- Anglo Irish Bank's construction loan mortgages totaled $165M
- The mortgager defaulted on the construction loans before completing construction on portions of the building but after tenants occupied the building
- Under NY law, the authority of the receiver appointed in mortgage foreclosure actions is limited to the collection of rents and related matters
This had never happened before in New York, as the authority of rents receivers is narrowly defined and limited by state and court rule. The borrower and guarantor zealously opposed the action and the expanded authority of the rents receiver.
Despite intense opposition, the building renovations were performed and completed, and the building was sold at a foreclosure auction pursuant to a judgment in favor of Anglo Irish Bank.
Christopher Sullivan, a Member in the firm’s Litigation practice, persuasively advocated for the client in court, ultimately obtaining a court order authorizing the receiver to complete all building renovations.