Referee Did Not Err in Declining to Hold Evidentiary Hearing

On August 5, 2026, the Second Department issued a decision in R4 RE, LLC v. Franklin Wash., Inc., 2026 NY Slip Op. 04882, holding that a referee did not err in declining to hold an evidentiary hearing, explaining:

The report of a referee should be confirmed whenever the findings are substantially supported by the record, and the referee has clearly defined the issues and resolved matters of credibility. Here, contrary to the defendants’ contentions, the referee’s computations regarding the amount due on the note, as well as the referee’s finding that the property should be sold in one parcel, were substantially supported by the record.

Contrary to the defendants’ contention, where, as here, a defendant had an opportunity to raise questions and submit evidence directly to the Supreme Court, which evidence could be considered by the court in determining whether to confirm the referee’s report, the defendant is not prejudiced by any error in failing to hold a hearing.

Accordingly, the Supreme Court properly granted the plaintiff’s motion to confirm the referee’s report and for a judgment of foreclosure and sale.

(Internal quotations and citations omitted).

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