Adam Leitman Bailey, P.C. Defeats Claim of a Multifamily Mortgage Foreclosure Act Violation
In Ku v. United States Department of Housing and Urban Development, City of Newburg, et. al., Adam Leitman Bailey, P.C. won a federal court decision in the Southern District of New York granting its motion to dismiss in favor of the insured developer, in defeating the plaintiff’s claim that improper restrictions were imposed upon the foreclosure sale in violation of the Multifamily Mortgage Foreclosure Act (“MMFA”).
Despite the plaintiff’s claims that bidding restrictions put on the foreclosure sale were imposed for no other purpose than to ensure that the building would be transferred to the insured developer with the attendant benefits of a federal non-judicial foreclosure, in a Memorandum Decision dated May 14, 2012, Judge Vincent L. Briccetti agreed with Adam Leitman Bailey, P.C. and held, in relevant part, that although the plaintiff alleges that HUD violated the MMFA, none of the alleged violations constituted an invasion of a legally protected interest because HUD has statutory discretion to set the terms of these auctions pursuant to 12 U.S.C. § 1715z-11a(a).
Adam Leitman Bailey, P.C. thus successfully argued that the plaintiff cannot prove that he suffered an injury in fact and, therefore, lacked standing to bring the action.
The Title Litigation Group at Adam Leitman Bailey, P.C. won this case for the insured, with Jackie Halpern Weinstein and John M. Desiderio representing the firm.