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CNB Realty as Assignee of NBT Bank, National Ass'n v. Stone Cast, Inc.

Citations: 127 A.D.3d 1438; 8 N.Y.S.3d 679

Court: Appellate Division of the Supreme Court of the State of New York; April 16, 2015; New York; State Appellate Court

Narrative Opinion Summary

In this appellate case, the defendants, Stone Cast, Inc. and Mark Galvin, sought to vacate a foreclosure judgment granted to the plaintiff, the assignee of a mortgage initially executed to Central National Bank. The foreclosure proceedings commenced in 2008 after the defendants failed to oppose a summary judgment motion, resulting in a foreclosure judgment in 2009. Two years post-judgment, the defendants challenged the judgment based on the plaintiff's alleged lack of standing, claiming the assignment of the note and mortgage was invalid. The court ruled that the standing issue was waived as it was not raised as an affirmative defense, affirming that standing does not affect subject matter jurisdiction, and thus, it does not justify vacatur under CPLR 5015 (a)(4). Additionally, the defendants' argument regarding the plaintiff's failure to substantiate the default judgment under CPLR 3215 (f) was rejected, as it did not reveal a jurisdictional defect. The court affirmed the lower court's decision, awarding costs to the plaintiff, and noted that the defendants had abandoned any other grounds for vacating the judgment by not addressing them in their brief.

Legal Issues Addressed

Abandonment of Grounds for Relief

Application: The defendants abandoned any additional grounds for vacating the judgment by failing to present them in their brief, thereby affirming the decision against them.

Reasoning: The defendants abandoned additional grounds for vacating the judgment by failing to raise them in their brief.

Impact of Standing on Subject Matter Jurisdiction

Application: The court clarified that lack of standing does not affect subject matter jurisdiction, and therefore, a standing challenge does not warrant vacatur of a judgment under CPLR 5015 (a)(4).

Reasoning: The court noted that lack of standing does not affect subject matter jurisdiction and therefore does not warrant vacatur under CPLR 5015 (a)(4).

Requirements for Default Judgment under CPLR 3215 (f)

Application: The defendants' argument that the plaintiff failed to provide adequate proof for the default judgment was dismissed as it did not demonstrate a jurisdictional defect.

Reasoning: Additionally, the defendants argued that the plaintiff failed to provide sufficient proof supporting the default judgment necessary under CPLR 3215 (f). However, this argument did not establish a jurisdictional defect that would render the foreclosure judgment void.

Standing and Jurisdiction in Foreclosure Actions

Application: The court determined that the defendants waived their challenge to the plaintiff's standing by not raising it as an affirmative defense, thus affirming the foreclosure judgment.

Reasoning: The court concluded that this standing challenge was waived because it was not raised as an affirmative defense in their answers or in a pre-answer motion.