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Greenpoint Savings Bank v. McMann Enterprises, Inc.
Citations: 214 A.D.2d 647; 625 N.Y.S.2d 273; 1995 N.Y. App. Div. LEXIS 4304
Court: Appellate Division of the Supreme Court of the State of New York; April 17, 1995; New York; State Appellate Court
In the foreclosure action involving Blanche Nelson, Marie Jeffries, and Johnnie Jeffries, the Supreme Court of Kings County issued an order that was partially modified upon appeal. The court denied Nelson's motion to intervene and to vacate a prior order directing foreclosure. However, the appellate court granted Nelson's request to intervene, recognizing her significant interest in the property, which she occupied at the time a fraudulent mortgage was executed by McMann Enterprises, Inc. Nelson had previously conveyed her property in trust to Edward Maxwell for management, but after his death, the property was improperly transferred to McMann by Woodville Corp., with irregularities in the deed's acknowledgment and corporate seal. The court found sufficient grounds for Nelson’s intervention due to her unrecorded ownership interest and potential negligence by the plaintiff bank in failing to investigate her claim before granting a mortgage to McMann, who later defaulted. Conversely, the court upheld the denial of intervention for Marie and Johnnie Jeffries, who acquired their interest after the mortgage notice was filed, lacking grounds to justify their intervention in the foreclosure action. The order was affirmed in part, with costs awarded to the appellants.