Qiaoshang Intl. LLC v. Bryant Park Funding 100, LLC

Summary

The Appellate Division, First Department, affirmed a judgment cancelling Bryant Park Funding 100, LLC's mortgage on two condominium units and granting plaintiffs summary judgment. The court held that plaintiffs had an interest in the units and that the mortgagee had actual or constructive notice of that interest, defeating bona fide encumbrancer status. The court also upheld specific performance against the development entities and rejected the mortgagee's request for additional discovery.

Holdings

1. Plaintiffs were entitled to summary judgment cancelling BPF's mortgage because they established an interest in the units, BPF knew which units Qiaoshang sought to acquire, and BPF had actual or constructive notice of that interest before taking and recording the mortgage.
2. HFZ waived the requirement that Qiaoshang deliver a conversion notice.
3. Specific performance was properly granted against HFZ because its control over the direct owner of the units gave it the power to effectuate specific performance.
4. Supreme Court properly granted summary judgment notwithstanding BPF's request for additional discovery.

Questions Presented

1. Whether plaintiffs established an interest in the condominium units sufficient to defeat BPF's status as a bona fide encumbrancer when BPF took and recorded its mortgage.
2. Whether HFZ waived the contractual requirement that Qiaoshang deliver a conversion notice.
3. Whether specific performance could be ordered against HFZ-affiliated entities that indirectly controlled the direct owner of the units.
4. Whether Supreme Court properly granted summary judgment despite BPF's request for additional discovery under CPLR 3212(f).

Disposition

affirmed