Bank of N.Y. Mellon v. Craig

• Court: New York Supreme Court — Appellate Division
• Citation: Bank of N.Y. Mellon v. Craig, 169 A.D.3d 627, 93 N.Y.S.3d 425 (N.Y. App. Div. 2019)
• Decision Date: 06 February 2019
• Docket Number: Index No. 515177/15,2016–04344
• Parties: BANK OF NEW YORK MELLON, etc., appellant, v. Steven CRAIG, respondent, et al., defendants.

169 A.D.3d 627

93 N.Y.S.3d 425

BANK OF NEW YORK MELLON, etc., appellant,

v.Steven CRAIG, respondent, et al., defendants.

2016–04344

Index No. 515177/15

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

Argued - November 1, 2018

February 6, 2019

Stern & Eisenberg, P.C., Depew, N.Y. (Stacey A. Weisblatt of counsel), for appellant.

The Law Offices of Jaime Lathrop, P.C., Brooklyn, NY, for respondent.

LEONARD B. AUSTIN, J.P., SYLVIA O. HINDS–RADIX, JOSEPH J. MALTESE, LINDA CHRISTOPHER, JJ.

DECISION & ORDER

In an action to foreclose a mortgage, the plaintiff appeals from an order of the Supreme Court, Kings County (Noach Dear, J.), dated March 17, 2016. The order, insofar as appealed from, granted that branch of the motion of the defendant Steven Craig which was pursuant to CPLR 3211(a) to dismiss the complaint insofar as asserted against him on the ground that the action is barred by the statute of limitations.

ORDERED that the order is affirmed insofar as appealed from, with costs.

In August 2006, Steven Craig (hereinafter the defendant) executed a note in favor of Countrywide Bank, N.A. (hereinafter Countrywide), which was secured by a mortgage on residential property located in Brooklyn. By assignment of mortgage dated April 14, 2008, Mortgage Electronic Registration Systems, Inc. (hereinafter MERS), as nominee for Countrywide, assigned the mortgage to The Bank of New York as Trustee for the Certificateholders CWALT, Inc., Alternative Loan Trust 2006–OA14, Mortgage Pass–Through Certificates, Series 2006–OA14 (hereinafter Bank of New York). In April 2008, Bank of New York commenced an action (hereinafter the prior action) against the defendant and others to foreclose the mortgage. In the complaint, the plaintiff elected to declare the entire balance of the mortgage debt immediately due.

By order dated November 4, 2010, the Supreme Court directed dismissal of the prior action with prejudice unless Bank of New York filed within 60 days an attorney affirmation in compliance with a rule promulgated by the Chief Administrative Judge on October 20, 2010. Thereafter, on February 10, 2012, Bank of New York filed with the court a stipulation discontinuing the prior action without prejudice.

In December 2015, the plaintiff, Bank of New York's successor-in-interest, commenced this action against the defendant, among others, to foreclose the mortgage. In January 2016, the defendant moved, pre-answer, inter alia, pursuant to CPLR 3211(a)(1) and (5) to dismiss the complaint insofar as asserted against him on the ground that the action is barred by the statute of limitations. The plaintiff opposed the motion on the ground, inter alia, that, in voluntarily discontinuing the prior action, it had affirmatively revoked its election to accelerate the mortgage debt and, therefore, the action was timely. The Supreme Court granted the defendant's motion. The plaintiff appeals.

"On a motion to dismiss a cause of action pursuant to CPLR 3211(a)(5) on the ground that it is barred by the statute of limitations, a defendant bears the initial burden of establishing, prima facie, that the time in which to sue has expired" ( Wells Fargo Bank, N.A. v. Burke, 155 A.D.3d 668, 669, 64 N.Y.S.3d 228 ; see Bill Kolb, Jr., Subaru, Inc. v. LJ Rabinowitz, CPA, 117 A.D.3d 978, 979, 986 N.Y.S.2d 523 ). Once this showing has been made, the burden shifts to the plaintiff to "aver evidentiary facts establishing that the action was timely or to raise a question of fact as to whether the action was timely" ( Lessoff v. 26 Ct. St. Assoc., LLC, 58 A.D.3d 610, 611, 872 N.Y.S.2d 144 ; see Lake v. New York Hosp. Med. Ctr. of Queens, 119 A.D.3d 843, 844, 989 N.Y.S.2d 365 ).

An action to foreclose a mortgage is subject to a six-year statute of limitations (see CPLR 213[4] ). With respect to a mortgage payable in installments, separate causes of action accrue for each installment that is not paid, and the statute of limitations begins to run on the date each installment becomes due (see Nationstar Mtge., LLC v. Weisblum, 143 A.D.3d 866, 867, 39 N.Y.S.3d 491 ; Wells Fargo Bank, N.A. v. Burke, 94 A.D.3d 980, 982, 943 N.Y.S.2d 540 ; Wells Fargo Bank, N.A. v. Cohen, 80 A.D.3d 753, 754, 915 N.Y.S.2d 569 ; Loiacono v. Goldberg, 240 A.D.2d 476, 477, 658 N.Y.S.2d 138 ). However, "even if a mortgage is payable in installments, once a mortgage debt is accelerated, the entire amount is due and the Statute of Limitations begins to run on the entire debt" ( EMC Mtge. Corp. v. Patella, 279 A.D.2d 604, 605, 720 N.Y.S.2d 161 ; see Kashipour v. Wilmington Sav. Fund Socy., FSB, 144 A.D.3d 985, 986, 41 N.Y.S.3d 738 ; Nationstar Mtge., LLC v. Weisblum, 143 A.D.3d at 867, 39 N.Y.S.3d 491 ; Wells Fargo Bank, N.A. v. Burke, 94 A.D.3d at 982, 943 N.Y.S.2d 540 ). "A lender may revoke its election to accelerate the mortgage, but it must do so by an affirmative act of revocation occurring during the six-year statute of limitations period subsequent to the initiation of the prior foreclosure action" ( NMNT Realty Corp. v. Knoxville 2012 Trust, 151 A.D.3d 1068, 1069–1070, 58 N.Y.S.3d 118 ; see Milone v. U.S. Bank N.A., 164 A.D.3d 145, 154, 83 N.Y.S.3d 524 ; Deutsche Bank Natl. Trust Co. v. Adrian, 157 A.D.3d 934, 935, 69 N.Y.S.3d 706 ; EMC Mtge. Corp. v. Patella, 279 A.D.2d at 606, 720 N.Y.S.2d 161 ).

Here, the defendant established that the six-year statute of limitations began to run on the entire debt on April 21, 2008, the date the plaintiff accelerated the mortgage debt by commencing the prior action (s...