New York Court: “Happy Wife, Happy Life” Will Not Shield You From A Wrongful Termination Lawsuit

by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Mr right and mrs always right (pd)I do not have these mugs at home, but I should. Most married men will tell you that the easiest way to avoid trouble at home is to remember that your wife is always right (even on those rare occasions when she is obviously wrong). Sometimes this policy of gratuitous appeasement fails, however, as was the case in a recent decision, Edwards v. Nicolai, from the New York Appellate Division (First Department).

In Edwards, defendants were husband and wife, and co-owners of Wall Street Chiropractic and Wellness. The husband was head chiropractor, while the wife was the chief operating officer. The husband hired defendant as a "yoga and massage therapist," and was her direct supervisor. According to plaintiff, her relationship with the husband was entirely professional and he "regularly praised" her work performance.

A little more than one year after hiring plaintiff, the husband allegedly "informed Plaintiff that his wife might become jealous of Plaintiff, because Plaintiff was too cute." This apparently proved to be a prescient statement. Approximately four months later, at 1:30 in the morning, plaintiff received a text from the wife, stating that plaintiff was not "welcome  any longer" at the office, that plaintiff should "NOT ever step foot in [the office] again," and that plaintiff should "stay the [expletive] away from [the wife's] husband." A few hours later, at around 8:30 am, plaintiff received a text from the husband notifying her that she was "fired and no longer welcome in [the] office," and that if she called or tried to come back, defendants would call the police. 

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No, You Cannot Enforce A Mortgage That Has Already Been Paid In Full

by: Peter J. Gallagher (@pjsgallagher)

The Appellate Division recently dealt with an unusual situation involving a borrower trying to enforce a mortgage, which had been satisfied years earlier, against a lender that was foreclosing on a different loan. While disputes occasionally arise between lenders regarding which loans have priority over others for the purpose of foreclosure, it is highly unusual for a borrower to attempt to enforce a mortgage, much less one that had been fully satisfied. Nonetheless, this was precisely what the Appellate Division faced in Valley National Bank v. Meier.

The facts of Meier were not disputed. In 1999, the Meiers obtained a loan from Community Bank of Bergen County for $168,000, which was secured by a purchase money mortgage. At the time, Mr. Meier was the president, CEO, and chairman of the board of Community Bank, which later merged with Valley. Six years later, the Meiers obtained a home equity loan from Community Bank that was also secured by a mortgage on the same property. Two years after that, Mr. Meier paid off the original mortgage, allegedly using pre-martial assets to do so. At some point prior to paying off the mortgage, the Meiers divorced. Instead of getting a discharge of the mortgage after paying off the note, Mr. Meier received a written assignment of the mortgage which he subsequently recorded.

 

Continue reading “No, You Cannot Enforce A Mortgage That Has Already Been Paid In Full”