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McMorgan & Co. v. Harbour Point Racquet & Yatch Club, Inc.

Citations: 234 A.D.2d 432; 651 N.Y.S.2d 127; 1996 N.Y. App. Div. LEXIS 13045

Court: Appellate Division of the Supreme Court of the State of New York; December 15, 1996; New York; State Appellate Court

Narrative Opinion Summary

In a foreclosure action involving defendants Harbour Point Racquet and Yacht Club, Inc., Harbor Point Associates, and Kevin O’Keefe, the Supreme Court of Nassau County issued an order on December 18, 1995, which affirmed the plaintiffs' motion to confirm the referee's report following a foreclosure sale. The court denied the defendants' cross motion to set aside the foreclosure sale and to stay the entry and enforcement of a deficiency judgment pending resolution of their counterclaims. The appellate court upheld the decision, stating that the defendants did not demonstrate sufficient grounds—such as fraud, collusion, mistake, or overreaching—to invalidate the judicial sale. Additionally, the court found that the request to stay the deficiency judgment was premature, as the amount of any potential deficiency had not been established. The order was affirmed with costs, with Justices Miller, Ritter, Pizzuto, and Santucci concurring.

Legal Issues Addressed

Confirmation of Referee's Report in Foreclosure Sale

Application: The court affirmed the motion to confirm the referee's report following a foreclosure sale, indicating the sale was conducted properly and without legal error.

Reasoning: The Supreme Court of Nassau County issued an order on December 18, 1995, which affirmed the plaintiffs' motion to confirm the referee's report following a foreclosure sale.

Grounds for Setting Aside a Judicial Sale

Application: The court determined that the defendants failed to provide sufficient evidence of fraud, collusion, mistake, or overreaching necessary to set aside the foreclosure sale.

Reasoning: The appellate court upheld the decision, stating that the defendants did not demonstrate sufficient grounds—such as fraud, collusion, mistake, or overreaching—to invalidate the judicial sale.

Prematurity of Stay Request on Deficiency Judgment

Application: The court found the defendants' request to stay the entry and enforcement of a deficiency judgment was premature, as the deficiency amount had not yet been established.

Reasoning: Additionally, the court found that the request to stay the deficiency judgment was premature, as the amount of any potential deficiency had not been established.