Tuesday, December 31, 2013

Neponsit Property Owners’ Association v. Emigrant Industrial Savings Bank case brief

Neponsit Property Owners’ Association v. Emigrant Industrial Savings Bank case brief summary
278 NY 248 (1938)

CASE SYNOPSIS
In (P's) action to foreclose upon a lien against real property that was owned by defendant, the defendant sought review of an order of the Appellate Division of the Supreme Court (NY), which ahd affirmed the trial court's denial of (D's) motion for judgment on the pleadings. The trial court's decision to strike defendant's counterclaim and defenses was affirmed as well.

CASE FACTS
A realty company had conveyed by deed multiple parcels of land that were developed by it for a residential community.
The deeds contained a covenant, that by its own terms was a lien running with land, and the covenant bound all subsequent to an annual fee for the purposes of maintaining the community's public amenities.
The plaintiff was assigned the interest in a covenant and the defendant obtained land subject to the covenant from a judicial sale.
In the plaintiff's action to foreclose upon its lien, the trial court struck down the defendant's various defenses, as well as its counterclaim against plaintiff, and also denied the defendant's motion for judgment on the pleadings.

DISCUSSION

  • On appeal, the court affirmed, stating that: 
  • (1) the defendant's defenses were properly struck as redundant of plaintiff's allegations in its complaint; and
  • (2) the plaintiff's covenant ran with the land.  It was clearly intended to run with the land, it touched and concerned the land, and there was privity of estate between the parties.

CONCLUSION
The Judgment was affirmed.
The defendant was properly denied judgment on the pleadings as the evidence showed that the plaintiff's lien was a valid and enforceable covenant which ran with the land. Furthermore, the defendant's defenses were properly struck from its answer as redundant because the defenses were merely argumentative denials of the allegations that were set forth in the plaintiff's complaint.

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