Star201, LLC v. Martinez

Summary

The Appellate Division, Second Department, reversed an order that conditionally granted Valentin Martinez summary judgment in a mortgage foreclosure action based on the plaintiff's alleged failure to comply with New York Limited Liability Company Law § 802. The court held that evidence showing the foreign LLC had commenced other mortgage foreclosure actions in New York did not establish that it was doing business in the state, and remitted the matter for determination of the plaintiff's motion on the merits.

Holdings

1. The defendant failed to establish prima facie that Star201 was doing business in New York. The mere commencement or maintenance of numerous actions in New York does not, by itself, constitute doing business in the state.
2. Summary judgment dismissing the complaint against Martinez was not warranted because he failed to make the required prima facie showing that Star201 was an unauthorized foreign limited liability company doing business in New York.

Questions Presented

1. Whether Martinez established prima facie that Star201, a foreign limited liability company, was doing business in New York without authority and therefore could not maintain the foreclosure action under Limited Liability Company Law § 808(a).
2. Whether the Supreme Court properly conditionally granted Martinez's cross-motion for summary judgment and denied Star201's motion based on the asserted lack of compliance with Limited Liability Company Law § 802.

Disposition

reversed_and_remanded