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Esco Credit Corp. v. Diamantis

Appellate Division of the Supreme Court of New York, Second Department
Jan 19, 1993
189 A.D.2d 798 (N.Y. App. Div. 1993)

Opinion

January 19, 1993

Appeal from the Supreme Court, Queens County (Hentel, J.).


Ordered that the order is affirmed, without costs or disbursements.

The appellant second mortgagee, Barbara Andreadis was neither a party to, nor a third-party beneficiary of, the stipulation between the first mortgagee Esco Credit Corp. (hereinafter Esco), and the mortgagor Michael Diamantis, which consolidated three mortgages held by Esco. Accordingly, she has no right to seek specific enforcement of the stipulation since she was a stranger to it and the stipulation did not affect her rights as a second mortgagee (see, Flemington Natl. Bank Trust Co. v. Domler Leasing Corp., 65 A.D.2d 29, affd 48 N.Y.2d 678; see also, 22 N.Y. Jur 2d, Contracts, § 271). In any event, the stipulation, which merely consolidated into a single $180,000 mortgage the three prior mortgages on which the mortgagor Michael Diamantis was in default and which provided further security in the form of a deed in lieu of foreclosure to be held in escrow, did not satisfy and discharge Esco's three underlying senior mortgages, nor did the stipulation enhance the appellant Andreadis's lien to a position superior to that of the consolidated $180,000 mortgage (see, Bank of N.Y. v. Cerasaro, 98 A.D.2d 902; Skaneateles Sav. Bank v Herold, 50 A.D.2d 85, affd 40 N.Y.2d 999). Thus, foreclosure is not precluded in light of Diamantis's most recent default in repayment in breach of the terms of the stipulation.

We have examined the remaining contentions and find them to be without merit. Sullivan, J.P., Miller, Ritter and Pizzuto, JJ., concur.


Summaries of

Esco Credit Corp. v. Diamantis

Appellate Division of the Supreme Court of New York, Second Department
Jan 19, 1993
189 A.D.2d 798 (N.Y. App. Div. 1993)
Case details for

Esco Credit Corp. v. Diamantis

Case Details

Full title:ESCO CREDIT CORP., Respondent, v. MICHAEL DIAMANTIS et al., Appellants, et…

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

Date published: Jan 19, 1993

Citations

189 A.D.2d 798 (N.Y. App. Div. 1993)
592 N.Y.S.2d 428

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