U.S. Bank National Association v. White

Summary

The Appellate Division, Second Department, affirmed an order denying U.S. Bank leave to add Kensington Realty Development, LLC, as a defendant in a mortgage foreclosure action and canceling the notice of pendency. The court held that the plaintiff's unexplained delay of more than 11 years, the expiration of the statute of limitations, and the recorded deed establishing Kensington's interest supported denial of the amendment. Two justices dissented, concluding that Kensington failed to demonstrate prejudice or surprise and that the amendment should have been permitted.

Holdings

1. The Supreme Court providently exercised its discretion in denying the plaintiff's motion for leave to serve and file a supplemental summons and amended complaint adding Kensington as a defendant.
2. The order granting Kensington's cross-motion to cancel the notice of pendency was affirmed insofar as appealed from.
3. A foreclosure judgment does not affect the rights of a nonparty such as Kensington; a purchaser at a foreclosure sale may need additional relief, including reforeclosure, to bind that nonparty's interest.

Questions Presented

1. Whether the Supreme Court providently exercised its discretion in denying the plaintiff leave to serve and file a supplemental summons and amended complaint adding Kensington as a defendant after more than 11 years of delay.
2. Whether the notice of pendency should be canceled under CPLR 6514 after the court denied the plaintiff's motion to add Kensington to the foreclosure action.

Disposition

affirmed