THE REFEREE’S REPORT IN THIS FORECLOSURE ACTION RELIED ON BUSINESS RECORDS DESCRIBED IN AN AFFIDAVIT SUBMITTED BY PLAINTIFF; BUT THE AFFIANT DID NOT LAY A PROPER FOUNDATION FOR THE ADMISSION OF THOSE RECORDS IN EVIDENCE; JUDGMENT REVERSED (SECOND DEPT). ​

The Second Department, reversing Supreme Court, determined the referee’s report in this foreclosure action was not supported by the record. The affidavit submitted by the plaintiff did not provide a foundation for the admissibility of the business records relied upon by the referee:

“[A]s a general rule, the mere filing of papers received from other entities, even if they are retained in the regular course of business, is insufficient to qualify the documents as business records” … . “However, such records may be admitted into evidence if the recipient can establish personal knowledge of the maker’s business practices and procedures, or establish that the records provided by the maker were incorporated into the recipient’s own records and routinely relied upon by the recipient in its own business” … .  …

[The affiant] failed to aver to familiarity with the record-keeping practices and procedures of the entities that generated the records or establish that the records provided by the maker were incorporated into the plaintiff’s own records and routinely relied upon by the plaintiff in its own business … . Since the plaintiff did not lay the proper foundation for the admission of the records into evidence, those records do not constitute admissible evidence … . PS Funding, Inc. v 1641 Park Place, LLC, 2025 NY Slip Op 03349, Second Dept 6-4-25

Practice Point: In a foreclosure action, an affidavit which describes business records relied on by the referee must lay a proper foundation for the admission of those records. The absence of a proper foundation renders the referee’s report unsupported by the record.​