Once Upon a Time Preschool & Day Care has seen enrollment fall by 25% and revenues decline by $10,000 a month because, a co-owner claims, her partner abused a child.
Now Lisa Montalto of Putnam Valley is trying to stop her partner, Vera Iaconis of Yorktown Heights, from using bankruptcy to escape paying claims resulting from the May 2019 assault.
“The corporation has suffered, and expects to continue to suffer, damages in excess of $500,000,” a complaint filed Dec. 7 in U.S. Bankruptcy Court, White Plains, states, “from Iaconis”™ misconduct and continuing obstruction.”
In 2012, Iaconis and Montalto, who is also known as Lisa Rodrigues, formed Once Upon a Time in Cortlandt Manor Inc., as equal co-owners.
In May 2019, Iaconis abused a boy at the day care center. The incident was witnessed by staff, according to the bankruptcy complaint, and videotaped from cameras that monitor the center.
Iaconis grabbed the boy and forcefully placed him on a rug and got on top of him, according to an account by the boy”™s mother that was aired on a television news program.
An employee reported the incident, according to the bankruptcy complaint, and New York State Child Protective Services found indications of child abuse and maltreatment. The Putnam County District Attorney filed a misdemeanor charge of endangering the welfare of a child.
In February, Iaconis was found guilty.
But Greenburgh attorney Todd Cushner said Iaconis had merely defended herself.
“The kid obviously had issues and probably shouldn’t be in the class,” he said. “He bit her. She pulled herself away. End of story.”
He said his client pleaded guilty to the lowest misdemeanor, because “You can’t deny what’s on the video. But by the same token, you’ve got to take some action to protect yourself.”
The incident has seeded several legal actions.
Montalto had fired her partner shortly after the assault. Last year, Iaconis sued Montalto and Once Upon a Time in Putnam Supreme Court, seeking to dissolve the corporation and to get back salary that had been withheld.
Montalto responded by accusing Iaconis of breach of duty that damaged the corporation”™s name and reputation.
The boy”™s parents sued Iaconis, Montalto and Once Upon a Time in Putnam Supreme Court for negligence and assault.
Both Putnam cases are pending.
On Sept. 14, Iaconis and her husband, Francesco Iaconis Jr., petitioned bankruptcy court for Chapter 7 liquidation.
They declared $386,034 in assets, comprised mostly of their house, and $186,304 in liabilities. The liabilities include potential claims of unknown amounts in the Putnam lawsuits.
Montalto”™s new complaint, filed in bankruptcy court on behalf of herself and the corporation, challenges Iaconis”™ right to discharge debts.
She claims that Iaconis”™ petition to dissolve the corporation is evidence of malevolent intent to destroy the corporation.
By law, Iaconis could no longer be associated with the business, Montalto argues, and her partner did not disclose in the petition why she had been removed from the business.
Montalto says Iaconis should be sanctioned for filing a frivolous lawsuit.
“Iaconis pursued her claims in the dissolution action primarily to delay or prolong the resolution of the litigation,” the bankruptcy complaint states, “or to harass or maliciously injure another.”
A creditor”™s claim may not be discharged where the debtor has willfully and maliciously injured the creditor, Montalto argues; thus damages or sanctions resulting from the Putnam lawsuits may not be discharged.
That’s not what’s happening here, Cushner said. “This is a legitimate bankruptcy case. It’s a straight forward Chapter 7.”
And the dispute could soon be moot. Cushner has been working on a stipulation by which Iaconis will turn over her shares in the corporation to Montalto.
“Lisa Montalto has been trying to get control of Once Upon a Time,” he said, “which we’re going to give her.”
Mount Kisco attorney David O. Wright represents Montalto and Once Upon a Time.
