October 22, 2025

On October 16, 2025, the New York Court of Appeals heard oral arguments in Article 13 LLC v. LaSalle National Bank, a closely watched case which addresses the application and reach of the Foreclosure Abuse Prevention Act (“FAPA”) via two certified questions. The discussion focused heavily on how FAPA should be interpreted in the context of prior acceleration attempts, legal nullities, questions of legislative intent, and balancing of the equities between a borrower and mortgage holder.

Three Important Discussion Points:

• Definition of “Action” Under FAPA’s Section 7:

The Court devoted significant time to whether the term “action” in FAPA’s Section 7 should be read broadly (to include any legal action taken toward foreclosure at any in the past) or narrowly (to mean only to a pending judicial proceeding).

• Scope and Legislative Intent of FAPA:

A debate ensued about how FAPA should apply if a prior action or acceleration was considered void or a legal nullity. This included discussion of why the Legislature used the common law term “estopped” in FAPA’s Section 7 (rather than, for example, “barred”). This could suggest possible differences in effect and purpose in varying circumstances.

• Hypothetical Implications and Equity Concerns:

The Court also discussed hypothetical implications that may result if a party, with a true interest in the property, is prevented from enforcing its mortgage because a non-interested party previously tried to accelerate it.

Additional questions arose regarding notice requirements and how the statute could be misused to create procedural traps or fraudulent advantages.

Friedman Vartolo LLP (“FV”) will continue to monitor this litigation as it develops.

Watch the full oral argument HERE.
Click HERE for a related FV Insight on this topic.