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149 Misc. 625

Thomas v. Manning

New York Supreme Court

Decided May 12, 1932

New York Supreme Court · decided 1932-05-12

Relies on New Way Building Co.v. Mortimer Taft Building Corp.

Decided 1932-05-12

Witschief, J.

¶1The tenant refuses to pay any one until it is determined who is entitled to the rent which is owing.

¶2*626The receiver is entitled to all rents unpaid at the date of his appointment. (Rider v. Vrooman, 12 Hun, 299; New Way Bldg. Co., Inc., v. Taft Bldg. Corp., 129 Misc. 170; Palmieri v. N. Y. Prep. School, 232 App. Div. 848.)

¶3The mortgagor on or about October 1, 1931, assigned all due and future rents to the defendant Conlin Coal & Building Supply Co., Inc., which spent money in the improvement of the property upon the strength of the assignment of rents.

¶4The position of the defendant Conlin Coal & Building Supply Co., Inc., is strong equitably but weak legally.

¶5The assignment to it of the rents was necessarily subordinate to the rights of the mortgagee under the mortgage.

¶6Even liens obtained by judicial process are subordinate to the rights of a mortgagee. (Donlon & Miller Mfg. Co. v. Cannella, 89 Hun, 21.)

¶7And it has been held in this Department that an assignee of future rents has no precedence over a receiver’s right thereto. (Wiggins v. Freeman, 174 App. Div. 304.)

¶8It follows that the motion must be granted.

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