DLJ Mortg. Capital, Inc. v. Kontogiannis

• Citation: 22 N.Y.3d 960,2013 N.Y. Slip Op. 07516,977 N.Y.S.2d 744,999 N.E.2d 1189
• Parties: DLJ MORTGAGE CAPITAL, INC., Appellant, v. Thomas KONTOGIANNIS, et al., Defendants, Chicago Title Insurance Company, Inc., et al., Respondents.
• Decision Date: 14 November 2013
• Court: New York Court of Appeals

?22 N.Y.3d 960
999 N.E.2d 1189
977 N.Y.S.2d 744
2013 N.Y. Slip Op. 07516

DLJ MORTGAGE CAPITAL, INC., Appellant,
v.
Thomas KONTOGIANNIS, et al., Defendants,
Chicago Title Insurance Company, Inc., et al., Respondents.

Court of Appeals of New York.

Nov. 14, 2013

Hahn & Hessen LLP, New York City (John P. Amato, Robert J. Malatak and Annie Power of counsel), for appellant.

Herrick, Feinstein LLP, New York City (Arthur G. Jakoby and Adam J. Stein of counsel), for Chicago Title Insurance Company, Inc., respondent.

DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, White Plains (Michael J. Schwarz and Lee S. Wiederkehr of counsel), for United General Title Insurance Co., Inc., respondent.
MEMORANDUM:

The order of the Appellate Division should be affirmed, with costs, and the certified question answered in the affirmative. As a matter of law, DLJ, as a third-party purchaser of mortgages on the secondary mortgage market, cannot rely on pre-closing documents to establish that a proper conveyance and recording of the underlying property occurred or that title insurance for the property was issued ( see Citibank v. Chicago Tit. Ins. Co., 214 A.D.2d 212, 219, 632 N.Y.S.2d 779 [1st Dept.1995], lv. dismissed 87 N.Y.2d 896, 640 N.Y.S.2d 879, 663 N.E.2d 921 [1995] ). The Appellate Division correctly determined that any such reliance was unjustifiable.

Chief Judge LIPPMAN and Judges GRAFFEO, READ, SMITH, PIGOTT, RIVERA and ABDUS–SALAAM concur.

On review of submissions pursuant to section 500.11 of the Rules of the Court of Appeals (22 NYCRR 500.11), order affirmed, with costs, and certified question answered in the affirmative, in a memorandum.