This section contains the nature of the case and procedural background.

P is the holder of a first purchase money mortgage dated September 20, 1988, and recorded on October 5, 1988, on premises owned by the Capers. D filed a Financing Statement covering a completely new kitchen, consisting of 'new countertops, cabinets, sinks, disposal unit, dishwasher, oven, cooktop and hood,' installed in the mortgaged premises at the request of the Capers after they executed a Security Agreement. The UCC-1 form, filed by D gave notice that D had a security interest in the new kitchen installed in the mortgaged premises in the sum of $33,320.40. On August 18, 1989, the Capers executed a second mortgage on the previously mortgaged premises to New Jersey Savings Bank (D) for the sum of $ 34,000. That mortgage was recorded on August 23, 1989. Capers defaulted. P declared the entire unpaid balance on the mortgage was due and foreclosed. D filed an answer and a counterclaim seeking a declaration that its debt was 'prior to the mortgage of the plaintiff' and, among other things, to compel P to 'pay D the amount due on its Agreement.' D's answer and counterclaim were stricken on July 26, 1991, and the matter proceeded as an uncontested foreclosure action. D has appealed the dismissal of its counterclaim.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.