Foreclosures—Cross-Claims Dismissed—Interference With Contractual Relations—Tortious Interference With Prospective Economic Advantage, Fraud and Negligent Representation—Relationship Between Bank and Its Customer Is “Nothing More Than an Arm’s Length, Debtor and Creditor Association”

This decision involved a real estate foreclosure proceeding. A mortgage had been given by the defendants “A” and “B” to the plaintiff lender (plaintiff). The mortgage secured an indebtedness of $10,170,000. The loan documents had been executed by individual defendants “C” and “D,” as a managing member of an LLC and as a president of a corporation respectively. “A” and “B” were owners of the premises in equal shares. “C” and “D” executed “an individual guarantee of the indebtedness.” A defendant “E,” by its managing member “C,” had also executed a guarantee of the indebtedness.
The plaintiff commenced the subject action, alleging that the defendants defaulted in the payment of a subordinate mortgage. The holder of a subordinate mortgage is defendant “F.”