Lawsuit challenging failure to appoint lawyers for foreclosed NY homeowners settles
In the wake of the 2008 foreclosure crisis, New York State enacted a law requiring parties to a foreclosure proceeding to participate in a settlement conference, and at that hearing the court must decide whether to appoint counsel for the homeowner.
In March 2024, the New York Civil Liberties Union (NYCLU) settled a 2023 lawsuit, Fainfair v. Knipel, against the Office of Court Administration (OCA) for failing to adhere to this law. Going forward, OCA has agreed to “send homeowners a notice informing them of the purpose of the conference and what information they should provide to allow the court to determine whether they should be appointed counsel.” But also, “Homeowners who are in active foreclosure proceedings that began on or after December 1, 2022, and who were unrepresented at their initial settlement conference but did not receive an appointed-counsel assessment, are entitled to a do-over of that conference, where the court will determine whether the homeowner should be appointed a lawyer.”
