You are here: / / Sanction for Failure to Negotiate in Good Faith Under Subprime Mortgage...
,

Sanction for Failure to Negotiate in Good Faith Under Subprime Mortgage Laws Violated Contract Clause

Under CPLR 3408 (one of the Subprime Residential Loan and Foreclosure Laws enacted in response to the “subprime mortgage crisis”) settlement conferences between the bank and the homeowner are made mandatory.  The statute requires that the parties negotiate “in good faith to reach a mutually agreeable resolution, including a loan modification, if possible”… .  In this case, Supreme Court determined the bank had not negotiated in good faith.  As a sanction, Supreme Court compelled “specific performance of the original modification agreement” proposed by the bank at the outset of the settlement conference.  In a full-fledged opinion by Justice Dickerson, the Second Department, after describing the sanctions imposed in other cases, determined that the sanction in this case amounted to the Court’s rewriting the mortgage in violation of the Contract Clause and the bank’s due process rights.  Justice Dickerson wrote:

 …[T]the Supreme Court’s interpretation of CPLR 3408(f) as authorizing it to, in effect, rewrite the mortgage and loan agreement would violate the Contract Clause of the United States Constitution …. * * *In addition, the Supreme Court’s determination violated [the bank’s] due process rights. [The bank] was not on notice that the Supreme Court was considering a remedy such as the imposition of the terms of the modification proposal on a permanent basis… . Wells Fargo Bank, NA v Meyers, 2013 NY Slip Op 03085, 2nd Dept, 5-1-13

 

You might also like
WHERE THE INDICTMENT ALLEGES MORE THAN ONE WAY TO COMMIT THE CHARGED OFFENSE, THE PEOPLE NEED ONLY PROVE ONE (SECOND DEPT).
Criteria for Vacation of an Arbitration Award Explained (Not Met Here)
DEFENDANT MADE A SUDDEN LEFT TURN IN FRONT ACROSS PLAINTIFF’S RIGHT OF WAY, PLAINTIFF’S SUMMARY JUDGMENT MOTION SHOULD HAVE BEEN GRANTED.
THE DREXEL UNIVERSITY COOPERATIVE EDUCATION PROGRAM (CO-OP) ARRANGES FOR STUDENTS TO WORK FOR PARTICIPATING EMPLOYERS FOR COLLEGE CREDIT; DREXEL DID NOT EXERCISE SUFFICIENT SUPERVISION OVER THE STUDENTS TO BE HELD VICARIOUSLY LIABLE FOR ANY WORKPLACE NEGLIGENCE ON THE STUDENTS’ PART (SECOND DEPT).
THE EVIDENCE PROVIDED BY THE THERAPIST THAT THE CHILDREN SUFFERED FROM PTSD, EXPERIENCED TRAUMA, AND EXPRESSED THEIR DESIRE TO STOP SEEING THEIR FATHER, COUPLED WITH THE CHILDREN’S STATEMENTS THAT THEY WITNESSED ABUSE, WARRANTED TERMINATION OF PARENTAL ACCESS WITH FATHER, FAMILY COURT REVERSED (SECOND DEPT).
TENANT ABUTTING SIDEWALK DID NOT DEMONSTRATE THAT IT DID NOT CLEAR ICE AND SNOW FROM THE SIDEWALK AND THAT IT DID NOT EXACERBATE THE DANGEROUS CONDITION, MOTION FOR SUMMARY JUDGMENT IN THIS SLIP AND FALL CASE PROPERLY DENIED (SECOND DEPT).
Out of State Visitation for All School Breaks and Three-Day Weekends (In Addition To Summers) Should Not Have Been Granted
ROBBERY CONVICTIONS WERE NOT SUPPORTED BY LEGALLY SUFFICIENT EVIDENCE OF PHYSICAL INJURY; SEVERAL CONVICTIONS, ALTHOUGH SUPPORTED BY LEGALLY SUFFICIENT EVIDENCE, WERE AGAINST THE WEIGHT OF THE EVIDENCE BECAUSE OF THE WEAKNESS OF THE IDENTIFICATION EVIDENCE (SECOND DEPT).

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Joint Custody Inappropriate Where Parents Can Not Cooperate​ Evidence of Physical Injury (re Assault) Insufficient