Sjogren v. Land Associates
| Decision Date | 04 January 2024 |
| Citation | 204 N.Y.S.3d 242,223 A.D.3d 963 |
| Parties | Wade R. SJOGREN et al., Appellants, v. LAND ASSOCIATES, LLC, et al., Respondents, et al., Defendants. (And a Third-Party Action.) |
| Court | New York Supreme Court — Appellate Division |
Lex Nova Law, LLC, Marlton, New Jersey (Darren H. Goldstein of counsel) and Farer Law Firm, PC, Albany (Steven D. Farer of counsel), for appellants.
Breedlove & Noll LLP, Queensbury (Brian H. Breedlove of counsel), for respondents.
Before: Lynch, J.P., Pritzker, Reynolds Fitzgerald, McShan and Powers, JJ.
Appeal from an order of the Supreme Court(James E. Walsh, J.), entered July 18, 2022 in Saratoga County, which, among other things, denied plaintiffs’ motion for summary judgment.
Plaintiffs are the mortgagees on a bond and mortgage securing several parcels of real property in the Towns of Northumberland, Wilton, Halfmoon, Stillwater and Malta, Saratoga County.DefendantLand Associates, LLC is the owner of the real property and mortgagor of said bond and mortgage, with the remaining defendants being named as having a potential interest in or claim to the property.The bond and mortgage, dated June 23, 2009, is the product of the 2009 settlement of litigation entered into by, among others, plaintiffs and Land Associates, which was placed on the record in the Superior Court of New Jersey Chancery Division, Ocean County in that same year.There followed extensive postsettlement litigation involving the courts in both New Jersey and Florida.The New Jersey court entered an order and final judgment incorporating the terms of the settlement in 2016 and the Circuit Court of the Fourth Judicial Circuit, in and for Duval County, Florida issued final summary judgment in 2018.The order and judgments were duly filed with the Saratoga County Clerk.In December 2016, plaintiffs commenced this foreclosure action and filed a notice of pendency with respect to the named properties.Defendants joined issue asserting several affirmative defenses and counterclaims.1Eventually, plaintiffs filed a summary judgment motion in the foreclosure action.Defendants opposed the motion and cross-moved to dismiss the complaint or, alternatively, compel discovery.Supreme Court denied the motions, finding, as relevant here, that plaintiffs’ failure to respond to discovery hindered defendants from raising an issue of fact, and that issues of fact remained as to whether the settlement is self-effectuating, whether the timing of the filing of the notice of pendency impaired the premises in question and whether the parties in the present action who were not parties in the prior action were bound by the settlement.Plaintiffs appeal.
[1–3]Plaintiffs first contend that Supreme Court erred in failing to accord the New Jersey order and judgment full faith and credit.We agree."[T]he Full Faith and Credit Clause requires … that a court provide a foreign judgment with the same credit, validity, and effect that it would have in the state that pronounced it"(Boudreaux v. State of La., Dept. of Transp.,11 N.Y.3d 321, 325, 868 N.Y.S.2d 575, 897 N.E.2d 1056[2008], certdenied557 U.S. 936, 129 S.Ct. 2864, 174 L.Ed.2d 578[2009])."The doctrine establishes a rule of evidence, … which requires recognition of the foreign judgment as proof of the prior-out-of-State litigation and gives it res judicata effect, thus avoiding relitigation of issues in one State which have already been decided in another"(Matter of Farmland Dairies v. Barber,65 N.Y.2d 51, 55, 489 N.Y.S.2d 713, 478 N.E.2d 1314[1985][citations omitted]).
It is undisputed that plaintiffs duly filed the 2016 order and final judgment of the Superior Court of New Jersey, Chancery Division, Ocean County, in the Saratoga County Clerk’s office.That order and judgment specifically states that it is "intended that this in personam order is entitled to full faith and credit, Wade Sjogren and Walter Sjogren Jr. may enforce this judgment in the State of New York, pursuant to the laws of that State."It further contains a provision that Land Associates will pay plaintiffs $2.5 million at an interest rate of 4%, said interest to accrue as of 2009 and that this sum will be secured by a first mortgage on all Land Associates property.Finally, the order clearly provides that while plaintiffs may enforce the order and judgment in New York, the New Jersey court retains jurisdiction over any further disputes regarding the merits of the order and judgment.
[4–7]"A judgment rendered by a court of a sister State is accorded ‘the same credit, validity, and effect, in every other court of the United States, which it had in the state where it was pronounced’ "(All Terrain Props. v. Hoy,265 A.D.2d 87, 91, 705 N.Y.S.2d 350[1st Dept.2000], quotingHampton v. M’Connel, 3 Wheat [16 U.S.] 234, 235, 4 L.Ed. 378[1818];accordMortgage Money Unlimited v. Schaffer,1 A.D.3d 773, 774, 766 N.Y.S.2d 626[3d Dept.2003]).Our review of the foreign judgment at issue is "limited to determining whether the rendering court had jurisdiction"(Fiore v. Oakwood Plaza Shopping Ctr.,78 N.Y.2d 572, 577, 578 N.Y.S.2d 115, 585 N.E.2d 364[1991], cert denied506 U.S. 823, 113 S.Ct. 75, 121 L.Ed.2d 40[1992];seeMortgage Money Unlimited v. Schaffer,1 A.D.3d at 774, 766 N.Y.S.2d 626).It is undisputed that the New Jersey court had jurisdiction as the defendants2 appeared in the action and vigorously litigated the matter for years, thus, "inquiry into the merits of the underlying dispute is foreclosed"(Fiore v. Oakwood Plaza Shopping Ctr.,78 N.Y.2d at 577, 578 N.Y.S.2d 115, 585 N.E.2d 364) and "the merits of [the] judgment of a sister state may not be collaterally attacked"(Cadle Co. v. Tri–Angle Assoc.,18 A.D.3d 100, 103, 798 N.Y.S.2d 360[1st Dept.2005]).Accordingly, a "decree of a sister[s]tate in which [the]parties were subject to personal jurisdiction in that [s]tate is entitled to full faith and credit in the courts of New York"(Matter of Kemp v. Kemp,260 A.D.2d 781, 782, 687 N.Y.S.2d 782[3d Dept.1999][internal quotation marks and citation omitted]).
[8, 9]Plaintiffs next contend that Supreme Court erred in determining that there were issues of fact regarding whether the "timing" of the filing of the notice of pendency hindered defendants’ ability to sell the mortgaged property.We agree."A notice of pendency may be filed in any action in a court of the state … in which the judgment demanded would affect the title to, incumbrance of, or the possession, use or enjoyment of, real property"(CPLR 6501[a]).The purpose of a notice of pendency is to put defendants and the world on notice of the full scope of the rights claimed by plaintiffs to defendants’ real property.As this mortgage foreclosure action affects the title to, use and enjoyment of real property, it was properly filed commensurate with the foreclosure action (seeRL 900 Park, LLC v. Ender, 2021 WL 738705, *10–11, 2021 U.S. Dist. LEXIS 35469[S.D.N.Y., Feb. 25, 2021, No. 1:18–cv–12121 (MKV)]).
[10, 11]We agree with plaintiffs that Supreme Court erred in denying their motion for summary judgment.When all is said and done, this is a foreclosure action."In order to establish entitlement to summary...
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