Supreme Court, Ontario County — Deficiency Judgment: CVM Partners LLC v. Houle

Supreme Court, Ontario County

Deficiency Judgment

Appraiser Fraud — Hearsay

CVM Partners LLC v. Houle
No. 98467
Judge Kocher

Background: The action was commenced to foreclose on property. The court signed a Judgment of Foreclosure and Sale and ultimately a deficiency judgment.  The defendant moved for an order vacating a deficiency judgment on the ground that the appraisal upon which the deficiency judgment was based is fraudulent. The defendant alleged that an administrative law judge suspended the certification of the appraiser and revoked his real estate license. The plaintiff argued that the ALJ’s findings were inadmissible hearsay.

Opinion: The Supreme Court held the defendant established fraud on the part of the appraiser sufficient to set aside the deficiency judgment. The court noted that the ALJ had found that the appraiser failed to disclose his involvement in the related property via his brother, and violated the Uniform Standards of Professional Appraisal Practices by failing to provide an analysis of the highest and best use of the property or to analyze a previous listing agreement and offer on the property. These issues are potentially relevant to the ultimate value ascribed to the subject property.

Robert T. Houle, pro se; Steven Laprade for the plaintiff