1:24-cv-01082
E.D.N.YAug 28, 2025Background
- Blue Castle (Cayman) Ltd., a Cayman Islands corporation, brought a foreclosure action against Moussa Tawil (aka Morris Tawil) and Soufia Tawil (aka Sofia Tawil) regarding a Brooklyn property.
- The loan originated from Quontic Bank for $2 million in 2021, secured by a mortgage; Blue Castle acquired the Note and Mortgage via assignment in October 2023.
- The Tawils defaulted on the mortgage by failing to make required payments starting August 1, 2022, and did not cure the default despite notices.
- Blue Castle moved for summary judgment on its foreclosure claim under New York’s RPAPL, asserting all legal requirements were met.
- Defendants answered with nine affirmative defenses but did not oppose the summary judgment motion after being given additional time by the court.
- Despite no opposition, the court reviewed whether Blue Castle met all statutory and common law prerequisites for summary judgment in foreclosure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to Foreclosure on Common Law Grounds | Blue Castle has note, mortgage, and shows default | Defendants did not contest | Plaintiff met common law elements for foreclosure |
| Compliance with RPAPL Notice Requirements | Blue Castle followed all required foreclosure notices | No opposition filed | Plaintiff did not fully comply with RPAPL §§ 1320, 1331 |
| Unopposed Summary Judgment Standard | Motion should be granted as unopposed | No response submitted | Court independently reviewed record; may not auto-grant |
| Adequacy of Statutory Service and Filing | Notices and filings were sufficient | No opposition | Failure to show special summons (RPAPL §1320) and lis pendens (RPAPL §1331) precluded summary judgment |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (establishes standard for summary judgment: no genuine dispute as to any material fact)
- R.B. Ventures, Ltd. v. Shane, 112 F.3d 54 (2d Cir. 1997) (elements for foreclosure: existence of debt, mortgage, and default)
- Wells Fargo Bank, N.A. v. Walker, 35 N.Y.S.3d 591 (App. Div. 2016) (prima facie foreclosure requires mortgage, note, and default)
- Capstone Bus. Credit, LLC v. Imperia Fam. Realty, LLC, 895 N.Y.S.2d 199 (App. Div. 2010) (burden shifts to defendant to raise triable issues after prima facie case for foreclosure)
- U.S. Bank Nat’l Ass’n v. Ahmad, 106 N.Y.S.3d 78 (App. Div. 2019) (plaintiff's burden to show compliance with RPAPL § 1303 as condition precedent)