A/SL DFV, LLC v. C.A.R.S. Constr., LLC

• Decision Date: 16 May 2018
• Docket Number: 2016–02125,Index 15324/11
• Citation: 77 N.Y.S.3d 683,161 A.D.3d 921
• Parties: A/SL DFV, LLC, respondent, v. C.A.R.S. CONSTRUCTION, LLC, et al., appellants.
• Court: New York Supreme Court — Appellate Division

161 A.D.3d 921
77 N.Y.S.3d 683

A/SL DFV, LLC, respondent,
v.
C.A.R.S. CONSTRUCTION, LLC, et al., appellants.

2016–02125
Index 15324/11

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

Decided May 16, 2018

77 N.Y.S.3d 684

Barry V. Pittman, Bay Shore, NY, for appellants.

Polsinelli P.C., New York, N.Y. (Jason A. Nagi of counsel), for respondent.

ALAN D. SCHEINKMAN, P.J., JOHN M. LEVENTHAL, BETSY BARROS, VALERIE BRATHWAITE NELSON, JJ.

DECISION & ORDER

In an action to foreclose a mortgage, the defendants appeal from an order of the Supreme Court, Nassau County (R. Bruce Cozzens, Jr., J.), dated January 21, 2016. The order, insofar as appealed from, granted the plaintiff's motion for summary judgment on the complaint and dismissing the defendants' counterclaims.

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

In May 2008, the defendant C.A.R.S. Construction, LLC (hereinafter CARS), obtained a construction loan from Hudson Valley Bank (hereinafter the bank). The construction loan was secured by a mortgage on certain real property. The loan was further guaranteed by the defendants Romaz Properties, Ltd., Robert Romeo, and Carmella Maria Holland. Allegedly, the defendants defaulted on the mortgage by failing to pay the full sum due upon the maturity of the note.

The bank commenced this action to foreclose the mortgage.The defendants asserted counterclaims alleging that the bank breached the construction loan agreement by unjustifiably refusing to advance to CARS all of the proceeds of the loan. Meanwhile, the bank assigned the loan to VFC Partners 19, LLC (hereinafter VFC), and VFC was substituted as the plaintiff. VFC moved, inter alia, for summary judgment on the complaint and dismissing the defendants' counterclaims. The defendants opposed the motion. The Supreme Court granted VFC's motion, and the defendants appeal. In November 2016, the subject note and mortgage were sold and assigned to A/SL DFV, LLC. In May 2017, the Supreme Court issued an order substituting A/SL DFV, LLC, as the plaintiff and...