New York moves to dismiss putative class action over state’s foreclosure law

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Recently, the State of New York filed a motion to dismiss an amended complaint in a putative class action lawsuit challenging the constitutionality of New York’s Foreclosure Abuse Prevention Act (FAPA) (previously covered by InfoBytes here). The amended complaint, filed in the U.S. District Court for the Northern District of New York expanded the case by adding Governor Kathy Hochul and state Senator James Sanders Jr. as defendants in their official capacities, introducing new constitutional claims and factual allegations, and seeking injunctive relief.

The state’s motion to dismiss asserted that: (i) the defendants have sovereign immunity from plaintiff’s claims for money damages as well as its claims for declaratory and injunctive relief; (ii) legislative immunity protects Sen. Sanders from liability for sponsoring FAPA; (iii) the original defendant, the State of New York, is not a proper defendant under 42 U.S.C. § 1983 because neither the State of New York nor any department thereof is a “person” subject to suit under Section 1983; and (iv) the amended complaint failed to state a valid claim under the Takings Clause or the Contracts Clause. The court has yet to rule on the motion, and the case remains pending.

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