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PENN GARDENS v. MELNICK

[No. 18, September Term, 1969.]

256 Md. 72 (1969)

259 A.2d 520

PENN GARDENS SECTION TWO v. MELNICK ET AL.

Court of Appeals of Maryland.

Motion for rehearing filed January 8, 1970.

Denied February 2, 1970.

Attorney(s) appearing for the Case

Robert B. Hirsch at both arguments, with whom were Charles R. Donnenfeld, Michael Evan Jaffe, Arent, Fox, Kintner, Plotkin & Kahn, Jerome Stanbury and Stanbury & Topf on the brief, for appellant.

Harry L. Ryan, Jr. and Nelson Deckelbaum at both arguments, with whom was Charles J. Steele on the brief, for appellees.

The cause was argued on October 9, 1969, before HAMMOND, C.J., and BARNES, McWILLIAMS, SINGLEY and SMITH, JJ., and reargued on December 1, 1969, before HAMMOND, C.J., and BARNES, McWILLIAMS, FINAN, SINGLEY, SMITH and DIGGES, JJ.

SINGLEY, J., delivered the opinion of the Court.

This case presents a novel question: can the transferee of property from a lessor-mortgagor which had assigned its lease as additional security for the performance of the covenants of a mortgage on the leased property recover damages from lessees of the property on the theory that their failure to perform the lease covenants occasioned a foreclosure of the mortgage and the loss of the transferee's reversionary interest...

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