## Facts

- Guardian Loan Company, Inc. obtained a money judgment against Bernard G. Early and others for $1,268.93 and docketed it in Suffolk County, New York.
- After nonpayment, Guardian caused the Suffolk County Sheriff to levy on and schedule an execution sale of the Earlys’ residence; the sale was properly noticed and advertised and was adjourned twice at the Earlys’ request.
- On August 1, 1977, the sheriff conducted the sale and struck off the property to Milton Berlin, a third-party purchaser unrelated to the judgment, for $3,020.
- After fees, the sheriff distributed the proceeds to judgment creditors and delivered a deed to Berlin.
- The Earlys commenced a proceeding to set aside the sale under CPLR 5240, alleging they had about $1,100 on the sale date but arrived late due to a flat tire.
- The Earlys asserted the property was worth roughly $48,000–$60,000 and was subject to a mortgage of about $9,000; Berlin disputed valuation and showed additional encumbrances, including a federal tax lien and other unsatisfied liens.

## Issues

1. Whether CPLR 5240 authorizes a court to set aside a lawfully conducted sheriff’s sale after the deed has been delivered to a third-party purchaser.
2. Whether alleged hardship and price inadequacy, without fraud or procedural defect, justify post-sale relief from an execution sale.

## Decision

- The Court of Appeals reversed the order setting aside the sale and upheld Berlin’s title.
- The court held CPLR 5240 provides broad authority to regulate enforcement procedures, but it does not permit undoing a completed, lawful execution sale after deed delivery to a bona fide third-party purchaser.
- The court concluded the asserted reasons for relief (late arrival, inability to tender sufficient funds, and claimed disparity between value and price) did not establish statutory noncompliance or recognized equitable grounds to vacate the sale.

## Legal Principles

- CPLR 5240 is a prospective, regulatory tool to prevent abuse in the use of Article 52 enforcement devices; it is not a post-sale remedy to overturn results achieved through lawful procedures.
- Finality of judicial sales protects market participation and reliance by third-party purchasers; routine post-sale invalidation would chill bidding and destabilize execution sales.
- Post-sale relief generally requires traditional equitable or statutory defects (e.g., fraud, collusion, mistake, misconduct, or failure to follow required procedures), not hardship or price inadequacy alone.
- Courts may not use CPLR 5240 to recreate a judgment debtor’s redemption right after execution sale where the Legislature has eliminated that right.

## Conclusion

The court held that CPLR 5240 cannot be used to set aside a lawfully consummated sheriff’s sale once the deed has been delivered to a third-party purchaser, absent recognized equitable or procedural defects, thereby preserving the finality of execution sales and the security of bona fide purchasers’ titles.


Guardian Loan Co. v. Early, 392 N.E.2d 1240 (N.Y. 1979)