Federal Deposit Ins. Corp. v. Five Star Mgmt., Inc

In Federal Deposit Ins. Corp. v. Five Star Mgmt., Inc., 258 AD2d 15, 21, 692 N.Y.S.2d 69 [1st Dept 1999], the consolidated mortgage at issue was intended to be secured by certain premises, but the deed tendered as security for the mortgage misidentified the premises, although the two previous mortgages had correctly referenced the secured premises. Although the motion court dismissed the foreclosure action based on the error, that decision was reversed on appeal and summary judgment granted to the plaintiff, with the reasoning that although a reformation claim was barred by the statute of limitations, the facts of the case "presented a basis to accord FDIC the right in equity to seek foreclosure on the . . . mortgage" (258 AD2d at 21).