Key Takeaway
NY appellate court criticizes Justice Schack for ignoring precedent on standing defenses in foreclosure cases, ordering case reassignment.
This article is part of our ongoing standing coverage, with 30 published articles analyzing standing 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.
When Judges Ignore Legal Precedent: A Rare Judicial Rebuke
In the world of New York foreclosure litigation, standing — the legal right to bring a lawsuit — is a fundamental requirement that must be properly raised by defendants. The Second Department’s decision in HSBC Bank USA, N.A. v Simmons delivers an unusual and pointed critique of a trial judge who repeatedly disregarded established appellate precedent.
This case highlights the hierarchical nature of New York’s court system and the importance of following established legal principles. When trial judges consistently ignore appellate decisions, it undermines the predictability and fairness that litigants expect from the judicial system. The standing issue in foreclosure cases is particularly significant, as defendants must raise this defense early in the proceedings or risk waiving it entirely — a principle that applies broadly across civil litigation, including cases involving standing defenses that aren’t expressly pleaded.
Jason Tenenbaum’s Analysis:
HSBC Bank USA, N.A. v Simmons, 2015 NY Slip Op 01609 (2d Dept. 2015)
“Since Justice Arthur Schack continues to ignore this Court’s precedent, as articulated in Wells Fargo Bank Minn., N.A. v Mastropaolo (42 AD3d 239), holding that the defense of lack of standing is waived if not raised by the defendant in an answer or pre-answer motion to dismiss (see Deutsche Bank Natl. Trust Co. v Islar, 122 AD3d 566; HSBC Bank USA, N.A. v Taher, 104 AD3d at 817; U.S. Bank, N.A. v Emmanuel, 83 AD3d at 1048-1049; cf. Bank of N.Y. v Cepeda, 120 AD3d 451, 452; Bank of N.Y. v Mulligan, 119 AD3d 716, 716; Wells Fargo Bank, N.A. v Gioia, 114 AD3d at 767), we deem it appropriate to remit the matter to the Supreme Court, Kings County, for further proceedings on the complaint before a different Justice.”
Key Takeaway
This decision demonstrates the appellate court’s frustration with a trial judge who repeatedly ignored established precedent regarding standing defenses in foreclosure cases. The court’s decision to reassign the case to a different judge underscores the importance of judicial compliance with higher court rulings and the proper application of procedural rules governing when standing objections must be raised.
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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.
About This Topic
Standing Requirements in New York Litigation
Standing — the legal right to bring a claim — must be established at the outset of any litigation. In no-fault practice, standing issues frequently involve the validity of assignments of benefits, the corporate status of medical providers, and the capacity of parties to sue or be sued. These articles examine how New York courts analyze standing challenges and the documentary proof required to establish or contest a party's right to maintain an action.
30 published articles in Standing
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Jun 30, 2009Familiarity with predecessor business record practice
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Feb 21, 2018Assignment not necessary to make a prima facie case in an assigned first-party action; Prima Facie case
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May 29, 2013Motion seeking leave to amend the answer to seek affirmative defense of lack of standing is proper
Learn when New York courts allow motions to amend pleadings to assert standing and capacity defenses. Expert analysis of Aurora Loan Services v Thomas case. Call (516) 750-0595.
Mar 1, 2010Common Questions
Frequently Asked Questions
What does "standing" mean in a no-fault insurance case?
Standing refers to a party's legal right to bring a claim. In no-fault litigation, the medical provider must demonstrate a valid assignment of benefits from the patient to have standing to sue the insurer directly. Without a proper assignment, the provider lacks standing and the case may be dismissed.
How do assignment of benefits issues affect standing?
A medical provider typically obtains standing to pursue no-fault benefits through an assignment of benefits signed by the injured person. If the assignment is defective, incomplete, or missing, the insurer can challenge the provider's standing. Courts scrutinize assignment forms carefully, and defects can be fatal to the claim.
Can standing be raised at any point in litigation?
Yes. Standing is a threshold jurisdictional issue that can be raised at any stage. If a party lacks standing, the court must dismiss the action regardless of the merits. In no-fault cases, insurers frequently challenge provider standing through summary judgment motions.
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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.
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 standing 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.