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Manufacturers Trade Tr. v. Layton S R

Appellate Division of the Supreme Court of New York, Fourth Department
Dec 12, 1975
50 A.D.2d 1072 (N.Y. App. Div. 1975)

Opinion

December 12, 1975

Appeal from the Erie County Court.

Present — Moule, J.P., Cardamone, Simons and Witmer, JJ.


Judgment unanimously affirmed, with costs. Memorandum: On this appeal, minority stockholders of defendant Layton Sales and Rentals, Inc., claim that they have a valid defense to foreclosure of a mortgage on the corporation's real estate. They allege various improprieties by the majority stockholders in the execution of the mortgage and the distribution of the stock. The allegations are conclusory and do not constitute a defense as against plaintiff mortgagee. The mortgage in question was executed to obtain funds to satisfy liens upon appellants' property prior to its transfer to the corporation in exchange for corporate stock. The transfer was pursuant to a court order directing appellants to specifically perform their contract to convey the realty to the corporation. All the mortgage documents were executed by the corporation as principal, the mortgage funds were loaned and the mortgage is now concededly in default so that plaintiff is entitled to summary judgment granting it foreclosure.


Summaries of

Manufacturers Trade Tr. v. Layton S R

Appellate Division of the Supreme Court of New York, Fourth Department
Dec 12, 1975
50 A.D.2d 1072 (N.Y. App. Div. 1975)
Case details for

Manufacturers Trade Tr. v. Layton S R

Case Details

Full title:MANUFACTURERS AND TRADERS TRUST COMPANY, Respondent, v. LAYTON SALES AND…

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

Date published: Dec 12, 1975

Citations

50 A.D.2d 1072 (N.Y. App. Div. 1975)