In a significant legal battle, a New Jersey court has upheld a substantial financial judgment against two dry-cleaning businesses and their owners. The case, filed by Green Lago, LLC in the Superior Court of New Jersey’s Law Division in Union County on September 27, 2024, targets Dry Clean Express No. 1, LLC and its principal Matsamy Vasquez for failing to satisfy an earlier court-ordered debt.
The roots of this complex litigation trace back to November 2013 when Green Lago sold two dry-cleaning businesses to Any Garment Cleaners No. 3, LLC (AGC-3) for $465,573. AGC-3’s managing member Carlos Marroquin personally guaranteed the purchase through a promissory note but failed to make any payments. Consequently, Green Lago secured a default judgment against AGC-3 and Marroquin in January 2015 for $542,258.61. As events unfolded, it emerged that Marroquin had transferred ownership of one business to his brother Vasquez and DCE-1 through a Consulting Agreement valued at over $1 million—a sum that remained largely unpaid by early 2018.
In response to these developments, Green Lago pursued enforcement actions to recover the debt from Vasquez and DCE-1 directly under New Jersey’s Uniform Fraudulent Transfer Act (UFTA). The plaintiff argued that the transfer was designed to place assets beyond reach unlawfully. The court sided with Green Lago multiple times over the years despite objections from defendants who claimed procedural errors such as improper service of process in the original case.
The legal saga continued with several motions filed by Green Lago seeking compliance with previous judgments. In August 2019, the court ordered defendants to remit monthly payments under the Consulting Agreement directly to law enforcement authorities as part of debt recovery efforts. Despite appeals from defendants challenging these orders and claiming due process violations—citing their late addition as judgment debtors—the appellate division found no fault with prior rulings.
Ultimately, on September 13, 2024, a final judgment was rendered against DCE-1 and Vasquez for $1,625,900.68 plus attorney fees and an annual interest rate of 18%, which was contractually agreed upon within the Consulting Agreement terms. This decision underscored New Jersey’s stance allowing contractual interest rates above statutory limits when clearly stipulated between parties.
Representing Dry Clean Express No. 1 were attorneys from Salmon Ricchezza Singer & Turchi LLP led by Ronald L. Daugherty while McCarter & English LLP’s Geoffrey E. Lynott represented Green Lago alongside Frederick C Biehl III and Michael P Lynch on briefs. Judges Walcott-Henderson and Bergman presided over this appellate matter identified under Case ID A-0360-24.
