Travelers Insurance v. 633 Third Associates

OAKES, Senior Circuit Judge:

I. BACKGROUND

This dispute is before this court for a second time. See Travelers Ins. Co. v. 633 Third Assocs., 973 F.2d 82 (2d Cir.1992) (“Travelers I”). It is useful, however, to reiterate the basic facts.

In 1986, plaintiff, The Travelers Insurance Company (“Travelers”), a Connecticut corporation, loaned $145 million to defendant 633 Third Associates (“Partnership”), a New York limited partnership , that owns a single property — a 41-story office budding in New York City (“the Property”). The loan was secured by a non-recourse mortgage on the Property. In 1990,…