Ownership & Corporate Structure
NYST was formed as a 50/50 partnership between Greg and David Lubinitsky, both 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.[1][2]
The physical land is owned not by NYST but by Mountain Top Airfield, LLC (MTA), created by David in 2011 as a holding company. In 2024, the MTA membership interest was transferred into David's Grantor Trust.[2] 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.[1][2]
- David invested approximately $550,000 to purchase the property in 2011[2]
- David invested an additional $3,000,000 in 2012 for track construction and infrastructure[2]
- Greg oversaw construction coordination and day-to-day operations in exchange for a 50% stake in NYST LLC[2]
- Profits were split 50/50 at season end; David's share was paid to MTA as rent[2]
- Eugenia Lubinitsky served as NYST's bookkeeper throughout[1][2]
- No written Operating Agreement was ever executed — both filings identify this as a source of conflict[1][2]
- From 2013 to 2021, NYST grew revenues by approximately 80%[2]
Greg's Derivative Lawsuit
Index No. 710474/2025 — Queens County Supreme Court [1]
Gregory Lubinitsky, represented by 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.[1]
Greg alleges that after noticing financial discrepancies in NYST's annual reports prepared by Eugenia, he began questioning David. 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.[1]
Upon gaining limited access to 2024 financial documents, Greg claims he discovered:[1]
- David had caused NYST to distribute more than $693,000 to himself or for his personal benefit in 2024
- The majority of this is characterized as misappropriated personal expenses unrelated to NYST
- As of early 2025, NYST had collected over $144,000 in deposits for the upcoming season
- The company's account held insufficient funds to pay three routine invoices totaling $37,749.30 for annual gear purchases — suggesting deposits had been diverted
- The total value of booked 2025 season commitments at the time of filing exceeded $527,000
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 Greg was personally barred from setting foot on the property. Greg alleges this was made in bad faith, particularly given that NYST remains a co-obligor on the 2020 loan secured by that same land.[1]
| 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
Index No. 715877/2025 — Queens County Supreme Court [2]
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.[2]
David alleges that beginning around 2020, Greg shifted his attention to purchasing, operating, and selling trailer parks in the Midwest and southern United States, and substantially neglected NYST. He attributes a sharp business decline to this neglect:[2]
- Revenues fell approximately 50% from 2021 ($1,322,050) to 2024 ($661,422)
- Net profit swung from a gain of $429,915 in 2021 to a loss of $43,574 in 2024
- Federal partnership tax returns for 2021–2023 and a 2024 P&L schedule are attached 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.[2]
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.[2]
"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 [2]
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.[2]
Status
As of the filing dates (April 10, 2025 and June 3, 2025), both actions were pending simultaneously in Queens County Supreme Court.[1][2] 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.
Citations
- Gregory Lubinitsky v. David Lubinitsky and Mountain Top Airfield LLC, Queens County Supreme Court, Index No. 710474/2025. Derivative complaint filed April 10, 2025 by Nelson Mullins Riley & Scarborough LLP on behalf of Gregory Lubinitsky. Primary source for all allegations regarding account lockout, $693,000 distribution, $144,000 in deposits, $37,749.30 outstanding invoices, $527,000 in booked 2025 commitments, and termination of land use agreement.
- In the Matter of the Petition of David Lubinitsky for Judicial Dissolution of New York Safety Track LLC, Queens County Supreme Court, Index No. 715877/2025. Verified petition filed May 29, 2025, docketed June 3, 2025. Primary source for all allegations regarding revenue decline, $250,000 withdrawal, trailer park business, $1.5 million loan, and dissolution request. Exhibits include federal partnership tax returns 2021–2023 and 2024 P&L schedule.
Disclaimer
This page is an informational summary compiled from publicly available court filings. All allegations are drawn from court filings and are unproven unless otherwise noted. This page does not constitute legal advice. Court filing sources: Gregory Lubinitsky v. David Lubinitsky and Mountain Top Airfield LLC, Queens County Supreme Court Index No. 710474/2025 (derivative complaint, filed April 10, 2025); In the Matter of the Petition of David Lubinitsky for Judicial Dissolution of New York Safety Track LLC, Queens County Supreme Court Index No. 715877/2025 (verified petition, filed June 3, 2025).