Alden Hotel Co. v. Kanin

In this action by a first mortgagee (Alden) to foreclose its mortgage on premises 225 Central Park West known as Hotel Alden, the second mortgagee (Friedman) defends upon the grounds that (1) a prior action brought by Alden to foreclose the same mortgage was discontinued with prejudice, barring another action for the same relief; (2) the acceptance of a deed in lieu of foreclosure in the prior action accomplished a merger of the fee and the mortgage; (3) Alden’s operation of the property since the delivery of the deed and the receipt of income without applying it to reduction of the principal…