A defendant mortgagor had prevailed in a U.S. District Court (E.D.N.Y.) foreclosure action. The mortgagor then sought recovery of reasonable attorney fees and expenses pursuant to N.Y. Real Property Law (RPL) §282. The court had granted summary judgment to the mortgagor and also held that the mortgagor was entitled to attorneys’ fees and costs as the “prevailing party under the state statute.” The U.S. Court of Appeals for the Second Circuit had affirmed. Thus, the court had to then address the amount of attorney fees to be awarded.

The mortgagee argued that the mortgagor’s lawyer was a “not-for-profit legal service provider that represented (mortgagor) without cost and thus did not actually charge him any attorney fees” and therefore, the mortgagor may not recover any attorney fees.

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