Introduction
New York Safety Track (NYST), operated under the entity Mountaintop Airfield LLC, has been embroiled in legal conflict nearly continuously since it opened in 2013. The disputes span municipal planning law, neighbor nuisance complaints, allegations of misrepresentation to town officials, regulatory non-compliance, and, more recently, reported internal disputes between the track's co-founders.
The following sections document each major legal episode in chronological order, drawing on court decisions, local news reporting, and public records. Where details remain behind paywalls or in sealed filings, the known facts are stated and gaps are noted.
Background & Origins
The track's origins lie in the shared passion of Greg Lubinitsky and his father, David. David spent nearly a decade searching for a suitable upstate New York location that could support a racetrack venture in terms of zoning and noise regulations. In 2011, he purchased the 150-acre former Mountain Top Airport property at 396 Zimmerman Road, Harpersfield — including a log house, a hangar, and a registered grass runway — through Mountain Top Airfield, LLC (MTA), jointly owned with his wife Eugenia, for $550,000. He then invested an additional $3,000,000 in the spring and summer of 2012 to construct the 2.1-mile paved racetrack, renovate the hangar, and install bathrooms and supporting infrastructure. MTA was conceived as David and Eugenia's retirement property.
In exchange for Gregory overseeing construction coordination, liaising with engineers and town officials, and subsequently managing day-to-day operations, David offered him a 50% stake in a new operating entity — New York Safety Track, LLC (NYST). NYST was formed to run motorcycle and car events at the facility, while MTA retained ownership of the land. Profits were split 50/50 at the end of each season, with David's share paid to MTA as rent by NYST. Greg's mother Eugenia served as NYST's bookkeeper throughout.
- Property purchased October 2011 under the entity Mountaintop Airfield LLC
- Construction plans and business proposals passed the Harpersfield Planning Board and NY DEC
- Track built on the site of the former Mountain Top Airport, which retains a functioning airstrip
- Final circuit: 2.1–2.2 miles, 18 turns, 40 feet wide, ~450 feet of elevation change
- Greg Lubinitsky listed as track manager; David Lubinitsky co-owner and investor
The seeds of future legal conflict were planted in how the project was initially presented to the Town of Harpersfield — a presentation that opponents would later argue materially misrepresented the facility's true intended use.
Site Plan Misrepresentation & Approval Controversy
When NYST's operators sought planning board approval, the project was described as a motorcycle safety training facility affiliated with the Motorcycle Safety Foundation (MSF) — a nationally recognized nonprofit. The agent for the owners stated in June 2011 that the MSF was interested in purchasing the property to build a motorcycle safety training track.
However, in July 2012, the Motorcycle Safety Foundation publicly stated it had no connection whatsoever to the project. Despite this, the track's name — "New York Safety Track" — and its positioning as a training facility continued to be used to secure approvals. A notarized letter submitted to the planning board referenced "MSF Track subdivision," further reinforcing the safety-training framing.
Town Supervisor on Record
"The Town will enforce the Site Plan Review. The Site Plan is only for a training track, not for racing, motorcycles or cars on the track." — Harpersfield Supervisor Jim Eisel, public meeting, November 12, 2012
Opponents documented that within weeks of opening in May–June 2013, cars were racing at speeds up to 100 mph, motorcycles were exceeding 200 kph, and a Formula Race Car Club event was scheduled at the facility — a club that listed NYST on its 2013 race schedule. This directly contradicted the site plan and repeated public assurances from Greg Lubinitsky that racing would not be permitted and violators would be ejected.
Opponents alleged the track was operating outside the bounds of its approved site plan from its first weeks of operation, using the "safety training" framing to secure approvals it likely would not have obtained had full operations been disclosed.
Friends of Rural Life — Neighbors' Lawsuit
The formal legal challenge came swiftly. A group of 34 area residents, organizing under the name Friends of Rural Life, filed a lawsuit in New York State Supreme Court naming multiple defendants.
| Defendant | Role |
|---|---|
| New York Safety Track LLC | Track operating entity |
| Mountaintop Airfield LLC | Property-owning entity |
| Harpersfield Town Board | Approved the site plan |
| Harpersfield Planning Board | Issued site plan approvals |
| Town Clerk & Code Enforcement Officer | Enforcement officials |
The plaintiffs' attorney, Douglas Zamelis, argued that town officials had violated various state laws by acting "out of the reach of the eyes and ears of the public" to allow motorcycle and automobile racing at NYST. Lead plaintiff Kitty Ballard of Parker Schoolhouse Road, Davenport, described the track noise as "not just loud — it's overwhelming."
Plaintiff Statement
"And my gosh, they drive on our roads as if they were still driving at the racetrack. It's unbelievable. It's not fair to all of us who live here, and it's just not right." — Kitty Ballard, lead plaintiff, The Daily Star, 2013
Acting Delaware County Supreme Court Judge Brian Burns ruled in favor of the plaintiffs, ordering that NYST must adhere to the limitations of its original 2011 site plan. The court also ordered NYST to submit a new site plan application. The ruling effectively prohibited racing, automobiles, large engines, and large crowds beyond what the original site plan permitted.
The case was later appealed and reached the New York Appellate Division, Third Department, which issued a decision in March 2015 (Matter of Ballard v. New York Safety Track LLC, 2015 NY Slip Op 01845), affirming the core of the lower court's ruling.
Contempt Proceedings & Alleged Violations
Even after Judge Burns' January 2014 ruling restricting operations, opponents of NYST alleged the track immediately continued to violate the declaratory judgment throughout May 2014. Specifically, they claimed the track was operating with automobiles, more than six motorcycles at a time, and gatherings of more than 25 people — all in contravention of the court's order.
Opponents moved to hold NYST and Greg Lubinitsky in contempt of court. In a July 8, 2014 decision, Judge Burns declined to issue a contempt finding — not because the violations were disputed, but because of a legal procedural limitation.
Judge Burns — July 8, 2014
"A finding of contempt is not authorized for alleged violations of a declaratory judgment under our laws." — Acting Delaware County Supreme Court Judge Brian Burns
The judge directed opponents to "rely on their municipality to enforce its local laws" — effectively placing the enforcement burden on the Town of Harpersfield, which critics argued had been unwilling to act against the track.
The track posted on its Facebook page that it had "just won a crucial court case" — characterizing the refusal to find contempt as a victory, despite the underlying site plan restrictions remaining fully in force.
Continued Alleged Violations & Community Opposition
Community opposition persisted well beyond the initial litigation. Residents documented ongoing activities they alleged violated the site plan restrictions, and public petition drives continued through multiple years.
- Cars racing at speeds up to 100 mph documented on video in May 2013, weeks after opening
- Formula Race Car Club of America listed NYST on its 2013 race schedule; the club used road-unlicensed cars at a June 2013 event
- Motorcycles documented exceeding 200 kph (approximately 124 mph) in May 2013
- RV electrical hookups erected and lighting installed without clear site plan authorization
- Residents presented a petition signed by more than 45 people requesting proof of insurance and enforcement of the site plan
- Residents alleged Lubinitsky was accepting deposits from racing organizations for events not authorized by the site plan
At a town meeting, neighbor Jakob Rosboll summarized the frustration: the town supervisor was publicly saying there was no racing and no cars permitted, while the track manager was simultaneously taking deposits from racing organizations. The tension between what was approved and what was actually occurring formed the backdrop for every subsequent legal dispute.
Expansion Site Plan Application & Denial
Nearly a decade after the initial legal battles, NYST — with David and Gregory Lubinitsky listed as co-applicants — submitted a new site plan amendment to the Harpersfield Planning Board in August 2022, seeking a significant expansion of the facility's permitted uses.
The proposed expansion included:
- Construction of a 0.7-mile, 18-foot-wide mini-track adjacent to the main circuit
- A paved staging area to support the mini-track
- Expanded vehicle types: cars, go-karts, and dirt bikes (in addition to existing motorcycles)
- Simultaneous racing on both tracks
- Capacity for up to 100 guests
- Extended operating hours beyond the current 9 a.m. start time
In November 2022, NYST admitted to the planning board that they had already cleared three acres of forest in the proposed mini-track site — a violation of Harpersfield Site Plan Review Law and the NY State SPDES General Permit for Construction Activities. The board agreed to continue the review only on condition that all work cease immediately.
The Delaware County Planning Board reviewed the application in 2023 and found it incomplete. They recommended that the Harpersfield Planning Board request a list of LLC members and roles, clearly defined days and hours of operation, a comprehensive sound study inclusive of effects on neighboring towns, and consultation with the town's code enforcement officer. NYST was also asked to resubmit a clear and accurate site plan application.
NYST did not comply with these requests. Instead of submitting a new site plan, they provided an updated narrative and re-submitted previously filed documentation. Crucially, the application and affidavits contained contradicting information regarding days and hours of operation — preventing the planning board from completing the full environmental review required under the State Environmental Quality Review Act (SEQRA).
The scope of what NYST was actually seeking also expanded significantly over successive iterations of the project narrative — well beyond the original mini-track application:
- Addition of racing events (not in the original submission)
- Expanded parking areas
- Extension of operating days from two to four days per week up to five to seven days per week
- Extension of operating hours to 9 a.m.–10 p.m.
- A shooting range, gun and ammunition sales, and shooting lessons — advertised on the track's website but never disclosed to or approved by the planning board
Road damage also became a formal issue. Davenport Highway Superintendent Fred Utter attended a special May 16, 2024 planning board meeting and reported that Parker Schoolhouse Road — the school bus route used to access the track — was already sustaining damage under the track's existing operating schedule, before any expansion was approved. Planning board member Walt Keller requested the resolution specifically note this fact.
The Harpersfield Planning Board voted unanimously to deny the amended site plan application at its May 29, 2024 meeting, attended by over a dozen residents. The denial resolution was drafted by attorney Allyson Phillips of Young/Sommer on behalf of the planning board. Primary grounds were failure to meet the site plan review law standard, incomplete and contradictory application materials, noise concerns, road damage, and an extensive history of compliance issues.
The September 2023 Public Hearing — Aircraft Complaints, Shooting Range, and a Threat to the Board
The September 27, 2023 Harpersfield Planning Board public hearing on the NYST expansion application was among the most contentious on record. More than 50 residents from Harpersfield, Davenport, Worcester, and Kortright attended. Chairman D. Darling asked attendees to limit comments to two minutes given the volume of people present. What followed was an extended session of resident complaints, pointed confrontations with the applicant, and a remarkable moment in which David Lubinitsky directly threatened the board with litigation — prompting his own attorney to tell him to sit down.
Aircraft Complaints — "Aerobatics Over Our Houses"
The September 2023 hearing produced the most direct on-record complaints about David Lubinitsky's flying that exist in any public document. Gabby Leach, who lives on Rose Land and has been a neighbor since the track opened, was explicit: she asked the board to require "a runway for planes and not for acrobatics and buzzing our homes," adding pointedly, "We've been abused by the aerobatics over our houses." When David addressed the board later in the meeting, he attempted to minimize the flying by stating that only 32 flights had been logged since January 4 of that year — approximately one flight every eight days. The audience's response was immediate laughter, with residents calling out that he flies every morning.
Resident — Gabby Leach, Rose Land
"Have a runway for planes and not for acrobatics and buzzing our homes. We've been abused by the aerobatics over our houses." — Gabby Leach, September 27, 2023 Planning Board hearing
Shooting Range — Confronted on the Record
Resident Michael Vessia stated he was hearing shooting from the track after 5 p.m. and asked which direction they were shooting and what at. Attorney Allyson Phillips confirmed on the record that the rifle range had first been raised at the November 2022 planning board meeting, and that the website had displayed commercial shooting advertisements with guns and ammunition for sale. The planning board confronted the applicant for never disclosing the shooting range in any application materials. The applicant's attorney stated on the owner's behalf that they agreed to decommission it. The board demanded written proof of decommissioning be submitted. A subsequent audience member asked if they were still required to show proof, making clear residents did not trust a verbal commitment.
Other Key Resident Testimony
- Kitty Ballard reported that campers from the track who did not want to pay Lubinitsky's camping fees had been found camping in her farm's pastures, with pizza boxes in a barrel; she forwarded photographs to the town clerk
- Flora Zimmerman stated the track was already operating six to seven days per week — not the two to four days claimed in application materials — and questioned how the board could trust any commitment to reduce that
- An unidentified resident reported the track had run for eleven consecutive days in August, asking whether special events were being counted on top of the regular days
- Robert Prush said he knew construction crews were actively working at the track at that moment and had reported it to both the code enforcement officer and the town board, and had been assured action would be taken
- Gabby Leach said they could see equipment going up and down from the track daily; when they called the town CEO he was not working that day, and when he attempted to visit the next day he was not allowed onto the property
- Linda Denovia reported that a DCEC contact had observed two new hangars being built on the property in addition to the mini-track
- Roseann Kayser expressed concern that people were leaving the track still driving at racing speeds on public roads
- Zoe Menge of East Meredith said she could hear the noise clearly across the mountain: "This noise is industrial. They're bending the law"
- Gabby Leach stated her home value had declined 30 percent as a direct result of the track
David Lubinitsky Addresses the Board — and Threatens It
David Lubinitsky introduced himself as the track owner and his general manager Carlos Garcia as the year-round on-site manager. He argued the track had brought economic benefit to the region, claimed the noise study showed no significant impact — drawing laughter from the audience — and disputed Parker Schoolhouse Road damage, saying "if it's a mess, it is not my fault." He claimed only 12 noise complaints had been filed, which he characterized as minor relative to the combined population of Harpersfield, Davenport, and Jefferson of 6,317 people. Attorney Phillips corrected him on the record, reminding him she had submitted ten years of noise complaints to his attorney and that they would all be part of the proceedings.
The exchange then escalated sharply. Lubinitsky told the board directly that if the application were disapproved it would result in a lawsuit, and laid out what he described as the typical cost progression:
⚠ On-Record Threat to the Planning Board
"That disapproval would result in a lawsuit. The applicant would spend $150,000 in legal fees. 99 percent of the time it results in some sort of a deal. That is the second $150,000 and by the time they get to the third $150,000 they are generally ready to make a settlement." — David Lubinitsky, addressing the Harpersfield Planning Board, September 27, 2023
Attorney Allyson Phillips responded immediately and directly on the record: Lubinitsky was threatening the planning board, and she told him to put his threats in writing and submit them as part of the record. His own attorney, Kenneth Ayers, then advised Lubinitsky to sit down. The board voted 5-0 to keep the public hearing open and referred the updated application back to the Delaware County Planning Board for further review.
The minutes also note a pointed exchange in which an audience member asked aloud whether "we are still pretending this is a safety track" — to which Phillips responded that no one at the planning board table was under that misconception, after the board had been dealing with the track for eleven years.
NYST Sues the Harpersfield Planning Board
In the year leading up to and following the May 2024 expansion denial, Mountaintop Airfield LLC filed two separate lawsuits against the Town of Harpersfield.
The first lawsuit, filed March 6, 2024 in Delaware County Supreme Court, demanded the planning board close its public hearing, issue a decision on the pending application, or provide a court-reviewed explanation for any further delay. NYST argued the planning board had failed to perform its duties by drawing out the review process. This lawsuit was later voluntarily dismissed by NYST — likely after the planning board did in fact act, issuing its denial on May 29, 2024.
A second lawsuit was filed after the denial and remained pending as of mid-2024. Its precise legal theories — whether procedural, constitutional, or substantive — have not been fully reported in publicly available sources. Harpersfield Supervisor Lisa Driscoll confirmed both suits existed but declined to comment on specifics, citing ongoing litigation.
Notably, Harpersfield Code Enforcement Officer Tom Little also declined to comment on whether a stop work order had been issued against the track, similarly citing the active litigation as the reason for his silence.
Supervisor Driscoll stated publicly that NYST did not challenge the planning board's May 2024 denial through any formal appeal: "The Planning Board's determination remains in full force and effect. The Town of Harpersfield expects all residents and property owners to abide by such determinations and all state and local laws that were adopted to protect the public health, safety and welfare."
As of mid-2024, the second lawsuit against the Town of Harpersfield remained active in Delaware County Supreme Court. The first lawsuit (demanding a decision) was voluntarily withdrawn after the planning board issued its denial.
Post-Denial Violations — DOH & DEC Enforcement
Despite the planning board's May 2024 denial, NYST continued to operate features never approved in any site plan — and continued constructing portions of the rejected mini-track expansion. This drew enforcement action from two state agencies simultaneously: the New York State Department of Health (DOH) and the Department of Environmental Conservation (DEC).
The pattern of violations was documented in detail by Harpersfield resident Matt Moyse, who filed complaints with state agencies and later shared inspection records obtained via Freedom of Information Law (FOIL) requests with local press. Moyse emphasized that his primary concern was not noise or traffic — the complaints most common among neighbors — but unchecked environmental risk from hazardous material runoff (gasoline, oil, rubber, lubricants) in areas with no approved stormwater management.
Resident Complainant — Matt Moyse
"How they utilize what they've built is up to them. It's the further construction they've included that no one has an eye on." — Matt Moyse, Harpersfield resident, 2025
DEC Violations — Construction Without SEQRA Authorization
The original Stormwater Pollution Prevention Plan (SWPPP) permit issued to the track in 2012 covered only construction activity during the track's initial build and was terminated once that phase ended. In September 2022, NYST submitted a Notice of Intent to obtain a new SPDES (State Pollutant Discharge Elimination System) permit for the mini-track project. The DEC authorized stormwater discharges beginning October 6, 2022, subject to conditions — including completion of a SEQRA review.
In December 2022, the Town of Harpersfield informed the DEC that a local SEQRA review was still ongoing. DEC instructed the track owner to stop work and stabilize all disturbed areas. Photographs documenting stabilization were provided. However, on October 21, 2024 — nearly two years later — DEC confirmed that mini-track construction had resumed without completing the required SEQRA review. Notices of violation were issued on November 16, 2023 and again on January 2, 2025. DEC stated it was determining appropriate enforcement action under the Environmental Conservation Law.
DOH Violations — Campground, Water Supply, Food Service, and Access Denied
The Department of Health issued a letter to track owner Greg Lubinitsky on June 28, 2024 identifying multiple unpermitted activities on the property — campground operation, use of a public water supply, wastewater disposal, and food service events. The letter noted that online advertising and on-site activities met the state's legal definition of a campground, requiring a permit to operate. No application had ever been filed. The letter also ordered a formal "Do Not Drink" notice for the on-site water supply and required submission of licensed engineer plans for the wastewater system. Failure to comply carried a potential fine of $2,000 per day.
A September 27, 2024 water system inspection by DOH Inspector Jordin Mayo identified five violations, including unauthorized well modifications performed by Titan Drilling of Oneonta without prior state review. Specific deficiencies included a prohibited split well cap, a well casing extending only approximately three inches above ground (roughly 15 inches shorter than required), and inadequate surface water diversion. The inspection was halted early when state emergency services ordered the facility to close due to deficiencies in on-site ambulance and medical staffing.
A summary report the following day documented approximately 40–60 patrons, 17 camper RV units, several dozen motorcycles, a mobile food service operation, and a bathhouse on site — despite none of these uses having received the required approvals.
DOH Inspector Victor Delregno was refused entry to the property by a staff member identified as Carlos Garcia, who said all communications must go through the owners and that inspectors could not enter without signing a waiver. DOH declined to sign the waiver, citing its statutory right to inspect regulated facilities. Closure placards previously posted by DOH were later found to have been removed without authorization, adding additional violations. Garcia's social media accounts, reviewed by reporters, showed at least one on-site trailer being used for overnight lodging and another listed for sale while parked at the track — contradicting the owners' prior claims that trailers were used only for equipment storage.
State Health Department Levies $46,400 Fine
In October 2025, the New York State Department of Health finalized a $46,400 penalty against the operators of New York Safety Track LLC through an administrative stipulation — closing the enforcement chapter that had been building since the 2024 inspection series.
The violations consolidated in the settlement include: operating an unpermitted campground; use of an unapproved public water supply; discharge of inadequately treated wastewater; and, on multiple occasions, denying state inspectors access to the property. The records formalizing the violations were obtained through a FOIL request and reported by The Reporter (Catskills Today) in 2025.
- Payment of the full $46,400 penalty
- Retain licensed engineers to evaluate and redesign water and wastewater systems
- Submit water testing results for state approval before resuming water use
- Comply with any outstanding boil-water or do-not-drink orders
- Secure all required permits for campground operation before reopening camping amenities
- Failure to meet conditions could trigger immediate closure proceedings
New York State Department of Health administrative stipulation against New York Safety Track LLC. Penalty finalized following years of complaints, inspections, and unresolved violations tied to unpermitted operations, environmental concerns, and repeated resistance to regulatory oversight. Concurrent DEC enforcement actions regarding unpermitted construction activity under the Environmental Conservation Law remained ongoing.
Internal Collapse — The Lubinitsky Family Disputes
In 2025, the co-founders of NYST — father David Lubinitsky and son Gregory Lubinitsky — became adversaries in two separate but related court proceedings filed in Queens County Supreme Court. Each sued the other in filings weeks apart, presenting sharply conflicting accounts of who wronged whom and placing the very existence of NYST in jeopardy as its 2025 operating season approached.
Background: The Ownership & Corporate Structure
NYST was formed as a 50/50 partnership between Greg and David, both of whom are designated Managing Members. The company has never had a written Operating Agreement — a fact that both filings cite as a root cause of the governance breakdown. The physical land is owned not by NYST but by Mountain Top Airfield, LLC (MTA), which was created by David in 2011 as a holding company; in 2024 the MTA membership interest was transferred into David's Grantor Trust. NYST operated on MTA's land under an oral agreement, co-signed a 2020 loan with MTA (with the property mortgaged as security and NYST expected to service the debt from operating income), and had no formal written license for its use of the land.
David invested approximately $550,000 to purchase the property in 2011 and an additional $3,000,000 in 2012 to build the track. He describes the facility as his and his wife's intended retirement asset. Gregory, in exchange for overseeing construction coordination and day-to-day operations, was offered a 50% stake in the management entity (NYST). David's wife, Eugenia, served as NYST's bookkeeper throughout. From 2013 to 2021, NYST grew revenues by approximately 80%.
Greg's Derivative Lawsuit — April 10, 2025
Index No. 710474/2025 — Queens County Supreme Court
Gregory, represented by the law firm Nelson Mullins Riley & Scarborough LLP, filed a derivative complaint on April 10, 2025 on behalf of NYST against his father David and Mountain Top Airfield, LLC. The complaint alleges that after Greg noticed financial discrepancies in NYST's annual reports prepared by Eugenia, he began questioning David about them. Rather than provide explanations, David responded by unilaterally removing Greg's access to all NYST bank accounts, credit card accounts, merchant processing accounts, and company books and records.
Greg alleges that upon gaining limited access to 2024 financial documents, he discovered David had caused NYST to distribute more than $693,000 to himself or for his personal benefit in 2024 — the majority of which Greg characterizes as misappropriated personal expenses unrelated to NYST. Greg further alleges that as of early 2025, NYST had collected over $144,000 in deposits for the upcoming season, and that the company's account held insufficient funds to pay three routine invoices totaling $37,749.30 for annual gear purchases — suggesting those deposits had been diverted.
When Greg notified David he intended to seek court relief, David responded by purporting to terminate — on MTA's behalf — the oral agreement allowing NYST to operate on the land, and stated that Greg was personally barred from setting foot on the property. Greg alleges this termination was made in bad faith and out of spite, and is particularly untenable given that NYST remains a co-obligor on the 2020 loan secured by that same land.
The complaint sets forth five causes of action: breach of fiduciary duty against David; declaratory relief establishing Greg's right of access to NYST accounts as a Managing Member; an accounting of NYST's transactions; breach of oral contract against MTA for terminating the land use agreement; and specific performance requiring MTA to honor NYST's right to operate on the land. The total value of booked 2025 season commitments at the time of filing exceeded $527,000.
| Count | Claim | Against |
|---|---|---|
| First | Breach of Fiduciary Duty — self-dealing, account lockout, obstruction, bad-faith termination of land agreement | David Lubinitsky |
| Second | Declaratory Relief — Greg is a Managing Member entitled to full account access | David Lubinitsky |
| Third | Accounting of all NYST transactions | David Lubinitsky |
| Fourth | Breach of Oral Contract — wrongful termination of NYST's land use license | Mountain Top Airfield, LLC |
| Fifth | Specific Performance — court order requiring MTA to honor the land use agreement | Mountain Top Airfield, LLC |
David's Petition for Judicial Dissolution — June 3, 2025
Index No. 715877/2025 — Queens County Supreme Court
Less than two months after Greg's filing, David filed his own verified petition on May 29, 2025 (docketed June 3, 2025), seeking the judicial dissolution of NYST under Section 702 of New York's Limited Liability Company Law. David's petition presents a competing account: that it was Gregory who breached his duties, misappropriated funds, and reduced his involvement in NYST to the company's detriment.
David alleges that beginning around 2020, Greg shifted his attention to a separate business — purchasing, operating, and selling trailer parks in the Midwest and southern United States — and substantially neglected NYST. David attributes a sharp business decline to this neglect: revenues fell approximately 50% from 2021 ($1,322,050) to 2024 ($661,422), and net profit swung from a gain of $429,915 in 2021 to a loss of $43,574 in 2024. David's petition attaches federal partnership tax returns for 2021–2023 and a 2024 profit and loss schedule as exhibits.
David further alleges that on October 17–18, 2024, Greg withdrew $250,000 from NYST's bank account to fund his separate trailer park business — at a time when NYST's account lacked sufficient funds, requiring David's Trust to cover the overdraft. The parties allegedly agreed Greg would repay the funds by December 31, 2024. Greg allegedly refused, causing what David describes as irreparable damage to NYST's operations and jeopardizing the 2025 season.
David also alleges Greg unilaterally began operating NYST in December 2024 without David's input, was communicating with municipalities and state agencies about MTA's property without David's knowledge or consent, and that Greg's own Trust had lent Greg $1.5 million for his separate business which Greg has not repaid despite multiple requests.
David's petition asks the court to dissolve NYST, appoint a receiver to take possession of the company's assets, and appoint a forensic accountant to examine NYST's books and report on funds allegedly misappropriated by Greg.
David's Petition — on Irreconcilable Deadlock
"It is simply not reasonably practicable to carry on the business in conformity with the Articles of Organization and the provisions of the LLCL. The Members' goals for the Company are incongruent. The Company will never be able to function as intended and makes continuation of the business unfeasible." — Verified Petition of David Lubinitsky, Index No. 715877/2025, ¶ 10
As of the filing dates (April 10, 2025 and June 3, 2025), both actions were pending simultaneously in Queens County Supreme Court. Greg's derivative action (Index No. 710474/2025) seeks damages, declaratory relief, an accounting, and specific performance. David's dissolution petition (Index No. 715877/2025) seeks court-ordered dissolution of NYST, appointment of a receiver, and a forensic accounting. Neither has been publicly reported as resolved. The outcome of these proceedings will determine whether NYST continues to operate at all.