Insight

Adam Leitman Bailey, P.C. Wins a Foreclosure Notice Issue of First Impression in the First Department

Adam Leitman Bailey, P.C. Wins a Foreclosure Notice Issue of First Impression in the First Department

Adam Leitman Bailey

Adam Leitman Bailey

January 13, 2023 07:31 PM

In a mechanic’s lien foreclosure auction, Adam Leitman Bailey, P.C. was retained post-auction on behalf of the third-party purchaser. The prior owner moved to vacate the sale. After an initial round of motion practice, the Court issued an interim order referring the case to a special referee for a hearing on 2 separate grounds: (1) whether the prior owner received proper notice of the auction, and (2) whether the sale price was unconscionably low, either which could warrant vacating the sale.

Adam Leitman Bailey, P.C. conducted a four-day hearing including multiple witnesses from each side. The Special Referee issued a 36- page report and recommendation adopting much of Adam Leitman Bailey, P.C.’s arguments and findings. The Special Referee determined that, after taking all of the testimony and weighing witness credibility, the value of the property was more in line with Adam Leitman Bailey, P.C.’s client’s appraisal than with the prior owner’s appraisal.

With regard to the notice issue, it was undisputed that the Plaintiff failed to serve the prior owner with the notice of sale as directed by the prior order of another judge. However, Adam Leitman Bailey, P.C. argued that the prior owner had sufficient notice including notice to its counsel and that the prior owner had actually appeared at the Courthouse with counsel on the date of the auction. The Special Referee agreed with Adam Leitman Bailey, P.C. and determined the evidence supported that the prior owner had constructive notice of the auction sale.

After issuance of the Report and Recommendation, the prior owner moved to disaffirm or modify the Referee’s Report while Adam Leitman Bailey, P.C. moved to confirm it.

The parties engaged in an initial oral argument before the Judge, who directed the parties to submit supplemental letters regarding issues of the valuation of the property and adjourned for further argument.

At the subsequent appearance, after two hours of vigorous oral argument, the Court ruled in favor of Adam Leitman Bailey, P.C.’s client.

The Judge slightly modified the referee’s finding of the value of the property, but after calculating the percentage of the value, held that the purchase price did not shock the conscience of the Court and was not a basis to set aside the sale.

The Judge said the notice issue was a close call and that it was likely a case of first impression for the appellate division. The Judge held that while Plaintiff ’s lawyer may have failed to serve the prior owner as directed by the previous order, there was sufficient notice. The prior owner principal and attorneys appeared at the courthouse on the date and at the approximate time and location of the foreclosure auction. Despite the prior owner’s confusion as to where the auction was to be held within the courthouse and therefore not bidding, it was not legally prejudiced. By finding in favor of Adam Leitman Bailey, P.C.’s client on both issues, the Judge upheld the sale of the property to the third-party purchaser.

Colin E. Kaufman, Esq., and Danny Ramrattan, Esq. of Adam Leitman Bailey, P.C. conducted the hearing and briefed the issues; Kaufman conducted both sets of arguments.

Click Here for the Relevant Published Decision

Trending Articles

Presenting The Best Lawyers in Australia™ 2025


by Best Lawyers

Best Lawyers is proud to present The Best Lawyers in Australia for 2025, marking the 17th consecutive year of Best Lawyers awards in Australia.

Australia flag over outline of country

The 2024 Best Lawyers in Spain™


by Best Lawyers

Best Lawyers is honored to announce the 16th edition of The Best Lawyers in Spain™ and the third edition of Best Lawyers: Ones to Watch in Spain™ for 2024.

Tall buildings and rushing traffic against clouds and sun in sky

Best Lawyers Expands 2024 Brazilian Awards


by Best Lawyers

Best Lawyers is honored to announce the 14th edition of The Best Lawyers in Brazil™ and the first edition of Best Lawyers: Ones to Watch in Brazil™.

Image of Brazil city and water from sky

Announcing The Best Lawyers in South Africa™ 2024


by Best Lawyers

Best Lawyers is excited to announce the landmark 15th edition of The Best Lawyers in South Africa™ for 2024, including the exclusive "Law Firm of the Year" awards.

Sky view of South Africa town and waterways

The Best Lawyers in Mexico Celebrates a Milestone Year


by Best Lawyers

Best Lawyers is excited to announce the 15th edition of The Best Lawyers in Mexico™ and the second edition of Best Lawyers: Ones to Watch in Mexico™ for 2024.

Sky view of Mexico city scape

How Palworld Is Testing the Limits of Nintendo’s Legal Power


by Gregory Sirico

Many are calling the new game Palworld “Pokémon GO with guns,” noting the games striking similarities. Experts speculate how Nintendo could take legal action.

Animated figures with guns stand on top of creatures

How To Find A Pro Bono Lawyer


by Best Lawyers

Best Lawyers dives into the vital role pro bono lawyers play in ensuring access to justice for all and the transformative impact they have on communities.

Hands joined around a table with phone, paper, pen and glasses

The Best Lawyers in Portugal™ 2024


by Best Lawyers

The 2024 awards for Portugal include the 14th edition of The Best Lawyers in Portugal™ and 2nd edition of Best Lawyers: Ones to Watch in Portugal™.

City and beach with green water and blue sky

Announcing The Best Lawyers in New Zealand™ 2025 Awards


by Best Lawyers

Best Lawyers is announcing the 16th edition of The Best Lawyers in New Zealand for 2025, including individual Best Lawyers and "Lawyer of the Year" awards.

New Zealand flag over image of country outline

Presenting the 2024 Best Lawyers Family Law Legal Guide


by Best Lawyers

The 2024 Best Lawyers Family Law Legal Guide is now live and includes recognitions for all Best Lawyers family law awards. Read below and explore the legal guide.

Man entering home and hugging two children in doorway

Announcing The Best Lawyers in Japan™ 2025


by Best Lawyers

For a milestone 15th edition, Best Lawyers is proud to announce The Best Lawyers in Japan.

Japan flag over outline of country

The Best Lawyers in Singapore™ 2025 Edition


by Best Lawyers

For 2025, Best Lawyers presents the most esteemed awards for lawyers and law firms in Singapore.

Singapore flag over outline of country

Canada Makes First Foray Into AI Regulation


by Sara Collin

As Artificial Intelligence continues to rise in use and popularity, many countries are working to ensure proper regulation. Canada has just made its first foray into AI regulation.

People standing in front of large, green pixelated image of buildings

Commingling Assets


by Tamires M. Oliveira

Commingling alone does not automatically turn an otherwise immune asset into an asset subject to marital distribution as explained by one family law lawyer.

Toy house and figure of married couple standing on stacks of coins

How Much Is a Lawyer Consultation Fee?


by Best Lawyers

Best Lawyers breaks down the key differences between consultation and retainer fees when hiring an attorney, a crucial first step in the legal process.

Client consulting with lawyer wearing a suit

The Hague Convention and International Custody Battles


by Alexandra Goldstein

One family law lawyer explains how Joe Jonas and Sophie Turner’s celebrity divorce brings The Hague Convention treaty and international child custody battles into the spotlight.

Man and woman celebrities wearing black and standing for photo