June 23, 2025
ShareKelley Kronenberg Secures Dismissal of $2.8M Claim Against Credit Union
Kelley Kronenberg Partner/Business Unit Leader Scott Kagan and Attorney Amanda Pasternak secured a complete dismissal for Community Federal Credit Union in Tompkins County Supreme Court, successfully defeating a $2.8 million claim filed by a pro se petitioner.
The case involved a petitioner who filed an Article 78 petition alleging that funds were improperly removed from his account and seeking an order to expunge bank records and restore his account. The petitioner claimed that significant funds allegedly deposited in 2013 had been misappropriated, seeking $2.8 million in damages.
Scott identified multiple fatal flaws in the petitioner’s case and filed a comprehensive motion to dismiss. Their first argument established that Article 78 proceedings are designed to challenge actions by governmental bodies or officers acting on behalf of the State of New York or local agencies. Since Community Federal Credit Union is a private, not-for-profit cooperative financial institution owned and operated by its members, it is not subject to Article 78 proceedings.
Additionally, our defense team argued that even if the proceedings were proper, it was time-barred by the statute of limitations. The petitioner’s account had been closed in 2018 with proper documentation sent reflecting a negative balance, meaning his time to bring an Article 78 petition had lapsed within four months of receiving that information.
Most critically, Scott highlighted that the petitioner had failed to provide any evidence supporting his allegations of significant deposits or unauthorized withdrawals. Bank statements actually reflected nominal and negative balances in 2018 prior to the account closure, contradicting the petitioner’s claims.
The judge agreed with the defense arguments and dismissed the petition in its entirety. The Court concluded that Community Federal Credit Union was not subject to Article 78 proceedings as a privately owned cooperative and that the petitioner had provided no documentary evidence supporting his allegations, making the petition facially deficient.
This victory demonstrates the importance of identifying the proper legal framework for claims against financial institutions and highlights how thorough factual investigation can expose the absence of evidentiary support for substantial monetary claims.
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