Onewest Bank, N.A. v. Conklin
310 F.R.D. 40
N.D.N.Y.2015Background
- OneWest Bank (assignee of original lender IndyMac) sued to foreclose a mortgage on 640 Limekiln Road, Malone, NY, based on a 2008 note for $88,609; defendants Jamie and Christy Conklin defaulted by missing payments beginning November 1, 2012.
- Plaintiff filed statutory R.P.A.P.L. notices (§ 1303 "Help for Homeowners," § 1304 "You Could Lose Your Home") and the § 1306 filing with the NY Department of Financial Services; notice of pendency was filed in Franklin County with a copy of the complaint.
- Defendants were served in October 2014; they did not appear or answer, and the Clerk entered default on January 27, 2015; Plaintiff then moved for default judgment.
- The court found Plaintiff complied with federal default procedures (Fed. R. Civ. P. 55 and local rules) and with Article 13 R.P.A.P.L. requirements governing foreclosure notices and filings.
- No material factual disputes remained; the Conklins’ default was willful. The court granted default judgment, fixed amounts due, and ordered a foreclosure sale with a court-appointed referee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether procedural requirements for default judgment were met | Proper service; Clerk’s default entered; submitted required materials under Fed. R. Civ. P. 55 and local rules | No answer or appearance (no opposing argument presented) | Procedural prerequisites satisfied; default judgment may be entered |
| Whether R.P.A.P.L. Article 13 requirements were satisfied | Plaintiff served §1303/§1304 notices, filed §1306 info, and filed notice of pendency as required | No opposition contested compliance | Court found statutory requirements (§1303, §1304, §1306, §1331/§6511) complied with; notice of pendency effective |
| Whether plaintiff stated a valid foreclosure cause of action | Existence of debt, mortgage, default, acceleration; amount due shown | No defense asserted | Complaint alleged common-law foreclosure elements; no material factual issues remain; defaulting defendants barred |
| Damages, costs, and fees: amount recoverable and attorneys’ fees | Recovery per note/mortgage including principal, interest, costs, and reasonable attorneys’ fees; requested $3,500 fees | No opposition | Court awarded judgment of $107,458.98 total, interest at $14.46/day on unpaid principal until judgment entry, costs $1,630, attorneys’ fees $3,500; ordered foreclosure sale and distribution plan |
Key Cases Cited
- La Barbera v. Fed. Metal & Glass Corp., 666 F. Supp. 2d 341 (E.D.N.Y. 2009) (discusses Rule 55 default procedure and factors for default judgment)
- City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114 (2d Cir. 2011) (discusses district court discretion in granting default judgment)
- Rodriguez v. Almighty Cleaning, Inc., 784 F. Supp. 2d 114 (E.D.N.Y. 2011) (addresses factors relevant to default judgments)
- Pecarsky v. Galaxiworld.com Ltd., 249 F.3d 167 (2d Cir. 2001) (identifies factors for vacating defaults: willfulness, meritorious defense, prejudice)
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir. 1993) (default judgments disfavored; resolve doubt for defaulting party)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (standard for determining reasonable attorney’s fees)
- R.B. Ventures, Ltd. v. Shane, 112 F.3d 54 (2d Cir. 1997) (outlines common-law elements of foreclosure actions)
- U.S. Bank, N.A. v. Squadron VCD, LLC, [citation="504 F. App'x 30"] (2d Cir. 2012) (application of foreclosure elements in federal court)