Thursday, September 1, 2016

Setting aside a foreclosure sale.

Practice point:   In the exercise of its equitable powers, a court may aside the sale where there is evidence of fraud, collusion, mistake, or misconduct that casts suspicion on the fairness of the sale.  Evidence of a unilateral mistake at the sale, without more, is not a basis to invalidate the sale if it was otherwise lawfully conducted.

Student note:  RPAPL 231(6), recites, in pertinent part, that a court, within one year after a foreclosure sale, "may set the sale aside for failure to comply with the provisions of this section as to the notice, time or manner of such sale if a substantial right of a party was prejudiced by the defect."

Case:  Clinton Hill Holding 1, LLC v. Kathy & Tania, Inc., NY Slip Op 05844 (2d Dep't August 24, 2016)

Here is the decision.

Tomorrow's issue:  An alleged breach of a construction contract.