Cox v. First Citizens Bancshares, Inc.

Summary

The Appellate Division, Second Department, modified an order denying the plaintiffs’ motion for a default judgment and granting the defendant’s motion to dismiss a declaratory judgment action concerning a mortgage loan. The court held that the default motion was premature, and directed entry of a judgment declaring that the defendant’s failure to produce the mortgage loan’s chain of title did not entitle the plaintiffs to release from the loan.

Holdings

1. The plaintiffs were not entitled to a default judgment because they moved prematurely, one day after commencing the action and on the same date the summons and complaint were served, while the defendant timely answered.
2. The defendant was entitled as a matter of law to a declaration that its failure to respond to the plaintiffs' request for the mortgage loan's chain of title did not entitle the plaintiffs to be released from the loan.
3. Any claim seeking a declaration that the defendant lacked standing to enforce the loan was premature and constituted an improper request for an advisory opinion because no foreclosure action had yet been commenced.

Questions Presented

1. Whether the plaintiffs were entitled to leave to enter a default judgment when they moved one day after commencing the action and the defendant timely answered.
2. Whether the complaint stated a basis for declaratory relief releasing the plaintiffs from their mortgage loan because the defendant allegedly failed to produce the loan's chain of title.
3. Whether a request for a declaration that the defendant lacked standing to enforce the mortgage loan was premature and sought an improper advisory opinion before any foreclosure action had commenced.

Disposition

reversed_and_remanded