Resolution Trust Corp. v. J.I. Sopher & Co

In Resolution Trust Corp. v. J.I. Sopher & Co., 927 F. Supp. 753, 755-756 (SDNY 1996), aff'd 108 F. 3d 329 (2d Circ. 1997), the federal court relied on Ezriel Equities Assocs., L.P. v. 157 East 72nd St. Assocs., 225 AD2d 326, 327, 638 N.Y.S.2d 470 [1st Dept.], lv dismissed 88 NY2d 1064, 674 N.E.2d 337, 651 N.Y.S.2d 407 [1996], when resolving the motion by the defendant condominium board of managers which sought an order requiring the court-appointed receiver to pay the monthly condominium common charges that had accrued on the subject vacant units during the period of receivership and until the foreclosure sale, a motion opposed by the plaintiff lender which argued that the its interest was superior to that of the lien of the condominium board. Resolution Trust Corp. held that based on Ezriel, Real Property Law 339-z is not a statutory bar to payment of common charges during the pendency of foreclosure proceedings. Resolution Trust Corp. also relied on the reasoning in First New York Bank for Business v. 155 E. 34 Realty Co., 158 Misc. 2d 658, 601 N.Y.S.2d 990 (Sup. Ct. NY County 1993), in finding that a mortgagee, the lender, should not be entitled to benefit from the receiver unless all expenses in connection with the operation of the business are paid in full to the premises owner.