U.S. Bank Trust National Association, Etc. v. 132 Franklin LLC
A-2674-23
N.J. Super. Ct. App. Div.May 27, 2025Background
- 132 Franklin, LLC executed a $345,000 mortgage and promissory note in 2021, personally guaranteed by Martin Stern, with an initial interest rate of 4.775% and a default rate of 23%.
- Defendants defaulted in September 2021, after which U.S. Bank Trust National Association (as trustee) became the note-holder in April 2022 and accelerated the debt.
- A foreclosure complaint was filed; defendants failed to appear or respond, and default/final judgment for $519,940.09 and possession was entered in August 2023.
- Defendants first responded with a motion to amend the final judgment in April 2024, days before a scheduled sheriff’s sale.
- The trial court denied the motion, ruling it untimely and lacking in merit since defendants had not raised any objection when required.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Standard for reconsideration motion | Motion was untimely under Rule 4:49-2 | Should be analyzed under Rule 4:42-2 (interlocutory, interests of justice) | Rule 4:49-2 applied; motion untimely |
| Validity/enforceability of 23% default rate | Rate is reasonable under NJ law | 23% default interest rate is unconscionable penalty | No basis for reconsideration; defendants didn’t timely object |
| Ability to revise final orders | Final order should remain except on timely motion | Court may modify in interest of justice even after judgment | Order was final; motion to amend was untimely |
| Scope of appellate review | Review limited to order appealed | Should consider merits of underlying default rate and foreclosure | Review confined to order denying reconsideration |
Key Cases Cited
- Kornbleuth v. Westover, 241 N.J. 289 (scope of appellate review is limited to orders appealed)
- Lawson v. Dewar, 468 N.J. Super. 128 (distinction between standards for final vs. interlocutory order reconsideration)
- Silviera-Francisco v. Bd. of Educ. of City of Elizabeth, 224 N.J. 126 (defines final vs. interlocutory orders)
- Moon v. Warren Haven Nursing Home, 182 N.J. 507 (final vs. interlocutory orders)
- Est. of Hanges v. Metro. Prop. & Cas. Ins. Co., 202 N.J. 369 (criteria for final judgments)
- Murray v. Comcast Corp., 457 N.J. Super. 464 (time limits for filing reconsideration motions and court's lack of jurisdiction after deadline)