In defending the interests of CitiMortgage, Inc. and MERS before the Honorable Arthur M. Schack, J.S.C. in a New York Supreme Court, Kings County, deed forgery case, Adam Leitman Bailey, P.C. negotiated and procured a so-ordered agreement declaring CitiMortgage’s mortgage to be a valid lien secured by a property in Brooklyn, despite allegations of a fraudulent transfer brought by the daughter-in-law of one of the borrowers, who alleged that she was the rightful owner of the property, and that her signature on the deed under which CitiMortgage’s mortgage was given was forged.
Despite these grave allegations of forgery, Adam Leitman Bailey, P.C. prevailed in obtaining a clear and explicit discontinuance of any alleged title dispute relating to the mortgage, with prejudice and without costs, at no cost to either CitiMortgage or its Title Insurance Company, and successfully recorded the agreement into the chain of title for the property.
Adam Leitman Bailey, P.C. argued the rarely-litigated Doctrine of Ratification and put proof forward to show that Plaintiff received the benefits of the allegedly fraudulent transfer, namely keeping the property out of foreclosure. The firm argued that, by reason of this benefit, coupled with Plaintiff’s knowledge of the circumstances and the fact that Plaintiff waited almost five years of enjoying the financial benefits of the transfer before bringing the action, as a matter of law, Plaintiff ratified the alleged forged signature on the deed, thereby validating the deed, as well as any other transfers and encumbrances recorded thereafter.
Plaintiff agreed to drop her claims against CitiMortgage and MERS in exchange for a payment made to her by one of the borrowers. By convincing Plaintiff to drop her claims at this point, Adam Leitman Bailey, P.C. avoided any further discovery, all depositions, and, most importantly, trial.
Adam Leitman Bailey and Colin E. Kaufman were the managing partners on the case; Jackie Halpern Weinstein prevailed on negotiating, drafting, and recording.