Queens County Court Holds That FAPA Cannot Be Applied Retroactively After a Court Entered a Final Judgment Determining That the Statute of Limitations to Foreclose Did Not Expire

          On January 13, 2025, Friedman Vartolo obtained a decision of significant import in Queens County Supreme Court relating to the Foreclosure Abuse Prevention Act (“FAPA”) §10.  In CitiBank, N.A. as Trustee for CMLTI Asset Trust v. Luis Inga, East Elmhurst Assets LLC, Judge Ulysses B. Leverett agreed with Plaintiff’s argument that FAPA §10 cannot be applied retroactively where there has been a final determination on the statute of limitations issue by another court and that re-litigation of the issue is barred by res judicata. Justice Leverett further agreed that retrospective application of FAPA amendment CPLR §203(h) (which precludes a noteholder from unilaterally revoking a prior acceleration) would violate the foreclosing Plaintiff’s constitutional due process rights in the case at bar. The Court found that such rights became “vested” when a separate Queens County Judge (Hon. Denis J. Butler) expressly and finally determined that the six-year limitations period did not lapse when it dismissed the property owner’s RPAPL §1501(4) “quiet title” action that sought to cancel and discharge the mortgage as time-barred on November 9, 2021. The 2021 determination was “final” regarding the property owner’s claim or defense that the statute of limitations for enforcing the mortgage had expired, which had res judicata effect, and thus could not be re-litigated in the foreclosure action based on subsequent legislation, such as FAPA.

          Based on Justice Leverett’s conclusion that the statute of limitations did not expire, the Judge granted the plaintiff’s motion for summary judgment on its foreclosure cause of action and denied the defendant’s motion for summary judgment on the statute of limitations defense.

          The Inga decision serves as persuasive authority in the New York trial courts and can be relied upon to limit the retroactive application of FAPA where a judgment or final order has been issued on the viability of a statute of limitations defense.  The decision can further be relied upon to argue that FAPA should not be applied after the time to appeal from a judgment of foreclosure and sale expires.