On August 14, 2025, Justice Reed of the New York County Commercial Division issued a decision in Wilmington Trust, N.A. v. 9th Ave Hotel Prop. Holding LLC, 2025 NY Slip Op. 51276(U), denying a motion to substitute in as a party because the movant failed to prove its standing, explaining:
Upon any transfer of interest, an action may be continued by or against the original parties unless the court directs the person to whom the interest is transferred to be substituted or joined in the action. Under CPLR 1021, a motion for substitution may be made by the successors or representatives of a party or by any party. The determination to substitute or join a party pursuant to CPLR 1018 is within the discretion of the trial court.
Here, nonparty movant sets forth no basis for this court to ascertain whether substitution is proper. MGH fails to provide any document reflecting an ownership interest relevant to this action.
The affirmation in support of the motion by the managing member of MGH is not sufficient proof of an assignment of a mortgage or the existence of an underlying debt owned by MGH.
Standing to make the motion for substitution is conferred on any person with a direct stake in the matter, but for the court to assess the propriety of the substitution, the movant must set forth some basis that establishes its stake in the matter. To establish entitlement to substitution, a party to whom an interest is transferred must, at minimum, provide evidence of ownership of that interest.
Where a party fails to submit evidence of a transfer of an ownership interest, substitution is properly denied.
(Internal quotations and citations omitted).