Adam Leitman Bailey, P.C. Defeats Statute of Limitations Argument
Adam Leitman Bailey, P.C. was retained by the note owner to take over its representation in a problematic foreclosure action. This particular loan was the subject of two prior foreclosure actions in addition to the instant action.
The borrower argued that the loan was time barred by the statute of limitations because the first action was commenced in 2009, six years prior to the commencement of the instant action that was filed in 2018. The motion was fully briefed in early 2020, but it continued to be administratively adjourned due to the ongoing COVID-19 pandemic.
While the motion was already fully briefed on the papers, the Court of Appeals issued a decision in Freedom Mortgage Corporation v. Engel, whereby the Court determined that a lender revokes its acceleration of a mortgage debt where the lender voluntarily discontinues a foreclosure action. The Court of Appeals decision was directly on point to the pending action.
Accordingly, Adam Leitman Bailey, P.C. filed a letter with the Court pursuant to new Rule 18 of the Uniform Civil Rules of the Supreme Court and the County Court (12 NYCRR 202.8-c) informing the Court of the decision in Engel and its application to this case.
In a record one week after argument on the motions, the Court found for the note owner and directly cited to Adam Leitman Bailey, P.C.’s arguments in its decision, in denying the borrower’s motion to dismiss and granting a judgment of foreclosure of sale in favor of the note owner.
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