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Santander Consumer USA Inc. v. County of Suffolk

Lienholder Lacks Property Interest in 'Present Possessory Right' to Seized Vehicles

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MEMORANDUM & ORDER Plaintiff Santander Consumer USA, Inc. (“Plaintiff”) commenced this action pursuant to 42 U.S.C. §1983 (“Section 1983″) against the County of Suffolk (the “County”), arising out of allegations that the County seizes vehicles without notice to properly recorded lienholders in violation of the Fourth and Fourteenth Amendments of the United States and New York state Constitutions, inter alia. (Compl., ECF No. 1.) Before the Court is the County’s motion to dismiss the Complaint. (Mot., ECF No. 16; County Br., ECF No. 16-3; Pl. Opp., ECF No. 181; Reply, ECF No. 20.) For the reasons that follow, the motion is GRANTED in part and DENIED in part. Plaintiff is GRANTED leave to file an Amended Complaint. BACKGROUND2 Plaintiff is a corporation that provides financing for the purchase of vehicles and is the holder of duly recorded liens and security interests in certain vehicles (the “Subject Vehicles”). (Compl.

8, 10.) In brief, Plaintiff alleges that the County unconstitutionally seized and deprived Plaintiff of its interest in the Subject Vehicles by: (1) refusing to comply with due process as mandated by the Second Circuit in Ford Motor Credit Co. v. New York City Police, 503 F.3d 186 (2d Cir. 2007); (2) failing to surrender possession of the Subject Vehicles unless Plaintiff executed a general release of liability and/or indemnification in favor of the County; (3) imposing possessory liens over the Subject Vehicles and refusing to return possession until the liens were paid; (4) detaining the Subject Vehicles without warrant, or without an exception to the warrant requirement (collectively, the “Deprivations”). (Id.

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