New York appeals court lets LaSalle Bank revive abandoned Brooklyn foreclosure
The appellate court found she waived her personal jurisdiction defense by participating in the litigation without raising it. Under New York law, a defendant who opposes motions and seeks affirmative relief without challenging jurisdiction is treated as having consented to the court’s authority.
On FAPA, the court held the 2022 law had no effect on the decision to vacate the dismissal and restore the case, citing recent precedent.
The borrower also argued that the bank’s service of process in 2020 – after the complaint had been dismissed – amounted to extrinsic fraud. The court disagreed, finding she had not shown the 2020 service led her to believe she need not defend.
The court granted LaSalle Bank a default judgment and an order of reference, clearing the path for the foreclosure to proceed.
For servicers managing aged New York portfolios, the takeaway is practical: even a years-long delay and a dismissal for abandonment may not be fatal, provided the revival steps are properly taken.
