1946Tremont1B, LLC v. Nawal Realty, Inc.

Summary

The Appellate Division, First Department modified an order concerning ownership of Bronx property affected by a mortgage foreclosure. The court denied summary judgment declaring Nawal Realty the record owner because Nawal had not established that the plaintiff knew of the pending foreclosure action when it acquired the property, but upheld leave to amend the answer to assert a reforeclosure counterclaim. The court otherwise affirmed the order.

Holdings

1. Plaintiff was not entitled to summary judgment because it failed to sustain its burden of showing that it lacked knowledge of Ocwen's mortgage foreclosure action when it purchased the premises.
2. Nawal Realty was properly granted leave to amend its answer to assert a reforeclosure cause of action because the proposed claim was not palpably devoid of merit and plaintiff failed to demonstrate prejudice.
3. Nawal Realty was not entitled to summary judgment declaring that it was the record owner because it failed to establish that plaintiff had knowledge of the pending mortgage foreclosure action when plaintiff purchased the property.

Questions Presented

1. Whether plaintiff was entitled to summary judgment by showing that it lacked knowledge of Ocwen's pending mortgage foreclosure action when it purchased the premises.
2. Whether Nawal Realty should be granted leave to amend its answer to assert a reforeclosure cause of action.
3. Whether Nawal Realty was entitled to summary judgment declaring that it was the record owner of the premises.

Disposition

other