Adam Leitman Bailey, P.C. Defeats Fraud Claim; Protects Chase Bank as First Lien Holder
In Baez v. Ende Realty Corp., et. al., Adam Leitman Bailey, P.C. won a decision and order declaring Chase Bank’s mortgage a priority lien secured by a property in the Bronx, New York, despite allegations of a fraudulent transfer under Article 10 of the Debtor and Creditor Law.
Even though Chase Bank’s predecessor in interest, Washington Mutual, held a recorded interest in the property, the plaintiff failed to name the bank as a party to the action. In August 2008, the plaintiff was awarded a judgment voiding the deed by which Chase Bank’s mortgage was executed, which exposed Chase Bank to the risk that its mortgage would no longer be secured by the property.
Adam Leitman Bailey, P.C. was hired to protect the interests of Chase Bank and moved to intervene in the action, seeking an order declaring the mortgage to be a valid lien secured by the property, taking priority over all subsequent liens or attachments. During oral argument, Adam Leitman Bailey, P.C. emphasized that Chase Bank was a bona fide lienor for value without notice of any alleged fraud, whose priority position with respect to its mortgage should be protected pursuant to RPL§266.
In a decision and order of Judge Geoffrey D. Wright dated February 7, 2011, Adam Leitman Bailey, P.C.’s motion was granted to the full extent of declaring the mortgage to be superior to the interests of the plaintiff, and directing the plaintiff to first pay Chase Bank the amount due on its mortgage in the event of a sale.
The Title Litigation Group at Adam Leitman Bailey, P.C. quieted title upon oral argument on a single motion, with John M. Desiderio as managing partner on the case, and Jackie Halpern Weinstein on researching, drafting, and oral argument.