In the Matter of Surrey Strathmore Corp., Appellant v. Dollar Savings Bank of New York, Respondent

Summary

The New York Court of Appeals affirmed the Appellate Division, holding that the corporate mortgagor is not entitled to a trust accounting or any interest earnings on tax escrow payments made under the commercial mortgage. The court based its decision on the absence of any express provision or inference of intent to pay interest, and on the parol evidence confirming the bank's refusal to do so. Justice Fuchsberg and Justice Wachtler each dissented, arguing that the trust language creates an enforceable right to earnings.