Magyar Bank v. Mauro Motors, Inc.

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 3, 2025
DocketA-2525-23
StatusUnpublished

This text of Magyar Bank v. Mauro Motors, Inc. (Magyar Bank v. Mauro Motors, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magyar Bank v. Mauro Motors, Inc., (N.J. Ct. App. 2025).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2525-23

MAGYAR BANK,

Plaintiff-Respondent,

v.

MAURO MOTORS, INC., ESTATE OF CECELIA A. MAURO, CECELIA M. MAURO, as guardian ad litem for CECELIA A. MAURO, ANGELO MAURO, JR., and JOSEPH MAURO,

Defendants-Appellants. _________________________________

Submitted May 14, 2025 – Decided July 3, 2025

Before Judges Marczyk and Torregrossa-O'Connor.

On appeal from the Superior Court of New Jersey, Law Division, Middlesex County, Docket No. L-0350-19.

Ferrara Law Group, PC, attorneys for appellants (Ralph P. Ferrara and Aaron L. Peskin, of counsel and on the briefs).

Sherman Atlas Sylvester & Stamelman, LLP, attorneys for respondent (Anthony J. Sylvester and Craig L. Steinfeld, of counsel and on the brief). PER CURIAM

Defendants Mauro Motors, Inc., the Estate of Cecelia A. Mauro, Angelo

Mauro, Jr., Cecelia M. Mauro, and Joseph Mauro appeal from the trial court's

March 8, 2024 order denying their motion to modify their Settlement Agreement

with plaintiff Magyar Bank. Defendants argue the defense of impossibility

should excuse them from their obligations under the Settlement Agreement, and

the trial court erred in refusing to modify the Settlement Agreement. Defendants

also argue the trial court erred in refusing to approve the sale of a property to

satisfy their obligation under the Settlement Agreement, which plaintiff rejected

due to the sale being set for a date past the payment deadline established in the

agreement. Following our review of the record and the applicable legal

principles, we affirm.

I.

Defendants took out a loan for $2.9 million from plaintiff in 2017, cross -

collateralized by several properties owned by defendants. Plaintiff subsequently

sued due to defendants' default under the loan. Plaintiff also initiated three

mortgage foreclosure actions. On January 30, 2023, the parties appeared for

A-2525-23 2 trial but were able to resolve the case.1 At the time of trial, the amount due on

the loan was $5,103,067.66.

The language of the Settlement Agreement was negotiated over several

months and finally memorialized on April 14, 2023. The Settlement Agreement

provided that defendants were required to pay plaintiff $3.65 million by October

14, 2023, or $3.75 million by January 14, 2024, if they missed the October

deadline. Under the Settlement Agreement, plaintiff and defendants also

executed a consent order and final judgment on May 16, 2023, which entered

judgment in favor of plaintiff against defendants for the full amount of the

outstanding loan ($5,103,067.66).

The Settlement Agreement further provided that plaintiff agreed to forbear

the consent judgment so long as defendants paid the agreed-upon amount by

either deadline. If defendants failed to pay the agreed-upon amount by the

January 2024 deadline, they would be responsible for the full amount of the

consent judgment. Under paragraph 6(g) of the agreement, defendants'

discounted payment in satisfaction of the loan obligation was "expressly

conditioned upon timely receipt of all payments."

1 Certain defendants asserted counterclaims against plaintiff. These claims were dismissed under the Settlement Agreement.

A-2525-23 3 Paragraph 6(a) of the Settlement Agreement provided that defendants

"shall attempt to sell" four properties in order to raise the money to satisfy

defendants' financial obligations. The location and respective values of the

properties referenced in the Settlement Agreement, at the time of its execution,

were as follows: 200 Mawbey Street, Woodbridge (Woodbridge property),

$423,000; 776 North Drive, Brick (Brick property), $1,338,900; and two

properties in Colts Neck, one at 18 Princeton Lane, (18 Princeton Lane property)

$2,590,000, and another at 22 Princeton Lane, (22 Princeton Lane property)

$995,000. Paragraph 6(a) also required defendants to deliver to plaintiff "all net

proceeds from the sales of each . . . [property] as such sales occur and such

proceeds [were] received," and required defendants to provide plaintiff with

"status reports" regarding the sale of any properties.

Defendants were also required under the agreement to provide plaintiff

with deeds in lieu of foreclosure for all the properties to be held in escrow, and

if defendants failed to pay, plaintiff had the right to record the deeds and pursue

collection and execution of the consent judgment for the full $5,103,067.66, less

any amounts actually received by plaintiff. Importantly, paragraph 6(f) of the

Settlement Agreement provided that defendants were not required to pay

plaintiff through the sale of their properties. The Settlement Agreement stated:

A-2525-23 4 Notwithstanding anything contained in . . . paragraph 6 regarding the sales of the . . . [p]roperties, [defendants] shall be permitted to pay . . . [plaintiff] . . . through sales of the . . . [p]roperties, refinance of the . . . [p]roperties or any other means so long as timely payment of the full amount of either the [October 2023 deadline amount] or [the January 2024 deadline amount] is made within the timeframes set forth in . . . paragraph 6.

At the time of the execution of the Settlement Agreement, defendants had

listed the two Colts Neck properties for sale. On June 23, 2023, defendants sold

the 18 Princeton Lane property for $2.2 million and provided $2,057,99.13 in

sale proceeds to plaintiff. After the sale of the 18 Princeton Lane property,

defendants still owed $1,592,000.87 ($3,650,000 minus $2,057,999.13), if they

met the October 14, 2023 deadline.

The Brick property was Angelo's2 residence which suffered damage

caused by a storm in April 2023 and needed repairs. In July 2023, plaintiff's

counsel reached out to defendants' counsel for a status update on the sale of the

properties, to which defendants' counsel responded that the Brick property "just

had all repairs completed" and would "be listed shortly" for approximately

2 Because defendants share the same last name, we refer to them by their first names to avoid confusion. We intend no disrespect in doing so.

A-2525-23 5 $1,500,000. Defendants assert the Brick property was listed for sale, but could

not be shown because of Angelo's subsequent health issues.

In September 2023, Angelo was diagnosed with congestive heart failure

and underwent surgery. He continued to have cardiac related issues and his

physician advised the court in January 2024 that he would "likely" require a

heart transplant in the future. Because of his health issues his physician reported

his "functional status remain[ed] very limited" and that he was "mostly

homebound with restricted mobility." The physician advised the trial court it

would be detrimental to Angelo's health to require him to vacate his home.

Defendants never notified plaintiff of Angelo's health-related issues until

defendants filed their motion to modify the Settlement Agreement on January

12, 2024, on the eve of the second and final January 14 deadline.

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