
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Author: Dan Brecher
Date: August 17, 2015
Counsel
212-286-0747 dbrecher@sh-law.comNew York’s highest court recently held that the six-year statute of limitations governing fraud claims does not apply to forged deeds. The New York Court of Appeals’ decision in Faison v. Lewis held there is no time limit for such allegations.
Plaintiff Dorothy M. Faison (Faison) is the daughter and administrator of the estate for her father, Percy Lee Gogins, Jr. (Gogins). When their mother died, Gogins and his sister, defendant Dorothy Lewis (Lewis), inherited a three-family house in Brooklyn. Several years later, Lewis conveyed her half-interest in the property to her daughter Tonya Lewis (Tonya). In February 2001, Tonya recorded a deed claiming to correct the prior deed from Lewis. This corrected deed, dated December 14, 2000, purported to also convey Gogins’s half-interest in the real property to Tonya. Gogins passed away in March 2001.
In September 2002, Faison filed an action on behalf of Gogins’s estate against Lewis and Tonya, claiming the corrected deed was, in fact, a forged deed since her father’s signature was a forgery. However, the Brooklyn Supreme Court dismissed the complaint, finding that Faison lacked capacity to sue because she was not the estate’s administrator.
Several years later, Tonya obtained a $269,332.00 mortgage from defendant Bank of America (BOA). Shortly thereafter, Faison was named administrator of her father’s estate and filed suit against Tonya, Lewis and BOA. The suit alleged that the deed and mortgage were null and void based on the alleged forgery that took place in 2000. The Brooklyn Supreme Court also dismissed the second complaint, holding that the six-year statute of limitations governing fraud claims had expired. The Appellate Division, Second Department affirmed the dismissal with respect to the forgery claim against BOA.
The appeals court reversed, holding that a claim against a forged deed is not subject to a statute of limitations defense. Citing prior New York case law, the court noted that a forged deed is void at its inception, thereby making any encumbrance upon real property based on a forged deed also null and void.
“[A] forged deed is void, not merely voidable. That legal status cannot be changed, regardless of how long it may take for the forgery to be uncovered,” the Court explained.
The panel further reasoned that it would “not impose statutes of limitations on forged deeds because the resulting prejudice to the ‘rights of the true owner of real estate’ only ‘open[s] the door for the destruction of all titles, and make[s] it much easier for the criminal to purloin real than personal property.’”
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!