Onewest, F.S.B. v Goddard
2015 NY Slip Op 06794 [131 AD3d 1028]
September 16, 2015
Appellate Division, Second Department
As corrected through Wednesday, November 4, 2015


[*1]
 Onewest, F.S.B., Respondent,
v
ReginaGoddard, Appellant, et al., Defendants.

Hanna & Vlahakis, Brooklyn, N.Y. (Derrick Hanna of counsel), forappellant.

Houser & Allison, APC, New York, N.Y. (Jacquelyn A. DiCicco of counsel),for respondent.

In an action to foreclose a mortgage, the defendant Regina Goddard appeals, aslimited by her brief, from so much of an order of the Supreme Court, Queens County(Siegal, J.), dated December 10, 2013, as denied that branch of her motion which was forleave to amend her answer to include the defense of lack of standing.

Ordered that the order is affirmed insofar as appealed from, with costs.

An argument that a plaintiff lacks standing, if not asserted in the defendant's answeror in a pre-answer motion to dismiss the complaint, is waived pursuant to CPLR 3211 (e)(see U.S. Bank, N.A. vSharif, 89 AD3d 723, 723 [2011]; JP Morgan Chase Bank, N.A. v Strands Hair Studio, LLC, 84AD3d 1173, 1173 [2011]). "[D]efenses waived under CPLR 3211 (e) cannevertheless be interposed in an answer amended by leave of court pursuant to CPLR3025 (b) so long as the amendment does not cause the other party prejudice or surpriseresulting from the delay" (Complete Mgt., Inc. v Rubenstein, 74 AD3d 722, 723[2010] [internal quotation marks omitted]).

Motions for leave to amend pleadings should be freely granted, absent prejudice orsurprise directly resulting from the delay in seeking leave, unless the proposedamendment is palpably insufficient or patently devoid of merit (see CPLR 3025[b]; Aurora Loan Servs., LLC vThomas, 70 AD3d 986 [2010]; Lucido v Mancuso, 49 AD3d 220, 222 [2008]). Merelateness is not a basis for denying amendment unless the lateness is coupled with" 'significant prejudice to the other side' " (Public Adm'r of Kings County vHossain Constr. Corp., 27 AD3d 714, 716 [2006], quoting Edenwald Contr.Co. v City of New York, 60 NY2d 957, 959 [1983]; see Abrahamian v Tak Chan,33 AD3d 947, 949 [2006]).

In a mortgage foreclosure action, a plaintiff has standing where it is the holder orassignee of the underlying note at the time the action is commenced (see Aurora Loan Servs., LLC vTaylor, 25 NY3d 355, 361 [2015]; U.S. Bank, N.A. v Collymore, 68 AD3d 752, 753-754[2009]; Mortgage Elec.Registration Sys., Inc. v Coakley, 41 AD3d 674 [2007]). Either a writtenassignment of the underlying note or the physical delivery of the note prior to thecommencement of the foreclosure action is sufficient to transfer the obligation (seeAurora Loan Servs., LLC v Taylor, 25 NY3d at 361; U.S. Bank, N.A. vCollymore, 68 AD3d at 753-754).

Here, in opposition to that branch of the appellant's motion which was for leave to[*2]amend the complaint to add the defense of lack ofstanding, the plaintiff submitted sufficient evidence of physical delivery to it of the noteon March 19, 2009, which was prior to the commencement of the foreclosure action (see Aurora Loan Servs., LLC vTaylor, 25 NY3d 355 [2015]; cf. HSBC Bank USA v Hernandez, 92 AD3d 843, 844[2012]). Accordingly, the proposed amendment was palpably insufficient and patentlydevoid of merit, and the Supreme Court properly denied that branch of the appellant'smotion. Dillon, J.P., Leventhal, Chambers and Maltese, JJ., concur.


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