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Home Court filings Sef Sim2018 v. SBA Complaint for Declaratory Relief — Sef SIM2018, LLC v. U.S. Small Business Administration (M.D. Fla.)

Court filing

Complaint for Declaratory Relief — Sef SIM2018, LLC v. U.S. Small Business Administration (M.D. Fla.)

Filed June 17, 2022 in Sef Sim2018 v. SBA, the only filing from this case in the archive.

Record facts

CourtU.S. District Court for the Middle District of Florida, Orlando Division
Filed2022-06-17

U.S. District Court for the Middle District of Florida, Orlando Division · No. 6:22-cv-01066-WWB-DCI · Doc. 1 · 2022-06-17 · Docket on CourtListener

Full text

UNITED STATES DISTRICT COURT 
MIDDLE DISTRICT OF FLORIDA 
ORLANDO DIVISION 
www.flmd.uscourts.gov  
 
SEF SIM2018, LLC,  
an ARIZONA limited liability company, 
 
Plaintiff,  
vs. 
 
UNITED STATES SMALL BUSINESS 
ADMINISTRATION, and ISABELLA 
CASILLAS GUZMAN, in her official 
capacity as Administrator of the UNITED 
STATES SMALL BUSINESS 
ADMINSTRATION, 
 
Defendants. 
___________________________________/ 
 CASE NO.: _______________ 
COMPLAINT FOR DECLARATORY RELIEF 
Plaintiff, SEF SIM2018, LLC (“Plaintiff SEF”) hereby files this Complaint 
against 
Defendants 
UNITED 
STATES 
SMALL 
BUSINESS 
ADMINISTRATION and its Administrator ISABELLA CASILLAS GUZMAN 
(“Administrator Guzman” and, collectively with Defendant United States Small 
Business Administration, “SBA”), and for its claims alleges as follows: 
PARTIES 
1. 
Plaintiff SEF is an Arizona LLC authorized to do business in the state 
of Florida and has an office at 1320 S. Priest Drive, Suite 101, Tempe, AZ 85281. 
Case 6:22-cv-01066-WWB-DCI   Document 1   Filed 06/17/22   Page 1 of 6 PageID 1

2. 
The SBA is a federal agency of the United States of America and has 
an office at 409 3rd Street, S.W., Washington, DC 20416. 
3. 
Isabella Casillas Guzman is the Administrator of the United States 
Small Business Administration. Administrator Guzman is named a party to this 
action in her official capacity. 
JURISDICTION AND VENUE 
4. 
This Court has jurisdiction over this action and the authority to issue 
declaratory and injunction relief under 28 U.S.C. § 2201 and  § 2202. 
5. 
Venue is proper before this Court pursuant to 28 U.S.C. § 1391(e)(1). 
6. 
This Court has authority to issue declaratory and injunction relief under 
28 U.S.C. § 2201 and  § 2202. 
FACTUAL BACKGROUND 
7. 
Plaintiff SEF holds title to certain property consisting of a B737 aircraft 
flight simulator manufactured by CAE serial number 2NB4 and its related 
equipment (collectively, the “Equipment”) pursuant the attached certificate of sale 
dated January 2, 2019 (the “COS”). A copy of the COS is attached hereto as Exhibit 
1 and is incorporated herein by reference.  
8. 
Plaintiff SEF, as owner, leases the Equipment to its lessee Aerostar 
Training Services, LLC (“Aerostar”), which is located at 3954 Merlin Drive 
Kissimmee, Florida 34741, in accordance with Aircraft Flight Simulator Master 
Case 6:22-cv-01066-WWB-DCI   Document 1   Filed 06/17/22   Page 2 of 6 PageID 2

Lease Agreement dated June 4, 2018, and the Second Amended Equipment Schedule 
No. 1 (collectively, the “Lease”). A copy of the Lease is attached hereto as Exhibit 
2 and is incorporated herein by reference.  
9. 
On January 4, 2019, Plaintiff SEF filed a UCC-1 financing statement 
with the Secretary of State of Florida which reasonably identified the Equipment and 
put third parties on notice of the Lease and the intent of the parties (the “State UCC-
1”). A copy of the State UCC-1 is attached hereto as Exhibit 3 and is incorporated 
herein by reference. 
10. 
On January 22, 2019, Plaintiff SEF filed a UCC-1 financing statement 
in Osceola County, Florida where the Equipment is located (the “County UCC-1”). 
The County UCC-1 reasonably identifies the Equipment and puts third parties on 
notice of the Lease and the intent of the parties. A copy of the County UCC-1 is 
attached hereto as Exhibit 4 and is incorporated herein by reference. 
11. 
On May 5, 2020, Aerostar, the lessee, received an SBA Economic 
Injury Disaster Loan (EIDL) (SBA reference #200) in the amount of four hundred 
and ninety-ninety thousand dollars ($499,000) (the “SBA Loan”).   
12. 
On May 5, 2020, pursuant to the SBA Loan, the SBA filed a UCC-1 
financing statement with the Secretary of State of Florida which described the 
collateral, in part, as “[a]ll tangible and intangible personal property, including, but  
not limited to: (a) inventory, (b) equipment … The security interest Borrower grants 
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includes all accessions, attachments, accessories, parts, supplies and replacements 
for the Collateral” located at 3954 Merlin Drive, Kissimmee, Florida (the “SBA 
UCC-1”). Even though the State UCC-1 and County UCC-1 clearly identify the 
Equipment as the property of Plaintiff SEF, the blanket lien language contained in 
the SBA UCC-1 could be interpreted to grant the SBA a lien on the Equipment. A 
copy of the SBA UCC-1 is attached hereto as Exhibit 5 and is incorporated herein 
by reference. 
13. 
Upon learning of the SBA UCC-1 and the potential lien claim against 
the Equipment, Plaintiff SEF demanded Aerostar obtain a UCC release of lien from 
Defendant SBA. Thereupon, Aerostar submitted an application to the SBA for a 
modification of the language identifying the SBA’s lien to specifically except out 
the Equipment and Lease from the SBA UCC-1. 
14. 
On June 6, 2022, Aerostar notified Plaintiff SEF that Defendant SBA 
denied Aerostar’s request to approve the modification and specifically excise the 
Equipment and Lease from the SBA UCC-1. According to the SBA, “[t]he SBA 
forms are approved by the Office of General Counsel, and they dictate what can or 
cannot be added to the agreements. Unfortunately we are unable to modify those 
forms.” A copy of the notice of denial by the SBA is attached hereto as Exhibit 6 
and is incorporated herein by reference. 
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COUNT I. 
DECLARATORY JUDGMENT 
15. 
Plaintiff SEF realleges and reiterates paragraphs 1-14. 
16. 
Plaintiff SEF requests declaratory relief confirming: (i) the Equipment 
is the property of Plaintiff SEF; and (ii) the SBA does not have a lien on the 
Equipment.  
17. 
There is currently doubt as to the existence or nonexistence of a lien in 
favor of the SBA on the Equipment. 
18. 
A declaratory judgment relief is proper where litigation seems 
unavoidable. 
19. 
This request for the declaratory judgment is not being used to satisfy 
idle curiosity or to answer abstract questions. 
20. 
There is a bona fide, actual, present, and practical need for the 
declaration sought. The existence of the SBA UCC-1 creates a cloud on SEF’s title 
to its Equipment and Lease as lessor and prevents its ability to finance or otherwise 
sell and transfer these assets. This makes the rights of SEF and the SBA adverse, 
justiciable, and ripe for review.                                                                                                         
 
WHEREFORE, Plaintiff SEF requests that this Court enter a declaratory 
judgment: (i) determining the Equipment is the property of SEF; (ii) determining 
SBA does not have a lien on the Equipment and Lease; (iii) ordering SBA execute 
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and record a UCC-3 financing that releases the Equipment from its lien; and (iv)  for 
such other and further relief as this Court deems just and proper. 
DATED this 17th day of June 2022.  
/s/ R. Scott Shuker  
 
  
R. Scott Shuker, Esq. 
Florida Bar No.: 0984469 
SHUKER & DORRIS, P.A. 
121 S. Orange Ave., Suite 1120 
Orlando, Florida 32801 
Tel.: (407) 337-2060 
Fax: (407) 337-2050 
Email: rshuker@shukerdorris.com 
Attorneys for the Plaintiff 
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