Deutsche Bank National Trust Co. v. Dirende

49 Misc. 3d 1159, 21 N.Y.S.3d 842
CourtJustice Court of Village of Pound Ridge
DecidedNovember 2, 2015
StatusPublished

This text of 49 Misc. 3d 1159 (Deutsche Bank National Trust Co. v. Dirende) is published on Counsel Stack Legal Research, covering Justice Court of Village of Pound Ridge primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deutsche Bank National Trust Co. v. Dirende, 49 Misc. 3d 1159, 21 N.Y.S.3d 842 (N.Y. Super. Ct. 2015).

Opinion

OPINION OF THE COURT

Ira S. Clair, J.

[1161]*1161Upon the within petition and its exhibits and the stipulation placed upon the record in open court and all of the proceedings hereto, it is decided and ordered as follows:

In this post foreclosure summary proceeding brought pursuant to RPAPL 713 (5), petitioner’s counsel and respondent with counsel appeared on the adjourned return date and indicated to the court on the record that a resolution had been reached whereby respondent would agree to the entry of a judgment and warrant with execution to be stayed through November 30, 2015. There was no other discussion, no answer had been filed and same took place on the first return date where both counsel appeared.

However, it was apparent to the court that the petition was potentially fatally defective in that the statutory condition precedent to a cause of action under said statute was not satisfied as per the petition and its attachments. The court indicated to the parties that it would take the joint motion for the entry of a judgment and warrant with said stay under advisement. Thus the questions before the court are: (1) is the petition fatally defective; (2) may the court enter a judgment and issue a warrant in accordance with the stipulation of the parties despite said fatal defect; and (3) if so, under what conditions may the court to do so.

The instant petition shows from the affidavit of service appended to it that the requisite exhibition of the referee’s deed required by RPAPL 713 (5) was accomplished simultaneously with and as part of the service of the 10-day notice to vacate in a manner that is commonly described as “suitable age and discretion” service. While the foregoing satisfies the statutory requirement to “serve” the 10-day notice to vacate, it is clear that the verb to “exhibit” has been held to mean something different from the verb to “serve” in this context. (Home Loan Servs., Inc. v Moskowitz, 31 Misc 3d 37 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2011].) The Appellate Term, in reversing the lower court and granting the respondent’s motion to dismiss the petition, which showed the equivalent of “nail and mail” service to exhibit the referee’s deed, stressed the fact that the statute employs the term “exhibit” as opposed to “service” in regard to the deed.

In holding that the equivalent of substituted service was inadequate to “exhibit” the deed, the Appellate Term relied upon Colony Mtge. Bankers v Mercado (192 Misc 2d 704 [Sup Ct, Westchester County 2002]). Other cases which held differ[1162]*1162ently were also pointed out, but it is clear that the Appellate Term found chief precedential value from Colony Mtge. Bankers, a case which considered the meaning of the term “exhibit” in the analogous scenario of an application for a writ of assistance and whether it was adequate to exhibit the deed by the equivalent of “suitable age and discretion” service. Although the court therein was considering the requirement of the foreclosure judgment which conditioned the issuance of a writ of assistance upon production of the referee’s deed, it reached the meaning of the word “exhibit” by holding that “production” was the equivalent of said term of art used in RPAPL 713 (5), and thus the analysis was totally on point regarding the issue before the Appellate Term. The Supreme Court cited several dictionaries to conclude that “exhibit connotes actual presentation to view the document.” (Colony Mtge. Bankers, 192 Misc 2d at 704.) It is therefore clear that Moskowitz requires the equivalent of personal in-hand service in order to accomplish the requisite exhibition of the referee’s deed, and it has been expressly held that the equivalent of “suitable age and discretion” service is inadequate to satisfy RPAPL 713 (5). (U.S. Bank N.A. v Eichenholtz, 37 Misc 3d 536 [Yorktown Just Ct 2012].)

The holding of Moskowitz is binding upon this court via the doctrine of stare decisis. (Investec Bank PLC v Elite Intl. Fin., Ltd., 42 Misc 3d 1207[A], 2014 NY Slip Op 50003[U] [Civ Ct, NY County 2014].) It is thus clear that the instant petition is defective and would either have been dismissed if respondent had moved for said relief or resulted in judgment for respondent if the facts alleged were those proven at trial.

The court is aware of two reported decisions in which it was determined that Moskowitz no longer applies and that less than personal in-hand exhibition of the referee’s deed was found adequate to satisfy RPAPL 713 (5). Hudson City Sav. Bank v Lorenz (39 Misc 3d 538 [Suffolk Dist Ct 2013]) and 1644 Broadway LLC v Jimenez (— Misc 3d —, 2015 NY Slip Op 25319 [Civ Ct, Kings County 2015]) each stressed two main points: public policy and the difficulty in securing possession engendered by Moskowitz. The latter case expressly relies upon the former opinion and thus it is appropriate to examine the first case and the basis upon which the District Court reasoned that stare decisis did not bind it to hold that substituted service was inadequate in exhibiting the referee’s deed.

The Lorenz court’s reasoning centered upon the dicta statement in the Moskowitz opinion — “in light of the strong policy [1163]*1163prohibiting unlawful evictions” (31 Misc 3d at 38-39) — to conclude that it was said policy that was the logical heart of the decision. It is respectfully concluded that this is in error. The focus of the Moskowitz decision was not a policy driven determination, but an interpretation of the meaning of a statutory term within the context of recognizing the very limited jurisdiction of the court to act only under precise grounds and upon precise conditions as set forth in the several defined grounds authorized for summary proceedings among a myriad of other conceivable scenarios involving disputed possession of realty. An exception to the plenary action, the jurisdiction of the court in matters of summary proceedings is strictly limited to those grounds set forth in the statute which create the fast-tracked exception to the plenary action. (Federal Natl. Mtge. Assn. v Simmons, 48 Misc 3d 24 [App Term, 1st Dept 2015]; Stribula v Wein, 107 Misc 2d 114 [App Term, 1st Dept 1980]; see generally 2 Robert F. Dolan, Rasch’s Landlord & Tenant— Summary Proceedings § 29:13 [4th ed] [discussing this most basic principle].) Moreover, there is no room for analogizing Federal Home Loan Mtge. Assn. v Perez (40 Misc 3d 1 [App Term, 2d Dept, 9th & 10th Jud Dists 2013]) and it is axiomatic that strict construction is necessary in determining whether the requirement of each enumerated ground has been satisfied. It was thus necessary for the Appellate Term to determine the meaning of the term “exhibit,” which could not be the same as “serve” or the legislature would have used the same term in drawing the statute, in a linguistic sense only. Thus, Moskowitz concerned itself exclusively with the meaning of the term “exhibit” and comments concerning policy therein are mere dicta.

The Lorenz court acknowledged that the doctrine of stare decisis bound the court to follow the Appellate Term’s ruling, but expressly held that the legislature intervened, addressing the Moskowitz court’s public policy concerns not in directly amending RPAPL 713 (5), but in enacting RPAPL 1305. Thus, the excuse for not being bound by Moskowitz

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Related

In Re Estate of Frutiger
272 N.E.2d 543 (New York Court of Appeals, 1971)
Foote v. Adams
232 A.D. 60 (Appellate Division of the Supreme Court of New York, 1931)
Blackstock v. Price
51 A.D.3d 914 (Appellate Division of the Supreme Court of New York, 2008)
Home Loan Services, Inc. v. Moskowitz
31 Misc. 3d 37 (Appellate Terms of the Supreme Court of New York, 2011)
Park Properties Associates, L.P. v. Williams
38 Misc. 3d 35 (Appellate Terms of the Supreme Court of New York, 2012)
Hudson City Savings Bank v. Lorenz
39 Misc. 3d 538 (New York District Court, 2013)
Federal Home Loan Mortgage Ass'n v. Perez
40 Misc. 3d 1 (Appellate Terms of the Supreme Court of New York, 2013)
Federal National Mortgage Ass'n v. Simmons
48 Misc. 3d 24 (Appellate Terms of the Supreme Court of New York, 2015)
Cerbone v. Cerbone
104 Misc. 2d 472 (Civil Court of the City of New York, 1979)
Stribula v. Wien
107 Misc. 2d 114 (Appellate Terms of the Supreme Court of New York, 1980)
Pecenik v. Adam
107 Misc. 2d 488 (Civil Court of the City of New York, 1981)
Colony Mortgage Bankers v. Mercado
192 Misc. 2d 704 (New York Supreme Court, 2002)
U.S. Bank National Ass'n v. Eichenholtz
37 Misc. 3d 536 (Yorktown Justice Court, 2012)

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Bluebook (online)
49 Misc. 3d 1159, 21 N.Y.S.3d 842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deutsche-bank-national-trust-co-v-dirende-nyjustctpoundri-2015.