Wilmington Sav. Fund Socy. v. Okoronkwo

Summary

The Appellate Division, First Department, reversed an order that required the plaintiff to prove its predecessor-in-interest's compliance with Limited Liability Company Law § 802 and stayed execution of orders of reference. The court held that defendants failed to rebut the presumption that NS194, LLC was not conducting business in New York and lacked capacity to sue. It further held that purchasing and foreclosing on New York mortgages does not constitute doing business in the state for purposes of Limited Liability Company Law § 802.

Holdings

1. Supreme Court erred in directing plaintiff to prove NS194's compliance with Limited Liability Company Law § 802 because defendants failed to rebut the presumption that NS194 was not conducting business within New York and lacked capacity to sue.
2. A plaintiff's purchasing and foreclosing on mortgages in New York does not constitute doing business in New York for purposes of Limited Liability Company Law § 802.

Questions Presented

1. Whether Supreme Court properly directed plaintiff to prove that its predecessor-in-interest, NS194, LLC, complied with Limited Liability Company Law § 802.
2. Whether purchasing and foreclosing on mortgages in New York constitutes doing business in New York for purposes of Limited Liability Company Law § 802.

Disposition

reversed