On November 25, the New York Court of Appeals issued a pair of decisions — Art. 13 LLC and Van Dyke — that provide definitive guidance on the hotly contested and heavily litigated issue of the Foreclosure Abuse Prevention Act’s (FAPA) reach. In both cases, New York’s high court confirmed that FAPA applies retroactively to foreclosure actions where a final judgment of foreclosure and sale has not been enforced, and rejected all constitutional challenges to the statute.
As a follow up to our May post, FAPA in the Spotlight Again: Second Circuit Renews Call for NY Court of Appeals Review, the New York Court of Appeals has finally agreed to consider New York’s Foreclosure Abuse Prevention Act’s (FAPA) reach and constitutionality in the case of Art. 13 LLC. Interestingly, on the same day the Court of Appeals accepted the Second Circuit’s request, New York’s highest court also agreed to review a separate decision from the First Department, which found that it is constitutional to apply the FAPA amendments retroactively in the case of Van Dyke. Both appeals stem from actions seeking to cancel and discharge mortgages, where the New York trial courts previously held that the statute of limitations for foreclosure had expired.
The legal and constitutional implications of New York’s Foreclosure Abuse Prevention Act (FAPA) are back in the spotlight as the U.S. Court of Appeals for the Second Circuit again turns to the New York Court of Appeals for guidance. In Article 13 LLC v. Ponce De Leon Federal Bank, 132 F.4th 586 (2d Cir. 2025), the Second Circuit certified two key questions regarding the scope and retroactive application of FAPA — a statute that has significantly altered the foreclosure litigation landscape in New York.