U.S. Bank N.A. v. Speller

Summary

The Appellate Division, Second Department, reversed an order dismissing a mortgage foreclosure complaint for lack of standing and awarding expenses to the defendants. The court held that U.S. Bank established standing by demonstrating that Computershare, its custodian, possessed the original note when the action commenced. The court granted the plaintiff's motion for summary judgment dismissing the defendants' lack-of-standing affirmative defense.

Holdings

1. A plaintiff establishes standing in a mortgage foreclosure action by demonstrating that it was the holder or assignee of the underlying note when the action was commenced. U.S. Bank established that requirement through the evidence showing that Computershare possessed the original note as the bank's custodian at commencement.
2. Testimony from a witness with an appropriate foundation may establish the admissibility of a limited power of attorney and transaction addendum as business records under the business-records exception to the hearsay rule.
3. The Supreme Court should have granted the branch of U.S. Bank's motion seeking summary judgment dismissing defendants' lack-of-standing affirmative defense and should not have sua sponte dismissed the complaint or ordered payment of expenses under Real Property Law § 282(1).

Questions Presented

1. Whether the plaintiff established standing to maintain the mortgage foreclosure action by proving that it was the holder or assignee of the note when the action was commenced.
2. Whether the plaintiff's documents were properly admitted as business records through the testimony of its witness.
3. Whether the Supreme Court properly denied plaintiff's motion for summary judgment, dismissed the complaint sua sponte for lack of standing, and awarded defendants expenses under Real Property Law § 282(1).

Disposition

reversed