DLJ Mortg. Capital, Inc. v. Kontogiannis

• Decision Date: 14 November 2013
• Docket Number: No. 253 SSM 29.,253 SSM 29.
• Citation: 999 N.E.2d 1189,977 N.Y.S.2d 744 (Mem),2013 N.Y. Slip Op. 07516,22 N.Y.3d 960
• Court: New York Court of Appeals Court of Appeals
• Parties: DLJ MORTGAGE CAPITAL, INC., Appellant, v. Thomas KONTOGIANNIS, et al., Defendants, Chicago Title Insurance Company, Inc., et al., Respondents.

22 N.Y.3d 960
999 N.E.2d 1189
977 N.Y.S.2d 744 (Mem)
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.

No. 253 SSM 29.

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.

Opinion

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.