Rafael Berroa, "Jr." pledged his father's cooperative apartment as collateral for a mortgage given to Jason Misrahi. When the New York County Supreme Court later cancelled the mortgage and lien, Misrahi appealed.
Because Rafael, "Sr." suffered from an "impaired mental capacity" at the time of the transfer, and was the true owner of the unit, the Appellate Division, First Department, agreed that the transaction was a nullity.
While Mishrahi presented a stock certificate and proprietary lease as evidence of Jr.'s ownership of the unit, because the name on those documents didn't match the name on Jr.'s driver's license, the AD2 thought a finding in Sr.'s favor was appropriate.
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To view a copy of the Appellate Division's decision, please use this link: Berroa v. Misrahi