Deutsche Bank Natl. Trust Co. v Clark

Summary

The Appellate Division, Second Department affirmed an order and judgment of foreclosure and sale in favor of Deutsche Bank National Trust Company. The court held that the plaintiff complied with RPAPL 1304, that the defendant was not entitled to tolling of mortgage interest based on alleged prosecution delays, and that the referee's report was properly confirmed. The court also rejected challenges concerning the referee's procedures and the admissibility and integration of business records.

Holdings

1. Strict compliance with RPAPL 1304 is a condition precedent to commencing a foreclosure action. Although the Appellate Division could review the trial court's RPAPL 1304 determination on this appeal, the plaintiff established compliance, and the additional information included with the statutory notice did not invalidate the notice.
2. The Supreme Court properly denied the request to toll accrual of interest because the delays in the foreclosure action were not solely attributable to the plaintiff and the plaintiff-attributable delays were not sufficiently egregious.
3. The Supreme Court properly confirmed the referee's report because the report was substantially supported by the record, the affidavit and business records sufficiently established the amount due, and Strugatz was not prejudiced by the absence of a separate referee hearing.

Questions Presented

1. Whether the Supreme Court was precluded by the law-of-the-case doctrine from reconsidering RPAPL 1304 compliance when ruling on the motion to confirm the referee's report and for judgment of foreclosure and sale.
2. Whether the plaintiff complied with RPAPL 1304 despite including additional notices in the same mailing.
3. Whether the accrual of interest on the mortgage loan should be tolled because of delay in prosecuting the foreclosure action.
4. Whether the referee's report should be confirmed despite the referee's failure to hold a separate hearing and despite the business-record evidence supporting the amount due.
5. Whether the referee had authority to compute and report the amount due under the mortgage loan.

Disposition

affirmed