Lender – Denial of Intervention Motion Filed By Borrower’s Co-Manager Upheld on Appeal

The Appellate Division, First Department, unanimously affirmed the denial of  a motion filed by a borrower’s co-manager seeking leave to intervene in a lender’s debt enforcement action under a demand note in order to assert direct and derivative claims and defenses on the borrower’s behalf.  The motion was filed after the proposed intervenor’s husband and co-manager, shipping magnate Spiros Milonas, settled the action on behalf of the borrower by confessing judgment for the principal amount of a substantial loan.