U.S. Bank Trust, N.A. v. Valade
1:17-cv-00173
N.D.N.Y.Nov 20, 2023Background
- Plaintiff U.S. Bank Trust, N.A., as Trustee for LSF8 Master Participation Trust, is the holder of a 2006 mortgage on 805 Old Schaghticoke Rd, Schaghticoke, NY (original principal $185,998.16).
- Defendants Brian and Nicole Valade owned the Property; payments were in default beginning May 19, 2013; unpaid principal was $174,928.83 as of October 26, 2019.
- RPAPL §1304 ninety‑day pre‑foreclosure notices were mailed August 8, 2016; USPS tracking and electronic filing with the Superintendent were submitted as proof of delivery and filing.
- Complaint filed February 17, 2017; Brian answered; Nicole defaulted and the Clerk entered default; the case was previously stayed (COVID, bankruptcy) and administratively reopened before the renewed motion.
- The Court granted summary judgment to Plaintiff against Brian and default judgment against Nicole, awarding a foreclosure judgment of $325,514.17 (interest at 7.026%), ordered a single‑parcel public sale, and appointed a referee to conduct the sale.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Plaintiff established a prima facie case for foreclosure (note, mortgage, default, standing) | Produced note, mortgage, Modlin affidavit and servicer power of attorney showing default and standing | Argued complaint fails to state a cause of action | Court: Plaintiff established prima facie case; Brian's challenge meritless |
| Whether RPAPL §1304 90‑day notice requirement was satisfied | Notices mailed Aug 8, 2016 by certified and first‑class mail; USPS tracking shows delivery; filed with Superintendent | Alleged Plaintiff failed to properly serve 90‑day notices | Court: Strict compliance shown by affidavits and USPS records; defense rejected |
| Whether alleged bankruptcy payments were made/credited to mortgage account | Loan records and Modlin affidavit show amounts due and payments/costs applied by servicer; no credits supporting defendant’s claim | Brian claimed he made bankruptcy trustee payments that were not credited to mortgage | Court: Documents do not support defendant’s payment/credit claim; defense unsupported |
| Appropriateness of default judgment against Nicole and summary judgment against Brian, and damages amount | Sought summary/default relief and $325,514.17 (including costs) with foreclosure sale procedures | Nicole defaulted; Brian raised defenses but failed to create triable issues | Court: Granted summary judgment as to Brian, default judgment as to Nicole, entered judgment amount and directed foreclosure sale procedures |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (movant’s burden on summary judgment)
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir.) (two‑step default judgment procedure and discretion)
- Greyhound Exhibitgroup, Inc. v. E.L.U.L. Realty Corp., 973 F.2d 155 (2d Cir.) (plaintiff’s burden on damages after default)
- Aurora Loan Servs., LLC v. Weisblum, 85 A.D.3d 95 (2d Dep’t) (RPAPL §1304 notice is a condition precedent)
- HSBC Bank USA, N.A. v. Ozcan, 154 A.D.3d 822 (2d Dep’t) (business records and affidavit adequate to prove mailing under RPAPL §1304)