog, and the blog that's located at blog.co.uk, the
25 U.K. blog. Okay?
1 A. Okay.
2 Q. So for purposes of today's testimony, when I ask
3 you questions about the U.S. blog, I'm referring to
4 blogspot, and the U.K. blog, I'm referring to blog.co.uk.
5 Okay?
6 A. Okay.
7 Q. Mr. Katz, would you please turn behind Tab 6 in
8 the notebook that we presented to you, which has been
9 marked as Plaintiffs' Exhibit 1 for today. Are you there?
10 A. Yes.
11 Q. Would you please read the title of this blog into
12 the record.
13 A. RK Associates and Commercial Lease Fraud.
14 Q. And this blog, this entry appeared on the U.S.
15 blog on May 16th, 2011; is that correct?
16 A. Correct.
17 Q. And it was posted -- can you read the bottom who
18 posted this blog? At the very bottom, above recommend.
19 A. Always True.
20 Q. I'm sorry?
21 A. Always True.
22 Q. It's the name of the blogger, Always True?
23 A. Correct.
24 Q. Okay. And the name of the blog is RK Associates
25 and Commercial Lease Fraud, correct?
1 A. Correct.
2 Q. The beginning of the blog defines commercial
3 lease fraud as a term that covers a number of unfair and
4 deceptive trade practices, correct?
5 A. Correct.
6 Q. Okay. I'd like you to go and read aloud the
7 portion below the five bullet points. Do you know what I
8 mean by bullet points?
9 A. Yes.
10 Q. Okay. Would you read that part into the record,
11 please.
12 A. RK Associates and Raanan Katz induce tenants to
13 sign commercial lease that allows them to financially
14 benefit when a tenant breaches the lease. For example, if
15 a tenant with 5 year lease alleged in breach of the lease
16 on the first year, according to their lease, the tenant
17 must pay them instantly the remaining 4 years of the
18 lease. When they lease to the next tenant with the same
19 story, they can claim from the new tenant damages for the
20 same space for the same period of time. According to the
21 court documents, it is not unusual for RK Associates and
22 Raanan Katz to do the following.
23 Q. Okay. Let's stop right there.
24 Are you familiar with an acceleration clause?
25 A. Yes, I am.
1 Q. What is an acceleration clause?
2 THE COURT: And so is the court, so move on.
3 MR. LEVINE: I'm sorry?
4 THE COURT: I'm familiar with them as well.
5 MR. LEVINE: Okay.
6
7 Q. Acceleration clauses are legal, correct? Is the
8 blogger referring to an acceleration?
9 MR. KAIN: Objection, Your Honor.
10 THE COURT: Yes. Sustained.
11 MR. KAIN: The witness is not here to --
12 THE COURT: No, he is not. I am familiar
13 with an acceleration clause. I guess you could ask
14 him was there an acceleration clause.
15 BY MR. LEVINE:
16 Q. Does RK Associates and RK Centers include an
17 acceleration clause in their typical leases with their
18 tenants?
19 A. Yes, we do. It's standard industry practice.
20 Q. And I forgot to ask you: What business is RK
21 Centers and RK Associates engaged in?
22 A. Commercial real estate development and
23 management.
24 Q. And as part of their business, is RK Centers and
25 RK Associates, and the other plaintiffs in this case, do
1 they lease storefronts to commercial tenants?
2 A. Yes, we do.
3 Q. In shopping centers in South Florida and in
4 Massachusetts?
5 A. Throughout New England, yes.
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