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United Orient Bank v. Capital Testing Corp.

Appellate Division of the Supreme Court of New York, First Department
Nov 28, 1995
221 A.D.2d 257 (N.Y. App. Div. 1995)

Opinion

November 28, 1995

Appeal from the Supreme Court, New York County (Beatrice Shainswit, J.).


Plaintiffs allege that defendants perpetrated a scheme whereby plaintiffs were prevented from recovering on the security interests they allegedly held in a commercial cooperative unit. However, plaintiffs have no valid claim against Capital Testing. Indeed, the record clearly demonstrates that Capital Testing innocently purchased the unit in question for fair market value, and received the shares allocated to the unit and its proprietary lease ( see, Debtor and Creditor Law § 278; Anderson v Blood, 152 N.Y. 285; Center v Hampton Affiliates, 66 N.Y.2d 782). There is no evidence that Capital Testing had, or should have had, any knowledge, of the alleged scheme involving cancellation and replacement of the shares and proprietary lease. In fact, Capital Testing ordered all the necessary and customary searches before it closed on the sale of the unit; none indicated that plaintiffs had a lien or security interest in the property.

Concur — Murphy, P.J., Sullivan, Ross, Williams and Tom, JJ.


Summaries of

United Orient Bank v. Capital Testing Corp.

Appellate Division of the Supreme Court of New York, First Department
Nov 28, 1995
221 A.D.2d 257 (N.Y. App. Div. 1995)
Case details for

United Orient Bank v. Capital Testing Corp.

Case Details

Full title:UNITED ORIENT BANK et al., Appellants, v. CAPITAL TESTING CORP.…

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

Date published: Nov 28, 1995

Citations

221 A.D.2d 257 (N.Y. App. Div. 1995)
634 N.Y.S.2d 70