Appellate Division of the Supreme Court of New York, 1996

United Chelsea National Bank v. Rumican 190 Corp.

United Chelsea National Bank v. Rumican 190 Corp.
Appellate Division of the Supreme Court of New York · Decided June 13, 1996
228 A.D.2d 279; 643 N.Y.2d 586; 643 N.Y.S.2d 586; 1996 N.Y. App. Div. LEXIS 6681
United Chelsea National Bank v. Rumican 190 Corp.

Opinion of the Court

Since a receiver had been appointed and a judgment of foreclosure and sale previously entered, without any appeal having been taken, and since the mortgage provided for an ex parte appointment of a receiver, the appointment of a second receiver after the bankruptcy court lifted the automatic stay was proper (see, RPAPL 1325 [1]; Real Property Law § 254 [10]; State St. Bank v Broadway/ St. Nicholas Assocs., 214 AD2d 474). This exercise of discretion was particularly appropriate given the entry of a consent order with the Department of Housing Preservation and Development to repair 596 building code violations, constituting clear evidence of waste and mismanagement (see, CPLR art 64; Hahn v Wylie, 54 AD2d 622). We have considered defendant-appellant’s remaining arguments and find them to be without merit. Concur—Rosenberger, J. P., Wallach, Nardelli and Tom, JJ.

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