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State Savings, F.A. v. Parc Vendome Associates

Citations: 223 A.D.2d 464; 637 N.Y.S.2d 365; 1996 N.Y. App. Div. LEXIS 468

Court: Appellate Division of the Supreme Court of the State of New York; January 22, 1996; New York; State Appellate Court

Narrative Opinion Summary

The case involves MBR Holdings Associates, an assignee attempting to include seven additional condominium units in a foreclosure action originally initiated by State Savings. The foreclosure complaint initially specified only five units and acknowledged partial repayment of the mortgage. The Supreme Court of New York County, led by Justice Lewis Friedman, denied MBR Holdings' motion to include the additional units, a decision subsequently affirmed on appeal. The court ruled that failing to pursue all security in the foreclosure resulted in abandonment of the lien on unaddressed units, referencing the precedent in Bodner v. Brickner. Furthermore, there was no evidence suggesting that State Savings was fraudulently induced to omit the seven units from the foreclosure. The foreclosure proceedings had concluded with a judgment and sale, thereby finalizing the matter. Other arguments by MBR Holdings were deemed meritless, and the ruling was unanimously affirmed by the panel of justices, maintaining the finality of the original foreclosure judgment.

Legal Issues Addressed

Abandonment of Lien on Unaddressed Units

Application: The court applied the principle that failure to pursue all security in a foreclosure case results in abandonment of the lien on unaddressed units.

Reasoning: The court reiterated that failing to pursue all security in a foreclosure case results in abandonment of the lien on unaddressed units, referencing Bodner v. Brickner.

Effect of Partial Mortgage Repayment on Foreclosure

Application: The court noted the original foreclosure complaint's acknowledgment of partial mortgage repayment, which affected the scope of the foreclosure action.

Reasoning: This decision was affirmed on appeal, with a subsequent order dated March 7, 1995, also denying a motion to renew the initial request.

Finality of Foreclosure Judgment

Application: The foreclosure proceedings had concluded with a judgment and sale, thus barring any further claims on the excluded units.

Reasoning: It found no evidence that State Savings was fraudulently induced to exclude the seven units, and noted that the foreclosure proceedings had concluded with a judgment and sale.

Fraudulent Inducement in Foreclosure Proceedings

Application: The court found no evidence that the original lender was fraudulently induced to exclude the seven units from the foreclosure action.

Reasoning: It found no evidence that State Savings was fraudulently induced to exclude the seven units, and noted that the foreclosure proceedings had concluded with a judgment and sale.

Inclusion of Additional Property in Foreclosure Action

Application: The assignee, MBR Holdings Associates, was denied the inclusion of seven additional condominium units in the ongoing foreclosure action because the original complaint only included five units.

Reasoning: The Supreme Court of New York County, presided over by Justice Lewis Friedman, issued an order on October 5, 1994, denying MBR Holdings Associates' motion to include seven condominium units in an ongoing foreclosure action.