Kondaur Capital Corp. v. Cajuste

849 F. Supp. 2d 363, 82 Fed. R. Serv. 3d 195, 2012 WL 1034241, 2012 U.S. Dist. LEXIS 43257
CourtDistrict Court, E.D. New York
DecidedMarch 27, 2012
DocketNo. 11-CV-2627
StatusPublished
Cited by12 cases

This text of 849 F. Supp. 2d 363 (Kondaur Capital Corp. v. Cajuste) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kondaur Capital Corp. v. Cajuste, 849 F. Supp. 2d 363, 82 Fed. R. Serv. 3d 195, 2012 WL 1034241, 2012 U.S. Dist. LEXIS 43257 (E.D.N.Y. 2012).

Opinion

MEMORANDUM AND ORDER

KUNTZ, District Judge.

This is a residential mortgage foreclosure action commenced by Plaintiff Kondaur Capital Corporation (“Plaintiff’ or “Kondaur”) against Defendant Syncia Cajuste (“Defendant”). Presently before the Court is Plaintiffs Motion for Judgment on the Pleadings as to Defendant’s Answer filed on July 20, 2011 (“Initial Answer”) pursuant to Federal Rule of Civil Procedure (“Rule”) 12(c), Plaintiffs Motion to Dismiss Defendant’s First Amended Answer filed on September 23, 2011 (“First Amended Answer”) pursuant to Rule 12(b)(6), and Defendant’s Cross-Motion for Mandatory Settlement Conference pursuant to C.P.L.R. § 3408. Should the Court deny either or both of Plaintiffs motions, Plaintiff moves to strike Defendant’s First Amended Answer pursuant to Rule 12(f) and moves for a more definite statement as to Defendant’s First Amended Answer pursuant to Rule 12(e). This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1332(a) (“diversity of citizenship”). For the reasons set forth below, Plaintiffs Motion for Judgment on the Pleadings as to Defendant’s Initial Answer is granted and Defendant’s Cross-Motion for a Mandatory Settlement Conference is denied. The remaining motions filed by Plaintiff are deemed moot in light of the ruling of this Court.

I. Factual Background

On August 14, 2008, Defendant Cajuste borrowed from Wells Fargo Bank, N.A. (the “Original Lender”) the principal amount of $799,500.00 (the “Loan”) for financing related to her purchase of residen[365]*365tial property located at 1 Gerry Lane, Lloyd Neck, New York 11743 (the “Premises”). To evidence the Loan, Defendant executed an initial interest adjustable rate note (the “Note”) dated August 14, 2008. Plaintiffs Memorandum of Law in support of its combined Motion for Judgment on the Pleadings and Motion to Dismiss, dated October 6, 2011 (“Pl.’s Mem.”), at Ex. B. As security for the Loan, Defendant executed and delivered to the Original Lender a mortgage (the “Mortgage”) dated August 14, 2008. Pl.’s Mem., at Ex. C. The Mortgage was duly recorded in the real estate records of the Suffolk County Clerk’s Office on August 21, 2008.

Thereafter, the Original Lender assigned the Mortgage and Note to Kondaur by an endorsement of the Note and an Assignment of the Mortgage dated December 22, 2009. PL’s Mem., at Exs. B, E. The assignment of the Note and Mortgage were duly recorded in the real estate records of the Suffolk County Clerk’s Office on April 14, 2010. It is undisputed Kondaur is the owner and holder of the Note and Mortgage.

Under paragraph 3(A) of the Note and paragraph 1 of the Mortgage (at page 4 of 17), Defendant was required to pay per month beginning on October 1, 2008, the said principal of $799,500.00 with interest at the rate of 7.125% until the principal and interest was fully paid. Under paragraph 7(B) of the Note and paragraph 22 of the Mortgage, if Defendant failed to make the full amount of each monthly payment when due, she was default. Defendant defaulted on the Note and Mortgage by failing to make payments due on February 1, 2009 and on the first day of each month thereafter. Plaintiff has provided the Court with the payment history evidencing said default. PL’s Mem., at Ex. F. Despite demand for payment, Defendant has failed to pay all sums due under the Loan. The principal balance outstanding and due immediately under the Loan is $1,014,148.08 as of October 31, 2011.

Plaintiff states it is not a party to any agreement requiring it to consider a modification under the Home Affordable Modification Program (“HAMP”) and it is not a recipient of any Troubled Asset Relief Program (“TARP”) funds. PL’s Mem., at 2. Although Plaintiff is not required to offer any modifications, Plaintiff in fact offered Defendant four different modifications in a letter dated August 16, 2010. PL’s Mem., at Ex. H. Defendant did not accept any of these modifications. On March 2, 2011, Plaintiff provided Defendant with a Notice of Default and Acceleration with which Defendant failed to comply and a proper notice under R.P.A.P.L. § 1304. PL’s Mem., at Exs. G, I.

Plaintiff commenced this action by filing the Complaint on June 1, 2011. Plaintiffs affidavit of service indicates it effectuated service upon Defendant at the Premises by using what is commonly referred to as the “nail and mail” method pursuant to C.P.L.R. § 308(4). Plaintiffs process server made four attempts to serve Defendant at the Premises on the following dates and at the following times: June 14, 2011 at 8:35 a.m.; June 16, 2011 at 7:12 p.m.; June 21, 2011 at 8:13 a.m.; and June 23, 2011 at 7:18 a.m. On June 24, 2011, the process server affixed the Complaint, Summons, and R.P.A.P.L. § 1303 notice to the door of the Premises. On June 27, 2011, the process server mailed a copy of the Complaint, Summons, and R.P.A.P.L. § 1303 notice to Defendant at the Premises.

Defendant filed the Initial Answer on July 20, 2011. Plaintiff asserts the Initial Answer was due on July 15, 2011 — twenty-one days starting the day after the Complaint, Summons, and R.P.A.P.L. § 1303 notice were affixed to Defendant’s door— and is therefore untimely. Defendant asserts the Initial Answer was due on July [366]*36621, 2011 — twenty-four days starting the day after the Complaint, Summons, and R.P.A.P.L. § 1303 notice were mailed to Defendant. Defendant argues it is entitled to three extra days under Rule 6(d) because at least part of service was effectuated via mail under Rule 5(b)(2)(C).1

Defendant filed the First Amended Answer including two counterclaims on September 23, 2011. On October 6, 2011, Plaintiff filed a Motion for Judgment on the Pleadings as to the Initial Answer. Plaintiff also filed a Motion to Dismiss for Failure to State a Claim, Motion to Strike, and Motion for a More Definite Statement as to the First Amended Answer. Both parties filed a signed stipulation to withdraw with prejudice Defendant’s First Amended Answer, including all affirmative defenses and counterclaims asserted therein on October 28, 2011. Stipulation, dated October 28, 2011, at 1. On the same date, Defendant filed a Cross-Motion for Mandatory Settlement Conference. Both parties appeared before this Court on December 14, 2011 for a pre-motion conference. The motions have been fully briefed by both parties as of January 5, 2012, and are ripe for disposition.

II. Plaintiffs Motion For Judgment Ón The Pleadings As To The Initial Answer

A. Legal Standard

Under Rule 12(c), “[ajfter the pleadings are closed — but early enough not to delay trial — a party may move for judgment on the pleadings.” Motions for judgment on the pleadings are governed by the same standards applicable to Rule 12(b)(6) motions to dismiss for failure to state a claim upon which relief may be granted. In re Ades and Berg Grp. Investors, 550 F.3d 240, 243 n. 4 (2d Cir.2008). The granting of a motion for judgment on the pleadings is appropriate only if, with all reasonable inferences drawn in favor of the non-moving party, the non-moving party has failed to allege facts that would give rise to a plausible claim or a plausible defense. Ashcroft v. Iqbal,

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849 F. Supp. 2d 363, 82 Fed. R. Serv. 3d 195, 2012 WL 1034241, 2012 U.S. Dist. LEXIS 43257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kondaur-capital-corp-v-cajuste-nyed-2012.