Charles Schwab Bank v. Winitch

179 A.D.3d 1003

117 N.Y.S.3d 307

CHARLES SCHWAB BANK, Respondent,

v.Charles B. WINITCH, et al., Appellants, et al., Defendants.

2018–13399

2019–11121

Index No. 51485/17

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

Submitted - November 13, 2019

January 29, 2020

Zimmerman Law, P.C., Huntington Station, N.Y. (Naomi Trainer of counsel), for appellants.

Stern & Einsenberg, P.C., Depew, N.Y. (Margaret J. Cascino of counsel), for respondent.

RUTH C. BALKIN, J.P., CHERYL E. CHAMBERS, JEFFREY A. COHEN, FRANCESCA E. CONNOLLY, JJ.

DECISION & ORDER

In an action to foreclose a mortgage, the defendants Charles B. Winitch and Janet B. Winitch appeal from (1) an order of the Supreme Court, Westchester County (Mary H. Smith, J.), dated July 10, 2018, and (2) a judgment of foreclosure and sale of the same court dated August 20, 2019. The order, insofar as appealed from, granted those branches of the plaintiff's motion which were for summary judgment on the complaint insofar as asserted against the defendants Charles B. Winitch and Janet B. Winitch, to strike their answer, and for an order of reference, and denied those defendants' cross motion to dismiss the complaint insofar as asserted against them based on the plaintiff's failure to comply with the notice requirements of RPAPL 1304. The judgment of foreclosure and sale, upon the order, inter alia, directed the foreclosure sale of the subject property.

ORDERED that the appeal from the order is dismissed; and it is further, ORDERED that the judgment of foreclosure and sale is affirmed; and it is further,

ORDERED that one bill of costs is awarded to the plaintiff.

The appeal from the order must be dismissed because the right of direct appeal therefrom terminated with the entry of the judgment of foreclosure and sale in the action (see Matter of Aho, 39 N.Y.2d 241, 248, 383 N.Y.S.2d 285, 347 N.E.2d 647 ). The issues raised on the appeal from the order are brought up for review and have been considered on the appeal from the judgment of foreclosure and sale (see CPLR 5501[a][1] ; Matter of Aho, 39 N.Y.2d at 248, 383 N.Y.S.2d 285, 347 N.E.2d 647 ).

The plaintiff commenced this action against the defendants Charles B. Winitch and Janet B. Winitch (hereinafter together the defendants), among others, seeking to foreclose a credit line mortgage on certain real property in Scarsdale. The defendants interposed an answer asserting various affirmative defenses and raising counterclaims. Thereafter, the plaintiff moved, inter alia, for summary judgment on the complaint insofar as asserted against the defendants, to strike their answer, and for an order of reference. The defendants opposed the motion and cross-moved, inter alia, to dismiss the complaint insofar as asserted against them for failure to comply with the notice requirements of RPAPL 1304. The plaintiff opposed the cross motion. By order dated July 10, 2018, the Supreme Court granted the plaintiff's motion and denied the defendants' cross motion. A judgment of foreclosure and sale was thereafter entered upon the order. The defendants appeal.

"[P]roper service of RPAPL 1304 notice on 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" ( Aurora Loan Servs., LLC v. Weisblum, 85 A.D.3d 95, 106, 923 N.Y.S.2d 609 ; see Wells Fargo Bank, N.A. v. Taylor, 170 A.D.3d 921, 922, 96 N.Y.S.3d 82 ; Flagstar Bank, FSB v. Damaro, 145 A.D.3d 858, 860, 44 N.Y.S.3d 128 ). The statute requires that such 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" ( RPAPL 1304[2] ), if different from that of the borrower.

Here, the plaintiff established, prima facie, its strict compliance with RPAPL 1304 with respect to Charles B. Winitch (hereinafter Charles) by submitting the "Affidavit of Mailing of 90–Day Notice Pursuant to RPAPL § 1304," sworn to by JaLisa Claiborne, a communication specialist employed by the plaintiff's loan servicer. Based on her personal knowledge, Claiborne attested that, on September 13, 2016, she mailed, by both first-class and certified mail, and in separate envelopes, the requisite 90–day notice to Charles, at the subject property in Scarsdale. Contrary to the defendants' contention, Claiborne's affidavit was sufficient to demonstrate prima facie compliance with RPAPL 1304 as to Charles (see Citibank, N.A. v. Conti–Scheurer, 172 A.D.3d 17, 20–21, 98 N.Y.S.3d 273 ). Charles's bare denial of receipt of the RPAPL 1304 notice was insufficient to raise a triable issue of fact in opposition to the plaintiff's prima facie showing (see Nationstar Mtge., LLC v. LaPorte, 162 A.D.3d 784, 786, 79 N.Y.S.3d 70 ), let alone to establish his own prima facie case in support of his cross motion to dismiss the complaint (see Citibank, N.A. v. Conti–Scheurer, 172 A.D.3d at 23–24, 98 N.Y.S.3d 273 ).

By contrast, Claiborne's affidavit did not attest to mailing the RPAPL 1304 notice to Janet B. Winitch (hereinafter Janet), nor did the plaintiff submit any other evidentiary proof in admissible form sufficient to establish, prima facie, strict compliance with RPAPL 1304 as to...