U.S. Bank N.A. v. Jones-Boakai

Summary

The New York Appellate Division, Second Department affirmed an order granting Joyce Jones-Boakai summary judgment dismissing a mortgage foreclosure complaint as time-barred. The court held that the mortgage debt was accelerated when the plaintiff commenced a 2009 foreclosure action, that a purported unilateral de-acceleration did not reset the limitations period under the Foreclosure Abuse Prevention Act, and that retroactive application of the Act did not violate constitutional protections.

Holdings

1. A mortgage debt is accelerated, and the statute of limitations begins to run on the entire debt, when the plaintiff commences a foreclosure action and elects in the complaint to call the entire amount secured by the mortgage due.
2. Under CPLR 203 as amended by FAPA, the plaintiff's purported unilateral de-acceleration of the loan did not revive or reset the statute of limitations.
3. The Foreclosure Abuse Prevention Act applies retroactively to the circumstances presented.
4. Retroactive application of FAPA does not violate the Due Process Clauses of the United States or New York Constitutions, the Contracts Clause, or the Takings Clause of the United States Constitution.

Questions Presented

1. Whether the 2009 foreclosure action accelerated the entire mortgage debt and began the six-year statute of limitations.
2. Whether the plaintiff's purported unilateral de-acceleration of the loan revived or reset the statute of limitations under CPLR 203 as amended by the Foreclosure Abuse Prevention Act.
3. Whether the Foreclosure Abuse Prevention Act applies retroactively.
4. Whether retroactive application of the Foreclosure Abuse Prevention Act violates the Due Process Clauses, Contracts Clause, or Takings Clause.

Disposition

affirmed