Chapter 4-9 Standing Where the Plaintiff Has Been Substituted

4-9 Standing Where the Plaintiff Has Been Substituted

A substituted plaintiff acquires the standing of the original plaintiff.⁹⁹ The substituted plaintiff must prove the standing of the original plaintiff as of the filing of the complaint, as well as its own standing at the time of trial.¹⁰⁰ There is no requirement that the substituted plaintiff prove its standing as of the time of substitution.¹⁰¹ The court is not permitted to dismiss the action solely because the plaintiff has transferred its interest during the pendency of the suit.¹⁰²

Two courts have ruled that a substituted plaintiff is unable to establish that it is the holder or non-holder in possession where the original note is filed with the court prior to substitution.¹⁰³ However, the Second District in 2018 held that where the substituted plaintiff obtains the original note from the Court file prior to trial and therefore physically possesses the note at the time of trial, this is sufficient to establish the substituted plaintiff's standing at the time of trial.¹⁰⁴ The Fourth District has distinguished the Second District's rulings and held that the transferred standing a substituted plaintiff acquires from the original plaintiff, coupled with the...