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CALCULATONS RELIED UPON BY THE REFEREE WERE BASED ON UNIDENTIFIED AND UNPRODUCED BUSINESS RECORDS RENDERING THE CALCULATIONS HEARSAY; THE REPORT SHOULD NOT HAVE BEEN CONFIRMED (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the referee’s report relied on calculations based on unidentified and unproduced business records, rendering the calculations hearsay. Therefore, the reports should not have been confirmed:

… [T]he referee’s findings with respect to the amount due to the plaintiff were based upon unidentified and unproduced business records … . Since the computations of the loan servicer’s employee as to the amounts due to the plaintiff were based on unidentified and unproduced business records, the employee’s assertions in those regards constituted inadmissible hearsay and lacked probative value … . TLOA Mtge., LLC v 109-08 N. Blvd, LLC, 2025 NY Slip Op 04804, Second Dept 8-27-25

Practice Point: Any calculations relied upon in a referee’s report, even if done by a third party, must be supported by attached business records. Without the records, the calculations are hearsay.

 

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