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Smart Summary

Factual and Procedural Background

In July 2008, the defendant Abul Talukder executed a note in favor of AmTrust Bank, promising to repay a loan of $530,000, secured by a mortgage in favor of Mortgage Electronic Registration Systems, Inc., as nominee of AmTrust. The defendant allegedly defaulted on the loan in March 2009. In October 2014, the plaintiff commenced a mortgage foreclosure action against the defendant and others. The defendant neither answered nor appeared, leading the plaintiff to move for leave to enter a default judgment and an order of reference, granted by the Supreme Court in April 2016. Subsequently, in July 2016, the plaintiff obtained a judgment of foreclosure and sale. The defendant moved in October 2016 to dismiss the complaint and to vacate the April 2016 order entered upon his default, but the court denied this motion. In April 2017, the defendant sought leave to renew these motions pursuant to CPLR 2221(e), which the Supreme Court denied. The defendant appeals from the denial of his motion to renew.

Legal Issues Presented

  1. Whether the defendant demonstrated a reasonable justification for failing to present purported new facts on his prior motion, thereby justifying leave to renew pursuant to CPLR 2221(e).
  2. Whether the defendant’s claimed law office failure constituted a reasonable excuse under CPLR 2005 to vacate the order entered upon default.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Robinson v Viani, 140 AD3d 845, 848 Requirement that a motion for leave to renew must be based on new facts not previously offered and must include reasonable justification for failure to present those facts earlier. Guided the court’s evaluation of whether the defendant justified his failure to submit new evidence on the prior motion.
Lindbergh v SHLO 54 LLC, 128 AD3d 642, 644-645 Same as above, supporting CPLR 2221(e) standards on renewal motions. Supported the legal standard for renewal motions applied by the court.
Professional Offshore Opportunity Fund, Ltd. v Braider, 121 AD3d 766, 769 Movant must provide reasonable justification for failure to submit information in the first instance. Reinforced the court’s discretion constraints in granting renewal motions.
Deutsche Bank Trust Co v Ghaness, 100 AD3d 585, 585-586 Same principle on renewal motions and reasonable justification. Supported the denial of renewal absent reasonable justification.
Zelouf Intl. Corp. v Rivercity LLC, 123 AD3d 1116, 1116 When no reasonable justification is given, the court lacks discretion to grant renewal. Applied to deny the defendant’s renewal motion for lack of reasonable excuse.
Cioffi v S.M. Foods, Inc., 129 AD3d 888, 891 Same as above regarding renewal discretion. Supported the court’s denial of renewal without justification.
Sobin v Tylutki, 59 AD3d 701, 702 Same principle on renewal motions. Reinforced the standard for denying renewal absent reasonable justification.
Nwauwa v Mamos, 53 AD3d 646, 649 Law office failure can be accepted as a reasonable excuse under CPLR 2005. Considered but rejected as the defendant’s claim was conclusory and uncorroborated.
Castor v Cuevas, 137 AD3d 734, 734 Law office failure as reasonable excuse. Referenced in assessing the defendant’s excuse.
Gordon v Boyd, 96 AD3d 719, 720 Same as above. Applied in evaluating law office failure claims.
Eastern Sav. Bank FSB v Charles, 103 AD3d 683, 684 Conclusive, undetailed, uncorroborated claims of law office failure do not constitute reasonable excuse. Supported rejection of defendant’s excuse as insufficient.
White v Daimler Chrysler Corp., 44 AD3d 651, 651 Same as above regarding law office failure. Applied to reject defendant’s excuse.
People's United Bank v Latini Tuxedo Mgt. LLC, 95 AD3d 1285, 1286 Same principle on law office failure excuses. Supported the court’s rejection of the excuse.
Piton v Cribb, 38 AD3d 741, 742 Same as above. Referenced in rejecting defendant’s excuse.
JP Morgan Chase Bank, N.A. v Russo, 121 AD3d 1048, 1049 Mere neglect is insufficient as a reasonable excuse under CPLR 2005. Applied in denying defendant’s motion based on neglect.
Ortega v Bisogno & Meyerson, 38 AD3d 510, 511 Same principle on neglect. Supported the court’s ruling.
Incorporated Vil. of Hempstead v Jablonsky, 283 AD2d 553, 553-554 Same principle on neglect. Applied in the court’s reasoning.
Hudson City Sav. Bank v Bomba, 149 AD3d 704 Incorrect or incomplete advice of prior counsel is a misguided strategy, not law office failure. Supported the court’s rejection of defendant’s excuse.
Bank of N.Y. Mellon v Colucci, 138 AD3d 1047 Same as above. Applied to reject defendant’s excuse.
Wells Fargo Bank, N.A. v Lowinger, 169 AD3d 1098, 1099-1100 Reinforces the requirement for reasonable justification for renewal motions. Supported denial of renewal motion.

Court's Reasoning and Analysis

The court analyzed the defendant's motion for leave to renew under CPLR 2221(e), which requires that such motions be based on new facts not previously presented and include reasonable justification for the failure to present those facts earlier. The defendant submitted new affidavits in support of his motion, but the only justification offered for not submitting these on the prior motion was that his former attorney failed to advise him properly. The court determined that reliance on incorrect or incomplete advice of prior counsel constitutes a misguided strategy rather than law office failure. The defendant's claim of law office failure was conclusory, undetailed, and uncorroborated, failing to meet the standard for a reasonable excuse under CPLR 2005. Because the defendant did not provide reasonable justification for failing to present the new evidence earlier, the court properly exercised its discretion in denying the motion to renew. Consequently, the court affirmed the denial of the defendant's motion to renew his prior motions to dismiss and to vacate the order entered upon default.

Holding and Implications

The order entered August 3, 2017, denying the defendant's motion for leave to renew was affirmed.

The direct effect of this decision is that the defendant's attempts to dismiss the foreclosure complaint and vacate the default order were unsuccessful. The court’s ruling affirms the denial of renewal motions due to the lack of reasonable justification for failure to present new facts earlier. No new legal precedent was established; the decision applies established principles governing motions to renew and law office failure excuses.

Bank of New York Mellon Trust Company, N.A., etc., respondent, v. Abul Talukder, appellant, et al., defendants.

MARK C. DILLON, J.P.

CHERYL E. CHAMBERS COLLEEN D. DUFFY BETSY BARROS, JJ. (Index No. 708036/14)

Mischel & Horn, P.C., New York, NY (Scott T. Horn of counsel), for appellant.

Frenkel, Lambert, Weiss, Weisman & Gordon, LLP, Bay Shore, NY (Keith L. Abramson of counsel), for respondent.

DECISION & ORDER

In an action to foreclose a mortgage, the defendant Abul Talukder appeals from an order of the Supreme Court, Queens County (David Elliot, J.), entered August 3, 2017. The order, insofar as appealed from, denied those branches of that defendant's motion which were pursuant to CPLR 2221(e) for leave to renew those branches of his prior motion which were pursuant to CPLR 3211(a)(1) and (8) to dismiss the complaint insofar as asserted against him and, in effect, for leave to renew that branch of his prior motion which was pursuant to CPLR 5015(a)(1) to vacate an order dated April 6, 2016, entered upon his default, which branches of the prior motion were denied in an order of the same court entered November 25, 2016.

ORDERED that the order entered August 3, 2017, is affirmed insofar as appealed from, with costs.

In July 2008, the defendant Abul Talukder (hereinafter the defendant) executed a note in favor of AmTrust Bank (hereinafter Am Trust), promising to repay a loan of $530,000. To secure the loan, he also executed a mortgage in favor of Mortgage Electronic Registration Systems, Inc., as nominee of AmTrust. In March 2009, the defendant allegedly defaulted on the loan.

In October 2014, the plaintiff commenced this action to foreclose the subject mortgage against, among others, the defendant. The defendant neither answered nor appeared in this action. Thereafter, the plaintiff moved for leave to enter a default judgment against all the defendants and for an order of reference. In an order dated April 6, 2016, the Supreme Court granted the motion without opposition. In July 2016, the plaintiff moved for a judgment of foreclosure and sale. The court granted the motion without opposition. In October 2016, the defendant moved, inter alia, pursuant to CPLR 3211(a)(1) and (8) to dismiss the complaint insofar as asserted against him and pursuant to CPLR 5015(a)(1) to vacate the order dated April 6, 2016, entered upon his default. In an order entered November 25, 2016, the court denied the defendant's motion. A judgment of foreclosure and sale was entered on March 6, 2017.

In April 2017, the defendant moved by order to show cause, inter alia, pursuant to CPLR 2221(e) for leave to renew those branches of his prior motion which were pursuant to CPLR 3211(a)(1) and (8) to dismiss the complaint insofar as asserted against him and, in effect, for leave to renew that branch of his prior motion which was pursuant to CPLR 5015(a)(1) to vacate the order dated April 6, 2016, entered upon his default. As relevant here, the Supreme Court denied those branches of the motion, determining that the defendant had failed to demonstrate a reasonable justification for his failure to present, on the prior motion, the purported new facts submitted in support of the motion for leave to renew. The defendant appeals.

" A motion for leave to renew shall be based upon new facts not offered on the prior motion that would change the prior determination and shall contain reasonable justification for the failure to present such facts on the prior motion'" (Robinson v Viani, 140 AD3d 845, 848, quoting Lindbergh v SHLO 54, LLC, 128 AD3d 642, 644-645; see CPLR 2221[e][2], [3]). "While a court has discretion to entertain renewal based on facts known to the movant at the time of the original motion, the movant must set forth a reasonable justification for the failure to submit the information in the first instance" (Professional Offshore Opportunity Fund, Ltd. v Braider, 121 AD3d 766, 769; see Deutsche Bank Trust Co. v Ghaness, 100 AD3d 585, 585-586). "When no reasonable justification is given for failing to present new facts on the prior motion, the Supreme Court lacks discretion to grant renewal" (Zelouf Intl. Corp. v Rivercity, LLC, 123 AD3d 1116, 1116; see Cioffi v S.M. Foods, Inc., 129 AD3d 888, 891; Sobin v Tylutki, 59 AD3d 701, 702).

"Law office failure can be accepted as a reasonable excuse in the exercise of the court's sound discretion" (Nwauwa v Mamos, 53 AD3d 646, 649; see CPLR 2005; Castor v Cuevas, 137 AD3d 734, 734; Gordon v Boyd, 96 AD3d 719, 720). " Although a court has the discretion to accept law office failure as a reasonable excuse, a conclusory, undetailed and uncorroborated claim of law office failure does not amount to a reasonable excuse'" (Eastern Sav. Bank, FSB v Charles, 103 AD3d 683, 684, quoting White v Daimler Chrysler Corp., 44 AD3d 651, 651 [citation omitted]; see People's United Bank v Latini Tuxedo Mgt., LLC, 95 AD3d 1285, 1286; Piton v Cribb, 38 AD3d 741, 742). Furthermore, "[m]ere neglect will not be accepted as a reasonable excuse under CPLR 2005" (JP Morgan Chase Bank, N.A. v Russo, 121 AD3d 1048, 1049; see Ortega v Bisogno & Meyerson, 38 AD3d 510, 511; Incorporated Vil. of Hempstead v Jablonsky, 283 AD2d 553, 553-554).

Contrary to the defendant's contention, the Supreme Court providently exercised its discretion in rejecting his proffered excuse of law office failure. The allegedly new evidence submitted by the defendant in support of his motion for leave to renew consisted of, among other things, his properly signed and notarized affidavit, and the affidavits of three family members. The only excuse provided by the defendant for not submitting this evidence on the prior motion was that his former attorney failed to advise him of "all the documentation needed to dispute service of process" and the need to demonstrate a potentially meritorious defense. We agree with the court that reliance on incorrect or incomplete advice of prior counsel constituted a misguided strategy, not law office failure (see Hudson City Sav. Bank v Bomba, 149 AD3d 704; Bank of N.Y. Mellon v Colucci, 138 AD3d 1047). Accordingly, we agree with the court's determination denying those branches of the defendant's motion which were pursuant to CPLR 2221(e) for leave to renew those branches of his prior motion which were pursuant to CPLR 3211(a)(1) and (8) to dismiss the complaint insofar as asserted against him and, in effect, for leave to renew that branch of the prior motion which was pursuant to CPLR 5015(a)(1) to vacate the order dated April 6, 2016, entered upon his default, as he did not offer any reasonable justification for his failure to submit the evidence as part of his prior motion (see CPLR 2221[e]; Wells Fargo Bank, N.A. v Lowinger, 169 AD3d 1098, 1099-1100).

In light of our determination, we need not reach the defendant's remaining contentions.

DILLON, J.P., CHAMBERS, DUFFY and BARROS, JJ., concur. ENTER:

Aprilanne Agostino

Clerk of the Court

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Bank of N.Y. Mellon Tr. Co. v. Talukder
(Oct 9, 2019)