Plaintiff was induced to leave his current employment and start working at defendant’s agency. As part of the parties’ agreement, plaintiff was promised six months’ severance if terminated without cause. Plaintiff signed the agreement but, despite receiving an email from a board member welcoming him aboard, defendant did not sign…
Licensor sued a licensee for breaching an agreement to pay certain fees. In responding, the licensee counterclaimed for breach of the parties’ agreement. In doing so, it lumped together multiple allegations of breach into one cause of action but without detailing the specific contract provisions that the licensor violated. The…
In July 2000, Citibank extended a $54,000 loan to a condominium owner, with an additional $38,000 loan extended the next year. These two loans were consolidated into one loan for a total of $92,000. Some seven years later, the condominium board filed a common charges lien against the unit. In…
In 2005, a property owner borrowed $452,000 with which to buy a residential property. After the borrower’s default, that lender assigned the loan to HSBC. HSBC commenced a foreclosure action which was dismissed in 2007 for failure to serve the borrower. HSBC waited until 2009 to file a second foreclosure…
A lender has two options in seeking repayment on a defaulted home loan. A lender has the option of commencing a foreclosure action, auctioning the property, and applying the sale proceeds against the loan amount due. Or, a lender can sue based on the promissory note underlying the loan and…
A while back, we wrote about Judge Shack’s dismissal of a foreclosure case, something Judge Schack likes to do, but in a situation where he also ordered the CEO of HSBC Bank to appear for a hearing on possible sanctions. The Second Department reversed Judge Schack, again. The appellate court…
In almost any setting, when a borrower fails to pay a mortgage, the lender will issue a letter accelerating the entire amount owed notwithstanding that the terms of the mortgage only require monthly payments. That letter informs the borrower of the default and demands full payment of the amount outstanding.…
After defendant defaulted on a $1.3 million mortgage and note, the bank foreclosed. Despite the appointment of a receiver, during the pendency of the foreclosure action, the bank incurred a host of expenses. One of those was $40,000 for marketing commissions to a real estate marketing company. After the auction,…
Judge Arthur Schack is in the news again (some older news again and on video). In HSBC v. Taher, Judge Schack took issue with HSBC’s foreclosure paperwork including finding that the affidavit submitted by HSBC’s lawyers that the papers were in order and not “robo-signed” was false. Initially, Judge Schack…
Wells Fargo sought to foreclose on a condominium after its owner defaulted on her mortgage. The court determined that the mortgage documents required that Wells Fargo send the borrower a notice that set forth certain information about the loan and default before finding the borrower to be in default. The…