Preview
FILED: RICHMOND COUNTY CLERK 07/02/2021 11:41 AM INDEX NO. 100938/2008
NYSCEF DOC. NO. 35 RECEIVED NYSCEF: 07/02/2021
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF RICHMOND
---------- --------------------------------------X
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE FOR SECURITIZED
ASSET BACKED RECEIVABLES LLC TRUST
2007-BR1, MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-BR1,
Plaintiff, Index No. 100938/2008
-against-
TONY CLANTON; DEBRA DENNIS; MORTGAGE
ELECTRONIC REGISTRATION SYSTEMS, INC.
AS NOMINEE AND MORTGAGEE OF
* -l
RECORD;
NEW CENTURY MORTGAGE CORPORATION;
BOARD OF MANAGERS OF THE SUNRISE a
"DOE"
TOWER CONDOMINIUM; ROLFF (LAST
NAME REFUSED), Q
155 a
Defendants. a
88
---------------------------------------------------------------X
DEFENDANT TONY CLANTON'S REPLY MEMORANDUM OF LAW IN FURTHER
SUPPORT OF DEFENDANT'S MOTION TO REARGUE
STATEN ISLAND LEGAL SERVICES
By: Sarah Baldwin, Esq.
36 Richmond Terrace, Suite 205
Staten Island, New York 10301
(718) 233-6469 (phone)
(718) 448-2264 (fax)
Attorneys for Defendant Tony Clanton
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TABLEOFCONTENTS
TABLE OF CONTENTS......====,,,,,,,-----, === ...i
TABLE OF AUTHORITIES ii
PRELIMINARY STATEMENT 1
ARGUMENT 2
"MISTAKE"
I. PLAINTIFFS EXCUSE OF IS INAPPLICABLE TO ITS DELIBERATE
ACT OF VOLUNTARILY DISCONTINUING ITS OWN CASE, PRE-ANSWER................ 2
II. GRANTING PLAINTIFF'S MOTION TO RESTORE AND VACATE ITS OWN
PRE-ANSWER STIPULATION TO DISCONTINUE UNDULY PREJUDICED
DEFENDANT. ...........................................................................................................................
5
CONCLUSION 8
i
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TABLE OF AUTHORITIES
Cases
104-106 East 81st St. LLC v. O'Brien, 12 Misc.3d 1 175(A), 824 N.Y.S.2d 764 (Table) (Civ. Ct.
New York Cty. 4
2006)..................................................................................................................
Brown v. Truck Rental, Inc., 172 A.D.2d 477, 567 N.Y.S.2d 831 (2d Dep't 1991).......................
3
Chery v.Anthony, 156 A.D.2d 414, 548 N.Y.S.2d 535 (2d Dep't 1989).......................................
3
Cucuzza v. Vaccaro, 109 A.D.2d 101, 490 N.Y.S.2d 518 (2d Dep't 1985)...................................
6
DaCosta v. City of New York, 296 F.Supp.3d 569 (E.D.N.Y. 2017)......................................
5, 6, 7
Deutsche Bank Natl. Tr. Co. v. Lee, 60 Misc.3d 171, 70 N.Y.S.3d 791 (Sup. Ct. Westchester Cty.
Jan. 29, 2018)..............................................................................................................................
5
Franklin v. Herbert Lehman College, 508 F. Supp. 945 (S.D.N.Y. 1981).....................................
6
'
Grutman v. Southgate at Bar Harbor Home Owners Assoc., 207 A.D.2d 526, 616 N.Y.S.2d 68
(2d Dep't 1994)...........................................................................................................................
2
Kaplan v. Goldbautn, 258 A.D.2d 620, 685 N.Y.S.2d 769 (2d Dep't 1999).................................
4
Kyles v. City of New York, 262 A.D. 1033, 30 N.Y.S.2d 314 (2d Dep't 1941)..............................
2
Lowe v. Steinman, 284 A.D.2d 506, 728 N.Y.S.2d 56 (2d Dep't 2001).........................................
4
McCarthy v. Chef Italia,105 A.D.2d 992, 482 N.Y.S.2d 143 (2d Dep't 1984).............................
3
Pegalis v. Gibson, 237 A.D.2d 420, 655 N.Y.S.2d 548 (2d Dep't 1997).......................................
1
People 'sUnited Bank v.Latini Tuxedo Mgmt., LLC, 95 A.D.3d 1285, 944 N.Y.S.2d 909 (Mem)
(2d Dep't 2012)...........................................................................................................................
2
Perez v. Mangroo, 2015 WL 7300897 (N.Y.Sup.), 2015 N.Y. Slip Op. 321 152(U) (Trial Order)
(Meshan, J.)(Sup. Ct. Bronx Cty. Oct. 7, 2015).........................................................................
4
Proc. v. Home Ins. Co., 17 N.Y.2d 239, 217 N.E.2d 136 (1966)...................................................
6
Steward v.New York City Housing Auth., 205 A.D.2d 606, 613 N.Y.S.2d 408 (2d Dep't 1994).. 3
ii
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Other Authorities
16 N.Y. Jur.2d. Cancellation and Reformation of Instruments (2018)...........................................
4
Report on New York's Foreclosure Process, New York State Department of Financial Services
(pub. May 2015), available at
https://www.dfs.ny.gov/reportpub/banking/fore_proc_report_052015.pdf................................ 7
iii
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PRELIMINARY STATEMENT
In itsopposition to Defendant's motion to reargue, Plaintiffcontends for the firsttime
"stipulation" discontinuancel
that its of was based upon erroneous information: a forfeiture
decree that was subsequently vacated. Plaintifftenders the vacated forfeiture decree in support
of the notion advanced in the prior counsel's affirmation that thisaction was mistakenly
discontinued. Plaintiff claimed that "due to law office failure, they mistakenly executed and
discontinuance." "stipulation"
filed the stipulation of However, Plaintiff submitted its of
discontinuance two years after the vacatur of the forfeiture decree was made publicly available.
"stipulation"
Moreover, ittook Plaintiff more than six years to submit its of discontinuance after
signaling itsintent to discontinue the action in correspondence to thisCourt. Then, Plaintiff
"stipulation"
waited over two years to move to vacate its based upon itsconclusory contention
"mistake."
that thisdeliberate act was a Plaintiff'srepeated neglect in the prosecution of this
action deprived the Defendant of his right to finality and repose. Such a lack of due diligence
should not be excused by virtue of Plaintiff's thinly supported motion to vacate itsown
"stipulation"
of discontinuance and to restore the status quo ante such that Mr. Clanton cannot
even rely on the statute of limitations.
While Plaintiff
styledit as a stipulation,
thedocument was only signed by thePlaintiff
and the courtbefore
Defendant filedan answer. Nonetheless, Plaintiff
pretendsthisisan actualstipulation,arguingitisunenforceable
because it was signed. Initsopposition to this
motion, Plaintiff
statesit opposedDefendant's cross-
unilaterally
motion "by arguing thatthe stipulation
ofdiscontinuance was unenforceable and should be vacatedbecause it was
Plaintiff."
not executedby any of the defendantsand was mistakenly executed by Plaintiff's
Opposition, ¶5.
However, Plaintiff
reliedon one inappositecase where thestipulationthe plaintiff
moved to vacatewas enteredafter
plaintifp'
defendants had answered the complaint and made several motions to compel deposition.Pegalis v.
Gibson, 237 A.D.2d 420, 421,655 N.Y.S.2d 548 (2d Dep't 1997). The Appellate Division reversed the trial
court's
denialof plaintiff's
motion to vacateon the groundsthatthe stipulation
pertainedonly to the discovery
proceedings
and should nothave resultedin the discontinuance
of case.
the entire Here, Plaintiff
misleads when it that
claims
"stipulation"
thatitsunilateral is unenforceablebecause it wasnot signed by defendant,and when it relies
for this
assertionon a case aboutan actualstipulation
negotiated between and executed by the parties
thatactivelylitigate
theaction.
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Re-argument should therefore be granted and, upon reargument, the Court should deny
Plaintiff's motion.
ARGUMENT
"MISTAKE"
I. PLAINTIFFS EXCUSE OF IS INAPPLICABLE TO ITS
DELIBERATE ACT OF VOLUNTARILY DISCONTINUING ITS OWN CASE,
PRE-ANSWER.
Plaintiffargues that the court properly granted itsmotion to restore based on an
affirmation stating that,due to law office failure,the action was mistakenly discontinued. This is
incorrect, because plaintiff's presentation of the facts ismisleading. Plaintiff presents itssigning
"stipulation"
and filing a to discontinue as a mistake in order to shoehorn itsdeliberate act into
the more narrowly construed excuse of law office failure. However, the facts in the record show
"mistake" failure"
that Plaintiff's and "law office argument lacks merit.
Plaintiff's deliberate, albeit inexplicable, actions are very different than the law office
failures that courts typically accept as reason to excuse a default. The excuse of law office
failure is rooted in the concept of an act of omission, generally, and itmust be accompanied by a
default."
"detailed and credible explanation of the People's United Bank v.Latini Tuxedo Mgmt..
LLC, 95 A.D.3d 1285, 1286, 944 N.Y.S.2d 909, 909 (Mem) (2d Dep't 2012) (quoting Kohn v.
Kohn, 86 A.D.3d 630, 630, 928 N.Y.S.2d 55, 56 (2d Dep't 2011)). The Appellate Division has
found law office failureproperly alleged where an attorney failed to appear or respond, if
sufficient reason was shown for his absence, see Kyles v. City of New York, 262 A.D. 1033, 30
N.Y.S.2d 314 (2d Dep't 1941); where a defendant's response was delayed because itwas served
Owners'
on the plaintiff's prior counsel, see Grutman v. Southgate at Bar Harbor Home Assoc.,
207 A.D.2d 526, 616 N.Y.S.2d 68 (2d Dep't 1994); and even, in certain circumstances, when
delay iscaused by the law office's large volume of cases, see Steward v.New York City Housing
2
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Auth., 205 A.D.2d 606, 613 N.Y.S.2d 408 (2d Dep't 1994); or a misfiling by the attorney's staff,
see Brown v. Truck Rental, Inc., 172 A.D.2d 477, 567 N.Y.S.2d 831 (2d Dep't 1991).
Unsurprisingly, Plaintiffoffers no legalauthority to support itscontention that unilaterally
asking the court to discontinue the action, and years later determining that itshould not have
done so, gives rise to an instance of law office failure that would entitle itto relieffrom itsown
"stipulation"
voluntary action. Plaintiff,instead, mischaracterizes itsown to discontinue as an
unintentional error to insulate itselffrom the foreseeable consequences resulting from its
deliberate act.
"mistake,"
By mischaracterizing itsdeliberate act as a Plaintiff glosses over the larger
procedural story: that counsel did not just make an isolated error - itneglected the case for years
via repeated failures. This is significant because the Second Department has excluded such
repeated neglect from the kind of law office failure that could provide an excuse fordefault. See
McCarthy v. Chef Italia, 105 A.D.2d 992, 482 N.Y.S.2d 143 (2d Dep't 1984). In Chery v.
Anthony, the Appellate Division held that "[w]hen a default results not from an isolated,
inadvertent mistake, but from repeated neglect, [ ]there is no requirement that the court grant the
default."
motion to vacate a 156 A.D.2d 414, 414, 548 N.Y.S.2d 535, 537 (2d Dep't 1989). The
Appellate Division agreed that a history of intermittent recurrences of illness could form the
basis for a reasonable excuse for a default. Id But the court found that the plaintiff failed to
adequately establish the nexus between thisexcuse and the actual default, which resulted from
counsel's failure to seek assistance or substitute counsel. Id An excuse of law office failure,the
court emphasized, is wholly insufficient where counsel's omission continued after the condition
or the inadvertent mistake that caused the default was resolved. Id. Here, Plaintiff submitted its
"stipulation"
discontinuing the action more than two years after the forfeiture decree was vacated
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and publicly filed, and more than six years after itsignated itsintent to discontinue the action to
"stipulation."
this Court. Then, Plaintiff waited more than two years to vacate its Even if
Plaintiff's deliberate actsconstituted a viable excuse of law office failure, which they do not, the
acts occurred in the context of itsrepeated neglect. Accordingly, Plaintiffshould not have been
permitted to rely upon a conclusory affirmation misrepresenting itsdeliberate act as one of
omission or an inadvertent mistake.
"mistake" failure" mistake."
Plaintiff also refers to its and "law office as a "unilateral
mistake" mistake"
But Plaintiff's invocation of "unilateral is misdirection. "Unilateral is
typically raised in the context of a contract that one party seeks to have voided on the grounds
that they were mistaken as to the subject matter or the terms contained in the contract. 16 N.Y.
Jur.2d. Cancellation and Reformation of Instruments (2018). But there is no contract here,
"stipulation"
Plaintiff's decision to callthe document itsigned a notwithstanding. Cf Perez v.
Mangroo, 2015 WL 7300897, *l-2 (N.Y.Sup.), 2015 N.Y. Slip Op. 321152(U) (Trial Order)
(Mcshan, J.)(Sup. Ct. Bronx Cty. Oct. 7, 2015) (denying defendant's motion in which itasserted
mistake"
"unilateral as the basis forrecission, where all parties signed the stipulation of
mistake"
discontinuance defendant later sought to vacate). Furthermore, a "unilateral of fact
attributable to the negligence of one of the parties does not constitute a basis to rescind a
contract. See Lowe v. Steinman, 284 A.D.2d 506, 507-8, 728 N.Y.S.2d 56 (2d Dep't 2001);
Kaplan v. Goldbautn, 258 A.D.2d 620, 685 N.Y.S.2d 769 (2d Dep't 1999). Even under
mistake"
circumstances where a contract did exist and"unilateral was properly proven by clear
and convincing evidence, courts have not lightly set aside stipulations, especially when the party
seeking to vacate the stipulation had been represented by counsel. 104-106 East 81st St. LLC v.
O'Brien, 12 Misc.3d 1175(A), 824 N.Y.S.2d 764 (Table) (Civ. Ct. New York Cty. 2006). Here,
4
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Plaintiff's recites the argument in itsopposition to Defendant's cross-motion "that the stipulation
to discontinue was unenforceable and should be vacated because itwas not executed by any of
defendants,"
the without pointing to any case law. Plaintiff's Opposition to Defendant's Motion
to Reargue, ¶ 5.
For these reasons, Defendant's motion to reargue should be granted because the Court
misapprehended the law goveming a motion to vacate a discontinuance and reasonable excuse.
See Deutsche Bank Natl. Tr. Co. v. Lee, 60 Misc.3d 171, 70 N.Y.S.3d 791 (Sup. Ct. Westchester
Cty. Jan. 29, 2018) (denying plaintiff'smotion to vacate itspre-answer discontinuance in a
mortgage foreclosure action and restore itto the court's calendar because plaintiff,the court
"mistake" -
found, incorrectly relied on C.P.L.R. § 2221 and alleged without explanation that the
discontinuance should not have been filed the attorneys for the plaintiff - which
voluntary by
was inadequate to justify granting reliefpursuant to C.P.L.R. § 2001).
IL GRANTING PLAINTIFF'S MOTION TO RESTORE AND VACATE ITS OWN
"STIPULATION"
PRE-ANSWER TO DISCONTINUE UNDULY PREJUDICED
DEFENDANT.
Plaintiffalso contends that this Court properly granted itsmotion to restore because
Defendant did not sufficiently explain how he would be prejudiced ifthe action was restored to
the court's calendar. Yet, Plaintiff's contention ignores the fact that courts treata plaintiff's
extensive delay in pressing itsclaims as inherently prejudicial. For example, in DaCosta v. City
of New York, the district court also considered whether to permit nunc pro tunc the relation back
of an amendment adding a new defendant to avoid a statute of limitations defense. 296
F.Supp.3d 569 (E.D.N.Y. 2017). The court emphasized the role of a federal district court judge
in applying state law and held that, generally, a court would have the discretion to deny a
plaintiff the benefit of New York's relation-back doctrine because plaintiff's nondiligence would
5
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likely result in prejudice to his adversary. 1d at 580 ("Less often articulated, but certainly a
related element of justification for time limitations, isthe experiential knowledge that
meritorious claims will usually be pressed within a reasonable period of time, which leads to a
presumption of sorts thatthe probability of merit is less in a statethan a fresh claim.") (quoting J.
Weinstein, H. Korn, & A. Miller., N.Y. Civ. Prac. 201.01, at 2-7 to 2-9 (1995)). In Franklin v.
Herbert Lehman College, the district court considered whether a 180-day statute of limitations
could be tolled to the pro se complainant's benefit where she was not responsible for the delayed
filing in the proper forum when she filed her initialcomplaint in a forum experience
administrative backlog. 508 F. Supp. 945 (S.D.N.Y. 1981). The districtcourt found the plaintiff-
complainant's delay reasonable but, nonetheless, declined to tollthe limitations period.1d at
952. The court reasoned that the defendants, who did not contribute to or bring about the delay,
elapsed."
"would be unduly prejudiced by the amount of time that has Id The Appellate
Division has echoed this rationale, for example, in Cucuzza v. Vaccaro, where itreiterated that
"[t]he primary purpose of the Statute of Limitations isto compel the exercise of a right of action
within a reasonable time so that defendant will have a fair opportunity to prepare an adequate
defense free of the attendant prejudices occasioned by inordinate delay...". 109 A.D.2d 101, 490
N.Y.S.2d 518 (2d Dep't 1985).
Conversely, Defendant's inability to participate in theaction did not prevent Plaintiff
from seeking a default judgment, or filing itsjudgment of foreclosure and sale. This is a case
"not of defendant lullingthe plaintiff into a sense of false security but of the latter's sleeping on
rights."
his Proc. v. Home Ins. Co., 17 N.Y.2d 239, 246, 217 N.E.2d 136, 140 (1966). Plaintiff
had taken no action in connection with this case formore than six years - from the time it
signated itsintent to discontinue the action and requested the action be removed from the court's
6
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- "stipulation"
calendar when itfinally filed its discontinuing the action. Then, more than two
years after filingit,Plaintiff sought to vacate itsown voluntary discontinuance, with itsbare
assertion that "there was no intent to filethe motion to discontinue, itwas simply law office
failure."
Plaintiff's Motion to Restore, ¶ 9. By granting Plaintiff's motion to restore on such
conclusory and self-serving grounds, despite itsown eight-year delay, this Court
misapprehended well-settled law in New York finding inherent prejudice in cases involving
much less egregious delays by the moving party.
Finally, the actions by Plaintiff directly undermine the New York State Legislature's and
the Office of Court Administration's initiativesaimed at eliminating a backlog of thousands of
foreclosure cases that sat dormant foryears. See generally, Report on New York's Foreclosure
Process, New York State Department of Financial Services (pub. May 2015), available at
https://www.dfs.ny.gov/reportpub/banking/fore_proc_report_052015.pdf. The New York State
Legislature took significant steps to preserve the rights of homeowners in foreclosure by
reducing the "unnecessary delays in the foreclosure process [that]harm allNew Yorkers,
including borrowers, and not just the banks and mortgage investors who are unable to obtain
investments."
returns on their Id. These initiatives echo well-settled precedent concluding that
among the many policy considerations shaping statutes of limitations, "[f]airness to the
defendant is primarily stressed, but concern forthe effectiveness ofjudicial machinery isalso
apparent". DaCosta v. City of New York, 296 F. Supp. 3d 569 (E.D.N.Y. 2017) (quoting J.
Weinstein, H. Korn, & A. Miller., N.Y. Civ. Prac. 201.01, at 2-7 to 2-9 (1995)). Defendant has
been prejudiced by Plaintiff's repeated neglect and he should be not be further prejudiced by
Plaintiff's attempts to avoid such foreseeable consequences of itsneglect in thiscase. Plaintiff
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cannot invoke prejudice because itsclaim will likely be found to be time-barred by virtue of the
foreclosure action itfiled in 2008 and then permitted to languish for six years.
CONCLUSION
For the foregoing reasons, Defendant respectfully requests that Defendant's motion to
reargue be granted, and, upon reargument, that Plaintiff's motion to restore be denied, or in the
alternative, that Defendant's cross-motion to dismiss be granted, and for such other reliefas the
Court deems just and proper.
Dated: November 21, 2018
Staten Island, New York
S TEN ISLA D LEGAL SERVICES
Attorneys for Defendant Tony Clanton
By: Sarah Baldwin, Esq.
36 Richmond Terrace, Suite 205
Staten Island, New York 10301
(718) 233-6469 (phone)
(718) 448-2264 (fax)
8
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF RICHMOND
________________________________________--------------------X
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE FOR SECURITIZED
ASSET BACKED RECEIVABLES LLC TRUST
2007-BR1, MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-BRI,
Plaintiff, Index No. 100938/2008
-against-
TONY CLANTON; DEBRA DENNIS; MORTGAGE AFFIRMATION OF
ELECTRONIC REGISTRATION SYSTEMS, INC. AS SERVICE
NOMINEE AND MORTGAGEE OF RECORD; NEW
CENTURY MORTGAGE CORPORATION; BOARD OF
MANAGERS OF THE SUNRISE TOWER
"DOE"
CONDOMINIUM; ROLFF (LAST NAME
REFUSED),
Defendants.
-----------------------------------------------------------X
Sarah Baldwin, an attorney duly licensed to practice law in the Courts of the State of New
York, hereby affirms under penalties of perjury, as follows:
1. I am not a party to this action, am over 18 years of age and reside within the state of
New York.
2. On the 21st of November 2018, I served the Reply Memorandum of Law in Further
Support of Defendant's Motion to Reargue upon the persons listed in paragraph 5 hereof.
3. The number of copies served on said persons was 1.
4. The method of service on said person was by mailing the paper to the persons at the
address designated by them for that purpose by depositing the same in a firstclass, postpaid,
properly addressed wrapper, in an official depository under the exclusive care and custody of the
United States Postal Service within the State of New York pursuant to CPLR § 2103(b)(2).
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5. The names of the persons served and the addresses at which service was made is as
follows:
Greenberg Traurig, LLP
Attn: Steven Lazar, Esq.
Attorneys for Plaintiff
The MetLife Building
200 Park Avenue
New York, New York 10166
Leopold & Associates, PLLC
Attn: Ryan Banich, Esq.
Attorneys for Plaintiff
80 Business Park Drive, Ste. 110
Armonk, New York 10504
Dated: November 21, 2018
Staten Island, New York
S h Baldwin, Esq.
Staten Island Legal Services, Attorneys for Defendant
36 Richmond Terrace, Suite 205
Staten Island, NY 10301
718-233-6469
2
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF RICHMOND
Index #: 100938 Year 2008
DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE FOR
SECURITIZED ASSET BACKED RECEIVABLES LLC TRUST 2007-BR1,
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-BR1,
Plaintiff,
-against-
TONY CLANTON; DEBRA DENNIS; MORTGAGE
ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE AND
MORTGAGEE OF RECORD; NEW CENTURY MORTGAGE CORPORATION;
BOARD OF MANAGERS OF THE SUNRISE TOWER CONDOMINIUM; ROLFF
"DOE"
(LAST NAME REFUSED),
Defendants.
REPLY MEMORANDUM OF LAW IN FURTHER SUPPORT OF
DEFENDANT'S MOTION TO RENEW AND/OR REARGUE
Staten Island Legal Services
By Sarah Baldwin
Attorneys for Defendant Tony Clanton
36 Richmond Terrace, Suite 205
Staten Island, New York 10301
718-233-6480 Tel.
718-448-2264 Fax
Certification Pursuant to 22 NYCRR 130.1-l(a)
Sarah Baldwin, Esq.
Staten 1sland Legal Services
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