US Bank Trust National Association v. Meyer
Attorneys and Parties
Brief Summary
Residential mortgage foreclosure; timeliness of seeking default judgment and abandonment under CPLR 3215(c).
The Supreme Court, Suffolk County, granted the lender's motion to confirm the referee's report and for a judgment of foreclosure and sale, and denied the homeowner's motion to dismiss as abandoned under CPLR 3215(c).
The order and judgment of foreclosure and sale were reversed insofar as appealed from. The lender's motion to confirm the referee's report and for a judgment of foreclosure and sale was denied, and the complaint against Diane Meyer was dismissed as abandoned under CPLR 3215(c).
The lender failed to take proceedings for entry of a default judgment within one year of the defendant's default as required by CPLR 3215(c) [statute deeming an action abandoned if the plaintiff does not take proceedings for entry of judgment within one year of a default; dismissal is mandatory unless plaintiff shows “sufficient cause,” i.e., a reasonable excuse for the delay and a potentially meritorious claim]. The excuses offered were conclusory, unsubstantiated, and did not account for more than a year of delay. The defendant’s failure to move to vacate her default did not waive her right to seek dismissal under CPLR 3215(c).
Background
The lender commenced a foreclosure action in October 2019 against Diane Meyer and others. Meyer did not answer or appear. On January 29, 2020, the lender filed a request for judicial intervention seeking permission to serve unknown parties by publication; it did not request a foreclosure settlement conference. In July 2022—more than one year after Meyer's default—the lender moved for a default judgment and an order of reference, which the Supreme Court granted in September 2022. The lender later moved to confirm the referee’s report and for a judgment of foreclosure and sale. Meyer cross-moved to dismiss as abandoned under CPLR 3215(c).
Lower Court Decision
By order dated December 6, 2023, the Supreme Court granted the lender’s motion to confirm the referee’s report and for a judgment of foreclosure and sale, and denied Meyer’s CPLR 3215(c) motion. An order and judgment of foreclosure and sale issued the same day.
Appellate Division Reversal
The Appellate Division dismissed the appeal from the interlocutory order as subsumed by the appeal from the order and judgment of foreclosure and sale, then reversed the order and judgment insofar as appealed from. It denied the lender’s motion to confirm the referee’s report and for a judgment of foreclosure and sale, granted Meyer’s CPLR 3215(c) motion dismissing the complaint against her as abandoned, and awarded costs to Meyer.
Legal Significance
Reaffirms strict enforcement of CPLR 3215(c) in foreclosure cases: a lender must take proceedings for a default judgment within one year of a borrower’s default or face mandatory dismissal absent a detailed, substantiated excuse and a potentially meritorious claim. Administrative steps unrelated to seeking a default judgment (e.g., RJI for service by publication on unknown parties) do not satisfy the statute. A defaulting borrower’s failure to move to vacate the default does not waive the right to seek abandonment dismissal.
In New York foreclosure actions, failing to timely seek a default judgment within one year of the borrower’s default will trigger mandatory dismissal under CPLR 3215(c) unless the lender shows specific, supported reasons for the delay and a potentially meritorious claim.