HSBC Bank USA, N.A. v. Taher, 104 A.D.3d 815 (N.Y. App. Div. 2d Dep't 2013). · Go Syfert
HSBC Bank USA, N.A. v. Taher, 104 A.D.3d 815 (N.Y. App. Div. 2d Dep't 2013). Cases Citing This Book View Copy Cite
Quick Summary

Lack of standing does not constitute a jurisdictional defect and does not warrant the sua sponte dismissal of a complaint by a court.

In a mortgage foreclosure action where defendants failed to answer the complaint, the trial court sua sponte dismissed the complaint with prejudice based on the plaintiff's alleged lack of standing and imposed sanctions. The appellate court reviews whether the trial court abused its discretion in dismissing the action without a motion from the defendants. The court applies the rule that a court's power to dismiss a complaint sua sponte is to be used sparingly and only when extraordinary circumstances exist. Because lack of standing is an affirmative defense that is waived if not raised in an answer or pre-answer motion, and does not constitute a jurisdictional defect, the court holds that the trial court erred in dismissing the complaint and imposing sanctions. The court reverses the orders and remits the matter for further proceedings before a different justice.

110 citation events (110 in the last 25 years) across 3 distinct courts.
Treatment trajectory · 2013 → 2026 · click a year to view as-of
2013 2019 2026
Cited for
At page 817 Sua sponte dismissal requires extraordinary circumstances24 citing cases“furthermore, a party's lack of standing does not constitute a jurisdictional defect and does not warrant sua sponte dismissal of a complaint by the court”3 citing courts quote it · 21 listed here
  • Matter of Associated Gen. Contrs. of NYS, LLC v. New York State Thruway Auth., 2018 NY Slip Op 2075 (N.Y. App. Div. 4th Dep't 2018).published
    Contrary to the court's determination, "a party's lack of standing does not constitute a jurisdictional defect and does not warrant sua sponte dismissal of a complaint" ( HSBC Bank USA, N.A. v Taher , 104 AD3d 815, 817 [2d Dept 2013]; see…
  • Bank of New York Mellon v. Shterenberg, 153 A.D.3d 1310 (N.Y. App. Div. 2d Dep't 2017).published
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (Onewest Bank, FSB v Fernandez, 112 AD3d 681, 682 [2013] [internal quotation marks omitted];…
  • Citimortgage, Inc. v. Noel, 145 A.D.3d 957 (N.Y. App. Div. 2d Dep't 2016).published 2 cites
    It was improper for the Supreme Court to deny the plaintiff’s motion on the basis of lack of standing, since the defendants waived that defense by failing to answer the complaint or move pre-answer to dismiss the complaint on that ground (…
  • Chase Home Fin., LLC v. Kornitzer, 139 A.D.3d 784 (N.Y. App. Div. 2d Dep't 2016).published
    Trust Co. v Meah, 120 AD3d 465, 466 [2014]; HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 817 [2013]; Aurora Loan Servs., LLC v Sobanke, 101 AD3d 1065 , 1066 [2012]).
  • Consum. Solutions, LLC v. Charles, 137 A.D.3d 952 (N.Y. App. Div. 2d Dep't 2016).published
    Trust Co. v Islar, 122 AD3d 566 [2014]; HSBC Bank USA, N.A. v Taker, 104 AD3d at 817; U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048 ), we deem it appropriate to remit the matter to the Supreme Court, Kings County, for a new determination of…
  • Deutsche Bank Nat'l Trust Co. v. Martin, 134 A.D.3d 665 (N.Y. App. Div. 2d Dep't 2015).published
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d 1047, 1048 [2011]; see Bank of N.Y. v Castillo, 120 AD3…
  • Nationstar Mortg., LLC v. Wong, 132 A.D.3d 825 (N.Y. App. Div. 2d Dep't 2015).published
    Moreover, a party’s lack of *826 standing does not constitute a jurisdictional defect and does not warrant a sua sponte dismissal of the complaint by the court (see HSBC Bank USA, N.A. v Simmons, 125 AD3d at 932 ; Wells Fargo Bank, N.A. v…
  • FCDB FF1 2008-1 Trust v. Videjus, 131 A.D.3d 1004 (N.Y. App. Div. 2d Dep't 2015).published 4 cites
    Mellon Trust Co. v McCall, 116 AD3d 993 [2014]; HSBC Bank USA, N.A. v Taker, 104 AD3d at 817; Capital One, N.A. v Knollwood Props.
  • Mortg. Elec. Reg. Sys., Inc. v. Caroline Holmes, 131 A.D.3d 680 (N.Y. App. Div. 2d Dep't 2015).published 3 cites
    A court’s power to dismiss a complaint, sua sponte, *683 is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal (see HSBC Bank USA, N.A. v Taker, 104 AD3d at 817; see Aurora Loan Servs., LLC v Sobanke,…
  • Onewest Bank, FSB v. Prince, 130 A.D.3d 700 (N.Y. App. Div. 2d Dep't 2015).published
    Moreover, a party’s lack of standing does not constitute a jurisdictional defect and does not warrant a sua sponte dismissal of the complaint by the court (see HSBC Bank USA, N.A. v Simmons, 125 AD3d at 932 ; Wells Fargo Bank, N.A. v Gioia…
Show 11 more citing cases
  • JPMorgan Chase Bank v. Butler, 129 A.D.3d 777 (N.Y. App. Div. 2d Dep't 2015).published 2 cites
    Trust Co. v Islar, 122 AD3d 566, 568 [2014]; HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 817 [2013]).
  • Citimortgage, Inc. v. Chow Ming Tung, 126 A.D.3d 841 (N.Y. App. Div. 2d Dep't 2015).published 2 cites
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d 1047, 1048 [2011]; see Bank of N.Y. v Castillo, 120 AD3…
  • HSBC Bank USA v. Simmons, 125 A.D.3d 930 (N.Y. App. Div. 2d Dep't 2015).published
    A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances ex *932 ist to warrant dismissal (see HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 817 [2013]; Aurora Loan Servs., LLC v So…
  • HSBC Bank USA, N.A. v. Alexander, 124 A.D.3d 838 (N.Y. App. Div. 2d Dep't 2015).published
    Trust Co. v Meah, 120 AD3d 465, 466 [2014]; HSBC Bank USA, N.A. v Taker, 104 AD3d 815, 817 [2013]; Aurora Loan Servs., LLC v Sobanke, 101 AD3d 1065 , 1066 [2012]).
  • Emigrant Mtge. Co. v. Gosdin, 119 A.D.3d 639 (N.Y. App. Div. 2d Dep't 2014).published
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (Onewest Bank, FSB v Fernandez, 112 AD3d 681, 682 [2013] [internal quotation marks omitted];…
  • Onewest Bank, FSB v. Fernandez, 112 A.D.3d 681 (N.Y. App. Div. 2d Dep't 2013).published 4 cites
    Moreover, the defendants, having failed to answer the complaint or make pre-answer motions to dismiss the complaint, waived the defense of lack of standing (see HSBC Bank USA, N.A. v Taher, 104 AD3d at 817; Bank of N.Y. v Alderazi, 99 AD3d…
  • Matter of Cayuga Nation v. Town of Seneca Falls, 213 A.D.3d 1250 (N.Y. App. Div. 4th Dep't 2023).published
    Nonetheless, "a party's lack of standing does not constitute a jurisdictional defect" ( Consumer Solutions, LLC v Charles , 137 AD3d 952, 953 [2d Dept 2016]; see HSBC Bank, USA, N.A. v Taher , 104 AD3d 815, 817 [2d Dept 2013]; U.S. Bank, N…
  • Bank of New York v. Castillo, 120 A.D.3d 598 (N.Y. App. Div. 2d Dep't 2014).published
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048 ; see HSBC Bank USA, N.A. v Taher, 104 AD3d 815…
  • Bank of New York v. Mulligan, 119 A.D.3d 716 (N.Y. App. Div. 2d Dep't 2014).published 2 cites
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d *717 1047, 1048 [2011]; see HSBC Bank USA, N.A. v Taher…
  • U.S. Bank v. Razon, 115 A.D.3d 739 (N.Y. App. Div. 2d Dep't 2014).published 2 cites
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (Onewest Bank, FSB v Fernandez, 112 AD3d 681, 682 [2013] [internal quotation marks omitted];…
  • Wells Fargo Bank, N.A. v. Gioia, 114 A.D.3d 766 (N.Y. App. Div. 2d Dep't 2014).published 2 cites
    “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d 1047, 1048 [2011]; see HSBC Bank USA, N.A. v Taher, 104…
At page 816 Denial of motion for order of reference and dismissal11 citing cases“The court concluded that sua sponte dismissal of the complaint was warranted because the plaintiff lacked standing to commence this action.”the opinion's own words at *816
  • Wells Fargo Bank, N.A. v. Mayen, 155 A.D.3d 811 (N.Y. App. Div. 2d Dep't 2017).published
    Similarly, the plaintiff established its entitlement to an order of reference (see RPAPL 1321; Wells Fargo Bank, NA v Ambrosov, 120 AD3d 1225, 1226 [2014]; HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 816 [2013]; Bank of N.Y. v Alderazi, 99…
  • Citimortgage, Inc. v. Noel, 145 A.D.3d 957 (N.Y. App. Div. 2d Dep't 2016).published 2 cites
    It was improper for the Supreme Court to deny the plaintiff’s motion on the basis of lack of standing, since the defendants waived that defense by failing to answer the complaint or move pre-answer to dismiss the complaint on that ground (…
  • Citimortgage, Inc. v. Espinal, 136 A.D.3d 857 (N.Y. App. Div. 2d Dep't 2016).published
    Here, the plaintiff established its entitlement to an order of reference, as it submitted documentary proof that the defendants failed to answer the complaint within the time allowed, that it was the holder of the note and mortgage, that t…
  • U.S. Bank Nat'l Ass'n v. Norgriff, 131 A.D.3d 527 (N.Y. App. Div. 2d Dep't 2015).published
    In support of its motion, the plaintiff submitted documentary proof showing that Norgriff failed to appear or answer the complaint within the time allowed, that it was the holder of the mortgage and note, that Norgriff defaulted thereon, a…
  • Bank of New York v. Stein, 130 A.D.3d 552 (N.Y. App. Div. 2d Dep't 2015).published
    The plaintiff was also entitled to a new order of reference since, in support of its motion, it submitted the mortgage, the underlying unpaid note, the complaint setting forth the facts establishing the claim, *553 and an affidavit attesti…
  • Deutsche Bank Nat'l Trust Co. v. Otano, 129 A.D.3d 770 (N.Y. App. Div. 2d Dep't 2015).published
    Similarly, the plaintiff established its entitlement to an order of reference (see RPAPL 1321; Wells Fargo Bank, NA v Ambrosov, 120 AD3d 1225, 1226 [2014]; HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 816 [2013]; Bank of N.Y. v Alderazi, 99…
  • US Bank Nat'l Ass'n v. Flowers, 128 A.D.3d 951 (N.Y. App. Div. 2d Dep't 2015).published
    In support of its unopposed motion, the plaintiff submitted documentary proof showing, inter alia, that the defendants failed to answer the complaint within the time allowed, that it was the holder of the mortgage and note, that the mortga…
  • HSBC Bank USA, N.A. v. Forde, 124 A.D.3d 840 (N.Y. App. Div. 2d Dep't 2015).published
    The plaintiff was entitled to a new order of reference inasmuch as, in support of its motion, it submitted documentary proof including the mortgage, the unpaid note containing an indorsement from Fremont to the plaintiff, the complaint set…
  • Wells Fargo Bank, NA v. Ambrosov, 120 A.D.3d 1225 (N.Y. App. Div. 2d Dep't 2014).published
    The plaintiff was entitled to a proposed order of reference inasmuch as, in support of its motion, it submitted the mortgage, the underlying unpaid note, the complaint setting forth the facts establishing the claim, and an affidavit of its…
  • Bank of New York v. Cepeda, 120 A.D.3d 451 (N.Y. App. Div. 2d Dep't 2014).published
    In support of its unopposed motion, the plaintiff submitted documentary proof showing that the defendants failed to answer the complaint within the time allowed, that it was the holder of the mortgage and note, that the mortgagor defaulted…
Show 1 more citing case
  • PHH Mortg. Corp. v. Hepburn, 128 A.D.3d 659 (N.Y. App. Div. 2d Dep't 2015).published
    Co., Inc. v Fisher, 90 AD3d 823, 824 [2011]; see HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 816 [2013]).
At page 818 Cautioning against improper independent internet investigations3 citing caseswe take this opportunity to remind the Justice of his obligation to remain abreast of and be guided by binding precedent. We also caution the Justice that his…opening of page *818 (no citing court says what it cites this page for)
  • Keybank, N.A. v. Meagher, 2026 NY Slip Op 03035 (N.Y. App. Div. 3d Dep't 2026).published 2 cites
    We reject any assertion that the court improperly conducted an independent investigation into the matter as the merger information was submitted by plaintiff and squarely addressed by Meagher in opposing plaintiff's motion ( compare OneWes…
  • First United Mortg. Banking Corp. v. Lawani, 147 A.D.3d 912 (N.Y. App. Div. 2d Dep't 2017).published
    We caution that a dismissal based almost entirely upon an independent Internet investigation, especially one conducted without providing notice or an opportunity to be heard by any party, is improper and should not be repeated (see HSBC Ba…
  • Evans v. Argent Mtge. Co., 120 A.D.3d 618 (N.Y. App. Div. 2d Dep't 2014).published
    George Health & Racquetball Assoc., LLC, 119 AD3d 45 , 54 [2014]; HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 818 [2013]; Frankel v Stavsky, 40 AD3d at 918-919 ).
Other citing cases1 with no pin cite or quoted language on record
Retrieving the full opinion text from the archive…
HSBC Bank USA, N.A., as Indenture Trustee for the Registered Noteholders of Renaissance Home Equity Loan Trust 2007-2
v.
Eileen N. Taher, Shapiro, DiCaro & Barak, LLP, Nonparty
Appellate Division of the Supreme Court of the State of New York.
Mar 20, 2013.
Published opinion
104 A.D.3d 815
Cited by 51 opinions  |  Published

In an action to foreclose a consolidated mortgage, the plaintiff appeals, as limited by its brief, from (1) so much of an order of the Supreme Court, Kings County (Schack, J.), dated July 1, 2011, as denied that branch of its motion which was pursuant to RPAPL 1321 for an order of reference and, by permission, from so much of the same order as, sua sponte, directed dismissal of the complaint with prejudice, cancellation of a certain notice of pendency filed against the subject property, and a hearing on the issue of sanctions against it, and (2) so much of an order of the same court dated December 22, 2011, as, after a hearing, directed it to pay a sanction in the sum of $10,000 to the Lawyers’ Fund for Client Protection, and the nonparty Shapiro, DiCaro & Barak, LLE] separately appeals, as limited by its brief, from so much of the order dated December 22, 2011, as directed it to pay a sanction in the sum of $5,000 to the Lawyers’ Fund for Client Protection.

Ordered that the order dated July 1, 2011, is reversed insofar as appealed from, on the law, without costs or disbursements, and that branch of the plaintiffs motion which was pursuant to RPAPL 1321 for an order of reference is granted; and it is further,

Ordered that the order dated December 22, 2011, is reversed, on the law, without costs or disbursements; and it is further,

Ordered that the matter is remitted to the Supreme Court,[*816] Kings County, for further proceedings consistent herewith before a different Justice.

The defendant Eileen N. Taher defaulted on her consolidated mortgage loan. The plaintiff, the alleged holder of the consolidated mortgage and the consolidated note, commenced this action to foreclose the consolidated mortgage. None of the defendants appeared in the action or answered the complaint. In June 2009, the plaintiff moved, inter alia, pursuant to RPAPL 1321 for an order of reference.

In an order dated July 1, 2011, the Supreme Court denied that branch of the plaintiff’s motion which was pursuant to RPAPL 1321 for an order of reference and, sua sponte, directed dismissal of the complaint with prejudice, cancellation of a certain notice of pendency filed against the subject property, and a hearing on the issue of sanctions against the plaintiff and the law firm representing the plaintiff, the nonparty Shapiro, DiCaro & Barak, LLP (hereinafter the law firm) (see HSBC Bank USA N.A. v Taher, 32 Misc 3d 1208[A], 2011 NY Slip Op 51208[U] [Sup Ct, Kings County 2011]). The court concluded that sua sponte dismissal of the complaint was warranted because the plaintiff lacked standing to commence this action. The court determined that a hearing on the issue of sanctions was appropriate because, among other things, its independent research had revealed that the plaintiff and the law firm had relied upon a “robosigner” employed by the plaintiff’s loan servicer.

In an order dated December 22, 2011, following a hearing, the Supreme Court directed the plaintiff to pay a sanction in the sum of $10,000 to the Lawyers’ Fund for Client Protection and directed the law firm to pay a sanction in the sum of $5,000 to the Lawyers’ Fund for Client Protection (see HSBC Bank USA, N.A. v Taher, 34 Misc 3d 1201[A], 2011 NY Slip Op 52317[U] [Sup Ct, Kings County 2011]). The plaintiff and the law firm separately appeal.

The Supreme Court erred in denying that branch of the plaintiffs motion which was pursuant to RPAPL 1321 for an order of reference. In support of the motion, the plaintiff submitted documentary proof showing, inter alia, that the defendants failed to answer the complaint within the time allowed, that it was the holder of the consolidated mortgage and consolidated note, evidence of the mortgagor’s default, and that, as a preliminary step in obtaining a judgment of foreclosure, the appointment of a referee to compute the amount due on the consolidated mortgage would be proper (see RPAPL 1321; Bank of N.Y. v Alderazi, 99 AD3d 837, 837-838 [2012]; Aurora Loan Servs., [*817] LLC v Shahmela Shah Sookoo, 92 AD3d 705, 707 [2012]; Emigrant Mtge. Co., Inc. v Fisher, 90 AD3d 823, 824 [2011]).

The Supreme Court abused its discretion in, sua sponte, directing dismissal of the complaint with prejudice and cancellation of the notice of pendency (see Bank of N.Y. v Alderazi, 99 AD3d at 838; Bank of Am., N.A. v Bah, 95 AD3d 1150, 1151 [2012]; Aurora Loan Servs., LLC v Shahmela Shah Sookoo, 92 AD3d 705 [2012]; US Bank, N.A. v Guichardo, 90 AD3d 1032 [2011]; US Bank, N.A. v Emmanuel, 83 AD3d 1047 [2011]; HSBC Bank USA, N.A. v Valentin, 72 AD3d 1027 [2010]). “A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal” (U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048; see Aurora Loan Servs., LLC v Sobanke, 101 AD3d 1065, 1066 [2012]; Rienzi v Rienzi, 23 AD3d 450 [2005]). Here, the Supreme Court was not presented with any extraordinary circumstances warranting sua sponte dismissal of the complaint. Moreover, as the defendants failed to answer the complaint and did not make pre-answer motions to dismiss the complaint, they waived the defense of lack of standing (see Bank of N.Y. v Alderazi, 99 AD3d at 838; CitiMortgage, Inc. v Rosenthal, 88 AD3d 759, 761 [2011]; U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048-1049). Furthermore, a party’s lack of standing does not constitute a jurisdictional defect and does not warrant sua sponte dismissal of a complaint by the court (see Bank of N.Y. v Alderazi, 99 AD3d at 838; U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048-1049).

In addition, the Supreme Court abused its discretion in directing a hearing on the issue of sanctions and, thereafter, directing the plaintiff and the law firm to pay sanctions (see 22 NYCRR 130-1.1, 130-1.3).

We note that in U.S. Bank, N.A. v Emmanuel (83 AD3d 1047 [2011]), this Court reversed an order issued by the same Justice assigned to this case which similarly directed dismissal of a complaint in a mortgage foreclosure action, sua sponte, for lack of standing. In Emmanuel, we held, as we reiterate here, that a mortgagee’s alleged lack of standing is not an “extraordinary circumstance” that warrants sua sponte dismissal of a foreclosure complaint. Indeed, lack of standing is an affirmative defense which is waived if not raised by the defendant in either an answer or a pre-answer motion to dismiss (see Wells Fargo Bank Minn., N.A. v Mastropaolo, 42 AD3d 239, 242 [2007]). Since Emmanuel was decided approximately two months before the Supreme Court improperly directed dismissal of the complaint in the instant action, sua sponte, for lack of standing,[*818] we take this opportunity to remind the Justice of his obligation to remain abreast of and be guided by binding precedent. We also caution the Justice that his independent internet investigation of the plaintiffs standing that included newspaper articles and other materials that fall short of what may be judicially noticed, and which was conducted without providing notice or an opportunity to be heard by any party (see HSBC Bank USA, N.A. v Taher, 32 Misc 3d 1208[A], 2011 NY Slip Op 51208[U], *4 [2011]), was improper and should not be repeated.

Under these circumstances, we deem it appropriate to remit the matter to the Supreme Court, Kings County, for further proceedings before a different Justice. Dillon, J.E, Angiolillo, Leventhal and Miller, JJ., concur. [Prior Case History: 32 Misc 3d 1208(A), 2011 NY Slip Op 51208(U).]