Wells Fargo Bank v. 5615 Northern LLC
Wells Fargo Bank, National Association, as Trustee, for the benefit of the holders of COMM 2015-LC19 Mortgage Trust Commerical Mortgage Pass-Through Certificates v. 5615 Northern LLC
- Vernon Broderick
- 1:20-cv-02048
- U.S. District Court · Southern District of New York
- 2
Wells Fargo Bank v. 5615 Northern LLC: Judge Parker extended defendants’ response deadline and scheduled a hearing to determine foreclosure damages.
The plaintiff must support its requested foreclosure damages with testimony and documents. Defendants 5615 Northern LLC and Spyro E. Avdoulos received additional time to respond and may attend the hearing, question witnesses, and present evidence.
What happened
In Wells Fargo Bank, National Association, as Trustee, for the benefit of the holders of COMM 2015-LC19 Mortgage Trust Commercial Mortgage Pass-Through Certificates v. 5615 Northern LLC, the court reviewed the parties’ papers about foreclosure damages.
The court found the submissions inadequate to determine the damages. The papers did not show payments toward loan principal and interest, stated different principal amounts, lacked evidence of expense payments, and did not explain how interest was calculated under the loan documents.
The court granted defendants an extension until April 10, 2023, to respond and scheduled an evidentiary hearing for April 11, 2023. Judge Katharine H. Parker directed the plaintiff to present testimony and documents and allowed defendants to attend, question witnesses, and present evidence.
The detailed version
- Wells Fargo Bank v. 5615 Northern LLC · No. 1:20-cv-02048
- Vernon Broderick
- Mar. 31, 2023
Background
The parties had previously told the court that foreclosure damages could be determined from written submissions and that no evidentiary hearing was needed. After reviewing those submissions, the court concluded that they did not provide enough reliable evidence to determine the damages.
Problems with the Damages Submissions
The court identified several deficiencies. The submissions did not include documents showing payments toward principal and interest that would establish how the principal amount was calculated. The papers also listed slightly different principal amounts, did not provide evidence of payments for claimed expenses, and did not explain the method used to calculate interest under the applicable loan documents. As a result, the court could not independently check the proposed damages calculations.
Order
Although the court had previously denied defendants permission to file late submissions, it granted defendants an extension, effective retroactively, until Monday, April 10, 2023, to respond to the plaintiff’s papers. The court also scheduled an evidentiary hearing for Tuesday, April 11, 2023, at 2:00 p.m. in Courtroom 17-D of the United States Courthouse at 500 Pearl Street in New York, New York. The plaintiff must be prepared to present testimony and documentary evidence. Defendants may attend, question witnesses, and present evidence. This order scheduled proceedings concerning the amount of foreclosure damages; it did not state a final damages award.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.