Justia U.S. 1st Circuit Court of Appeals Opinion Summaries
Articles Posted in Real Estate & Property Law
United States v. Rivera-Ortiz
In a criminal prosecution in a New York district court, a federal grand jury indicted Appellant on drug-trafficking and money laundering charges. Appellant pleaded guilty to money laundering violations. The government, meanwhile, instituted a forfeiture action in the United States District Court for the District of Puerto Rico to litigate forfeiture issues related to the criminal charges. The government asserted that several parcels of real estate and Appellant’s interests in certain businesses were forfeitable but did not mention Appellant’s interest in a professional basketball team (the Franchise). The parties eventually reached a settlement, but the settlement agreement did not mention the Franchise. Years later, Appellant filed this motion for execution of judgment seeking compensation for the government’s alleged seizure of the franchise ancillary to the criminal case. The government alleged that it had never seized the franchise. The district court denied Appellant’s motion. The First Circuit affirmed, holding that Appellant failed to establish that the Franchise was seized. View "United States v. Rivera-Ortiz" on Justia Law
Posted in:
Criminal Law, Real Estate & Property Law
RFF Family Partnership, LP v. Link Dev., LLC
This three-way dispute between Link Development, LLC (Link), BD Lending Trust (BD), and RFF Family Partnership LP (RFF) stemmed from an unauthorized conveyance of a mortgage to BD on commercial property in Massachusetts, then owned by Link and now owned by RFF. Previous litigation resulted in settlement agreements between Link and BD and between RFF and BD. In this appeal, RFF challenged (1) the district court’s entry of summary judgment for Link and against RFF on RFF’s claims regarding the validity of the BD mortgage on the grounds that RFF was judicially estopped from challenging the validity of the mortgage, and (2) the court’s decision to exclude attorneys’ fees from damages that BD owed RFF for breach of the settlement agreement between RFF and BD, and the court’s refusal to enter judgment as a matter of law in favor of RFF on contract damages. The First Circuit (1) vacated the entry of summary judgment on RFF’s claims pertaining to the validity of the BD mortgage, holding that the district court abused its discretion in applying judicial estoppel; and (2) affirmed the district court’s decisions related to contract damages and the court’s award of attorneys’ fees under Chapter 93A of the Massachusetts General Laws. View "RFF Family Partnership, LP v. Link Dev., LLC" on Justia Law
Posted in:
Contracts, Real Estate & Property Law
Giroux v. Fed. Nat’l Mortgage Ass’n
Sharel Giroux executed a promissory note secured by a mortgage on her home. The mortgage and note were assigned to Federal National Mortgage Association (Fannie Mae). Giroux filed suit in a New Hampshire state court contending that Fannie Mae and others lacked sufficient rights to assign the note. Giroux’s claim was dismissed for lack of standing. After a foreclosure sale was scheduled, Giroux filed a complaint against Fannie Mae and MERSCORP Holdings, Inc. seeking to enjoin the sale. The action was removed to federal district court. The district court dismissed Giroux’s action, concluding that, because her claims could have been brought before the New Hampshire state court, her action was barred on res judicata grounds. Giroux moved to vacate the district court’s judgment under Fed. R. Civ. P. 60. The district court summarily denied the request. The First Circuit affirmed, holding that the district court did not abuse its discretion in determining that Giroux’s claim lacked merit, even if the court declined to offer a rationale. View "Giroux v. Fed. Nat’l Mortgage Ass’n" on Justia Law
Posted in:
Real Estate & Property Law
Global Tower Assets LLC v. Town of Rome
Appellants sought permission from the Town of Rome Planning Board to build a wireless communications tower. The Planning Board voted to deny Appellants’ application. Appellants subsequently filed suit alleging various claims under the Telecommunications Act of 1996 (TCA), the Due Process Clause, and Maine law. The TCA provides relief to those who are denied permission to build telecommunications facilities at the state or local level through “final action.” The district court dismissed the majority of the TCA claims without prejudice because Appellants had not appealed to the Board of Appeals at the time they filed their TCA claims and also dismissed Appellants’ due process challenges. The First Circuit affirmed, holding (1) the district court correctly dismissed Appellants’ TCA claims, as the Planning Board’s decision did not mark the end of the administrative process and thus was not a “final action” for TCA purposes; and (2) Appellants’ federal constitutional due process claims were without merit. View "Global Tower Assets LLC v. Town of Rome" on Justia Law
Perfect Puppy, Inc. v. City of East Providence
In 2014, Perfect Puppy, Inc. signed a lease to use a City of East Providence building for a “Puppy Sales store.” Less than two months later, the East Providence city council formally passed an ordinance banning dog and cat sales. Perfect Puppy sued East Providence in state court. The case was removed to federal court on federal-question grounds. The district judge granted East Providence summary judgment on all claims except Perfect Puppy’s takings claim. As for any possible facial-takings challenge, the judge concluded that the claim lacked development. Noting that Perfect Puppy had not asked the state for compensation, the judge deemed the as-applied challenge unripe and remanded the suit to state court for lack of subject-matter jurisdiction. The First Circuit affirmed the judge’s handling of the facial-takings issue and dismissed Perfect Puppy’s appeal for lack of jurisdiction as to that part of the judge’s order remanding the as-applied claim to state court, holding (1) Perfect Puppy failed to bring a facial-takings challenge; and (2) the lack-of-jurisdiction ground for the remand of the as-applied challenge was colorable, which meant that the First Circuit lacked appellate jurisdiction to review the judge’s decision. View "Perfect Puppy, Inc. v. City of East Providence" on Justia Law
Summers v. Fin. Freedom Acquisition LLC
The decedent, who owned property in Rhode Island, entered into a reverse mortgage with Financial Freedom providing that the full amount of the debt would become due and payable upon the borrower’s death. Financial Freedom subsequently assigned the mortgage to Mortgage Electronic Registration Systems, Inc. as a nominee of Financial Freedom. After the decedent died, the probate court granted the decedent’s interest in the property to Plaintiffs, the decedent’s son and daughter. Thereafter, Plaintiffs received a notice of foreclosure, foreclosure proceedings went forward, and the mortgage was reassigned to Financial Freedom. Plaintiffs sued in federal district court, contesting the validity of the serial mortgage assignments and the foreclosure itself. The district court granted summary judgment for Financial Freedom. The son appealed. The First Circuit affirmed, holding (2) Plaintiff lacked standing to challenge the mortgage assignments; and (2) Financial Freedom’s failure to file a claim in the probate proceedings did not pretermit its right to foreclosure on the property. View "Summers v. Fin. Freedom Acquisition LLC" on Justia Law
Posted in:
Real Estate & Property Law
Sheedy v. Deutsche Bank Nat’l Trust Co.
In 2004, Laura Sheedy refinanced property she owned. For the transaction, Sheedy executed a promissory note and mortgage in favor of Washington Mutual Bank (WAMU). The mortgage was eventually assigned to Deutsche Bank National Trust Company. JPMorgan Chase National Association (Chase) serviced the loan. Deutsche Bank subsequently commenced foreclosure proceedings. Thereafter, in 2010, Sheedy filed for protection under Chapter 13 of the Bankruptcy Code. As part of her plan, Sheedy raised a series of allegations of lender liability. In 2011, Sheedy filed this adversary proceeding to have the bankruptcy court resolve her lender liability claims, adding that Deutsche Bank and Chase (together, the Secured Creditors) were liable for fraud deceit, and misrepresentation on the basis that WAMU provided her with inaccurate or false information concerning the terms of the note and the mortgage. The bankruptcy court granted summary judgment in favor of the Secured Creditors. The district court affirmed. The First Circuit affirmed, holding that all of Sheedy’s claims were either time-barred or without merit. View "Sheedy v. Deutsche Bank Nat’l Trust Co." on Justia Law
Ouch v. Fed. Nat’l Mortgage Ass’n
Appellants Heang Ouch and Morcos Hanna sought to represent a putative class of borrowers who had not kept up with their mortgage loan payments. The borrowers’ loan servicers made a number of contractually-mandated advances (dubbed “delinquency advances”) of funds to the holders of the notes. The loan servicers also, as agents of the holders of the notes, initiated foreclosure proceedings against the borrowers. The borrowers filed separate suits arguing that, despite their non-payment, the servicers’ delinquency advances constituted payments on the borrowers’ debts, that their mortgages were not in default and, accordingly, that the mortgage-holders lacked the power to foreclose. The district court concluded that the services’ payments were not made “on behalf of” the borrowers. The First Circuit consolidated Ouch’s and Hanna’s appeals and affirmed the district court’s rulings denying an amendment to Ouch’s complaint and dismissing Hanna’s complaint with prejudice, holding that the district court did not err in concluding that the payments were not made “on behalf of” the borrowers. View "Ouch v. Fed. Nat’l Mortgage Ass’n" on Justia Law
Posted in:
Banking, Real Estate & Property Law
Bank of America, N.A. v. Casey
At issue in this case was the correct interpretation of two different state statutes concerning defects in real estate titles. A Chapter 7 bankruptcy trustee filed this action to avoid a mortgage held by a bank that contained a material defect: the certificate of acknowledgement did not include the names of the mortgagors. After the mortgage was recorded, the notary on the mortgage executed an affidavit, later recorded, attesting that the debtors had personally and voluntarily signed the mortgage. The debtors later went into bankruptcy. At issue in this case was whether, under Massachusetts law, the affidavit could cure the defective acknowledgement or otherwise provide constructive notice to a bona fide purchaser. If not, the bankruptcy trustee could avoid the mortgage. Because the state law questions were dispositive and unresolved by the Massachusetts Supreme Judicial Court (SJC), the First Circuit certified the questions for resolution by the Massachusetts SJC. View "Bank of America, N.A. v. Casey" on Justia Law
Posted in:
Banking, Real Estate & Property Law
Lister v. Bank of America, N.A.
Claiming that they were uncertain as to which entity held an enforceable mortgage on their home, Plaintiffs brought actions against numerous potential mortgagees, seeking “interim relief,” “quieting of title,” and “credit reporting.” The district court granted Defendants’ motions to dismiss for failure to state a claim. The First Circuit affirmed but for different reasons than those stated by the district court, holding that because Plaintiff relinquished legal title to the property and because Plaintiff’s assertions respecting uncertainty over the mortgage speak solely to the legal title and not to her equitable interest in the property, there was not the requisite adversity to cloud her claim of equitable title as required by the quiet title statute. View "Lister v. Bank of America, N.A." on Justia Law
Posted in:
Banking, Real Estate & Property Law