In a recent ruling, the Appellate Division of the Supreme Court of the State of New York addressed a foreclosure case involving Apex Bank and defendants Theresa D. Fasulo-Brancaleone and Peter Brancaleone, Jr. The court's decision, issued on July 1, 2026, has significant implications for future foreclosure cases and the awarding of attorney fees in New York.
The court's ruling came in response to an appeal filed by Apex Bank, which sought to challenge a prior decision regarding attorney fees awarded to the defendants. The case highlights the ongoing legal battles surrounding mortgage foreclosures and the financial stakes involved for both lenders and borrowers.
The dispute began when Apex Bank initiated a foreclosure action against Fasulo-Brancaleone and Brancaleone, Jr. The bank claimed that the defendants had defaulted on their mortgage obligations. As the case progressed, the defendants filed a cross-motion seeking an award of attorney fees, which the lower court granted in part.
The case reached the Appellate Division after Apex Bank appealed an order from the Supreme Court of Nassau County, which had denied the bank's motion to renew its opposition to the defendants' request for attorney fees. The bank also appealed a judgment that ordered it to pay the defendants $2,000 in attorney fees.
The court's ruling addressed multiple aspects of the case. It reversed the lower court's judgment that had awarded additional attorney fees to the defendants. The court stated, "for the reasons stated in the related appeal, the defendants are not entitled to an award of attorneys' fees for a 'successful defense' of this foreclosure action." This ruling clarifies the conditions under which attorney fees can be awarded in foreclosure cases.
The judges involved in this ruling were Angela G. Iannacci, Linda Christopher, Carl J. Landicino, and Phillip Hom. Their decision emphasized the importance of adhering to legal standards when determining the awarding of attorney fees in foreclosure actions.
This ruling has immediate implications for the parties involved. Apex Bank is relieved from the obligation to pay the additional attorney fees that the lower court had imposed. The decision also sets a precedent for future foreclosure cases, indicating that defendants may not automatically receive attorney fees even if they successfully defend against a foreclosure action.
The ruling could influence how lenders and borrowers approach foreclosure cases in New York. It may deter some defendants from seeking attorney fees, knowing that the courts may not grant them unless specific legal criteria are met.
Looking ahead, it remains to be seen whether either party will seek further legal action. The court's decision does not appear to leave room for an appeal on the attorney fees issue, as the ruling clarified the legal standards involved. However, details were not available in the court filing regarding any related cases that might arise from this ruling.