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Emigrant Funding Corp. v. Nunez

Citation: 2021 NY Slip Op 05951Docket: 2018-12616

Court: Appellate Division of the Supreme Court of the State of New York; November 3, 2021; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In Emigrant Funding Corp. v. Nunez, the Appellate Division of the New York Supreme Court reviewed the denial of Persio Nunez's motion to vacate a referee's deed following a mortgage foreclosure sale. Nunez contended that he had not received notice of the foreclosure proceedings or the sale, filing his motion more than two years after the sale. The court emphasized the requirements under RPAPL 231(6), which stipulates that motions to set aside a sale must be made within one year and must demonstrate prejudice to a substantial right due to procedural defects. Nunez's claims were found insufficient, lacking evidence of fraud, collusion, mistake, or misconduct necessary to question the sale's fairness. Additionally, the court dismissed other arguments as they were improperly introduced on appeal or irrelevant. The court affirmed the lower court's decision, awarding costs to the respondent, Emigrant Funding Corp., thus reinforcing the procedural rigor required in foreclosure matters and the necessity of timely and substantiated claims when seeking judicial relief.

Legal Issues Addressed

Evidence Required to Vacate a Foreclosure Sale

Application: Nunez's claims of not receiving notice were deemed unsubstantiated, as the court requires evidence of fraud, collusion, mistake, or misconduct to vacate a foreclosure sale.

Reasoning: The court reiterated that evidence of fraud, collusion, mistake, or misconduct must raise doubts about the fairness of the sale to justify vacating it.

Improperly Raised Arguments on Appeal

Application: The court dismissed additional arguments by Nunez since they were not raised in the lower court proceedings and thus were deemed inappropriate for consideration on appeal.

Reasoning: The court noted that other arguments presented by Nunez were either improperly raised for the first time on appeal or irrelevant given the primary ruling.

Requirement for Demonstrating Prejudice in Foreclosure Sales

Application: The court found that Nunez failed to demonstrate that any substantial right was prejudiced due to procedural defects, which is required to set aside a foreclosure sale.

Reasoning: The court highlighted that under RPAPL 231(6), motions to set aside a sale must be made within one year and must demonstrate that a substantial right was prejudiced due to procedural defects.

Time Limit for Motion to Set Aside Foreclosure Sale

Application: The court applied RPAPL 231(6) by emphasizing that motions to set aside a foreclosure sale must be filed within one year of the sale, and Nunez's motion was filed past this statutory deadline.

Reasoning: The court highlighted that under RPAPL 231(6), motions to set aside a sale must be made within one year and must demonstrate that a substantial right was prejudiced due to procedural defects.