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.
Phoenix Capital Finance Ltd. v. Axia Realty LLC, 2019 WL 3069368 (Sup. Ct. N.Y. Co. 2019), affirmed 2020 NY Slip Op. 3610, 2020 WL 3454610 (1st Dep't 2020).