39 B.R. 991 (N.D.N.Y. 1984), 84-CV-275, In re Garsal Realty, Inc.

Docket Nº84-CV-275.
Citation39 B.R. 991
Party NameIn re GARSAL REALTY, INC., Debtor. GARSAL REALTY, INC., Sally Gross, as Trustee of the Trust for Karen Rosenthal, Sally Gross, as Sole Stockholder of Garsal Realty, Inc., Sally Gross as Sole Officer of Garsal Realty, Inc., and Sally Gross as Sole Director of Garsal Realty, Inc., Appellants, v. The TROY SAVINGS BANK and John J. Curran, Receiver, Res
Case DateMay 23, 1984
CourtUnited States District Courts, 2nd Circuit, Northern District of New York

Page 991

39 B.R. 991 (N.D.N.Y. 1984)

In re GARSAL REALTY, INC., Debtor.

GARSAL REALTY, INC., Sally Gross, as Trustee of the Trust for Karen Rosenthal, Sally Gross, as Sole Stockholder of Garsal Realty, Inc., Sally Gross as Sole Officer of Garsal Realty, Inc., and Sally Gross as Sole Director of Garsal Realty, Inc., Appellants,

v.

The TROY SAVINGS BANK and John J. Curran, Receiver, Respondents.

Bankruptcy No. 81-00173.

84-CV-275.

United States District Court, N.D. New York.

May 23, 1984

Page 992

Smith Sovik Kendrick Schwarzer & Sugnet, Syracuse, N.Y., for appellants; Laurence Sovik, Syracuse, N.Y., of counsel.

Pattison Sampson Ginsberg & Griffin, Troy, N.Y., for respondent, Troy Sav. Bank; Joseph Ball, Troy, N.Y., of counsel.

Ali, Pappas & Cox, Syracuse, N.Y., for respondent, John J. Curran, receiver; C. Andrew Pappas, Syracuse, N.Y., of counsel.

MEMORANDUM-DECISION AND ORDER

McCURN, District Judge.

Appellant, Garsal Realty, Inc. ["Garsal" or "debtor"], appeals from a decision of United States Bankruptcy Judge Leon J. Marketos issued December 16, 1983. Judge Marketos denied Garsal's motions seeking a continuance of the automatic stay, an extension of the time to exercise an option to purchase an interest in certain property, and summary judgment on the issue of receiver's and attorneys' fees. For the reasons set forth below, the decision of Judge Marketos is affirmed.

BACKGROUND

Garsal is the owner of a large apartment complex valued in excess of $750,000. Respondent Troy Savings Bank ["Troy" or "Bank"] holds the first mortgage on the complex. In April, 1979 Garsal was in default of its mortgage payments and the Bank exercised its right to accelerate the loan. 1 When Garsal continued to default, the Bank brought a foreclosure action in New York State Supreme Court. The state court appointed respondent John J. Curran as receiver for the benefit of Troy. On February 11, 1981, the debtor filed a bankruptcy petition under Chapter 11 which stayed the foreclosure, but not before the state court had held that the Bank was entitled to the foreclosure, that the money that the debtor owed to the Bank included attorneys' fees incurred in collection, and that the debtor's defenses were frivolous. 2

After the commencement of the bankruptcy proceeding the parties entered into extensive negotiations in an attempt to agree on a plan of reorganization. The negotiations were protracted with the parties reaching agreement on several occasions, only to have one of the parties repudiate the "settlement".

In November, 1982 the parties entered into a stipulation under which all of the debtor's purported defenses and counterclaims

Page 993

were dismissed with prejudice, the statutory automatic stay was vacated, debtor was given until January 14, 1983 to have a plan acceptable to the Bank confirmed, and the Bank was free to foreclose if such a plan was not confirmed by that date. A...

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14 practice notes
  • 205 B.R. 290 (D.Kan. 1996), 93-7179, In re American Freight System, Inc.
    • United States
    • Federal Cases United States District Courts 10th Circuit United States District Courts. 10th Circuit. District of Kansas
    • 17 Diciembre 1996
    ...is binding on the debtor and other proponents of the plan.' In re Garsal Realty, Inc. (Garsal Realty, Inc. v. Troy Sav. Bank), 39 B.R. 991, 994 (N.D.N.Y.1984). In fact, confirmation of a plan also binds creditors and other parties in interest even if such entities have not accepted the Righ......
  • 175 B.R. 438 (S.D.N.Y. 1994), 93 Civ. 7125 , Pan Am Corp. v. Delta Air Lines, Inc.
    • United States
    • Federal Cases United States District Courts 2nd Circuit United States District Courts. 2nd Circuit. Southern District of New York
    • 23 Diciembre 1994
    ...See generally Paul v. Monts, 906 F.2d 1468, 1471 (10th Cir.1990); Garsal Realty, Inc. v. Troy Sav. Bank (In re Garsal Realty, Inc.), 39 B.R. 991, 994 (N.D.N.Y.1984), aff'd, 755 F.2d 913 (2d Cir.1985). Delta did not offer any evidence that the Committee proposed the Plan in bad [68] Delta's ......
  • 188 B.R. 575 (Bkrtcy.N.D.Ind. 1995), 92-30674, Matter of Potts
    • United States
    • Federal Cases United States Bankruptcy Courts Seventh Circuit
    • 19 Septiembre 1995
    ...is binding on the debtors as well as other proponents of the plan. Garsal Realty, Inc. v. Troy Savings Bank (In re Garsal Realty, Inc.), 39 B.R. 991, 994 (N.D.N.Y.1984), aff'd mem., 755 F.2d 913 (2d Cir.1985). The Potts' Amended Plan became a contract between the Potts and their creditors. ......
  • 52 B.R. 385 (D.Minn. 1985), 4-85-679, In re Emmer Bros. Co.
    • United States
    • Federal Cases United States District Courts 8th Circuit United States District Court of Minnesota
    • 18 Julio 1985
    ...rather than a motion to revoke the order. Miller v. Meinhard-Commercial Corp., 462 F.2d 358 (5th Cir.1972); In re Garsal Realty, Inc., 39 B.R. 991 (N.D.N.Y.1984); In re Astroglass Boat Co., Inc., 32 B.R. 538 (Bankr.M.D.Tenn.1983). Finally, the debtor points to the need for finality in bankr......
  • Request a trial to view additional results
14 cases
  • 205 B.R. 290 (D.Kan. 1996), 93-7179, In re American Freight System, Inc.
    • United States
    • Federal Cases United States District Courts 10th Circuit United States District Courts. 10th Circuit. District of Kansas
    • 17 Diciembre 1996
    ...is binding on the debtor and other proponents of the plan.' In re Garsal Realty, Inc. (Garsal Realty, Inc. v. Troy Sav. Bank), 39 B.R. 991, 994 (N.D.N.Y.1984). In fact, confirmation of a plan also binds creditors and other parties in interest even if such entities have not accepted the Righ......
  • 175 B.R. 438 (S.D.N.Y. 1994), 93 Civ. 7125 , Pan Am Corp. v. Delta Air Lines, Inc.
    • United States
    • Federal Cases United States District Courts 2nd Circuit United States District Courts. 2nd Circuit. Southern District of New York
    • 23 Diciembre 1994
    ...See generally Paul v. Monts, 906 F.2d 1468, 1471 (10th Cir.1990); Garsal Realty, Inc. v. Troy Sav. Bank (In re Garsal Realty, Inc.), 39 B.R. 991, 994 (N.D.N.Y.1984), aff'd, 755 F.2d 913 (2d Cir.1985). Delta did not offer any evidence that the Committee proposed the Plan in bad [68] Delta's ......
  • 188 B.R. 575 (Bkrtcy.N.D.Ind. 1995), 92-30674, Matter of Potts
    • United States
    • Federal Cases United States Bankruptcy Courts Seventh Circuit
    • 19 Septiembre 1995
    ...is binding on the debtors as well as other proponents of the plan. Garsal Realty, Inc. v. Troy Savings Bank (In re Garsal Realty, Inc.), 39 B.R. 991, 994 (N.D.N.Y.1984), aff'd mem., 755 F.2d 913 (2d Cir.1985). The Potts' Amended Plan became a contract between the Potts and their creditors. ......
  • 52 B.R. 385 (D.Minn. 1985), 4-85-679, In re Emmer Bros. Co.
    • United States
    • Federal Cases United States District Courts 8th Circuit United States District Court of Minnesota
    • 18 Julio 1985
    ...rather than a motion to revoke the order. Miller v. Meinhard-Commercial Corp., 462 F.2d 358 (5th Cir.1972); In re Garsal Realty, Inc., 39 B.R. 991 (N.D.N.Y.1984); In re Astroglass Boat Co., Inc., 32 B.R. 538 (Bankr.M.D.Tenn.1983). Finally, the debtor points to the need for finality in bankr......
  • Request a trial to view additional results