Bill > A11257

This bill clarifies and codifies the limits of quasi-judicial immunity for referees appointed in mortgage foreclosure actions, meaning these referees will have less protection from lawsuits when they act improperly. Quasi-judicial immunity is a legal protection that shields certain officials from liability for their decisions, similar to how judges are protected. The bill defines "referee" as someone appointed in a mortgage foreclosure case, and distinguishes between "discretionary acts" (involving judgment) and "ministerial acts" (following prescribed steps without independent judgment). Referees will only have quasi-judicial immunity for discretionary acts that are within their authority and related to the judicial process. They will *not* have immunity for negligent or improper performance of ministerial acts, such as miscalculating amounts due, failing to properly handle or deposit surplus funds (money left over after the mortgage is paid off), or not filing required reports. The bill also explicitly states that referees will not have immunity for acting outside their authority, violating laws, or engaging in misconduct like converting foreclosure proceeds or failing to deposit surplus funds into court. Misconduct is broadly defined to include violating rules, acting without jurisdiction, mishandling funds, acting in bad faith, or significantly deviating from procedures. If misconduct is found, the foreclosure sale can be voided, and the referee can be held personally liable for damages. Additionally, referees must now certify under penalty of perjury that their calculations and distributions comply with the law and court orders, and false certifications can lead to civil liability. The bill also amends existing rules to state that referees acting outside their authority or making unlawful calculations in foreclosure actions are not entitled to immunity and can be held liable.