Apsec Resolution, LLC v. West 21st Assoc. LLC

2024 NY Slip Op 33859(U)
CourtNew York Supreme Court, New York County
DecidedOctober 25, 2024
DocketIndex No. 850497/2023
StatusUnpublished

This text of 2024 NY Slip Op 33859(U) (Apsec Resolution, LLC v. West 21st Assoc. LLC) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apsec Resolution, LLC v. West 21st Assoc. LLC, 2024 NY Slip Op 33859(U) (N.Y. Super. Ct. 2024).

Opinion

Apsec Resolution, LLC v West 21st Assoc. LLC 2024 NY Slip Op 33859(U) October 25, 2024 Supreme Court, New York County Docket Number: Index No. 850497/2023 Judge: Francis A. Kahn III Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 850497/2023 NYSCEF DOC. NO. 71 RECEIVED NYSCEF: 10/25/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. FRANCIS A. KAHN, 111 PART 32 Justice -------------------------------------------------X INDEX NO. 850497 /2023 APSEC RESOLUTION, LLC,A DELAWARE LIMITED LIABILITY COMPANY, MOTION DATE

Plaintiff, MOTION SEQ. NO. - - -001 ---

- V -

WEST 21ST ASSOCIATES LLC,MORRIS MEHRABAN, HESKY HAIM, ISAAC SIADMEHR, NEW YORK CITY DECISION + ORDER ON ENVIRONMENTAL CONTROL BOARD, JOHN DOE, JANE MOTION DOE

Defendant. -------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 001) 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39,40,41,42, 43,44,45, 46,47,48,49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59,60,61,62,63,64,65,66,67,68,69, 70 were read on this motion to/for JUDGMENT - SUMMARY

Upon the foregoing documents, the motion is determined as follows:

This is an action to foreclose on a mortgage encumbering a parcel of commercial real property located at 34 West 21st Street, New York, New York. The consolidated mortgage, dated December 29, 2021, was given by Defendant West 21 st Associates LLC ("West") to non-party Bank of Hope ("Hope") to secure loans with a total original principal amount of $6,550,000.00. The indebtedness is memorialized by three notes dated August 5, 2016, June 25, 2020, and December 29, 2021. The mortgage subject to foreclosure was executed by Defendant Hesky Haim ("Haim") as Manager of West. All the notes were also executed by Haim and two of the three were also executed by Defendants Morris Mehraban ("Mehraban") and Isaac Saidmehr ("Saidmehr"). Concomitantly with the initial note, Defendants Haim, Mehraban and Saidmehr executed a commercial guaranty of the indebtedness.

Plaintiff commenced this action and pied in the complaint that Defendants defaulted in repayment on the maturity date January 5, 2023. Defendants West, Haim and Saidmehr and pied eleven affirmative defenses, including lack of standing. Defendant Mehraban answered and pled twelve affirmative defenses, also including lack of standing. Now, Plaintiff moves for summary judgment I' against the appearing Defendants, to strike their answer and affirmative defenses, a default judgment against the non-appearing Defendants, an order of reference and to amend the caption. Defendants oppose the motion.

In moving for summary judgment, Plaintiff was required to establish prima facie entitlement to judgment as a matter of law though proof of the mortgage, the note, and evidence of Defendants' default in repayment (see U.S. Bank, NA. v James, 180 AD3d 594 [15 1 Dept 2020]; Bank ofNYv Knowles, 151 AD3d 596 [l st Dept 2017]; Fortress Credit Corp. v Hudson Yards, LLC, 78 AD3d 577 [l st Dept 201 0]).

850497/2023 APSEC RESOLUTION, LLC, A DELAWARE LIMITED LIABILITY COMPANY vs. Page 1 of 6 WEST 21ST ASSOCIATES LLC ET AL Motion No. 001

[* 1] 1 of 6 11 INDEX NO. 850497/2023 NYSCEF DOC. NO. 71 RECEIVED NYSCEF: 10/25/2024

Proof supporting a prima facie case on a motion for summary judgment must be in admissible form (see CPLR §3212[b]; Tri-State Loan Acquisitions III, LLC v Litkowski, 172 AD3d 780 [I st Dept 2019]). As to the Mortgagor's default, it "is established by (1) an admission made in response to a notice to admit, (2) an affidavit from a person having personal knowledge of the facts, or (3) other evidence in admissible form" (Deutsche Bank Natl. Trust Co. v McGann, 183 AD3d 700, 702 [2d Dept 2020]). In support of a motion for summary judgment on a cause of action for foreclosure, a plaintiff may rely on evidence from persons with personal knowledge of the facts, documents in admissible form and/or persons with knowledge derived from produced admissible records (see eg US. Bank NA. v Moulton, 179 AD3d 734, 738 [2d Dept 2020]). No particular set of business records must be proffered, as long as the admissibility requirements of CPLR 4518[ a] are fulfilled and the records evince the facts for which they are relied upon (see eg Citigroup v Kopelowitz, 14 7 AD3d 1014, 1015 [2d Dept 2017]).

Plaintiffs motion was supported by an affirmation from Catherine Lee, ("Lee"), Managing Director of Plaintiff. Lee avers that the submission was based upon a review of Plaintiffs records and personal knowledge of "the notes and mortgages in issue and the facts surrounding the loan". Lee's affidavit laid a proper foundation for the admission of Plaintiffs records into evidence under CPLR §4518 by sufficiently showing that the records "reflect[ed] a routine, regularly conducted business activity, and that it be needed and relied on in the performance of functions of the business", "that the record[s][were] made pursuant to established procedures for the routine, habitual, systematic making of such a record" and "that the record[ s] [were] made at or about the time of the event being recorded" (Bank of NY Mellon v Gordon, 171 AD3d 197,204 [2d Dept 2019]; see also Bank ofAm v Brannon, 156 AD3d 1 [1st Dept 2017]). The records of other entities were also admissible since Lee established that those records were received from the makers and incorporated into the records Plaintiff kept and that it routinely relied upon such documents in its business (see eg US. Bank NA. v Kropp-Somoza, 191 AD3d 918 [2d Dept 2021]). Further, the records referenced by Lee were annexed to the affirmation (cf Deutsche Bank Natl. Trust Co. v Kirschenbaum, 187 AD3d 569 [1 st Dept 2020]).

Lee's review of the attached records demonstrated the material facts underlying the claim for foreclosure, to wit the mortgage, note, and evidence of mortgagor's default in repayment under the note (see eg ING Real Estate Fin. (USA) LLC v Park Ave. Hotel Acquisition, LLC, 89 AD3d 506 [1 st Dept 2011]; see also Bank of NY v Knowles, supra; Fortress Credit Corp. v Hudson Yards, LLC, supra). Accordingly, Plaintiff established its entitlement to summary judgment on its cause of action for foreclosure against Defendant Retail.

As to standing in a foreclosure action, it is established in one of three ways: [1] direct privity between mortgagor and mortgagee, [2] physical possession of the note prior to commencement of the action that contains an indorsement in blank or bears a special indorsement payable to the order of the plaintiff either on its face or by allonge, and [3] assignment of the note to Plaintiff prior to commencement of the action (see eg Wells Fargo Bank, NA. v Tricario, 180 AD3d 848 [2d Dept 2020]; Wells Fargo Bank, NA v Ostiguy, 127 AD3d 1375 [3d Dept 2015]). As relevant in this case, standing can be demonstrated by a written assignment of the underlying note (see Wells Fargo Bank, NA. v Tricario, 180 AD3d 848 [2d Dept 2020]; US. Bank NA. v Carnivale, 138 AD3d 1220, 1221 [2d Dept 2016]). Although a written assignment of a mortgage is often a nullity in this context (see eg US. Bank NA. v Dellarmo, 94 AD3d 746, 748 [2d Dept 2012]), the assignment herein, dated June 7, 2023, provides the mortgages were transferred "TOGETHER with all interest secured thereby, the note or notes therein described or referred to, the money due and to become due thereon with interest". This language sufficiently established conveyance of the notes (see Broome Lender LLC v Empire Broome LLC, 220 AD3d 611 [!5 1 Dept 2023]; US Bank Natl. Assn.

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Bluebook (online)
2024 NY Slip Op 33859(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/apsec-resolution-llc-v-west-21st-assoc-llc-nysupctnewyork-2024.