NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court."
Although it is posted on the internet, this opinion is binding only on the
parties in the case and its use in other cases is limited. R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-4752-15T1
WELLS FARGO BANK, N.A.,
Plaintiff-Respondent,
v.
JACOB STEFANSKY, MRS. JACOB
STEFANSKY, his wife,
Defendants-Appellants,
and
UNITED STATES SMALL BUSINESS
ADMINISTRATION, AS RECEIVER
FOR PENNY LANE PARTNERS, LP;
UNITED STATES OF AMERICA,
Defendants.
_______________________________
Argued September 18, 2017 - Decided October 6, 2017
Before Judges Accurso and Vernoia.
On appeal from Superior Court of New Jersey,
Chancery Division, Ocean County, Docket No.
F-021316-14.
Daniel Louis Grossman argued the cause for
appellants.
Brian P. Matthews argued the cause for
respondent (Reed Smith LLP, attorneys; Henry
F. Reichner, of counsel and on the brief).
PER CURIAM
In this contested mortgage foreclosure action, defendants
Jacob Y. Stefansky and his wife appeal from the entry of final
judgment contending plaintiff Wells Fargo Bank, N.A., caused the
default of Stefansky's mortgage loan, "that the equities
coalesced to balance in defendant's favor," and that they were
entitled to a hearing on the amount due on final judgment. Our
review of the record convinces us that none of these arguments
is of sufficient merit to warrant discussion in a written
opinion. R. 2:11-3(e)(1)(E).
Stefansky's $437,000 line of credit, secured by a mortgage
on residential property purchased for investment, went into
default when he failed to pay the property taxes. The holder of
the tax sale certificate instituted a foreclosure, which was
resolved by consent order permitting Stefansky six months to
redeem. When Stefansky failed to timely redeem, the bank
advanced the funds necessary to discharge the tax lien in order
to preserve its mortgage.
The bank subsequently instituted its own mortgage
foreclosure action. Stefansky answered, claiming he was
precluded from redeeming the tax certificate by the injury to
2 A-4752-15T1
his credit caused by the bank having reported his default to the
credit agencies. In addition to asserting several affirmative
defenses, Stefansky also asserted a counterclaim based on
remarks the bank's counsel made to his lawyer about "those
people in Lakewood" that Stefansky interpreted as anti-Semitic.
Judge Buczynski struck Stefansky's counterclaim for
discrimination as non-germane, advising he could proceed in the
Law Division against the bank's counsel. The judge also struck
Stefansky's affirmative defenses, thus leaving the parties to
litigate the validity of the default.
Following discovery, Judge Hodgson granted the bank's
motion for summary judgment on an undisputed factual record.
The judge found Stefansky was obligated under the line of credit
agreement and the mortgage to keep the taxes current.
Stefansky's admitted failure to pay the taxes, resulting in
institution of the tax sale foreclosure, constituted an event of
default under the loan documents, which permitted the bank to
accelerate the loan and reject further monthly payments.
The judge acknowledged the bank's payment of the taxes
frustrated Stefansky's plan to redeem the certificate, but found
its actions "could not be considered wrongful." The judge found
Stefansky had "not cited to any case law or contractual
provision which would preclude the plaintiff's actions to pay
3 A-4752-15T1
off the tax lien to preserve [its] interest in the property.
Default was not caused by the plaintiff but, rather, caused by
the defendant's delinquency in tax payments."
We affirm, substantially for the reasons expressed by Judge
Hodgson in his opinion from the bench on June 26, 2015. Because
Stefansky failed to assert any error in the bank's certification
of amount due, no hearing was necessary and final judgment was
appropriately entered.
Affirmed.
4 A-4752-15T1
WELLS FARGO BANK, N.A. VS. JACOB STEFANSKY(F-021316-14, OCEAN COUNTY AND STATEWIDE)
Combined Opinion