CIV;L CÜURT ü}:'fi{H CIT'Y {:}F NlìW YORK
C{)UN't'Y Oir 1}R"{}NX: fARl" I iC
üN Ål, Cl0LLliül¡\Tfi STUÐ tiNT LÜ,{N
tJ tì1' 20ü7-4, ¡\ Illil¡\ W,4.R Li
s"r"A"l't tï)RY l't{ t J lj"r{s}"

Index

ì'1,4.1'l

'lïl

ìt{r: : C V -{)ü93{:5 - I 4/l}.X

Ï)laintitl'.

nEctlìt{}

-årüåu1}ti{-

F{ A

Fl'riR

"}'tr  it,l",

{Â W A'l ^li{-) t.¡*
DIT IìY.

SA[.{ Af'J'l]:
IJ()ì)I.TTA

iJefbndants

Åller tlial" lhc rlicisi$n in the ab*r¡e ¿lctitul is as lì:llou's:
trlailrril'l''rorrm*¡ìcscl this action sccliing niuclgnrent in thç nr:ior"rnt ol'S7.316.Û{} against {.he
rlcf'cndants ii,;r an allegr:clbreach ol'a proruissory notc anci on
.l6narhan lSoyrl to rcstily on

itt

he

äççottnt stated, I'}l¿¡irrtifi callecl Mr,

hall. Mr. IÌ*1,'cT testifìed that hc is cm¡:loyecl by'i'r'anslvorld $ysten,

I¡e . {'l'S1} as a l,cgal Case hdanage r:. He stnterl that'i"Ijl is the

Ilaintifl,

¿rn

de

signafed custueliali of rrlcurcls

lle stat*cl llrat his jr:b r*sponsibilitics incluqle revìerving, maintaining.

bLrsines* recorcis.

IIe

suggcsred that he is

nerteil th¡lt the

*irniliar

lllaintìllls

1"or

thc

ancl analyzing tlre

bnsiness rectirds nrç stttdelil lonn recorcls. I"lc

r-vith the Pl¿inti(Ts rsrcr:l'd$ and ¡rr* ablc

to iclc:rtify thcm.

Plaintiff moveei irito *viclcrir:e ¿ dürurnr:rtt *utitled 'ol,oatr Rec¡ucsliCrùilit ÂSlco$ìûlltSignature l,âge" (,A.grcemenï) rl*teil

April 3{}" 2û07. Mr.

ì3*1,d lestified thaT

tirc ;\gre*trellt

w$$

rçcçir'*cl by flrx ar:ei th*t it u¡cn{ (c unclsru¡r'itìng. Ile indir:atr¡clthat the l*anrv*s approverlancl lhe
Iìrncls r.vcrc clisburs*:rl.

clateri 14åy

plåintiiì'm*vod into evidcnce thc "'Note f)istlüclrre fitírt*nrcnt" (iliscitlxuri:)

14,2()07. l-ie statcd that titr: Disclosur$

insistecl {hat

th¿:

Disciosurc

r.vas

rvas crc¿rk:d nnc*

scnt to lft* dcf'errei¡rnts,

llc

the l*alr wns appraveei' Ilc

noled that C}r¿rter üne ISanlt, N.Â,' was

lhe r:riginal le.neier. I"{* also notecl thnt ¡l,HS was the errigiiral sen'icer clf the cic{encfsurt's losn.
Bo-1,c¡

ur**rtecl lhat the Plaintiff receivcd thr: loan by assignment.

[.4.r.

 lllaintifT nrovcd irrlo sviderì*c tlli) "Pool Supplenrent ttBS Citizens, N,Å.' iSr"rccesserr tt:
Charter ü¡re llarrk, N.,4,) (RliS (ìiriz.cns Assigrunent¡ datccl i.ieptcrnbcr 20" 2ü0?" Mr.
that rhc ussignncnt rq,as bctws*n {h*
stãl1*(i t.hal l;'ir:¡t

*rigin*l lcLrdernnclN¿rlion*l{.:ol}cgint*

lSo.vcl st¿ilr*ci

ITr-rnding.l'.I,{1. l"le als{}

M*rblchenr{ ilor¡ruration is a servicing *ornpan5, and is thc sen'icitrg ct'rlnpany fbr

lrìatir:nn[{lol1*gial*lìunrling.T-L{-]. llcsrrggcstr:clthntillr*schedulcatthc*ndof'thcl{RFi(liti:-{:ns
.{ssignrnent iclunlilics tiie d*lcrlcintlt:i' k

ltl.

lrlr" llor,,.l firnh*r tcstil.r*cl that th* delendants' loan lräs sLrhsercluenll¡' assignurl by NaLional
{_li:llcgiatc Fr:ncling- I.å,Cl t* th* },}1¿linti1l'¿,rlstl on ,$cptember

20,200?. PluintitT'nrt:r'ecl in{o eviclencc

nntl i]laintilL. s{r"
thc D*¡:*sit and Salc Ågreement benvccn Th* Natiçnaliloll*giatc fìurrding t'LC

Iìoyci suggesteri th¿rt rho cl*fcnclauts' loan

\v¿1s tl'¿ìnsferrr:cl

tc rhi: Plaintifi 1:rior to thr; linit

an,v

paynrcnts wcrc cÌue fi:onl tlte clef'cnclants.
pl.rintifT,movcd int* eviciencc the l,nai'l lìinancial Ar:tivity {Acfivity) lï)r t}:c
Rn¡*el sttrteci

t¡at the rspåyrnellt

rer,orais arc

kcpt electrnnicnlltrr,

slatcelt¡nt the transaction cod* on pâge il:l'ce o{

llt

sLrb,icr:t

suggest*r{ that

tlie;\ctivity indicates that $5,?60.?3

1o¡n. lvlr.

tlrir rlo*umcnt

rvns the l¡'ilnslì:r

nmount liorn N¿rtionni Ctillcgiate l:unding LLC tu llrc l]luinti{'fir,,lr. Bo,vcl st*ted thnT

thc d*l"eutlnnts

m¿rclc

acl<norvl*¡g*llh¿rt h* clid n¡:t l<nt¡n,horv thc pírvnr*r'rt

a p¿ìyment on I'rctrrttnry 11. 2t)1,l.

I'lc

milele. Ile suggestcclttrc dclknclallts

diel

r.r,¿r$

that th{} loatr n'as chftr:gcdnot rnake änÌ,r.¡tÌ:er pilylll{:rtrì ilnri r.r,*rc cleclarcd in el$i¿tr¡lt. }{c inilicat*cl

ol,l in the ¡moilnt of,$6,?64,6i1 0n.i\.ngusl

l. 2ü11. l{e incli$ated that th* sut:r rceluest*rl

e*mplaint irrcludes interest tlr¡rt continuecl lo ilccîre

.

in the

Mr" lloyit nsssrted that the Pi¿iintil'f has ni¡t

oin'ing. Plaintifidid not
recei'ed rìrly päynlnrls since thc charge-elfT ¡rnd a halance rem¡rins dr¡e ani'l

rall anl tth*r witnesses.
(lc¡es not bcliev$ that she o\\''çs
l)cTlrrrliuri".$anrnntlra wírlfìor1, testi[l*cllhlit slrc

¿ll']y

lIl{rlìc]'

shor.v hr:*'t}re allegecl p¿1}'ment was m¿tcic
{br lhis loan. she ¿rss$r{*cl tl at tlle Plaintifl'rv¿rs unablr: to

 ûn tlìiì li:ün. Shc stated that ll'rc Fl¿iinti{T is relying *n thr: p¿ryrlìcnt tr; *stablisir l}rat shi: r^rwcs thr:
t'tl{}ìtç,\j. l,{s. Watson insi*tccl that thc c{oçumcnl.s suhnrittecl itrlo *r,idct:e:s dfl ¡tti e st¿lhlish that ¡\[iS
u.as

llr* oliginul $*r\:ic{*r *l'the klan. ,\h* a}s,: insistcd thal lhe T)c¡rl:sit

shr:lv th;tt tlic l)lailrlifl'on,ns llic

lunll.

SIrr: stalcil

¿rnd $ah: Agrce nte itt clo¡:s ni:ri

tlilrt slic ncvel rcc*ivecl nn.y docunrcnls {llat

infìrnri*cl hcr that shc \x/íls in clelault *n tlrc k:*n, Shl: also sf{rl.td thnt sh* riid not rec*ive ân} ¡1e1¡**

{li*t tlre or:iginal l*nrir:r \,\,¿iri üh¿rngied. ,$lie
regar:ciing this

insisTcc{ that sh* neve r receir.,*d iury notices ür sl¿rten'ierìts

loan, She also insisted lhat irer cosigner ncver rec*ived an}' nntices.

Ms. Wats*n rroled tha{ tlre l):iscli¡surc inilicatcs lhat the io¿in r,viis nr*clc out rnly tti frsr. $he
st¿llrti that hir. lJoyri testiliecl earlie r Tha( thrl lrian is made out io trcth ¡rrLrlies. Ms, rtVntsr¡r insists that

tlrr 1]laìntilT'dnes ncl (x\rn this

thc'l'rust.

lr.¡an and l]rilL

it ililnnot sLrc lrcr"beçnus*: sh* u$vçr clicl hLrsilress rvitlr

åìhs nert*d that the Pl*inti{'1'clai¡rrcd that

it is the r:rriginnl o\vr)rìr r:l'tlie l*an

u,hiq:h is nr¡t

su¡:pr:rted by the Àgrcement. She insists th¿¡t Charter'One llsrrk is the nliginnl l*ncler.

ilel¡ndant. Sophin Ïletry, testìfiec[ that they rJ* not on'e thc PIaintifI*th* mûney. She stat*d
tiri,rt slie

ri*cs n*{ rec¡lll her clilughter ever malçing paymtrnts cxl thr: loati. She *s*r:rtcd that if'lier

riaugÌr1*r clicl nr¿llç*: íìl1y l)rìyrllcrlts on thc laan the-y r,v*re uol to tlre

rhc lll¿¡intifl'clocs nc¡t har,* thc right tn

srLc

thcrn.

l'}laintilî

lvfs, Iletry' assertecl that

She statccithnt thc PiaintilThas nut providcclany

¡rroolì She noteel thal sh* flcv$r feceir¡ed the cl*cumenls

nnel shc is or:ly $0e

iilg theni lbr the {irst tinie

in r:r¡urt. $hc ínsisted that ti:e dnculnsnls wete $tvçr scnt to htr address.
Deibnrl¿lnts challenge tlre Plairrtifi's stnnding and capacity
runrlue

tn suc in this ilt¿ltter, It

is

sti*nerl nr: this rçcrird thal Charter ûn* Ilank is the r:riginal trcnclcr o{ tlie l*¿r¡r. ÅllhaLrgh the

dclcndanl.s ch*llcnged hdr. Iloycl's ituthorit,v to

t*slily on behall'üf the lllaiutillì tl:e {Jnurt *drlritlcrl

in1o evirleltce thc *lcctronie lecords reliecl upon by t.he lllaintifTput"$tttult ts

scTlled that tlri: r*lationshi¡r betu¡een trvo brisinesses and The nature
i¡clLrcling thc circumstànscs

{ll}l.R {i 4518. It is r¡,ell

ol'ihc

recc¡rcls

in e¡tt*stion,

çiltlrcir prr:paratirin" mn¡' gir,* the r:e*ipir:trt sutïcient fìlmiliar:iïy willr

thi: othcr p¿ìtt-y's recorcis to justify adrnissibilily tlrrough tlie lbunclnlii:n

tr:stimtn:'of the rtr:ipient

 t.!)t:ù¡tlt r,(i.¿rls/c.r.. f{l}
r.ceorcls

arl¡nit

Ny:{i sl llç951).

Morçover'. rvh*re ä Ç.e}mp¿ln}'rÕil1ilìely r*lics upo* tltt"'

*l.anolh*r br¡sin*ss in thc rronclucl *i'ils rrvn irusincss" flt*l

i¡:ltc¡

rvill

be ¡:r*rtniiiecllrr

eviden*c thraugh c¡re cf its empk-r,vccs lhc r:*corcl$ a{-the r¡ther rr*mpnny {'l'/irri'i/{ Lynt:h

/Jr¡si¡r¿,is l:;ip¿t¡,cir.tl5e¡'pic,cs, lnc.

t"li^t¡tsrtss (lonstruclin, 1¡r¿:..30 AL) 3d

!cù¡tle Ï l)i,s¡¡/r,r:.2s4 ÅD?d 54? l:"'r Dept. 2{X)i
'ccr'ss¿rry

com¡:ratry

il.

i36 f lotlle¡rt'

"r"his cc¡nrt r"lctcrmirrr:clthnt

lirrnilinrity and knortleclgr of thr: lll*intifïs

ZilÛ{il;

Mr. I}ovd lias thc

rcr:orr"ls bnsccl u¡rcn his testiniolr¡'ancl thc

rt-:lirl.ir;nshi¡l b*trvce n his crn¡:loycr as ilie elcsignrl*d cusl{lrli¿,rtl t)l'' recorcls nncl

tir* Pl*ititiT'f

i.rertr./irr'

l{cc:r;ra¡:-u
txufflple Aie*.ill L"l:nch /j¿¡si¡res.r þ'inerytc'ìçtl $*n:ic*,ç, /¡¡c." 30 ÀD3çl 33(¡; f)*rtfìt1lr:
'!'cnn l"' I)e pl
41 Misc3rï l?sl"'\ ][,A^pp
¡l,r^!r:cií¿t¿$, l./.(.t. y !.ul!, 1?? AD 3el 5?6 [ I 'r l,]e pt ?01 51, alifþ
?{} i

ll).
at the titne
lie n*rally. an assignee nf'a c*nsumer r:r*lliL agreerrcn{ nrust establish its st¿rncling

il"he Couit
rlrr nctian \\¿s r,or11rÌlenced (,ç:e Ptsrtfittio ltrcnvar.pl.r,roc" v l,ull,¡11 ïv{isc3d 128[,4'1)'
Jin¿ls that

pl*intifl'tÌrilerl

ro e srablisli the r:hnin

creclibly estaSlis¡cc] lirat îhe

oJititl*

{ì"om lhe

original lenrler to

lttlS Citiz*ns Assignmenl ciäted Septerlbcr

"lhe
rlelì:ncl¿urts' lnr¡n was transfbrrecl to

Dep**i{ an¡ Salc Agreemcnt

Nali*nal Clollcgirite

Fr"rnding

alsCI ciarecl $epternber: 2(}" 2CI07

'i{atiorral Collegiaî* Functing l.t,{-l assignecl tlie cleJi'nclrnts'

Plaintiil

?ü, 20{i7, shnws that tltc

LI-C,

"T'he

Cottrl fìnds that the

"l'[rc
is insrtl'fìc;icnt to cstablish that

loâ11

lo 1he PlaintifT

fbr a loan in lhe amounl
1'he Agr*rtment ir:clicates thnt th* cl*lþnrlants applir:cl

L'rn

prograrn Inlbsnntìoil ir:rjicates

{)rntinr"ring iidr-rciition Lüån.*u

Mr. l}o.vt{

al$5'ü00' 'I'h*

th¿lt the loan cl.: fbncl*nts ap¡:rliccl t'or rvas 1:art eii'îhe

"Lìhafier one

'fhis iloLrrt's revierr of the Ðeposit anei ¿rlt ,A.gïeement lincls tliat

{.l$rtinuing i:ic'h"rcation 1,r:an as part of
assignn:*nt cl*es nrt spccifically ìdcnti{1'' thc {lharr,:r 0¡rc
sr,hedulc ¡\ lr:li*cl u¡ron hY th* Tllainti{T, $*eti*n 1.0?
that

.'ltlhe

Ðcp$sit tincl sale Agreement ¡:rovicies

(o th* Pnrchascr nncl the Purchaser he reb,l' accel:ts all uf'tlrrl $r::ll*r's
-qellçr hr;:r*by assigns

right*r anri intcrests uncler each

r.elated

olth*

oftir,; Po*l Su¡rplr:iïÈnls listed on $chçclirle

'4' ¿illached

herclo ancl thc

l'lsrettlt'" s*heclule
litride*t [,can l]urchasc Agrer;ments listed on schedglc-B"attached

'r\'

ol'

 the Dc¡rosit anel $alc Âg,rcenr*nl lists th$ "Ilriol "$r-rpplcnrelrts" th¿rt werc lrarrsllncd l'rom l{i}S

Citircns, N.Â., succcssor lx, morgcr to {,lhnrtcr Oni: l}nnk, lrl"A,. as rv*ll as other origin*} l*ntl*rs.
'l'hcrc are s*vcral loan progrnTrls iiporlsr:lr'i:il hy l{.1ìü C.lifizens, N.Â.. succcssor by rnergrt'

ter {-llr¿rrler

One B¿rrrk, N.¡\. inclucfeci in $chedille ¡\ of'the Dc¡:osit and lì¿rle Á.greemen1. "l'he üourt {'rncls not}rirrg

in

ScheclLrlc

A o{'ths Doposit anrl Salc Agtcem*nt that riifbrcnct:d thc dclbnclar'¡ts' Clhartcr

One

{lontìnuing l-iclucaTion [-oan that originatccl fic¡m C]rarl*r {ine l}ank. N.A. Mr. ISoycl's unsu¡rpo{cei
'l'hc hiationai t,lcliegiare
tcsl iu'loni' Ìhal lhe ele lì*nclants' loan was ¡rnr:t nf'lire assigrtnre nt Ji'a¡il

F*ncling

ll.(..'totlre Plairuifi'isinsulïr:ienthaseclupr^rnthe pnulsuppl*Tl1ûr.rliilisteclin;qjcheclul*r\. Mr:.llnycl
did ur:t pnx'ide atv lestimi:ny lhat idenliliccl cielì;ndanls' Chnrt*r {)n* Ccntinuing }iclucalion Lnan
as part

of'Scheduls .A rii'thç I)oposit and $ial* Å,greernent.
!ìasec{ upan

disbu¡'secl

thc fiiregoing, the [ìourt is unable {o clcternrine whetiler tlre del'lrrdanls' ln*n

orl ol" about May

14".

2007 in accorclance rvith tl:c Disclosure w'as incluriecl in the

assignment b*tia,ee n lire þJati*n¿il Colleginte ilr.rnclin6¡
l'ind.s that

and the

PlaintillL Acr,oldingly, tÌ'¡r ürurt

Pl*intifl'lililed tt¡ esl¡rblish its standing in this proc*erlir:9.

ln light uf tlm lbrcgcing.

it.

is hcreby:

üIt.Ðlitt$t) ¡lNI) ¡lD.I{lDüEl}
rupon

I-Lü

thlrt {h* Clerk shail clismiss lhis aetion in its entirety has*el

{h* Plaintil'f*s failure to establislr its stantling 1o bring this acticin,
'l'his shall ronstilute thç clecisit¡ll åìnd $rdsr ol the Clourt.
t.

Ilaterl: ,ltnuar,v ?, ?ü lrl
l

ltx
.h-rc{g*.

,L N4cShan

CiviIC*Lrrt