PFSS 2020 Holding Company, LLC v. Findlay Estates LLC
- Paul Engelmayer
- 1:20-cv-08884
- U.S. District Court · Southern District of New York
- 3
Federal Home Loan Mortgage Corporation v. Findlay Estates, Judge Engelmayer substituted PFSS as plaintiff and denied Greystone’s substitution motion as moot.
The order changes the plaintiff from Federal Home Loan Mortgage Corporation to PFSS 2020 Holding Company, LLC in the foreclosure action. It leaves Greystone out as a substituted plaintiff and affects the defendants, including Findlay Estates, LLC, Sheindy Grunhut, Cohler Fuel Oil Company, Inc., and the listed John Doe defendants.
What happened
In Federal Home Loan Mortgage Corporation v. Findlay Estates, Freddie Mac sued to foreclose on a $6,335,000 mortgage loan.
Freddie Mac later transferred the loan through Greystone and its affiliate to PFSS 2020 Holding Company, LLC. Freddie Mac asked the court to replace it first with Greystone and later with PFSS as the plaintiff.
Judge Paul A. Engelmayer granted the motion to substitute PFSS for Freddie Mac and denied the motion to substitute Greystone as moot. The court directed the clerk to make the substitution.
The detailed version
- PFSS 2020 Holding Company, LLC v. Findlay Estates LLC · No. 1:20-cv-08884
- Paul Engelmayer
- Feb. 1, 2021
Background
Freddie Mac filed a mortgage-foreclosure complaint concerning a $6,335,000 loan secured by property at 1056, 1060, and 1064 Findlay Avenue in the Bronx, New York. When the case began, Freddie Mac held the rights and interests in the loan.
On or about November 12, 2020, Greystone repurchased the loan from Freddie Mac. Freddie Mac moved under Federal Rule of Civil Procedure 25(c) to substitute Greystone as the plaintiff. Greystone later assigned the loan to an affiliate, Greystone Healthcare Management Corp., which assigned the loan to PFSS 2020 Holding Company, LLC, on December 31, 2020. Freddie Mac then moved to substitute PFSS as plaintiff. The defendants did not oppose either motion.
Rule and Analysis
Rule 25(c) allows a court to substitute or join a person or entity that receives an interest in a case. The court has discretion to choose the arrangement that best facilitates the lawsuit. The court found that substituting PFSS would expedite and simplify the case because Freddie Mac no longer held any right or interest in the loan, while PFSS held the rights needed to pursue the foreclosure. The defendants did not argue that the substitution would prejudice them.
Ruling
Judge Engelmayer granted Freddie Mac’s motion to substitute PFSS as plaintiff and denied Freddie Mac’s motion to substitute Greystone as plaintiff as moot. The clerk was directed to substitute PFSS 2020 Holding Company, LLC for Freddie Mac and terminate the motions at docket numbers 22 and 36.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.