NDF1, LLC v. Dalton Cunningham, et al.

CourtDistrict Court, E.D. New York
DecidedNovember 26, 2025
Docket1:24-cv-00002
StatusUnknown

This text of NDF1, LLC v. Dalton Cunningham, et al. (NDF1, LLC v. Dalton Cunningham, et al.) 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
NDF1, LLC v. Dalton Cunningham, et al., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

NDF1, LLC,

Plaintiff, MEMORANDUM & ORDER – against – 24-cv-00002 (NCM) (JAM)

DALTON CUNNINGHAM, et al.,

Defendants.

NATASHA C. MERLE, United States District Judge:

Plaintiff NDF1, LLC brings this foreclosure action against defendant Queens Capital Holdings, LLC (“Queens Capital”), and individual defendant Dalton Cunningham.1 See generally Am. Compl. (“AC”), ECF No. 55. Plaintiff moves for an order entering summary judgment against defendants and dismissing defendants’ affirmative defenses. See Mot. 8.2 For the reasons stated below, plaintiff’s motion for summary judgment is GRANTED.

1 Defendants Consolidated Edison Company of New York, City of New York Environmental Control Board, and the New York City Department of Finance are named in the amended complaint as necessary parties to the action because they are judgment creditors or tax lien holders against the subject property. AC ¶¶ 4–7. Additionally, the subject property’s tenants—Marcia Graham, Aerline Foulkes, Mandessa Brooks, and Aushien Shaw—are listed in the amended complaint as “nominal defendants.” AC ¶¶ 8– 11.

2 The Court hereinafter refers to the Memorandum of Law in Support of Plaintiff’s Motion for Summary Judgment and Judgment of Foreclosure and Sale, ECF No. 78-1, as the “Motion”; Defendant Queens Capital Holdings, LLC’s Memorandum of Law in Opposition to Plaintiff’s Motion, ECF No. 87, as “Queens Opp’n”; Defendant Cunningham’s Memorandum of Law in Opposition to Plaintiff’s Motion, ECF No. 87-3, as “Cunningham Opp’n”; and the Reply Memorandum of Law in Further Support of BACKGROUND I. Factual Background The following facts are taken from the parties’ statements pursuant to Local Civil Rule 56.1, specifically plaintiff’s 56.1 statement (“NDF1 56.1”), see ECF No. 78-2, Queens Capital’s counter 56.1 statement (“Queens 56.1”), see ECF No. 87-1, and Cunningham’s

counter 56.1 statement (“Cunningham 56.1”), see ECF No. 87-4. On November 3, 2006, Cunningham executed a fixed rate note in the amount of $84,000 plus interest at an annualized rate of 12.35% in favor of non-party Argent Mortgage Company, LLC (the “Note”). Cunningham 56.1 ¶ 1. As security for the Note, Cunningham executed a mortgage encumbering premises located at 142-21 230th Place, Rosedale, New York 11422 (the “Mortgage,” together with the Note, the “Loan”). Cunningham 56.1 ¶ 3. Argent’s interest in the Mortgage was assigned three times before it was eventually assigned to plaintiff. Cunningham 56.1 ¶¶ 4–8. Beginning on April 1, 2007, Cunningham failed to pay the regular monthly payment due under the Loan. Cunningham 56.1 ¶ 15. In failing to do so, Cunningham “breached his obligation under the Note and Mortgage[.]” Cunningham 56.1 ¶ 15.

Cunningham failed to make all subsequent regular monthly payments on the Loan. Cunningham 56.1 ¶ 15. On February 22, 2022, Cunningham sold the property to Queens Capital for $20,000. Cunningham 56.1 ¶¶ 11–12; Queens 56.1 ¶¶ 11–12. Queens Capital purchased the property subject to the Mortgage. Queens 56.1 ¶ 13. Queens Capital has not made any payments toward the Loan. Queens 56.1 ¶ 14.

Plaintiff’s Motion, ECF No. 87-6, as the “Reply.” Throughout this Order, page numbers for docket filings refer to the page numbers assigned in ECF filing headers. Plaintiff contends that its prior counsel mailed notice of default letters to Cunningham on March 19, 2021, at the address of the subject property as well as Cunningham’s last known residential address. NDF1 56.1 ¶ 18; see also Decl. of Armando Calvillo Ex. E at Ex. C, pp. 50–58 (“Notice of Default”), ECF No. 78-26. Cunnningham disputes this but does not cite any evidence to controvert the Notice of Default, including

the certified mail receipts. Cunningham 56.1 ¶ 18; see NDF1 56.1 ¶ 18. Plaintiff further asserts that on that same day its prior counsel also mailed statutory notices to Cunningham pursuant to New York Real Property Actions & Proceedings Law (“RPAPL”) § 1304, informing him that he was in default and his home was at risk of foreclosure. NDF1 56.1 ¶ 19; see also Decl. of Armando Calvillo Ex. E at Ex. B, pp. 16–49 (“90-Day Notices”), ECF No. 78-26. Cunningham does not specifically dispute that the 90-Day Notices were mailed to him at the subject property and his last known address, but he alleges that the Notices are “defective on their face.” Cunningham 56.1 ¶ 19. Plaintiff states that two days later its prior loan servicer—Statebridge Company, LLC—electronically filed the 90-Day Notices with New York State’s Superintendent of the Department of Financial Services pursuant to RPAPL § 1306(2). NDF1 56.1 ¶ 20; see also

Decl. of Statebridge Co., LLC Ex. 1 (“Section 1306 Notice”), ECF No. 78-4. Cunningham does not dispute that the Section 1306 Notice was filed, but he argues that it too is “defective on its face.” Cunningham 56.1 ¶ 20. Although Cunningham has been in default on the Loan since 2007, plaintiff asserts that at some point it “advanced” the due date on the Loan to December 1, 2017, “to ensure that any and all amounts it seeks to collect” by the instant action are within the statute of limitations. NDF1 56.1 ¶ 29. Defendants dispute this without providing any evidence to the contrary. See Queens 56.1 ¶ 29; Cunningham 56.1 ¶ 29. II. Procedural Background Plaintiff commenced this action to foreclose on the Mortgage pursuant to the Court’s diversity jurisdiction on January 2, 2024. Queens 56.1 ¶ 21; Cunningham 56.1 ¶ 21. On January 30, 2024, the Court issued an Order to Show Cause why the action should not be dismissed for lack of federal subject matter jurisdiction. See ECF Order

dated January 30, 2024. In the Order, the Court noted that plaintiff had not sufficiently alleged the identity and citizenship of the parties to establish the existence of diversity jurisdiction. Plaintiff responded to the Order on February 12, 2024, with an amended corporate disclosure statement, a declaration from plaintiff’s attorney, a declaration from one of plaintiff’s members, and various exhibits to establish that the parties are completely diverse. See Am. Corp. Disclosure Statement, ECF No. 20; Decls. in Support of Am. Corp. Disclosure Statement, ECF Nos. 20-1, 20-2. On March 6, 2025, plaintiff filed the instant motion for summary judgment against Queens Capital and Cunningham. Mot. Plaintiff filed a motion for default judgment against the remaining defendants that same day. See Not. of Mot., ECF No. 79. The Court held a status conference the following month, during which plaintiff agreed to withdraw

its motion for default judgment without prejudice “pending adjudication of any liability of the non-defaulting defendants.” ECF Minute Entry dated April 22, 2025; see also ECF No. 84. LEGAL STANDARD Summary judgment is appropriate when “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “A fact is material if it might affect the outcome of the suit under the governing law.” Loreley Fin. (Jersey) No. 3 Ltd. v. Wells Fargo Sec., LLC, 13 F.4th 247, 259 (2d Cir. 2021).3 Facts are in genuine dispute when “the jury could reasonably find for” the non-moving party based on the evidence in the record. Borley v. United States, 22 F.4th 75, 78 (2d Cir. 2021). The movant “bears the initial burden of showing that there is no genuine dispute as to a material fact.” Jaffer v. Hirji, 887 F.3d 111, 114 (2d Cir. 2018). Where the moving

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fabrikant v. French
691 F.3d 193 (Second Circuit, 2012)
New Bank of New England, N.A. v. Toronto-Dominion Bank
768 F. Supp. 1017 (S.D. New York, 1991)
Regency Savings Bank, F.S.B. v. Merritt Park Lands Associates
139 F. Supp. 2d 462 (S.D. New York, 2001)
Smith v. the City of New York
697 F. App'x 88 (Second Circuit, 2017)
U.S. Bank Natl. Assn. v. McCaffery
2020 NY Slip Op 04805 (Appellate Division of the Supreme Court of New York, 2020)
Loreley v. Wells Fargo
13 F.4th 247 (Second Circuit, 2021)
Borley v. United States
22 F.4th 75 (Second Circuit, 2021)
Wells Fargo Bank, N.A. v. Burke
94 A.D.3d 980 (Appellate Division of the Supreme Court of New York, 2012)
Gizzi v. Hall
309 A.D.2d 1140 (Appellate Division of the Supreme Court of New York, 2003)
CIT Bank, N.A. v. Nwanganga
328 F. Supp. 3d 189 (S.D. Illinois, 2018)
Buehlman v. IDE Pontiac, Inc.
345 F. Supp. 3d 305 (W.D. New York, 2018)
Gustavia Home, LLC v. Hoyer
362 F. Supp. 3d 71 (E.D. New York, 2019)
Jaffer v. Hirji
887 F.3d 111 (Second Circuit, 2018)
U.S. Bank, N.A. v. Byrd
854 F. Supp. 2d 278 (E.D. New York, 2012)
Article 13 LLC v. Lasalle Nat'l Bank Ass'n
132 F.4th 586 (Second Circuit, 2025)
Knox v. CRC Management Co.
134 F.4th 39 (Second Circuit, 2025)

Cite This Page — Counsel Stack

Bluebook (online)
NDF1, LLC v. Dalton Cunningham, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ndf1-llc-v-dalton-cunningham-et-al-nyed-2025.