Bill Text: NY A09096 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to good faith negotiations under mandatory settlement conferences; defines the term "good faith", and provides that the failure of a creditor to act in good faith shall entitle the debtor to appropriate relief as determined by the court including dismissal of the proceeding and/or cancellation of the underlying loan where appropriate.

Spectrum: Slight Partisan Bill (Republican 10-4)

Status: (Introduced - Dead) 2012-01-20 - referred to judiciary [A09096 Detail]

Download: New_York-2011-A09096-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9096
                                 I N  A S S E M B L Y
                                   January 20, 2012
                                      ___________
       Introduced  by M. of A. RA -- read once and referred to the Committee on
         Judiciary
       AN ACT to amend the civil practice law and rules, in relation to  manda-
         tory settlement conferences
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision (f) of rule 3408 of the civil practice law  and
    2  rules, as added by chapter 507 of the laws of 2009, is amended and a new
    3  subdivision (i) is added to read as follows:
    4    (f)  Both the plaintiff and defendant shall negotiate in good faith to
    5  reach a mutually agreeable resolution, including a loan modification, if
    6  possible. FOR THE PURPOSES OF THIS SECTION, FAILURE TO ACT IN GOOD FAITH
    7  SHALL INCLUDE BUT NOT BE LIMITED TO:
    8    (I) FAILURE OF EITHER PARTY TO ATTEND  AND  PARTICIPATE  IN  MEDIATION
    9  SETTLEMENT SESSIONS WITHOUT CAUSE;
   10    (II) FAILURE OF THE PLAINTIFF TO DESIGNATE A REPRESENTATIVE TO PARTIC-
   11  IPATE  IN THE SETTLEMENT CONFERENCE AUTHORIZED TO MAKE COMMITMENTS BIND-
   12  ING ON THE PLAINTIFF;
   13    (III) FAILURE OF THE PLAINTIFF TO FOLLOW A COURT'S  ORDER  TO  MAKE  A
   14  REASONABLE OFFER OF SETTLEMENT; OR
   15    (IV)  FAILURE OF THE PLAINTIFF TO FULFILL REQUIREMENTS UNDER STATE AND
   16  FEDERAL LAW.
   17    THE PLAINTIFF'S FAILURE TO REDUCE, RESTRUCTURE, REFINANCE  OR  FORGIVE
   18  THE DEBT SHALL NOT IN AND OF ITSELF BE EVIDENCE OF LACK OF GOOD FAITH BY
   19  THE PLAINTIFF.
   20    (I)  THE FAILURE OF A PLAINTIFF TO ACT IN GOOD FAITH SHALL ENTITLE THE
   21  DEFENDANT TO APPROPRIATE RELIEF AS DETERMINED BY  THE  COURT  INCLUDING,
   22  BUT  NOT LIMITED TO, IMPOSING A CIVIL PENALTY IN AN AMOUNT NOT TO EXCEED
   23  THE PRINCIPAL BALANCE DUE ON THE LOAN, ATTORNEY FEES, DISMISSAL  OF  THE
   24  PROCEEDING AND/OR CANCELLATION OF THE UNDERLYING LOAN WHERE APPROPRIATE.
   25    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD13884-03-2