Justice Robert Nahman
Citigroup Global Markets sought to foreclose on a residential mortgage arguing it was the successor on the mortgage given by Infante to Option One Mortgage to secure repayment of a note. A portion of the funds was intended to repay an existing mortgage held by intervening plaintiff, Impac Funding, serviced by GMAC. The closing took place, but the check was never received by GMAC, thus Impac’s mortgage was never paid off. Impac argued Citigroup’s mortgage was subordinate to its own. Citigroup sued for breach of contract and negligence, among other things. Defendants moved for dismissal arguing the complaint was barred by the statute of limitations. The court noted as the statute of limitations for conversion, negligence and UCC violations was three years, Citigroup’s claims for these causes of action was time-barred, thus dismissed. It also found defendants established that Citigroup was not in privity of contract with either bank in the transaction, nor was it an intended third-party beneficiary, hence, did not have standing to bring a claim for contract breach. Further, Citigroup’s claim for indemnification fails as there was no underlying cause of action in which to seek indemnification. Thus, defendants’ cross-motion was granted.
