Cashel v. Cashel

94 A.D.3d 684, 941 N.Y.S.2d 236
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 3, 2012
StatusPublished
Cited by13 cases

This text of 94 A.D.3d 684 (Cashel v. Cashel) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cashel v. Cashel, 94 A.D.3d 684, 941 N.Y.S.2d 236 (N.Y. Ct. App. 2012).

Opinion

In three related actions, inter alia, for a divorce and ancillary relief (action No. 1), to set aside a deed on the ground of fraud (action No. 2), and to foreclose a mortgage (action No. 3), which were joined for trial, Fremont Investment & Loan, a defendant [685]*685in action No. 2, appeals, as limited by its brief, from so much of an order of the Supreme Court, Suffolk County (Crecca, J.), dated March 4, 2011, as, (a) upon reargument and renewal, vacated the determination in an order dated April 17, 2009, denying those branches of the motion of Thomas E Cashel, the plaintiff in action Nos. 1 and 2, which were for summary judgment on the fourth cause of action in action No. 1, declaring that a deed dated June 6, 2002, conveying title to certain real property from Thomas E Cashel to Francine Cashel, a defendant in action Nos. 1, 2, and 3, is null and void, and on the first cause of action in action No. 2 insofar as asserted against it declaring that the deed is null and void and that all mortgages encumbering the real property that were executed on or after June 6, 2002, are cancelled as a lien against the real property, and thereupon granted those branches of the motion, (b) granted those branches of the motion of Thomas E Cashel which were for summary judgment dismissing its third counterclaim and striking its second and fourth affirmative defenses in action No. 2, and thereupon directed the Clerk of the County of Suffolk to mark the deed dated June 6, 2002, void and of no further effect, and to accept a deed from Thomas E Cashel to himself, confirming his ownership of the property as of June 6, 2002, and (c) denied that branch of its cross motion which was for summary judgment on its third counterclaim in action No. 2.

Ordered that the order dated March 4, 2011, is modified, on the law, (1) by deleting the provisions thereof, upon reargument and renewal, granting those branches of the motion of Thomas E Cashel which were for summary judgment on the fourth cause of action in action No. 1 and the first cause of action in action No. 2 insofar as asserted against Fremont Investment & Loan, declaring that the deed dated June 6, 2002, is null and void, and substituting therefor a provision, upon reargument and renewal, adhering to the determination in the order dated April 17, 2009, denying those branches of the motion, (2) by deleting the provisions thereof, upon reargument and renewal, granting that branch of the motion of Thomas E Cashel which was for summary judgment on the first cause of action in action No. 2 insofar as asserted against Fremont Investment & Loan declaring that all mortgages encumbering the real property that were executed on or after June 6, 2002, are cancelled as a lien against the real property, and substituting therefor a provision adhering to the determination in the order dated April 17, 2009, denying that branch of the motion, (3) by deleting the provisions thereof granting those branches of the motion of Thomas E Cashel which were for summary judgment dismissing the third counterclaim and striking the second and fourth affirmative de[686]*686fenses asserted by Fremont Investment & Loan in action No. 2, and substituting therefor a provision denying those branches of the motion, and (4) by deleting the provisions thereof directing the Clerk of the County of Suffolk to mark the deed dated June 6, 2002, void and of no further effect and to accept a deed from Thomas E Cashel to himself confirming his ownership of the real property as of June 6, 2002; as so modified, the order dated March 4, 2011, is affirmed insofar as appealed from, with costs to the appellant.

Action No. 1 is an action for a divorce and ancillary relief, commenced by Thomas E Cashel (hereinafter Thomas) against Francine Cashel (hereinafter Francine). Action No. 2 involves a parcel of real property located in Ronkonkoma (hereinafter the property). On June 6, 2002, a deed was executed conveying title to the property from Thomas to Francine (hereinafter the deed). The same day, Francine executed a mortgage on the property in order to secure a loan in the principal sum of $206,250 from Flagstar Bank (hereinafter the Flagstar mortgage loan). Francine then remitted a portion of the proceeds from the Flagstar mortgage loan to Thomas. Thomas alleged that, in June 2004, while preparing to file for divorce, he discovered that Francine fraudulently transferred the property and placed it in her name by forging his signature on the deed. In August 2004 Thomas filed a notice of pendency in connection with the property. Shortly thereafter, Francine executed a mortgage on the property in favor of Fremont Investment & Loan (hereinafter Fremont), a defendant in action No. 2, in the amount of $345,875 (hereinafter the Fremont mortgage loan). It is undisputed that, from the proceeds of the Fremont mortgage loan, the sum of $196,028 was allocated to satisfy the Flagstar mortgage loan.

In the fourth cause of action in action No. 1, Thomas sought a judgment declaring that the deed is null and void on the ground that Francine forged his signature thereon. In the first cause of action in action No. 2, Thomas similarly sought a judgment declaring that the deed is null and void as a forgery and that all mortgages encumbering the property that were executed on or after June 6, 2002 — which included the mortgage given to Fremont to secure the Fremont mortgage loan — are cancelled as liens against the property.

Upon renewal and reargument, the Supreme Court erred in granting those branches of Thomas’s motion which were for summary judgment on the fourth cause of action in action No. 1 declaring that the deed is null and void, and on the first cause of action in action No. 2 insofar as asserted against Fremont [687]*687declaring that the deed is null and void and that all mortgages encumbering the property that were executed on or after June 6, 2002, are cancelled as liens against the property. In support of his motion, Thomas submitted a transcript of Francine’s deposition testimony, in which she testified that, with Thomas’s authorization, she signed Thomas’s name on the deed. Thus, Thomas made a prima facie showing of entitlement to judgment as a matter of law by establishing that the signature on the deed purporting to be his signature was inscribed by Francine (see Alvarez v Prospect Hosp., 68 NY2d 320, 324 [1986]; Cruz v Cruz, 37 AD3d 754, 754 [2007]). However, in opposition, Fremont raised a triable issue of fact as to whether Thomas ratified the deed, since there is evidence in the record indicating that Thomas may have had knowledge of the material facts concerning the forgery, and that he benefitted from the transaction (see Standard Funding Corp. v Lewitt, 89 NY2d 546, 552 [1997]; Matter of New York State Med. Transporters Assn. v Perales, 77 NY2d 126, 131 [1990]). We note that on a prior appeal in this case, the Court of Appeals reversed a decision and order of this Court and thereupon denied Fremont’s motion for summary judgment, concluding that there were triable issues of fact “with respect to whether plaintiff Thomas E Cashel possessed the requisite ‘knowledge of material facts’ concerning the allegedly binding deed,” and explaining that it could not “conclude, as a matter of law, that [Thomas] ratified the deed” (Cashel v Cashel, 15 NY3d 794, 796 [2010] [citation omitted]). Similarly, on this appeal, there are triable issues of fact as to whether the deed was subject to ratification, and whether Thomas ratified the deed. Thus, the Supreme Court erred in concluding, as a matter of law, that the deed was not subject to ratification in the first instance.

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Cite This Page — Counsel Stack

Bluebook (online)
94 A.D.3d 684, 941 N.Y.S.2d 236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cashel-v-cashel-nyappdiv-2012.