In this case, we represented the Petitioner, the judgment creditor of the Respondent.
The Petitioner had lent money to the Respondent to purchase a valuable apartment in Manhattan. The promissory note was secured by an affidavit of judgment by confession.
When the promissory note matured, the Respondent failed to pay and defaulted. We then filed the judgment with the New York County Clerk, and brought a special proceeding to waive the homestead exemption and sell the apartment to satisfy the judgment.
Unfortunately, unbeknownst to us or our client, the Respondent was being sued by his then wife for a divorce in Kings County. The wife moved to intervene in our special proceeding alleging that our client was conspiring with her hudband to defraud her - that the loan was fabricated - and the Judge transferred our case to be heard for joint trial with the divorce case in Kings County, together with the previously consolidated action brought by the wife against the husband's father, for a constructive trust over an apartment owned in the father's name in Florida.
Eventually, the three matters were referred to a Special Referee sitting in a matrimonial part for trial.
The special proceeding was tried for 10 days, and the divorce and constructive trust actions were tried for an additional 2 days.
At the end the Special Referee found that there was absolutely no evidence of any of the wife's allegations against our client, and that our client was entitled to enforce his judgment against the Respondent.
When we entered judgment, the presiding Justice permitted us to enter judgment against the wife for our costs and disbursements.
You can read the decision here.
It is 65 pages, the part pertinent to our special proceeding begins on the bottom of page 29.
Topics: Civil Litigation