Costa v. Deutsche Bank | NYSD - granted summary judgment (i) in favor of their RPAPL Article 15 claim seeking the cancellation and discharge of record of the Mortgage, a declaration adjudging the Property to be free from an encumbrance arising from the Mortgage, and a declaration discharging Plaintiffs’ obligations under the Note

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK VITO V. COSTA and MARION P. COSTA, Plaintiffs, v. DEUTSCHE BANK NATIONAL TRUST COMPANY AS TRUSTEE FOR GSR MORTGAGE LOAN TRUST 2006-OAI, MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-OA1, and SPECIALIZED LOAN SERVICING LLC, Defendants. KATHERINE POLK FAILLA, District Judge: Stripped of its technical jargon, this case is about whether a nearly decade-old defaulted mortgage loan remains enforceable. Plaintiffs Vito and Marion Costa argue that the applicable six-year statute of limitations has expired and that they are therefore entitled to the cancellation and discharge of their mortgage loan. Defendants, the loan trustee and the servicer, maintain that the limitations period has not expired because it had not started prior to this action or, if it had, it was tolled or renewed; thus, foreclosure is warranted. Even if their foreclosure claim is time-barred, however, Defendants still seek to recoup their expenses in maintaining the property over the past decade. The parties filed cross-motions for summary judgment pursuant to Federal Rule of Civil Procedure 56 following the close of discovery. For the reasons that follow, Plaintiffs’ motion is granted and Defendants’ motion is denied. [...]