VALLEY NATIONAL BANK v. New York City Department of Transportation, Defendant. (2025)

Appeal from order, Supreme Court, New York County (Francis A. Kahn, III, J.), entered on or about May 10, 2023, which denied defendants' motion to vacate the judgment of foreclosure and sale, same court and Justice, entered on November 9, 2023, upon defendants' default, unanimously dismissed, without costs, as moot.

On November 9, 2023, Supreme Court entered a judgment of foreclosure and sale on the property at issue.  On February 14, 2024, the property was sold at auction to the highest bidder, and on March 1, 2024, a referee deeded the property to the bona fide purchaser.  Thus, by the time defendants moved to vacate the judgment on March 21, 2024, the property had been sold.

Defendants never moved to stay the enforcement of the judgment, including the sale, under CPLR 5519.  The Referee therefore had the right to sell the property, and the property was sold to a bona fide third-party purchaser (see Solo Group LLC, Series 9 v. Dunia, 230 A.D.3d 1083, 1084, 217 N.Y.S.3d 90 [1st Dept. 2024];  see also Da Silva v. Musso, 76 N.Y.2d 436, 440–441, 560 N.Y.S.2d 109, 559 N.E.2d 1268 [1990]).  Any determination by this Court as to the merits of Supreme Court's order will not undo the sale and transfer of ownership, thus rendering the appeal moot (see Solo Group LLC, 230 A.D.3d at 1084, 217 N.Y.S.3d 90).