Key Takeaway
Wells Fargo v Meyers ruling weakens CPLR 3408 mortgage foreclosure protections, allowing banks to negotiate in bad faith without meaningful consequences.
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Wells Fargo Bank, N.A. v Meyers, 2013 NY Slip Op 03085 (2d Dept. 2013)
Can’t beat the banks.
Wells Fargo in this case, similar to so many banks an their law firms, lost applications and other paper work that was necessary in resolving the matter. A trial modification was offered but then rescinded and the Court found that the bank acted inappropriately. A hearing was held and the bank was forced to continue the trial modification until the note was repaid.
Bank appealed stating that CPLR 3408 did not allow this to happen and appealed. The Appellate Division Second Department, in a less than thoughtful opinion, has told the banks that it is okay not to compromise mortgage foreclosures in good faith, that this is acceptable behavior and that 3408 is salutary at best.
(1) “Granting deference to the Supreme Court, which presided over this case, including the settlement conferences and the “good faith hearing” (see Decker v Decker, 91 AD3d 1291, 1292), we see no reason to disturb that court’s finding that Wells Fargo failed to satisfy its obligation pursuant to CPLR 3408(f) to “negotiate in good faith to reach a mutually agreeable resolution.”
** 3408 is the settlement conference that a bank must offer a mortgagor before a case moves to the general foreclosure calendar, where a summary judgment motion is made and an order of reference is granted.
(2) “It would certainly seem that CPLR 3408(f) and 22 NYCRR 202.12-a(c)(4) both provide the courts with the authority to take some action where a party fails to satisfy its obligation to negotiate in good faith. Again, CPLR 3408(f) mandates that the parties “shall negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible” (CPLR 3408). The provisions of 22 NYCRR 202.12-a echo the requirement of CPLR 3408(f), and further state that “he court shall ensure that each party fulfills its obligation to negotiate in good faith” (22 NYCRR 202.12-a).”
(3) While we do not rule out the possibility of other permissible remedies, we conclude that the one employed here—the imposition of the terms of the so-called “original modification agreement proposed by the plaintiff and accepted by the defendants” (Wells Fargo Bank, N.A. v Meyers, 30 Misc 3d at 701), as the new, binding terms of the agreement between the defendants and Freddie Mac—was unauthorized and inappropriate.”
(4) “Rewriting the parties’ agreement based on the terms of the first trial modification, against Wells Fargo’s will, upon a finding that Wells Fargo demonstrated bad faith, cannot be deemed a “mutually agreeable resolution” to the matter.”
I would have dissented and affirmed with costs. When a statute forces a party to compromise and act in good faith and the bank willfully defies the will of the statute, the supreme court, which has equitable powers, has to be able to do something.
Related Articles
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- When reasonable excuse can overcome procedural defaults
- Recent regulatory amendments impacting no-fault practice
- New York No-Fault Insurance Law
Legal Update (February 2026): Since this 2013 post, CPLR 3408 has undergone several amendments affecting mandatory settlement conference procedures, good faith negotiation requirements, and judicial oversight mechanisms in foreclosure proceedings. Practitioners should verify current provisions as both procedural requirements and substantive obligations under the statute may have been modified through legislative updates and revised court rules.
Legal Context
Why This Matters for Your Case
New York's no-fault insurance system, established under Insurance Law Article 51, is one of the most complex insurance frameworks in the country. Every motorist must carry Personal Injury Protection coverage that pays medical expenses and lost wages regardless of fault, up to $50,000 per person.
But insurers routinely deny valid claims using peer reviews, EUO scheduling tactics, fee schedule reductions, and coverage defenses. The Law Office of Jason Tenenbaum has handled over 100,000 no-fault cases since 2002 — from initial claim submissions through arbitration before the American Arbitration Association, trials in Civil Court and Supreme Court, and appeals to the Appellate Term and Appellate Division. Jason Tenenbaum is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
His 2,353+ published legal articles on no-fault practice are cited by attorneys throughout New York. Whether you are dealing with a medical necessity denial, an EUO no-show defense, a fee schedule dispute, or a coverage question, this article provides the kind of detailed case-law analysis that helps practitioners and claimants understand exactly where the law stands.
About This Topic
New York No-Fault Insurance Law
New York's no-fault insurance system requires every driver to carry Personal Injury Protection (PIP) coverage that pays medical expenses and lost wages regardless of who caused the accident. But insurers routinely deny, delay, and underpay valid claims — using peer reviews, IME no-shows, and fee schedule defenses to avoid paying providers and injured claimants. Attorney Jason Tenenbaum has litigated thousands of no-fault arbitrations and court cases since 2002.
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Frequently Asked Questions
What is New York's no-fault insurance system?
New York's no-fault insurance system, codified in Insurance Law Article 51, requires all drivers to carry Personal Injury Protection (PIP) coverage. This pays for medical expenses, lost wages (up to $2,000/month), and other basic economic loss regardless of who caused the accident, up to $50,000 per person. However, to sue for pain and suffering, you must meet the 'serious injury' threshold under Insurance Law §5102(d).
How do I fight a no-fault insurance claim denial?
When a no-fault claim is denied, you can challenge it through mandatory arbitration under the American Arbitration Association's no-fault rules, or by filing a lawsuit in court. Common defenses to denials include challenging the timeliness of the denial, the adequacy of the peer review report, or the insurer's compliance with regulatory requirements. An experienced no-fault attorney can evaluate which strategy gives you the best chance of overturning the denial.
What is the deadline to file a no-fault claim in New York?
Under 11 NYCRR §65-1.1, you must submit a no-fault application (NF-2 form) within 30 days of the accident. Medical providers must submit claims within 45 days of treatment. Missing these deadlines can result in claim denial, though there are limited exceptions for late notice if the claimant can demonstrate a reasonable justification.
What no-fault benefits am I entitled to after a car accident in New York?
Under Insurance Law §5102(b), no-fault PIP covers necessary medical expenses, 80% of lost earnings up to $2,000/month, up to $25/day for other reasonable expenses, and a $2,000 death benefit. These benefits are available regardless of fault, up to the $50,000 policy limit. Claims are paid by your own insurer — not the at-fault driver's.
Can I choose my own doctor for no-fault treatment in New York?
Yes. Under New York's no-fault regulations, you have the right to choose your own physician, chiropractor, physical therapist, or other licensed healthcare provider. The insurer cannot dictate which providers you see. However, the insurer can request an IME with their chosen doctor and may challenge the medical necessity of your treatment through peer review.
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About the Author
Jason Tenenbaum, Esq.
Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.
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.
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