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Adam Leitman Bailey, P.C. Defeats Prior Owner’s Motion to Vacate a Judgment of Foreclosure and Sale

In NYCTL 1998-2 TRUST v. ALANIS REALTY LLC, et al., Adam Leitman Bailey, P.C. successfully defeated Defendant Alanis Realty LLC’s motion to vacate the Judgment of Foreclosure and Sale that was previously entered in this tax lien foreclosure proceeding, under which judgment, Adam Leitman Bailey, P.C.’s client took title to the premises as the high bidder at the foreclose sale.

The defendant’s prior owner brought a motion to vacate a Judgment of Foreclosure and Sale and to unravel the sale arguing that it was never properly served with process in the action. It is well-established law in the State of New York, however, that jurisdiction is obtained by service of process on the Secretary of State irrespective of whether the process ever actually reached the business entity, which was the case here.

Adam Leitman Bailey, P.C. was retained to protect the interests of the current owner of the premises. Adam Leitman Bailey, P.C cross-moved to intervene in the action as a necessary party and, simultaneously, opposed the motion to vacate the Judgment of Foreclosure and Sale. So as not to rely only on the argument that service upon the Secretary of State conferred jurisdiction, Adam Leitman Bailey, P.C. also strategized and argued that: (1) vacating the buyer’s good faith purchase for value would be improper and severely prejudicial, and (ii) Alanis Realty LLC’s failure to tender the judgment amount bars relief, regardless.

Less than two weeks after oral argument before the Honorable Ben R. Barbato, J.S.C. in Bronx Supreme Court, the court denied Alanis Realty LLC’s motion to vacate the Judgment of Foreclosure and Sale in its entirety, thereby protecting the interests of the current owner and enabling it to utilize the premises as it pleases.

Jackie Halpern Weinstein, Esq. at Adam Leitman Bailey, P.C. strategized, drafted, argued, and secured this win for the client.

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