Valley National Bank v. Community Protestant Church of Co-Op City, Inc.
Attorneys and Parties
Brief Summary
Mortgage foreclosure; whether an unopposed motion for summary judgment can be denied based on sua sponte evidentiary objections to the movant's proof.
Denied the plaintiff's unopposed motion for summary judgment, to strike affirmative defenses, and for an order of reference; later denied leave to renew and reargue.
The denial of summary judgment, striking affirmative defenses, and order of reference; the appeal from denial of renewal/reargument was dismissed as academic.
Plaintiff established a prima facie foreclosure case through a loan officer's affidavit and loan documents showing the note, mortgage, default, and amount due. Because defendant filed no opposition, the court could not sua sponte raise evidentiary admissibility objections. Precedents including Bank of N.Y. Mellon v Gordon and Thompson-Shepard instruct that admissibility challenges must be raised by the nonmovant.
Background
Plaintiff commenced a mortgage foreclosure action and attached to the complaint the consolidated mortgage, assignment of rents, consolidated note, an assignment of the mortgage and note from Church Loans & Investments Trust to Westchester Bank, a notice of default, two forbearance agreements, and the merger agreement by which Westchester Bank merged into plaintiff. A first vice president of plaintiff verified the complaint based on plaintiff's business records. Plaintiff moved for summary judgment, annexing the loan documents to counsel's affirmation and submitting an affidavit by the same first vice president (the loan officer in charge) attesting to defendant's payment default and the amount due ($2,302,848.55 through June 15, 2024), though the affidavit did not itself attach documents or expressly state it was based on records. Defendant filed no opposition.
Lower Court Decision
Supreme Court, Bronx County, denied plaintiff's unopposed motion for summary judgment, to strike affirmative defenses, and for an order of reference, and later denied plaintiff's motion to renew and reargue.
Appellate Division Reversal
The Appellate Division, First Department, unanimously reversed, granted plaintiff's motion for summary judgment, struck defendant's affirmative defenses, and granted an order of reference. The Court held plaintiff made a prima facie showing of the note, mortgage, default, and amount due via the loan officer's affidavit and the loan documents. Because defendant did not oppose, the motion court should not have raised evidentiary objections sua sponte. The appeal from the denial of renewal/reargument was dismissed as academic.
Legal Significance
In foreclosure cases, a movant can establish a prima facie right to summary judgment through a knowledgeable loan officer's affidavit and supporting loan documents showing the note, mortgage, default, and amounts due. When the motion is unopposed, courts should not sua sponte scrutinize the admissibility or form of the movant's evidence; evidentiary objections must be raised by the nonmovant (see Bank of N.Y. Mellon v Gordon; Thompson-Shepard; Red Tulip, LLC v Neiva).
On an unopposed foreclosure summary judgment motion, a lender's affidavit from a responsible loan officer plus the loan documents suffices for a prima facie case; courts may not deny relief based on sua sponte evidentiary objections.