First Natl. Bank v. Highland Hardwoods

Full title: FIRST NATIONAL BANK OF DOWNSVILLE, Appellant, v. HIGHLAND HARDWOODS, INC

Court: Appellate Division of the Supreme Court of New York, Third Department

Date published: Dec 29, 1983

Facts

Appeal from an order of the Supreme Court at Special Term (Smyk, J.), entered May 17, 1983, in Delaware County, which, inter alia, denied plaintiff’s motion for attachment against defendants Otsego Lake Lumber Services, Ltd., and Ernest Pasifakis, denied plaintiff’s motion for a preliminary injunction against defendants, and vacated the temporary restraining orders granted to plaintiff against defendants. Plaintiff First National Bank of Downsville had provided financing for a number of years for defendant corporations Highland Hardwoods, Inc. (Highland) and Catskill Mills, Inc. (Catskill), which were engaged in the production of finished wood products. Both corporations were owned and controlled by defendant Robert T. Schuermann. The principal debt owed to a plaintiff is secured by a security interest in the inventory of the two corporations and the proceeds from there. In late March or early April of 1982, Schuermann is alleged to have transferred control of Highland and Catskill to defendant Ernest Pasifakis, who allegedly is an officer and owner of defendant General Dimension Lumber Services, Ltd. (General). 

Issue

Decision

 The argument that Special Term should have granted plaintiff a hearing concerning ownership of the lumber inventory transferred from the Catskill and Highland properties to the Otsego site is without merit. The plaintiff never requested such a hearing. The order was affirmed, with costs. Mahoney, P.J., Sweeney, Main, Mikoll, and Yesawich, Jr., JJ., concur.

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