Travelers Insurance Co. v.

633 THIRD ASSOCIATES 14 F.3d 114 (2nd Cir. 1994)

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Nature of the Case

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Facts

P loaned D $145 million secured by a nonrecourse mortgage on D’s sole property, a 41-story office building in New York City. In 1991, D failed to pay property taxes and failed to meet a payment on its loan. A default of the loan had occurred. P filed for foreclosure and brought an equitable action for waste to enjoin distribution of D’s cash assets. The district court was not buying this action and refused to consider the nonpayment of taxes as actionable waste.