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Wells Fargo Bank, N.A. v. Shatles

Supreme Court, Appellate Division, Second Department, New York.
Jan 10, 2018
157 A.D.3d 750 (N.Y. App. Div. 2018)

Opinion

2016–04348 Index No. 7572/11

01-10-2018

WELLS FARGO BANK, N.A., etc., respondent, v. Robert SHATLES, etc., et al., appellants, et al., defendants.

David A. Bythewood, Mineola, NY, for appellants. Peter C. Kaiteris, P.C., Bayport, NY, for respondent.


David A. Bythewood, Mineola, NY, for appellants.

Peter C. Kaiteris, P.C., Bayport, NY, for respondent.

LEONARD B. AUSTIN, J.P., SANDRA L. SGROI, SYLVIA O. HINDS–RADIX, ANGELA G. IANNACCI, JJ.

DECISION & ORDER

Appeal from an order of the Supreme Court, Suffolk County (Paul J. Baisley Jr., J.), dated January 19, 2016. The order, insofar as appealed from, denied that branch of the motion of the defendant Robert Shatles which was pursuant to CPLR 5015(a)(3) to vacate a judgment of foreclosure and sale of that court entered August 27, 2014, upon his failure to answer the complaint.

ORDERED that the appeal by the defendant Brooke Shatles is dismissed, as she is not aggrieved by the portion of the order appealed from (see CPLR 5511 ; Mixon v. TBV, Inc., 76 A.D.3d 144, 156, 904 N.Y.S.2d 132 ); and it is further,

ORDERED that the order is affirmed insofar as appealed from by the defendant Robert Shatles; and it is further,

ORDERED that one bill of costs is awarded to the plaintiff.

The defendant Robert Shatles executed a note in the sum of $640,000, which was secured by a mortgage on residential property located in Suffolk County. The mortgage was executed by him and the defendant Brooke Shatles. In March 2011, the plaintiff commenced this action to foreclose the mortgage. In August 2014, upon, inter alia, Robert Shatles's failure to answer the complaint, a judgment of foreclosure and sale was entered.

After a foreclosure sale was scheduled, Robert Shatles moved, among other things, pursuant to CPLR 5015(a)(3) to vacate the judgment of foreclosure and sale entered August 27, 2014, alleging that the plaintiff submitted fraudulent evidence of standing to sue to obtain the judgment. In an order dated January 19, 2016, the Supreme Court denied the motion. Robert Shatles appeals, as limited by his brief, from so much of the order as denied that branch of his motion which was pursuant to CPLR 5015(a)(3) to vacate the judgment of foreclosure and sale.

Robert Shatles claimed in support of his motion that the plaintiff obtained the judgment of foreclosure and sale through the submission of a fraudulent document, which amounts to an allegation of intrinsic fraud (see U.S. Bank N.A. v. Galloway, 150 A.D.3d 1174, 1175, 52 N.Y.S.3d 644 ; U.S. Bank, N.A. v. Peters, 127 A.D.3d 742, 742–743, 9 N.Y.S.3d 58 ). Where a defendant seeks to vacate a default pursuant to CPLR 5015(a)(3) based on intrinsic fraud, he or she must establish a reasonable excuse for the default and a potentially meritorious defense to the action (see U.S. Bank N.A. v. Galloway, 150 A.D.3d at 1175, 52 N.Y.S.3d 644 ; Deutsche Bank Natl. Trust Co. v Karlis, 138 A.D.3d 915, 916, 30 N.Y.S.3d 228 ; U.S. Bank, N.A. v. Peters, 127 A.D.3d at 742–743, 9 N.Y.S.3d 58 ; New Century Mtge. Corp. v. Corriette, 117 A.D.3d 1011, 1012, 986 N.Y.S.2d 560 ). Since no excuse was presented for the default in answering the complaint, the Supreme Court properly denied that branch of the motion which was pursuant to CPLR 5015(a)(3) to vacate the judgment of foreclosure and sale.

AUSTIN, J.P., SGROI, HINDS–RADIX and IANNACCI, JJ., concur.


Summaries of

Wells Fargo Bank, N.A. v. Shatles

Supreme Court, Appellate Division, Second Department, New York.
Jan 10, 2018
157 A.D.3d 750 (N.Y. App. Div. 2018)
Case details for

Wells Fargo Bank, N.A. v. Shatles

Case Details

Full title:WELLS FARGO BANK, N.A., etc., respondent, v. Robert SHATLES, etc., et al.…

Court:Supreme Court, Appellate Division, Second Department, New York.

Date published: Jan 10, 2018

Citations

157 A.D.3d 750 (N.Y. App. Div. 2018)
157 A.D.3d 750
2018 N.Y. Slip Op. 191

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