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Cla-Mil East Holding Corp. v. Medallion Funding Corp.

Court of Appeals of New York
6 N.Y.3d 375 (2006)


Medallion Funding Corp. (Medallion) (defendant) was a secured creditor to a debtor that leased property from Cla-Mil East Holding Corp. (Cla-Mil) (plaintiff). The collateral was laundry equipment, including washers and dryers. The debtor defaulted, and Medallion obtained a judgment against the debtor. Medallion also sought and obtained a court order directing the city marshal to recover possession of the collateral. The city marshals removed the equipment from the property without notice to Cla-Mil and allegedly caused damage to the property. Cla-Mil sued Medallion for trespass, abuse of process, and negligence. The trial court ruled that Medallion had an obligation to notify Cla-Mil prior to repossessing the collateral through the city marshals. Medallion appealed, and the appellate court reversed the trial court. Cla-Mil then appealed to the Court of Appeals of New York.

Rule of Law


Holding and Reasoning (Rosenblatt, J.)

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