Byzfunder lawsuit: what NY Slip Opinions actually hold

Byzfunder lawsuit coverage of published NY opinions: Octagon fee carve-outs, Love Factor merchant judgment vs denied guaranty SJ, and Second to None SJ denial.

Updated 2026-10-30

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By Anonymous MCA industry contributor Research, writing and editorial review · MCA sales background

A Byzfunder lawsuit search usually means a private New York Supreme Court collection suit by Byzfunder NY LLC d/b/a Byzfunder, not an Attorney General or FTC enforcement case. Published trial-level opinions from Nassau, Monroe, and Rockland Counties show the same pattern many merchants see on a stack: summary judgment on a receivables purchase agreement, fights over default and NSF fees as penalties, and occasional pushback on personal-guarantee signatures. This page sticks to those Slip Opinions. It is not a prediction about your file.

Editorial update: 2026-10-30 · Desk research of published NY trial opinions only. Not legal advice.

Quick answer

Item	Public record
Typical caption	Byzfunder NY LLC d/b/a Byzfunder v. merchant LLC + named individual guarantor
Strong published examples	Octagon Constructors (2023 NY Slip Op 51016(U), Nassau); Love Factor (2024 NY Slip Op 34182(U), Monroe); Second to None Exteriors (2025 NY Slip Op 35231(U), Rockland); Holy City Collision (2023 NY Slip Op 50941(U), Ontario)
Recurring themes	Loan-vs-sale / reconciliation arguments; default fee and NSF fee challenges; personal guaranty capacity disputes; business-record foundations for remittance histories
What this is not	Not the New York AG People v. Richmond Capital track, and not an FTC refund program

Soft next step if papers name Byzfunder NY LLC or Byzfunder: read the caption, index number, and any return date before treating a blog summary as your deadline. You can request a free consultation from Coastal Debt Resolve (Get a free review). Comparing providers? See our Business Debt Insider review.

Octagon Constructors (Nassau, 2023): judgment on the unpaid purchased amount, not the fee add-ons

In Byzfunder NY LLC v. Octagon Constructors, LLC, 2023 NY Slip Op 51016(U) (Sup Ct, Nassau County Aug. 1, 2023), Justice Conrad D. Singer granted Byzfunder summary judgment on breach of contract and personal guaranty for $32,202.50 plus statutory interest from September 28, 2022, costs, and disbursements.

That figure was the amount demanded in the complaint ($36,102.50) minus a $2,500 default fee and $1,400 in NSF fees. The court treated those fee add-ons as unenforceable penalties on the record before it, because Byzfunder had not shown out-of-pocket losses tied to the fees. The court still rejected the merchant’s usury / empty-reconciliation defense as insufficient to raise a triable issue under the familiar three-factor purchase-versus-loan test (LG Funding).

Takeaway for readers: even when a court accepts the receivables purchase framing and finds a breach, default and NSF line items can still be carved out. The unpaid purchased-receivables balance is a separate question from whether a liquidated fee survives.

Love Factor (Monroe, 2024): company judgment granted; guarantor summary judgment denied

In Byzfunder NY LLC v. Love Factor, Inc., 2024 NY Slip Op 34182(U) (Sup Ct, Monroe County Oct. 9, 2024), Justice Kevin M. Nasca granted summary judgment in part against the merchant and denied it against the individual guarantors.

Public facts from the opinion:

November 27, 2023 agreement: Byzfunder purchased 10.61% of future receivables up to $42,900 for an up-front purchase price of $30,000.
Remittance history cited in the opinion: only $1,340.63 remitted before the dispute.
Court award against the merchant: $44,109.37 (balance $41,559.37 + $2,500 default fee + $50 NSF fee), with 9% statutory interest from December 11, 2023.
On the same motion, summary judgment on the personal-guarantee claim against Matthew Wiley Reckinger-Rowe and Karissa M. Reckinger-Rowe was denied, because the agreement listed the guarantors with the title “President,” leaving a triable issue whether they signed in a personal or representative capacity.

Unlike Octagon, this court found the $2,500 default fee enforceable on those facts (reasonable and customary; not conspicuously disproportionate). Attorney’s fees were deferred pending an affirmation of counsel.

Takeaway: company liability and personal-guaranty liability are not automatic twins. Signature block wording (“President,” “Member,” and similar titles) shows up again and again in these dockets.

Second to None Exteriors (Rockland, 2025): funder’s summary judgment denied; default fee treated as penalty

In Byzfunder NY LLC v. Second to None Exteriors, LLC, 2025 NY Slip Op 35231(U) (Sup Ct, Rockland County June 9, 2025), Acting Justice Keith J. Cornell denied Byzfunder’s summary-judgment motion. On the defendants’ cross-motion, the court granted relief only to the extent that the contractual default fee was an unenforceable penalty, and otherwise denied the cross-motion.

Background numbers from the opinion: January 11, 2024 revenue purchase agreement for $68,000 of future receivables against a $50,000 purchase price, with weekly remittances set at $2,000 (stated as 4.48% of weekly receivables). Byzfunder alleged remittances of about $19,602.20, leaving a claimed purchased-amount balance near $48,397.80, plus fees and a large attorneys’-fee ask.

Why summary judgment failed for the funder (high level): the court held that the remittance / “transaction history” exhibit was not admissible as a business record on the foundation offered, and that nonpayment alone was not automatically an event of default under the agreement’s own purchase framing. Without a prima facie breach showing, the burden never shifted.

On the personal guarantee, the court refused to dismiss solely because the signature line said “Member.” On usury, the cross-motion did not win a full dismissal either. The parties were sent toward a preliminary conference rather than a one-sided money judgment on that motion sequence.

Takeaway: Byzfunder does not always win at the summary-judgment gate. Admissible proof of breach, and careful reading of what the RPA actually calls a default, still matter.

Holy City Collision and other dockets often paired in search

Search results also surface Byzfunder NY LLC v. Holy City Collision LLC, 2023 NY Slip Op 50941(U), another merchant-advance summary-judgment decision commonly discussed alongside Octagon. In that case, the Supreme Court, Ontario County (Doyle, J., Sept. 5, 2023) granted Byzfunder's summary judgment motion in part and denied it in part, held the agreement was not a usurious loan, and searched the record to grant summary judgment to the defendants on the default fee. Treat each Slip Opinion as its own record: fee rulings and loan-versus-sale findings are fact-specific and are not a statewide “Byzfunder always loses fees” rule (compare Love Factor, where the default fee survived).

Active or stayed dockets (for example Erie County filings that appear in commercial dockets without a published Slip Opinion holding) are not the same as a published decision. If your papers show a different index number or county, read that file. Do not assume Octagon, Love Factor, or Second to None controls it.

What to do if Byzfunder appears on your papers

Confirm the exact plaintiff name (Byzfunder NY LLC / d/b/a Byzfunder) and the index number on the summons or motion papers.
Calendar any answer, opposition, or appearance date. A news summary does not extend court deadlines.
Pull the agreement, remittance history, bank statements, and any reconciliation request you actually sent. Several of the opinions above turn on whether those records are admissible and complete.
Separately check personal-guaranty signature blocks if individuals are named. Title words next to a signature have been litigated in more than one Byzfunder case.
If you are still pre-suit and exploring negotiated business-debt options, evaluate providers in writing. If you already have a summons, complaint, confession of judgment, or judgment papers, talk to licensed counsel in the relevant jurisdiction first. Settlement-company enrollment is not a substitute for court deadlines.

Soft dual options after that literacy check (negotiation path only; neither is a law firm):

Coastal Debt Resolve · Get a free review (routes through the Settlement CTA path used on this site, including the Coastal MCA Settlement Reviews landing page when that campaign is active)
Business Debt Insider review

FAQ

Is there one “Byzfunder lawsuit” class action?

No single AG-style class caption is the subject of this page. The published record summarized here is a set of private New York Supreme Court collection / summary-judgment opinions naming Byzfunder NY LLC as plaintiff.

Does Byzfunder always win summary judgment?

No. Second to None denied the funder’s summary-judgment motion on the breach proof presented. Octagon and Love Factor granted merchant judgments in different amounts and with different fee results.

Are Byzfunder default fees always unenforceable?

No. Octagon and Second to None treated default-fee (and, in Octagon, NSF) add-ons harshly on those records. Love Factor enforced a $2,500 default fee. Fee outcomes follow the contract language and the evidence in each case.

Does a personal guarantee always stick when Byzfunder sues the owners?

Not automatically at summary judgment. Love Factor denied guaranty summary judgment where the agreement listed guarantors with a “President” title. Second to None refused to dismiss a guaranty claim solely because “Member” appeared on the signature line. Capacity fights are fact-specific.

Is this the same as Richmond Capital or Yellowstone?

No. Richmond Capital coverage on this site centers on the New York AG Executive Law § 63(12) case and related appellate opinions. Yellowstone coverage includes FTC refund / enforcement materials. Byzfunder pages here are private collection opinions unless a future public enforcement action says otherwise.

Related funder lawsuit pages

For how this case compares with other funders' litigation, see our MCA lawsuit tracker.

Sources checked October 27, 2026

Desk research only. We did not contact Byzfunder for this update, and we did not review any merchant’s private claim file. This is not a complete litigation search or a prediction about your case.

Takeaway

Treat “Byzfunder lawsuit” as a family of private NY collection opinions, not a single AG refund story. Octagon shows unpaid purchased-amount judgments can issue while fee add-ons are stripped. Love Factor shows merchant judgments can land even when guarantor summary judgment fails. Second to None shows the funder can lose summary judgment when remittance proof and default theory do not hold up. Read your caption before you assume any of those outcomes.

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