Bank of N.Y. Mellon v. Min

201 A.D.3d 854

162 N.Y.S.3d 103

BANK OF NEW YORK MELLON, etc., respondent,

v.Sae Young MIN, appellant, et al., defendants.

2019–00708, 2019–00709

Index No. 511436/14

Supreme Court, Appellate Division, Second Department, New York.

Argued—November 19, 2021

January 26, 2022

Alice A. Nicholson, Brooklyn, NY, for appellant.

Hinshaw & Culbertson LLP, New York, NY (Brian S. McGrath of counsel), for respondent.

REINALDO E. RIVERA, J.P., SYLVIA O. HINDS–RADIX, WILLIAM G. FORD, DEBORAH A. DOWLING, JJ.

DECISION & ORDER

In an action to foreclose a mortgage, the defendant Sae Young Min appeals from two orders of the Supreme Court, Kings County (Noach Dear, J.), both dated November 27, 2018. The first order, insofar as appealed from, granted those branches of the plaintiff's renewed motion which were for summary judgment on the complaint insofar as asserted against the defendant Sae Young Min, to strike that defendant's answer and affirmative defenses, and for an order of reference. The second order, insofar as appealed from, granted the same relief and appointed a referee to compute the amount due to the plaintiff.

ORDERED that the orders are reversed insofar as appealed from, on the law, with costs, and those branches of the plaintiff's renewed motion which were for summary judgment on the complaint insofar as asserted against the defendant Sae Young Min, to strike that defendant's answer and affirmative defenses, and for an order of reference are denied.

The plaintiff commenced this action against, among others, the defendant Sae Young Min (hereinafter the defendant) to foreclose a consolidated mortgage encumbering certain real property in Brooklyn. The defendant interposed an answer asserting, among other affirmative defenses, that the plaintiff failed to comply with RPAPL 1304 and with the notice of default provision in paragraph 22 of the consolidated mortgage agreement. The plaintiff moved, inter alia, in effect, for summary judgment on the complaint insofar as asserted against the defendant, to strike her answer and affirmative defenses, and for an order of reference. By order dated September 28, 2017, the Supreme Court denied the plaintiff's motion without prejudice. Thereafter, the plaintiff made a renewed motion for the same relief. In an order dated November 27, 2018, the court, among other things, granted those branches of the plaintiff's renewed motion. In a second order, also dated November 27, 2018, the court, inter alia, granted the same relief and appointed a referee to compute the amount due to the plaintiff. The defendant appeals.

The Supreme Court properly determined that the plaintiff established, prima facie, that it complied with the notice requirement set forth in paragraph 22 of the consolidated mortgage agreement (see CitiMortgage, Inc. v. Goldberg, 197 A.D.3d 616, 618, 152 N.Y.S.3d 723 ). The defendant's affidavit in opposition in which she denied receipt of the required notice was insufficient to raise a triable issue of fact (see U.S. Bank N.A. v. Panzer, 189 A.D.3d 1109, 1111, 138 N.Y.S.3d 58 ).

However, the Supreme Court improperly determined that the plaintiff established, prima facie, its strict compliance with RPAPL 1304. "Strict compliance with RPAPL 1304 notice to the borrower or borrowers is a condition precedent to the commencement of a foreclosure action [ ] and the plaintiff has the burden of establishing satisfaction of this condition" ( Wells Fargo Bank, N.A. v. Yapkowitz, 199 A.D.3d 126, 131–132, 155 N.Y.S.3d 163 [internal quotation marks and citations omitted]). Pursuant to RPAPL 1304(1), "at least ninety days before a lender, an assignee or a mortgage loan servicer commences legal action against the borrower, or borrowers at the property address and any other address of record, including mortgage foreclosure, such lender, assignee or mortgage loan servicer shall give notice to the borrower." " RPAPL 1304(2) requires that the notice be sent by registered or certified mail, and also by first-class mail, to the last known address of the borrower and to the residence that is the subject of the mortgage" ( Caliber Home Loans, Inc. v. Weinstein, 197 A.D.3d 1232, 1236, 153 N.Y.S.3d 575 ).

"A plaintiff demonstrates its compliance with the statute ‘by proof of the requisite mailing, which can be established [by] proof of the actual mailings, such as affidavits of mailing or domestic return receipts with attendant signatures, or proof of a standard office mailing procedure designed to ensure that items are properly addressed and mailed, sworn to by someone with personal knowledge of the procedure’ " ( U.S. Bank N.A. v. Pickering–Robinson, 197 A.D.3d 757, 759, 153 N.Y.S.3d 179, quoting Citibank, N.A. v. Conti–Scheurer, 172 A.D.3d 17, 21, 98 N.Y.S.3d 273 [internal quotation marks omitted]; see Caliber Home Loans, Inc. v. Weinstein, 197 A.D.3d 1232, 153 N.Y.S.3d 575 ). "[M]ailing may be proved by any number of documents meeting the requirements of the business records exception to the hearsay rule under CPLR 4518" ( U.S. Bank National Association v. Kohanov, 189 A.D.3d 921, 141 N.Y.S.3d 137, 140, quoting U.S. Bank N.A. v. Goldberg, 171 A.D.3d 981, 982, 97 N.Y.S.3d 714 [internal quotation marks omitted]).

Here, the plaintiff failed to establish its strict compliance...