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ELECTRONIC FILING OF A MOTION TO CONFIRM A REFEREE’S REPORT AND FOR LEAVE TO ENTER A DEFICIENCY JUDGMENT IS NOT IN ACCORDANCE WITH THE SERVICE METHOD CODIFIED IN RPAPL 1371(2); HERE THE IMPROPER SERVICE WAS A BAR TO ENTRY OF THE DEFICIENCY JUDGMENT (SECOND DEPT). ​

The Second Department, reversing Supreme Court in this foreclosure action, determined the electronic filing of the motion to confirm the referee’s report and for leave to file a deficiency judgment was not proper service pursuant to RPAPL 1371(2). The improper service constituted a complete bar to the entry of a deficiency judgment:

The plaintiff … moved to confirm a referee’s report of sale and for leave to enter a deficiency judgment against Newman in the sum of $1,222,732.14. … Supreme Court granted the plaintiff’s motion. A judgment was entered … in favor of the plaintiff … . …

RPAPL 1371(2) specifies the manner in which notice of such motions shall be served, and upon whom the notice shall be served, as follows: “Simultaneously with the making of a motion for an order confirming the sale, . . . the party to whom such residue shall be owing may make a motion in the action for leave to enter a deficiency judgment upon notice to the party against whom such judgment is sought or the attorney who shall have appeared for such party in such action. Such notice shall be served personally or in such other manner as the court may direct.”

Here, the plaintiff’s electronic filing of the motion papers on the New York State Courts Electronic Filing System did not constitute proper service in accordance with RPAPL 1371(2) … Consequently, “‘this constitutes a complete bar to the entry of a deficiency judgment'” … . 11-36 31st Ave. Lender, LLC v RM Newman, LLC, 2026 NY Slip Op 05151, Second Dept 9-2-26

Practice Point: Electronic filing of a motion to confirm a referee’s report and for leave to enter a default judgment is improper service. The correct method of service is codified in RPAPL 1371(2).

 

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