650 Brooklyn, LLC, v. Hunte et al., Index No. 504623/2013
Supreme Court of the State of New York: Kings County
I.A.S. Justice Carolyn E. Demarest
Decision & Order dated: 02/05/2015
A Kings County Supreme Court Justice granted dismissal in favor of building owners in an action to foreclose a mortgage on a Brooklyn, New York “mixed used” property due to the lender’s admitted failure to give notice of the action to the residential tenants of the building.
Plaintiff 650 Brooklyn, LLC brought an action to foreclose a mortgage against building owners Eva and Steve Hunte of Brooklyn, New York. The “mixed use” building contained a church as well as two residential apartments.
The building owners, via their attorney Robert E. Brown, moved for dismissal of the foreclosure action because the lender didn’t give notice to the residential tenants of the mixed use building. The Court agreed.
Mr. Brown successfully argued that a law enacted in the wake of the foreclosure crisis to protect tenants, mandated that tenants in mixed use buildings be given notice of the foreclosure action. In opposition, counsel for the lender acknowledged that it did not give the tenants of the building notice claiming that it was not required to do so.
The Supreme Court rejected the lender’s counsel’s argument, holding that proper notice to the tenants was a condition that must be met before the lender could maintain a foreclosure action and dismissed the foreclosure action.