Justia Maine Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Bank of Am., N.A. v. Greenleaf
Scott Greenleaf executed a promissory note to Residential Mortgage Services, Inc. (RMS). That same day, Greenleaf signed a mortgage on property securing that debt. The mortgage listed RMS as the lender of the debt and Mortgage Electronic Registration Systems, Inc. (MERS) as the nominee for the lender. MERS subsequently assigned its interest in the mortgage and note to Countrywide Home Loans Servicing, LP (BAC). BAC then merged with Bank of America, N.A. (Bank). Five years later, the Bank instituted foreclosure proceedings against Greenleaf. The district court entered a judgment of foreclosure in favor of the Bank. Greenleaf appealed, arguing that the Bank lacked standing to foreclose on the property. The Supreme Court agreed with Greenleaf and vacated the judgment, holding (1) the Bank proved its status as the holder of the note but failed to establish its ownership of Greenleaf’s mortgage; and (2) because the Bank failed to satisfy two of the Higgins foreclosure requirements, the Bank was not entitled to a judgment of foreclosure in any event. View "Bank of Am., N.A. v. Greenleaf" on Justia Law
Posted in:
Banking, Real Estate & Property Law
U.S. Bank, N.A. v. Sawyer
In 2009, David and Debra Sawyer defaulted on a mortgage held by U.S. Bank N.A. In 2012, the Bank filed a complaint for foreclosure. At the time the complaint was filed, J.P. Morgan Chase Bank N.A. had taken over as loan servicer. Four court-ordered mediations subsequently took place, during which time the Sawyers attempted to negotiate a modification with Chase. The mediations were unsuccessful, largely due to Chase’s repeated delays and requests to submit documentation that the Sawyers had already submitted. At a show cause hearing, the superior court subsequently dismissed the Bank’s complaint with prejudice, concluding that the Bank was not prepared to proceed at the hearing. The Supreme Court affirmed, holding (1) the sanction was not excessive under the circumstances, and (2) there was evidence that the Sawyers were prejudiced by the Bank’s failure to participate in the mediation process in good faith. View "U.S. Bank, N.A. v. Sawyer" on Justia Law
Posted in:
Banking, Real Estate & Property Law
Laprel v. Going
When Douglas Going did not inherit land owned by his parents, Going sent a notice of demand to his cousin, Alayna Laprel, and her husband, Neal Smith, who had lawfully purchased the land from Going’s father. In the notice, Going called Laprel a “thief.” Going then purported to place and record a “commercial lien” on the property. Laprel and Smith filed a complaint seeking a declaration that the purported lien was baseless and alleging claims for, inter alia, slander, libel, and slander of title. The superior court entered summary judgment in favor of Laprel and Smith on their declaratory judgment claim and on their claim for slander of title. The Supreme Court affirmed, holding (1) the superior court did not lack jurisdiction to act in this case; and (2) the superior court did not err in failing to dismiss without prejudice Laprel’s and Smith’s own slander of title claim. View "Laprel v. Going" on Justia Law
Posted in:
Injury Law, Real Estate & Property Law
Thurston v. Galvin
Defendant entered into a land installment contract that established the terms of a transfer from Plaintiffs to Defendant of a parcel of land. Defendant failed to make the payments required by the contract, and Plaintiffs commenced this action. Defendant argued that because the contract did not comply with 33 Me. Rev. Stat. 482(1) Plaintiffs were barred from obtaining relief. The district court entered a judgment of foreclosure against Defendant and ordered a writ of possession in favor of Plaintiffs, concluding that, even if the contract failed to comply with section 482(1), Plaintiffs would have had could obtain possession of the property through the forcible entry and detainer process. The Supreme Court affirmed, holding (1) the contract was enforceable because it was in substantial compliance with section 482(1); and (2) 14 Me. Rev. Stat. 6203-F does not require a court to order a public sale of property when ordering a foreclosure on a land installment contract. View "Thurston v. Galvin" on Justia Law
Posted in:
Contracts, Real Estate & Property Law
Bank of New York Mellon, N.A. v. Re/Max Realty One
A Bank and Re/Max Realty One signed a listing agreement granting Re/Max the exclusive right to sell a certain property. A buyer signed a purchase-and-sale agreement with the Bank and paid $86,900 in earnest money, which Re/Max held in escrow. The buyer later defaulted under the terms of the agreement. Re/Max subsequently procured a second buyer to purchase the property. After participating in mediation, the Bank and the first buyer agreed the divide the earnest money between themselves, with $49,500 going to the Bank and $37,400 to the buyer. Re/Max sent a $37,400 check to the buyer and a check for $24,750 to the Bank, retaining the remaining $24,750. The Bank sued Re/Max for breach of the listing agreement stemming from Re/Max’s retention of $24,750 of the earnest money. The superior court granted summary judgment to the Bank. The Supreme Court vacated the judgment of the superior court, holding that Re/Max was entitled to summary judgment on the Bank’s breach of contract claim because the unambiguous language of the listing agreement obligated the Bank to divide any forfeited earnest money with Re/Max, including money the Bank received pursuant to its mediated agreement with the first buyer. View "Bank of New York Mellon, N.A. v. Re/Max Realty One" on Justia Law
McClare v. Rocha
Plaintiff and Defendant each held a one-third interest in property as tenants in common. Plaintiff and Defendant, assisted by counsel, had discussions via email regarding the possible sale of Plaintiff’s interest. The emails stated that Defendant “offered” to acquire Plaintiff’s interest and that Plaintiff “accept[ed]” the offer. Plaintiff subsequently filed a complaint against Defendant seeking, among other things, specific performance of the contract for the sale of his interest in the property to Defendant. The superior court granted partial summary judgment on the specific performance claim, concluding there had been no valid contract formation because the emails between Plaintiff and Defendant did not contain all the material terms necessary to form a contract for the sale of land. The Supreme Court vacated and remanded, holding (1) an email can constitute a writing pursuant to the statute of frauds and the Maine Uniform Electronic Transactions Act; and (2) unresolved issues of material fact existed as to whether a contract for the sale of land was formed in this case. View "McClare v. Rocha" on Justia Law
Sleeper v. Loring
Plaintiffs owned property near but not on Sebago Lake. Defendants owned shorefront property on the lake. Through their deeds, Plaintiffs acquired an easement consisting of a right-of-way over lot 40A, a strip of land situated between Defendants' lots. In 2007, the lot was conveyed to Defendants. Before the conveyance, Plaintiffs obtained a permit for the construction of a dock extending from the lot to the lake. In 2010, the Town's code enforcement officer rescinded the permit and ordered the dock to be removed. The Town's zoning board upheld the enforcement officer's decision. Plaintiffs filed suit, challenging the zoning board's decision and Defendants' fee simple title to the lot and seeking a declaratory judgment that they were entitled to maintain a dock on the lot. Ultimately, the superior court found Defendants held fee simple title to the lot and that the easement held by Plaintiffs did not grant them a right to maintain the dock. The Supreme Court vacated the judgment, holding that the deed in Defendants' chains of title unambiguously excepted the lot from a prior conveyance and that deeds in Plaintiffs' chains of title were ambiguous as to whether the dock was allowed. Remanded. View "Sleeper v. Loring" on Justia Law
Horton v. Town of Casco
Shellie and Robert Symonds executed a lease agreement granting AT&T Mobility the right to use a portion of their property to build a wireless communication tower. The town planning board approved AT&T's application seeking approval for the project. William Horton and others appealed, and the town zoning board of appeals (ZBA) upheld the planning board's approval of AT&T's application. Horton appealed, arguing that the lease agreement created a new lot that did not meet the minimum space and setback requirements of the town's zoning ordinances. The Supreme Court affirmed, holding that the lease did not create a new lot and that the setback requirements of the relevant zoning ordinance were satisfied. View "Horton v. Town of Casco" on Justia Law
Wilmington Trust Co. v. Sullivan-Thorne
Anne Sullivan-Thorne (Defendant) executed a mortgage on her house in favor of IndyMac Bank, FSB. Cambridge Mutual Fire Insurance Company filed an action against Defendant relating to damage done to the home. As part of the litigation, Defendant filed an action against IndyMac seeking to have all insurance proceeds payable to her alone. IndyMac counterclaimed against Defendant, alleging that Defendant had breached the note and mortgage and that Defendant had caused IndyMac not to receive payment of insurance proceeds in an amount sufficient to repair the property. The superior court dismissed IndyMac's counterclaim and entered a final judgment in which the court ordered that Cambridge re-issue the insurance proceeds and make them payable to Defendant alone. IndyMac later assigned the mortgage to Wilmington Trust Company (Plaintiff), who filed this action seeking a judgment of foreclosure against Defendant. The district court entered summary judgment for Defendant, finding that the action was barred by the doctrine of res judicata. The Supreme Court vacated the judgment of the district court, holding that because Wilmington's foreclosure claim did not present matters that "were, or might have been, litigated" in the earlier action, the court erred in entering summary judgment for Defendant on claim preclusion grounds. View "Wilmington Trust Co. v. Sullivan-Thorne" on Justia Law
Tisdale v. Buch
Appellant was the owner of lots in a subdivision. Appellant and others in the area used a right-of-way to access the lake for recreational purposes. Appellees, who owned lots adjacent to the right-of-way, later refused to let others use the right-of-way. Appellant filed a complaint seeking declaratory and injunctive relief regarding the parties' rights in the right-of-way. The superior court concluded that Appellee owned the right-of-way pursuant to the Paper Streets Act and that the right-of-way was not part of a common scheme of development. The Supreme Court affirmed, holding that the superior court (1) did not err in its application of the Paper Streets Act; and (2) did not err in finding there was no common scheme of development. View "Tisdale v. Buch" on Justia Law
Posted in:
Maine Supreme Court, Real Estate & Property Law