In a September 22, 2011 decision by Justice Hinds-radix in an action concerning the foreclosure of a mortgage on commercial real property, the court denied the plaintiff’s default motion for the entry of a judgment of foreclosure and sale. Although there was no opposition to the motion, the court reviewed the proposed judgment for accuracy and identified certain factors warranting its denial. Those circumstances included a request by the plaintiff’s counsel for the reimbursement of expenses which were not reimbursable on their face and the inclusion of language permitting the plaintiff to recover any mortgage debt deficiency from the mortgage guarantors, where such payment was not required under the guarantee. The court also questioned attorney fees incurred by the plaintiff’s counsel concerning adjourning a motion for summary judgment due to bankruptcy, as it was unclear whether the bankruptcy of the defendant was intended. The court noted that if the defendant was a judgment debtor in a pending bankruptcy, the foreclosure sale would be subject to a bankruptcy stay.
Madison Natl. Bank v 256 Jefferson Mgt. LLC, Sup Ct, Kings County, Sept. 22, 2011, Hinds-Radix, J, Index No. 16545/10