Trevon Chavous and Priscilla Chavous v. M&T Bank, Katherine Zheng, Supreme Associates

CourtDistrict Court, N.D. New York
DecidedMay 18, 2026
Docket5:25-cv-01247
StatusUnknown

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Bluebook
Trevon Chavous and Priscilla Chavous v. M&T Bank, Katherine Zheng, Supreme Associates, (N.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

TREVON CHAVOUS and PRISCILLA CHAVOUS,

Plaintiffs, 5:25-cv-01247 (AMN/MJK) v.

M&T BANK, KATHERINE ZHENG, SUPREME ASSOCIATES,

Defendants.

APPEARANCES: OF COUNSEL:

TREVON CHAVOUS PRISCILLA CHAVOUS 139 Maple Ter. Syracuse, New York 13210 Plaintiffs pro se

HODGSON RUSS LLP CARMINE CASTELLANO, 605 Third Avenue – Suite 2300 ESQ. New York, New York 10158 Attorneys for Defendants M&T Bank and Katherine Zheng

Hon. Anne M. Nardacci, United States District Judge: MEMORANDUM-DECISION AND ORDER I. INTRODUCTION On August 1, 2025, plaintiffs Trevon Chavous and Priscilla Chavous (“Plaintiffs”) commenced this action in the Supreme Court of the State of New York, County of Onondaga, bringing various claims against defendants M&T Bank (“M&T”), Katherine Zheng (“Zheng”) (together, “Defendants”), Supreme Associates International (“Supreme Associates”),1 and White

1 Service upon Supreme Associates has failed twice. Dkt. Nos. 46, 57. Harbor Group. See Dkt. No. 1 at ¶ 1. On September 9, 2025, Defendant M&T, with Defendant Zheng’s consent, timely removed the action to this Court pursuant to 28 U.S.C. § 1446(b). Id. at ¶¶ 3, 6. After Plaintiffs were served with the Notice of Removal, Dkt. No. 13, Plaintiffs filed motions for leave to proceed in forma pauperis, Dkt. Nos. 16-17, which United States Magistrate Judge Mitchell J. Katz granted on September 18, 2025, Dkt. No. 20. On September 22, 2025

Plaintiffs filed an amended complaint as of right. Dkt. No. 23 (“Amended Complaint”). Presently before the Court is Defendants’ motion to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). Dkt. No. 35 (the “Motion”). Plaintiffs responded, Dkt. No. 36, and Defendants replied, Dkt. No. 39. For the reasons that follow, the Court grants the Motion. II. BACKGROUND A. The Parties Plaintiffs are individuals residing in the State of New York. Dkt. No. 23 at ¶ 1. Defendant M&T Bank is a banking corporation doing business in New York. Id. at ¶ 2. Defendant Katherine

Zheng is alleged to be an employee of Defendant M&T Bank. Id. at ¶ 3. Plaintiffs allege that Supreme Associates is the entity that sold them the property at issue in this suit. Id. at ¶ 4. Plaintiffs allege that White Harbor Group is the insurance company “that issued and later canceled an insurance policy on the subject property.” Id. at ¶ 5. B. Plaintiff’s Factual Allegations Plaintiffs’ allegations arise out of a mortgage they received through Defendant M&T Bank, represented by its employee Defendant Zheng. Dkt. No. 23 at ¶¶ 10-26. On or about April 25, 2025, Plaintiffs closed on said mortgage for the purchase of real property located at 215 W. Beard Street, Syracuse, NY 13205 (the “Property”). Id. at ¶ 10. Plaintiffs allege that throughout the transaction they “relied heavily on the representations of Defendants.” Id. at ¶ 11. Plaintiffs specifically allege that Defendant Zheng told Plaintiffs that they had to purchase a one-unit property despite being “originally approved for a $140,000 mortgage loan for a two-unit property.” Id. at ¶ 12. Plaintiffs further allege that Defendant Zheng knew that the Property was unsafe, “yet pushed Plaintiffs to close by stating they could lose both the house and the loan.” Id. at ¶ 15.

After closing, Plaintiff allege that they “never received required [Truth in Lending Act] disclosures, including notice of rescission rights, accurate APR, or itemized closing costs.” Id. at ¶ 18. Plaintiffs also allege that the Property was staged to appear habitable, but they later discovered that it contained “severe hazards, including a damaged roof, asbestos, structural instability, concealed water damage, mold, rodent infestations, defective mechanicals, and overall uninhabitable conditions.” Id. at ¶ 16. Additionally, Plaintiffs allege that Supreme Associates had previously entered into an encroachment agreement with non-party Dream Realty regarding the Property, which was not identified in the Property’s appraisal. Id. at ¶ 17. Plaintiffs further allege that because of the unsafe conditions, “White Harbor Group

canceled insurance coverage” and the New York State Energy Research and Development Authority (“NYSERDA”) “closed out Plaintiffs’ insulation and energy upgrade application.” Id. at ¶¶ 21-22. Plaintiffs allege that they “sent a [qualified written request (“QWR”)]” and Debt Validation Request to Defendants on July 11, 2025, as well as a Notice of Rescission on July 29, 2025. Id. at ¶ 24. Plaintiff’s Legal Claims The Amended Complaint lists fourteen causes of action: (i) fraudulent misrepresentation against all defendants as to “the condition of the Property, bedroom count, mortgage eligibility, insurance availability, and [Truth in Lending Act] disclosures”; (ii) violations of the Truth in Lending Act (“TILA”) against Defendants for failure to provide required disclosures; (iii) predatory lending by Defendants in violation of Home Ownership and Equity Protection Act (“HOEPA”); (iv) lack of standing against Defendant M&T; (v) “Quiet Title” pursuant to New York Real Property Actions and Proceedings Law (“RPAPL”) against Defendant M&T Bank and Supreme Associates; (vi) injunctive relief against all four defendants; (vii) unjust enrichment

against Defendant M&T Bank and Supreme Associates; (viii) failure to provide closing documents under the TILA, HOEPA, and Real Estate Settlement Procedures Act (“RESPA”); (ix) misrepresentation of property value against all four defendants; (x) “insurance cancellation damages” against White Harbor Group; (xi) loss of New York State Energy Research and Development Authority program funding against M&T Bank and Supreme Associates; (xii) failure to report negative impacts on credit against all defendants; (xiii) predatory lending against Defendants under the Dodd-Frank Act; and (xiv) “Predatory Lending – Explicit High-Cost/Unsafe Loan Practices” against Defendants. Id. at 3-5. C. Procedural History

Prior to commencing this action (“Chavous II”) in state court, Plaintiffs filed a separate action in this Court alleging claims largely based on the same set of events. See Case No. 5:25- cv-00562-AMN-MJK (“Chavous I”), Dkt. Nos. 1, 8. After this Court dismissed both the complaint and amended complaint in that action with leave to amend, Chavous I, Dkt. No. 10, Plaintiffs submitted a notice of voluntary dismissal on August 7, 2025, Chavous I, Dkt. No. 19, which the Court approved, Chavous I, Dkt. No. 20. III. STANDARD OF REVIEW A. Motion to Dismiss pursuant to Rule 12(b)(1) A motion to dismiss for lack of subject matter jurisdiction pursuant to Rule 12(b)(1) is properly granted “when the court lacks statutory or constitutional authority to adjudicate it.” Cayuga Indian Nation of New York v. Vill. of Union Springs, 293 F. Supp. 2d 183, 187 (N.D.N.Y.

2003) (citing Luckett v. Bure, 290 F.3d 493, 496 (2d Cir. 2002)). To resolve such a motion, the court “accepts as true all the factual allegations in the complaint and must draw all reasonable inferences in favor of the plaintiff.” Lunney v. United States, 319 F.3d 550, 554 (2d Cir. 2003) (citing Hamilton Chapter of Alpha Delta Phi, Inc. v. Hamilton Coll., 128 F.3d 59, 63 (2d Cir. 1997)). B.

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