From Casetext: Smarter Legal Research

Hughley v. Gillespie

Appellate Division of the Supreme Court of New York, Second Department
Sep 11, 1995
219 A.D.2d 584 (N.Y. App. Div. 1995)

Opinion

September 11, 1995

Appeal from the Supreme Court, Nassau County (Hart, J.).


Ordered that the order is reversed insofar as appealed from, on the law, with costs, and, upon reargument, the plaintiff's motion is denied, the defendants' cross motion is granted, and the complaint is dismissed.

Pursuant to the specific terms of his purchase money mortgage, the plaintiff had no right to prepay the mortgage. Consequently, the defendants' request for interest calculated to the maturity date of the mortgage note in consideration for their acceptance of prepayment and execution of a satisfaction of mortgage was not unlawful (see, Lyons v National Sav. Bank, 280 App. Div. 339; Feldman v Kings Highway Sav. Bank, 278 App. Div. 589, affd 303 N.Y. 675).

Contrary to the plaintiff's contention, Real Property Law § 254-a is inapplicable to this case. That statute prohibits a mortgagee from collecting a prepayment fee from a mortgagor who sells his or her home when the mortgagee necessitates prepayment by refusing to consent to a request that the purchasers assume the mortgage or take title subject to the mortgage. Here, the defendants did not refuse to consent to the assumption of the mortgage by the plaintiff's prospective purchasers or to their taking title to the property subject to the mortgage. No such request was ever made and, in fact, the terms of the proposed sale required the plaintiff to satisfy the mortgage.

Consequently, the defendants were entitled to summary judgment dismissing the complaint. Copertino, J.P., Santucci, Altman and Friedmann, JJ., concur.


Summaries of

Hughley v. Gillespie

Appellate Division of the Supreme Court of New York, Second Department
Sep 11, 1995
219 A.D.2d 584 (N.Y. App. Div. 1995)
Case details for

Hughley v. Gillespie

Case Details

Full title:JAMES HUGHLEY, Respondent, v. EUGENIE GILLESPIE et al., Appellants

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Sep 11, 1995

Citations

219 A.D.2d 584 (N.Y. App. Div. 1995)
631 N.Y.S.2d 374

Citing Cases

Russo Enterprises, Inc. v. Citibank, N.A.

As the mortgage documents did not grant Russo an unambiguous right to prepay the debt (see, Matter of Arthur…

Coastal Inv. Partners, LLC v. DSG Glob., Inc.

Rather, the sparse case law concerning voluntary prepayment and corresponding penalties suggests that any…