3105 Grand Corporation, Respondents v. City of New York, Defendants, and 92-21 Union Hall Street…

Summary

The New York Court of Appeals affirmed the lower court's judgment, holding that the plaintiffs may recover the misappropriated receivership funds used to pay taxes because the defendants were unjustly enriched and subrogation applies, and that the settlement and release do not bar the plaintiffs' cause of action. Justice Loughran dissented, arguing that the defendant was a bona fide purchaser for value and should be protected.