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Lack of Standing Not a Jurisdictional Defect, Sua Sponte Dismissal of Complaint Not Warranted

The Second Department, in reversing Supreme Court’s sua sponte dismissal of a foreclosure action on “lack of standing” grounds, noted that the “lack of standing” defense was waived by the defendants (not raised in answer), sua sponte dismissal was an abuse of discretion, and “lack of standing” is not a jurisdictional defect. The court explained:

“The Supreme Court abused its discretion in, sua sponte, directing the dismissal of the complaint for lack of standing. ‘A court’s power to dismiss a complaint, sua sponte, is to be used sparingly and only when extraordinary circumstances exist to warrant dismissal’ … . Here, the Supreme Court was not presented with extraordinary circumstances warranting the sua sponte dismissal of the complaint. Since the defendants … did not answer the complaint, and did not make a pre-answer motion to dismiss the complaint, they waived the defense of lack of standing … . Furthermore, a party’s lack of standing does not constitute a jurisdictional defect and does not warrant sua sponte dismissal of a complaint …”. FCDB FF1 2008-1 Trust v Videjus, 2015 NY Slip Op 06777, 2nd Dept 9-16-15

 

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