Key Takeaway
McCormack v Maloney case analyzing standing requirements in foreclosure actions, including holder status and note assignment issues in New York courts.
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.
McCormack v Maloney, 2018 NY Slip Op 02385 (3d Dept. 2018)
This is a commercial paper case, but I blog about standing because it is an issue we deal with at various times. Here are relevemt snippets from an upstate case involving holder of notes that are not indorsed in blank.
“Defendant argues, and we agree, that the complaint should have been dismissed for lack of standing. Because defendant raised the issue of standing as an affirmative defense in his answer, plaintiff had to prove his standing to maintain this foreclosure action in order to be entitled to relief….”
“At trial, plaintiff testified that he purchased the note and mortgage from Trustees Capital in September 2006, and a written assignment effectuating the transfer of both such instruments to plaintiff was admitted into evidence. The testimonial and documentary evidence adduced at trial further established, however, that plaintiff subsequently assigned both the note and mortgage to his then-bankruptcy attorney in March 2008 as partial payment for legal services, and there is not a scintilla of proof in the record that the note was reassigned to plaintiff prior to the commencement of this foreclosure action in June 2010. Nor did the trial evidence establish that plaintiff was the holder of the original note at the time that he commenced this action. “Holder status is established where the plaintiff possesses a note that, on its face or by allonge, contains an indorsement in blank or bears a special indorsement payable to the order of the plaintiff” (Wells Fargo Bank, NA v Ostiguy, 127 AD3d 1375, 1376 ; see UCC 1-201 ; 3-202, 3-204; Hartford Acc. & Indem. Co. v American Express Co., 74 NY2d 153, 159 ; U.S. Bank N.A. v Brody, 156 AD3d 839, 840 ). While there was testimony that plaintiff possessed the original note at the time of trial in 2015, there was no proof that he was in possession of the original note when he commenced this foreclosure action five years earlier. Even if he was, the note — which was payable to Trustees Capital — was neither indorsed in blank nor specially indorsed to him. Consequently, plaintiff’s physical possession of the note could not render him the lawful holder thereof for purposes of enforcing it .”
Now, another interesting question here is whether the 6 month period to recommence the action would run upon dismissal since the dismissal is not on the merits?
Related Articles
- Motion seeking leave to amend the answer to seek affirmative defense of lack of standing is proper
- Understanding Legal Standing in New York: A Comprehensive Guide for Long Island and NYC Residents
- Standing – the Defense Applied Outside the No-Fault Arena
- Assignments and business records – a deadly combination
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
Keep Reading
More Standing Analysis
Standing (favorite statutes)
New York's RPAPL 1302-a prevents homeowners from waiving standing defenses in foreclosure cases, even if not raised initially—a game-changing protection for defendants.
Mar 22, 2021Standing (Stacey Kapeleris)
Court ruling on standing in no-fault insurance claims, assignment of benefits, and injured person's right to retake possession of medical bills.
May 9, 2020Standing – the Defense Applied Outside the No-Fault Arena
Learn how legal standing requirements differ between no-fault insurance and traditional litigation in New York. Expert analysis from experienced NYC and Long Island attorneys.
Oct 25, 2009EIP’s payment of assigned billings confers standing back to EIP
Court rules that assigned medical billing payments can restore standing for no-fault insurance claims when coverage is denied due to causation disputes.
Oct 31, 2018So you sued the TPA and not the insurance carrier – now what?
Analysis of B&R Consol. v Zurich case on suing TPAs vs insurance carriers, agency relationships, and vicarious liability under NY Insurance Law § 3420(b).
Sep 24, 2014Standing in a direct first party case is waivable
Court rules standing defense waivable in no-fault insurance cases when not properly raised in answer or pre-answer motion, emphasizing proper pleading procedures.
Dec 27, 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.