Practice point: Appellate Division found that the Supreme Court abused its discretion in, sua sponte, directing
dismissal of the complaint with prejudice and cancellation of a notice
of pendency. Appellate Division noted that a court's power to dismiss a complaint, sua sponte, is to be used
sparingly and only when extraordinary circumstances exist to warrant
dismissal. Here, there were no such extraordinary circumstances.
Student note: In addition, Appellate Division held that, as the defendants failed to answer the complaint and did not
make pre-answer motions to dismiss the complaint, they waived the
defense of lack of standing. In any event, a party's lack of standing does not
constitute a jurisdictional defect and does not warrant sua sponte
dismissal of a complaint by the court.
Case: HSBC Bank USA, N.A. v. Taher, NY Slip Op 01806 (2d Dept. 2013).
Here is the decision.
Tomorrow's issue: Money judgments.
