Clarke v. Selben Apartments, Inc.

The following is the opinion of the court below:

Johnston, J.

Plaintiff seeks to foreclose a $30,000 demand mortgage executed by defendant Selben Apartments, Inc., on February 8, 1927, and recorded February 9, 1927, covering certain premises on South Oxford street. No defense has been interposed by the mortgagor. The answering defendants are lienors whose claims total approximately $25,000. They attack the mortgage because it (a) is without consideration; (b) was executed and delivered for the purpose of making a preferential payment to Audley Clarke Company, of which the mortgagee is a…