| Wells Fargo Bank, N.A. v Zelouf |
| 2011 NY Slip Op 50212(U) [30 Misc 3d 1226(A)] |
| Decided on February 23, 2011 |
| Supreme Court, Kings County |
| Schack, J. |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Wells Fargo Bank,
N.A., Plaintiff,
against David Zelouf, et. al., Defendants. |
In this foreclosure action, plaintiff, Further, plaintiff's counsel states in his notice of withdrawal, "[t]he Plaintiff will not be
discontinuing the above referenced action." Moreover, in his cover letter to myself, plaintiff's
counsel states that "[t]he law firm of Steven J. Baum, P.C. and the attorneys whom it employs are
debt collectors who are attempting to collect a debt. Any information obtained by them will be
used for that purpose." Since this statement was in a cover letter to me and does not appear to be
preprinted on the letterhead of the Baum firm, the Court would like to know what debt it [*2]personally owes to the Baum firm or its clients? This statement
borders upon frivolous conduct, in violation of 22 NYCRR § 130-1.1. Was it made to cause
annoyance or alarm to the Court? Was it made to waste judicial resources? Rather than answer
the above rhetorical questions, counsel for plaintiff is directed never to place such a foolish
statement in a cover letter to this Court. If this occurs again, the firm of Steven J. Baum, P.C. is
on notice that this Court will have the firm and the attorney who wrote this nonsensical statement
appear to explain why the firm and the individual attorney should not be sanctioned for frivolous
conduct.
With respect to the request of plaintiff's counsel to withdraw the instant motion for summary
judgment and an order of reference, the Court grants the request to withdraw the motion.
However, since plaintiff is not discontinuing the instant foreclosure action, the Court, to prevent
the waste of judicial resources, dismisses the instant foreclosure action without prejudice. If
plaintiff's counsel chooses to renew the instant motion and restore the instant case, plaintiff's
counsel must comply with the new Rule, promulgated by the Chief Administrative Judge on
October 20, 2010, requiring an affirmation by plaintiff's counsel that he communicated on a
specific date with a named representative of plaintiff WELLS FARGO who informed him that he
or she:
(a) has personally reviewed plaintiff's documents and records relating
to this case for factual accuracy; and (b) confirmed the factual
accuracy of the allegations set forth in the Complaint and any
supporting affirmations filed with the Court as well as the accuracy
of the notarizations contained in the supporting documents filed
therewith.
Further, plaintiff's counsel, based upon his or her communication with plaintiff's
representative or representatives, "as well as upon my own inspection and reasonable inquiry
under the circumstances, . . . affirm that, to the best of my knowledge, information, and belief,
the Summons, Complaint and other papers filed or submitted to the Court in this matter contain
no false statements of fact or law."
Counsel is reminded that the new standard Court affirmation form states that "I am aware of
my obligations under New York Rules of Professional Conduct (22 NYCRR Part 1200) and 22
NYCRR Part 130." These Parts deal with disciplinary standards and sanctions for frivolous
conduct.
Real Property
Actions and Proceedings Law (RPAPL) § 1321 allows the Court in a foreclosure action,
upon the default of the defendant or defendant's admission of mortgage payment arrears, to
appoint a referee "to compute the amount due to the plaintiff." In the instant action, plaintiff
WELLS FARGO's application for an order of reference is a preliminary step to obtaining a
default judgment of foreclosure and sale against defendant ZELOUF. (Home Sav. of Am.,
F.A. v Gkanios, 230 AD2d 770 [2d Dept 1996]). Plaintiff's request to
withdraw its motion is granted. However, to allow this action to continue without seeking the
ultimate purpose of a foreclosure action, to obtain a judgment of foreclosure and sale, makes a
mockery of and wastes judicial resources. Continuing the instant action without moving for a
judgment of foreclosure and sale is the judicial equivalent of a "timeout," and granting a
"timeout" to plaintiff WELLS FARGO is a waste of judicial resources. Therefore, the instant
action is dismissed without [*3]prejudice.
Further, the dismissal of the instant foreclosure action requires the cancellation of the notice
of pendency. CPLR § 6501 provides that the filing of a notice of pendency against a
property is to give constructive notice to any purchaser of real property or encumbrancer against
real property of an action that "would affect the title to, or the possession, use or enjoyment of
real property, except in a summary proceeding brought to recover the possession of real
property." The Court of Appeals, in 5308 Realty Corp. v O & Y Equity Corp. (64 NY2d
313, 319 [1984]), commented that "[t]he purpose of the doctrine was to assure that a court
retained its ability to effect justice by preserving its power over the property, regardless of
whether a purchaser had any notice of the pending suit," and, at 320, that "the statutory scheme
permits a party to effectively retard the alienability of real property without any prior judicial
review."
CPLR § 6514 (a) provides for the mandatory cancellation of a notice of pendency by:
The Court,upon motion of any person aggrieved and upon
such
notice as it may require, shall direct any county clerk to cancel
a notice of pendency, if service of a summons has not been
completed
within the time limited by section 6512; or if the action has been
settled, discontinued or abated; or if the time to
appeal from a final
judgment against the plaintiff has expired; or if enforcement of a
final judgment against the plaintiff has not been stayed pursuant
to section 551. [emphasis added]
The plain meaning of the word "abated," as used in CPLR § 6514 (a) is the ending of an
action. "Abatement" is defined as "the act of eliminating or nullifying." (Black's Law Dictionary
3 [7th ed 1999]). "An action which has been abated is dead, and any further enforcement of the
cause of action requires the bringing of a new action, provided that a cause of action remains (2A
Carmody-Wait 2d § 11.1)." (Nastasi v Nastasi, 26 AD3d 32, 40 [2d Dept 2005]). Further,
Nastasi at 36, held that the "[c]ancellation of a notice of pendency can be granted in the
exercise of the inherent power of the court where its filing fails to comply with CPLR §
6501 (see 5303 Realty Corp. v O & Y Equity Corp., supra at 320-321; Rose v Montt
Assets, 250 AD2d 451, 451-452 [1d Dept 1998]; Siegel, NY Prac § 336 [4th ed])."
Thus, the dismissal of the instant complaint must result in the mandatory cancellation of plaintiff
WELLS FARGO's notice of pendency against the subject property "in the exercise of the
inherent power of the court."
Last, if plaintiff WELLS FARGO's counsel moves to restore the instant action and motion,
plaintiff's counsel must comply with the new filing requirement to submit, under penalties of
perjury, an affirmation that he or she has taken reasonable steps, including inquiring of plaintiff
WELLS FARGO and reviewing all papers, to verify the accuracy of the submitted documents in
support of the instant foreclosure action. According to the October 20, 2010 Office of Court
Administration press release about the new filing requirement, Chief Judge Lippman said:
We cannot allow the courts in New York State to stand by idly and
be party to what we now know is a deeply flawed process, especially
when that process involves basic human needs — such as a family home —
[*4] during this period of economic crisis. This new filing
requirement will
play a vital role in ensuring that the documents judges rely on will be
thoroughly examined, accurate, and error-free before any judge is asked
to take the drastic step of foreclosure.
Accordingly, it is
ORDERED, that the request of plaintiff, ORDERED, that the instant action, Index Number 17524/09, is dismissed without prejudice;
and it is further
ORDERED, that the notice of pendency in the instant action, filed with the Kings County
Clerk on July 14, 2009, by plaintiff, ENTER
________________________________HON. ARTHUR M. SCHACK
J. S. C.
(See Gretchen Morgenson and Andrew Martin, Big Legal Clash on
Foreclosure is Taking Shape, New York Times, Oct. 21, 2010; Andrew Keshner, New
Court Rules Says Attorneys Must Verify Foreclosure Papers, NYLJ, Oct. 21, 2010).