Maplewood Bank And Trust v. Sears, Roebuck And Co.

625 A.2d 537 (1993)

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Nature of the Case

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Facts

P is the holder of a first purchase money mortgage dated September 20, 1988, and recorded on October 5, 1988, on premises owned by the Capers. D filed a Financing Statement covering a completely new kitchen, consisting of 'new countertops, cabinets, sinks, disposal unit, dishwasher, oven, cooktop and hood,' installed in the mortgaged premises at the request of the Capers after they executed a Security Agreement. The UCC-1 form, filed by D gave notice that D had a security interest in the new kitchen installed in the mortgaged premises in the sum of $33,320.40. On August 18, 1989, the Capers executed a second mortgage on the previously mortgaged premises to New Jersey Savings Bank (D) for the sum of $ 34,000. That mortgage was recorded on August 23, 1989. Capers defaulted. P declared the entire unpaid balance on the mortgage was due and foreclosed. D filed an answer and a counterclaim seeking a declaration that its debt was 'prior to the mortgage of the plaintiff' and, among other things, to compel P to 'pay D the amount due on its Agreement.' D's answer and counterclaim were stricken on July 26, 1991, and the matter proceeded as an uncontested foreclosure action. D has appealed the dismissal of its counterclaim.