In 28 St. Nicholas Ave. HDFC v. HSBC, et. al., Adam Leitman Bailey, P.C. negotiated a pre-trial settlement, in which HSBC’s mortgage was declared a valid interest secured by a building in Brooklyn, despite a fraudulent deed transfer in the chain of title. The President of the HDFC deeded ownership of the entire building from the HDFC to himself, personally, gave a mortgage to the insured, and stole part of the mortgage proceeds for personal use. Additionally, the unit owners accused HSBC’s predecessor, who originated the loan, of predatory lending, which accusations peaked the Attorney General’s interest.
In the face of this invalid deed transfer and potentially devastating predatory lending allegations, Adam Leitman Bailey, P.C. prevailed in successfully settling this Article 15 action to quiet title with a court-ordered Stipulation, avoiding both costly motion practice and, more importantly, an un-winnable trial.
After tedious discovery and deliberate deposition questioning, Adam Leitman Bailey, P.C. was able to track all of the loan proceeds and prove that the Plaintiff received the benefits of most of the loan, thereby arming HSBC with the plausible defenses needed to secure a settlement of this seemingly indefensible action.
Adam Leitman Bailey, P.C. ensured that the stipulation was ordered by the Court and was successfully recorded into the chain of title for the premises, thereby putting the world on notice of HSBC’s confirmed secured interest, and mitigating the loss on an impossible claim.
The Title Litigation Group at Adam Leitman Bailey, P.C. won this case for the insured, with Jackie Halpern Weinstein prevailing on strategizing, negotiating, and drafting, and Colin E. Kaufman as managing partner on the claim.
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