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Forest Glen Realty, LLC v. T11 Funding

Citation: 2022 NY Slip Op 05313Docket: 2018-12566

Court: Appellate Division of the Supreme Court of the State of New York; September 28, 2022; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In Forest Glen Realty, LLC v. T11 Funding, the Appellate Division of the Supreme Court of New York examined appeals concerning the validity of a deed transferring property from Forest Glen Realty, LLC to T11 Funding. The central legal issue involved the right to redeem tax liens under Nassau County Administrative Code § 5-57.1 and the adequacy of notice provided for a tax lien sale. The Supreme Court initially granted summary judgment in favor of Forest Glen Realty on certain claims, but upon appeal, the Appellate Division reversed these findings, determining that the right of redemption did not apply to the summary holdover proceedings initiated by T11 Funding. The court further ruled that the County defendants failed to demonstrate proper notice of the tax lien sale, leading to the annulment of the tax deed. The decision remanded the case for an amended judgment declaring the deed null and void, thereby affirming Forest Glen Realty as the rightful property owner. Costs were awarded to the plaintiffs, with instructions for separate submission by the defendants. The appellate court's decision underscores the necessity of strict compliance with statutory notice requirements and clarifies the limitations of redemption rights under specific procedural contexts.

Legal Issues Addressed

Effect of Lack of Notice on Property Conveyance

Application: The absence of proper notice as required by law led the court to declare the tax deed null and void, thereby favoring the plaintiffs' claim to the property.

Reasoning: The conveyance of the tax deed was found to be presumptive evidence of notice, which the plaintiffs successfully rebutted.

Notice Requirement for Tax Lien Sales

Application: The plaintiffs successfully argued that they did not receive the required notice of the tax lien sale, which is a necessary step under Nassau County Administrative Code § 5-37.0 before a valid conveyance of property can occur.

Reasoning: Plaintiffs successfully demonstrated their right to summary judgment on the first cause of action, asserting they did not receive notice of a tax lien sale.

Right of Redemption under Nassau County Administrative Code § 5-57.1

Application: The court determined that Forest Glen Realty, LLC did not have the right to redeem the property under Nassau County Administrative Code § 5-57.1, as this right does not apply to summary holdover proceedings pursuant to RPAPL 713(4).

Reasoning: The right to redeem under Nassau County Administrative Code, § 5-57.1 does not apply to summary holdover proceedings pursuant to RPAPL 713(4).

Summary Judgment and Burden of Proof

Application: The court found that the County defendants failed to provide sufficient evidence to create a triable issue regarding compliance with notice requirements, which resulted in the plaintiffs being granted summary judgment.

Reasoning: The County defendants submitted an affirmation from their counsel and a notice of tax sale dated January 6, 2015, but these were deemed insufficient to create a triable issue of fact regarding compliance with Nassau County Administrative Code § 5-37.0.