The defendants brought a motion to release $114,000 held in trust as security in place of a discharged Certificate of Pending Litigation (CPL).
The plaintiffs had originally obtained the CPL ex parte to secure a disputed $150,000 loan related to a real estate development project.
The defendants argued the plaintiffs had no reasonable interest in the property because the mortgage was discharged and replaced by an unsecured promissory note, and that the plaintiffs failed to make full and fair disclosure on the ex parte motion.
The Master dismissed the motion, finding a triable issue regarding the validity of the promissory note and mortgage discharge, and accepting the plaintiffs' explanation for not disclosing certain documents they did not possess or recall signing.