235 E. 4TH STREET, LLC v. DIME SAVINGS BANK OF WILLIAMSBURGH


65 A.D.3d 976 (2009)

885 N.Y.S.2d 416

235 E. 4TH STREET, LLC, Respondent, v. DIME SAVINGS BANK OF WILLIAMSBURGH, Appellant.

Appellate Division of the Supreme Court of New York, First Department.

Decided September 29, 2009.


The motion court correctly held that a cause of action for breach of contract is stated by plaintiff mortgagor's allegations that defendant mortgagee's payoff letter demanded a prepayment penalty that was not called for in the mortgage, and that plaintiff's payment of the demanded penalty under constraint of closing the transaction was not an acceptance of what was a modification of the mortgage. Plaintiff's demand for punitive damages, however, should have been stricken...

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