HSBC Bank USA, N.A. v. Caesar

Summary

The Appellate Division, Second Department, affirmed an order and judgment of foreclosure and sale in favor of HSBC Bank USA, N.A. The court held that amendment of the complaint to substitute HSBC for U.S. Bank was proper, that the defendants waived their objection to personal jurisdiction by failing to move within the applicable 60-day period, and that HSBC established standing through physical possession of the note before commencement of the action.

Holdings

1. The Supreme Court properly exercised its discretion in permitting HSBC to amend the complaint to replace U.S. Bank because the amendment was not palpably insufficient or patently devoid of merit and did not cause surprise or prejudice to the defendants.
2. Defendants waived their objection to personal jurisdiction based on improper service by failing to move within 60 days after serving their answer and by showing no undue hardship warranting an extension.
3. HSBC had standing to maintain the foreclosure action because it established that it was the holder of the note through physical possession of the blank-endorsed note when the action commenced.

Questions Presented

1. Whether the Supreme Court properly permitted HSBC to amend the complaint to replace U.S. Bank as plaintiff.
2. Whether defendants waived their objection to personal jurisdiction by failing to move to dismiss for improper service within the period required by CPLR 3211(e) and by their subsequent litigation conduct.
3. Whether HSBC established standing to maintain the foreclosure action by proving that it was the holder or assignee of the note when the action commenced.
4. Whether the order and judgment of foreclosure and sale should be affirmed.

Disposition

affirmed