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You are here: Home1 / Civil Procedure2 / ​ A VOLUNTARY DISCONTINUANCE OF A FORECLOSURE ACTION NO LONGER STOPS T...
Civil Procedure, Foreclosure

​ A VOLUNTARY DISCONTINUANCE OF A FORECLOSURE ACTION NO LONGER STOPS THE STATUTE OF LIMITATIONS (SECOND DEPT). ​

The Second Department, reversing Supreme Court, noted that a voluntary discontinuance of a foreclosure action no longer stops the running of the statute of limitations:

… [T]he six-year statute of limitations began to run on the entire debt in July 2011, when the plaintiff’s predecessor in interest commenced the 2011 action and elected to call due the entire amount secured by the mortgage … . The instant action was commenced in October 2017, more than six years later (see CPLR 213[4] …). Under the recently enacted Foreclosure Abuse Prevention Act (L 2022, ch 821, § 8 [eff Dec. 30, 2022]), the voluntary discontinuance of the 2011 action did not “in form or effect, waive, postpone, cancel, toll, extend, revive or reset the limitations period to commence an action and to interpose a claim, unless expressly prescribed by statute” (CPLR 3217[e]; see CPLR 203[h] … ). Under these new legal principles, the plaintiff cannot rely upon the voluntary discontinuance of the 2011 action to establish entitlement to judgment as a matter of law on the issue of whether enforcement of the mortgage loan is barred by the statute of limitations. CIT Bank, N.A. v Byers, 2023 NY Slip Op 04978, Second Dept 10-4-23

Practice Point: Pursuant to the Foreclosure Abuse Prevention Act (2022) the bank can no longer stop the running of the statute of limitations by voluntarily discontinuing the foreclosure action.

 

October 4, 2023
Tags: Second Department
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https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png 0 0 Bruce Freeman https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png Bruce Freeman2023-10-04 15:19:082023-10-05 16:49:03​ A VOLUNTARY DISCONTINUANCE OF A FORECLOSURE ACTION NO LONGER STOPS THE STATUTE OF LIMITATIONS (SECOND DEPT). ​
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