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Smart Summary

Factual and Procedural Background

Plaintiff Ulster Savings Bank commenced an action to foreclose a mortgage allegedly given by defendants Jeffrey Goldman and Elizabeth Goldman. Elizabeth Goldman answered with a general denial and asserted lack of personal jurisdiction as an affirmative defense. Plaintiff moved for summary judgment pursuant to CPLR 3212 on January 12, 1999, but the Court denied the motion on May 26, 1999, finding that plaintiff failed to establish its corporate status. Plaintiff submitted an affidavit from its Assistant Vice President asserting corporate status as a matter of public record, but the Court found this conclusory and non-probative. Plaintiff then moved to renew and/or reargue the prior summary judgment motion, submitting documentation from the New York Secretary of State showing it was chartered as a savings bank and currently active. Defendant opposed, arguing the motion was untimely as a motion to reargue and defective as a motion to renew for lack of reasonable excuse for not presenting the new evidence earlier. The Court considered whether the motion was properly characterized as one to renew or reargue and evaluated the sufficiency of plaintiff's justification for the late submission of evidence.

Legal Issues Presented

  1. Whether the plaintiff's motion to renew and/or reargue the prior summary judgment motion should be granted.
  2. Whether the plaintiff provided reasonable justification for failing to present new evidence of corporate status on the original motion.
  3. The proper characterization of the motion under CPLR 2221 as a motion to renew or a motion to reargue.

Arguments of the Parties

Plaintiff's Arguments

  • Submitted new documentary evidence from the New York Secretary of State to establish corporate status.
  • Argued for renewal and/or reargument of the prior summary judgment motion based on this new evidence.
  • Submitted original summary judgment papers with reply affirmation to cure alleged defect of not annexing them initially.

Defendant Elizabeth Goldman's Arguments

  • Contended the motion was a motion to reargue, not to renew, since no new facts were presented, making it untimely.
  • Argued that if considered a motion to renew, plaintiff failed to provide reasonable justification for not submitting the new evidence earlier.
  • Asserted the motion was defective because plaintiff did not annex original motion papers to the renewal/reargument motion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Spa Realty Associates v. Springs Associates, 213 A.D.2d 781 (Third Dept., 1995) Standards for motions to reargue and renew under CPLR 2221 Used to explain that a motion to reargue must show the court overlooked or misapplied facts or law and a motion to renew must be based on new facts or change in law with reasonable excuse for late submission.
Grassel v. Albany Medical Center, 223 A.D.2d 803 (Third Dept., 1996) Clarification of requirements for motions to reargue and renew Reinforced the necessity of demonstrating overlooked facts or law for reargument and the need for new facts or change in law plus reasonable justification for renewal.
Foley v. Roche, 68 A.D.2d 558 (First Dept., 1979), lv denied 56 N.Y.2d 507 Purpose of motion to reargue is not to reargue previously decided questions Supported the Court's view that motions to reargue should not be used to relitigate issues already decided.
Barnes v. State, 159 A.D.2d 753 (Third Dept., 1990) Requirement of reasonable justification for failure to present new facts on prior motion Supported the Court’s emphasis on the necessity of reasonable excuse for late evidence submission on renewal motions.
Canzoneri v. Wigand Corporation, 168 A.D.2d 593 (Second Dept., 1990) Prior authority suggesting reasonable excuse not always required for renewal Noted as part of historical case law before CPLR 2221 amendment codified stricter requirements.
Menconeri v. Professional Auto Transport, Inc., 223 A.D.2d 915 (Third Dept., 1996) Similar to Canzoneri, addressing reasonable excuse in motions to renew Referenced as part of pre-amendment case law context.

Court's Reasoning and Analysis

The Court analyzed the motion under CPLR 2221, distinguishing between motions to reargue and motions to renew. It found that because new evidence was submitted—the Secretary of State documentation establishing plaintiff’s corporate status—the motion was properly characterized as one to renew rather than reargue. The Court acknowledged defendant’s objection that plaintiff failed to provide reasonable justification for not submitting this evidence with the original motion. The Court cited the 1999 amendment to CPLR 2221 which codified the requirement that a motion to renew must include reasonable justification for the failure to present new facts earlier. Although prior case law sometimes allowed exceptions, the amendment removed such exceptions. Plaintiff did not advance any justification for its failure to present the evidence earlier, and thus the Court was constrained by the mandatory language of CPLR 2221(e)(3) to deny the motion to renew. The Court also found that the late submission of the original motion papers with the reply was sufficient to cure any defect related to their absence in the renewal motion.

Holding and Implications

The Court denied plaintiff's motion to renew its motion for summary judgment.

This decision directly affects the plaintiff by maintaining the denial of summary judgment due to failure to establish corporate status with reasonable justification for late evidence submission. No new precedent was established; rather, the Court applied existing statutory and case law principles, particularly the mandatory requirements of CPLR 2221 as amended in 1999, to the facts at hand.

ULSTER SAVINGS BANK, Plaintiff, v. JEFFREY GOLDMAN, Also Known as JEFFREY R. GOLDMAN, Defendant.

DECISION/ORDER

GEORGE B. CERESIA, JR., J.

Plaintiff commenced the above-captioned action to foreclose a mortgage allegedly given by defendants. Defendant Elizabeth Goldman served an answer consisting of a general denial and containing a single affirmative defense, lack of personal jurisdiction. On January 12, 1999 plaintiff made a motion for summary judgment pursuant to CPLR 3212. The Court denied the motion in a decision-order dated May 26, 1999 upon a finding that plaintiff failed to establish its corporate status. On the prior motion, plaintiff submitted the affidavit of Terry L. Dodd, plaintiff's Assistant Vice President, who indicated that he knew plaintiff to be a corporation and that this was "a matter of public record". The Court found this averment, standing alone, to be non-probative and conclusory.

Defendant made specific objection to this in her papers in opposition to the motion.

Plaintiff has now made a motion to renew and/or reargue the prior motion for summary judgment. In support of the motion, plaintiff has submitted documentation from the New York Secretary of State to establish that plaintiff has been chartered by special act of the State Legislature as a savings bank and is currently active.

In opposition to the motion, defendant Elizabeth Goldman argues that the motion is one to reargue, not to renew, since no new facts are presented; and that as a motion to reargue it is untimely. Defendant further maintains that even if treated as a motion to renew, the motion is defective in that plaintiff has not presented a reasonable excuse for its failure to submit the evidence of corporate status on its original motion.

In addition, defendant argues that the motion to reargue and/or renew is defective in that plaintiff did not annex a copy of the original summary judgment motion papers to its motion to renew/reargue. A copy of the original summary judgment motion papers has been submitted to the Court as a part of plaintiff's reply affirmation. In view of the absence of any claim on the part of defendant of surprise or prejudice, the Court finds that this latter submission is sufficient to cure the alleged defect.

A motion to reargue, directed to the sound discretion of the Court, must demonstrate that the Court overlooked, misapplied or misapprehended the relevant facts or law (see, CPLR 2221 [d] [2]; Spa Realty Associates v. Springs Associates, 213 A.D.2d 781, 783 [Third Dept., 1995]; Grassel v. Albany Medical Center, 223 A.D.2d 803, 803 [Third Dept., 1996]). Its purpose is not to serve as a vehicle to permit the unsuccessful party to argue once again the very questions previously decided (see, Foley v. Roche 68 A.D.2d 558, 567 [First Dept., 1979]), lv denied 56 N.Y.2d 507). A motion to renew must be based upon facts not offered on the prior motion that would change the prior determination (see CPLR 2221 [e] [2]; Spa Realty Associates v. Springs Associates, supra, at p. 783;Grassel v. Albany Medical Center, supra, at p. 804), or upon a demonstration that there has been a change in the law that would change the prior determination (see, CPLR 2221 [e] [2]). It must also demonstrate a reasonable justification for not placing such new facts before the Court on the original application (see, CPLR 2221 [e] [3]; see also, Spa Realty Associates v. Springs Associates, supra, at p. 783-784; Grassel v. Albany Medical Center, supra, at p. 804; Barnes v. State, 159 A.D.2d 753, 753, 754 [Third Dept., 1990]).

The Court is of the view that because new evidence has been submitted on the instant motion that it must be deemed a motion to renew rather than one to reargue (see, CPLR 2221 [d] [2]; and CPLR 2221 [e] [2]). The Court agrees with defendant that plaintiff has not presented what the Court would view as reasonable justification for not producing this evidence on the initial motion.

Although as noted, a motion to renew ordinarily must be supported by reasonable justification with regard to why the new facts were not presented on the initial application, prior to July 20, 1999 there was some authority for the proposition that a reasonable excuse was not always required (see e.g., Canzoneri v. Wigand Corporation, 168 A.D.2d 593, 594 [Second Dept., 1990];Menconeri v. Professional Auto Transport, Inc., 223 A.D.2d 915, 916, [Third Dept., 1996]). Effective July 20, 1999, however, CPLR 2221 was amended (L. 1999, c. 281) to codify the general rule as stated in existing case law with respect to motions to reargue and renew.

CPLR 2221 (e) recites as follows:

(e) A motion for leave to renew:

1. shall be identified specifically as such;

2. shall be based upon new facts not offered on the prior motion that would change the prior determination or shall demonstrate that there has been a change in the law that would change the prior determination; and
3. shall contain reasonable justification for the failure to present such facts on the prior motion.
CPLR 2221 (e) ( see also, Siegel, Practice Commentaries, McKinney's Cons Laws of N.Y., Book 7B, CPLR C2221:9, 1999 Commentaries, 1999-2000 Interim Pocket Supplement, at p. 33).

Notably, and notwithstanding the case law exceptions to the general rule, the Legislature, in its codification, did not specify or recognize any exceptions to the general rule.

In this instance, plaintiff has not advanced any argument to support a claim of reasonable justification for the failure to present the facts on the prior motion. Under the circumstances, in view of the mandatory language of CPLR 2221 (e) (3), the Court is constrained to deny the motion to renew.

Accordingly, it is ordered that plaintiff's motion to renew its motion for summary judgment is denied.

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ULSTER SAV. BANK v. GOLDMAN
(Mar 6, 2000)