Why Trust This Analysis
This article is part of our ongoing assignment of benefits coverage, with 33 published articles analyzing assignment of benefits issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
Assignment During Pending Litigation: A Valid Legal Strategy
In complex litigation involving mortgages, notes, and other financial instruments, parties often face questions about the timing of assignments. Can a chose in action or property interest be validly assigned after a lawsuit has already begun? This issue frequently arises in foreclosure cases and commercial disputes where standing not expressly pleaded becomes a central concern.
The New York courts have provided clear guidance on this matter, establishing that post-commencement assignments are not only permissible but can form the basis for proper plaintiff substitution. This principle is particularly important in today’s complex financial landscape, where mortgage notes and other instruments may change hands multiple times during the course of litigation.
Understanding the procedural requirements for such assignments is crucial for practitioners handling these cases, as proper documentation and court procedures must be followed to effectuate the change in real party in interest.
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Citibank, N.A. v Van Brunt Props., LLC, 2012 NY Slip Op 03974 (2d Dept. 2012)
In the world of multiple assignments, it is sometimes asked whether you can assign a chose of action or an interest in something after the commencement of a lawsuit? The answer is “yes” and an order concomitantly amending the caption is also deemed proper:
“Finally, contrary to the defendant mortgagor’s contention, the documents submitted by the plaintiff established that the subject note and mortgage were validly assigned to Wells Fargo Bank, N.A., after the commencement of this action, and that Wells Fargo Bank, N.A., is therefore now the real plaintiff in interest. Under these circumstances, the Supreme Court should have granted the plaintiff’s motion to substitute Wells Fargo Bank, N.A., as the plaintiff in this action, and to amend the caption accordingly (see CPLR 1018, 3025; Deutsche Bank Trust Co., Americas v Stathakis, 90 AD3d 983; Maspeth Federal Savings and Loan Ass’n v Simon-Erdan, 67 AD3d 750, 751; East Coast Props. v Galang, 308 AD2d 431).”
Key Takeaway
Post-lawsuit assignments of notes and mortgages are legally valid and create grounds for plaintiff substitution. Courts must grant motions to substitute the assignee as the new plaintiff when proper documentation establishes the assignment occurred after litigation commenced, provided the procedural requirements under CPLR 1018 and 3025 are met.
Legal Update (February 2026): Since this 2012 post, CPLR provisions governing assignments and substitution of parties may have been amended, and appellate courts may have refined the procedural requirements for post-commencement assignments in foreclosure and commercial litigation. Practitioners should verify current CPLR 1018 requirements and recent case law developments regarding standing and assignment timing in ongoing litigation.
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Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
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Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
If you need legal help with a assignment of benefits matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.
