Sigler v Baldan

Holding The court affirmed the dismissal of fraudulent conveyance and unjust enrichment claims but reversed the dismissal of the declaratory judgment claim, holding that the plaintiff’s security interest in the co-op shares survived the Florida sheriff’s sale and judgment. The court also remanded the motion to disqualify defense counsel for further proceedings.

The court’s words

The purchaser at an execution sale takes only the right, title, and interest which the execution debtor had, subject to the equities existing when the judgment was recorded

2026 NY Slip Op 06268, at the official text

Baldan was the 'debtor' (see UCC 9-102[a][28][A]), and 3 CI was the 'obligor' (id. at subsection [59]).

2026 NY Slip Op 06268, at the official text

the Trust had an enforceable security interest in her co-op shares because Baldan had 'rights in the collateral or the power to transfer rights in the collateral to a secured party'

2026 NY Slip Op 06268, at the official text

the Florida action was between the Trust on the one hand and Baldan and 3 CI on the other

2026 NY Slip Op 06268, at the official text

the Sabez defendants were not parties in the Florida action, and 3 CI is not a party in the action at bar

2026 NY Slip Op 06268, at the official text