91 A.D.2d 927 | N.Y. App. Div. | 1983
— Order of the Supreme Court, Bronx County (Callahan, J.) entered February 18, 1982, unanimously reversed, to the extent appealed from, on the law, and the first affirmative defense of champerty interposed by defendants 1015-1025 Gerard Corp., and Phyllis Greenwald dismissed with costs. Plaintiff, the owner and holder of a consolidated mortgage on premises 1015-1025 Gerard Avenue, Bronx, New York, commenced an action to foreclose it. Defendant 1015-1025 Gerard Corp., the owner of the premises, and Phyllis Greenwald, the holder of the third mortgage thereon, interposed a single answer containing four affirmative defenses. Plaintiff thereupon moved to dismiss the affirmative defenses and for summary judgment. Special Term granted the motion as to the second, third and fourth defenses. However, it denied so much of the motion as sought to dismiss the first defense and summary judgment with leave to renew after completion of discovery. Thereupon plaintiff appealed from so much of Special Term’s order as denied dismissal of the first defense. Plaintiff is a corporation owned and controlled by the Yalkowsky brothers, both of whom are attorneys. It is alleged that at the time the consolidated mortgage was acquired by plaintiff it was in default and was acquired for the purpose of compelling defendants 1015-1025 Gerard Corp. or Greenwald or both to pay substantially more than the worth of the mortgage