Hillside Nat. Bank v. Silverman

• Court: New Jersey Court of Chancery
• Writing for the Court: STEIN, Vice Chancellor
• Citation: Hillside National Bank v. Silverman, 116 N.J.Eq. 463, 173 A. 326 (N.J. Ch. 1934)
• Decision Date: 21 August 1934
• Parties: HILLSIDE NAT. BANK v. SILVERMAN et al.

173 A. 326

HILLSIDE NAT. BANK

v. SILVERMAN et al.

Court of Chancery of New Jersey.

Aug. 21, 1934.

Suit by. the Hillside National Bank against Sadie Silverman and husband and Lena Alpern to foreclose a mortgage, wherein defendant Lena Alpern, as second mortgagee, sought a deficiency decree. Petition by defendants Silverman in the Court of Chancery to enjoin such suit for a deficiency decree pending a reference to a master to determine the fair value of the property. On bill, petition, and order to show cause.

Order to show cause discharged, and petition dismissed.

No general rule of universal application, requiring an allowance or credit of the fair value of premises sold at foreclosure was established in Federal Title & Mortgage Guaranty Co. v. Lowenstein, 113 N. J. Eq. page 200, 166 A. 538. Each case must be governed by its peculiar facts.

Sidney Finkel, of Newark, for petitioners Silverman.

Samuel H. Nelson, of Newark, for respondent Alpern.

STEIN, Vice Chancellor.

It appears from the petition and proof that Sadie and Benjamin Silverman executed a first mortgage for $8,000 to the Hillside National Bank and a second mortgage of $7,000 to Samuel Dembling, who later assigned the same to Lena Alpern. The Hillside National Bank foreclosed its mortgage, in which proceedings Lena Alpern was named as a defendant. No answer in the foreclosure proceedings was filed by her, and the cause proceeded to a decree for complainant in the sum of $9,179.81. At the sheriff sale the property was struck off to the Hillside National Bank for the sum of $100, after which the respondent, Lena Alpern, instituted suit in the Supreme Court to recover the deficiency arising upon her second mortgage. It is this suit which the Silvermans by their petition now pray the court to enjoin, pending a reference to a master to determine the fair value of the property, which amount so determined they seek to have credited upon their...