STATE OF MAINE SUPERIOR COURT CUMBERLAND, ss. CIVIL ACTION I ~ . .;;).l.(~ DOCKET NO: ((~:g 252 h
Rrl C ,:-, " , (I -,, _ J - : i'1'1 ' ",' 0 10 c'
DEUTSCHE BANK NATIONAL TRUST CO., AS TRUSTEE UNDER j THE POOLING AND SERVICING AGREEMENT RELATED TO IMPAC SECURED ASSETS CORP., MORTGAGE PASS-THROUGH CERTTFICATES SERIES 2003-3 ORDER Plaintiff,
v.
SALLY MERRILL,
Defendant
Deutsche Bank National Trust Company moves to substitute First Tracks
Investments, LLC, for itself as plaintiff pursuant to Rule 25(c). First Tracks, as the
alleged assignee of Deu tsche Ban k' s rights, moves for summary judgment
i:lgi:linst defendant Sally Merrill in this foreclosure action. First Tracks' motion is
denied due to numerous deficiencies in its Rule 56 statement of material facts.
Additionally, First Tracks does not appear to be the real party in interest in this
case.
BACKGROUND
Ms. Merrill owns property located in Cumberlilnd Cente~, Miline. On July
11,2006, she executed and delivered to American Residential Mortgage il
promissory note in the originul principal ilmount of $548,000.00. The note was
secured by a mortgage executed on the Silme date and delivered to Mortgage
Electronic Registriltion Systems, Inc. (MERS) as nominee for American. On
1 FebruJry 18, 2010, MERS assigned the mortgage to Deutsche Bank National Trust
Company, as trustee under the pooling and servicing agreement related to Impac
Secured Assets Corporation, Mortgage Pass-Through Certificates, Series 2006-3.
Deutsche Bank initiated this foreclosure action on May 28, 2010, in Superior
Court. Ms. Merrill responded with a handwritten filing stating that she expected
to settle the case within forty-five days. Mediation was scheduled to occur on
September 24, 2010.
On August 5, 2010, Deutsche Bank purported to assign both the mortgage
and the promissory note to First Tracks. Deutsche Bank filed a motion to
substitute First Tracks for itself as plaintiff in this suit. Ms. Merrill filed a
handwritten objection. First Tracks then filed its motion for summary judgment
on September 20, 201 O. Mediation was attempted on September 24, 2010, but the
parties were not able to reach an agreement.
DISCUSSION
Summary judgment is appropriate where there are no genuine issues of
material fact and the moving party is entitled to judgment as a matter of law.
M.R. Civ. P. 56(c); see nlso Levil/e v. RB.K. Cnly Corp., 2001 ME 77, <[ 4,770 A.2d
653, 655. A motion for summary judgment must be supported by citations to
record evidence of a quality that would be admissible at trial. [d. at (IT 6, 770 A.2d
at 65() (citing M.R. Civ. P. 56(e)). Judgment may be rendered against the moving
party if appropriate. M.R Ci v. P. 56(c).
Affidavits supporting a motion for summary judgment must be made on
the affiant's "personal knowledge." M.R. Civ. P. 56(e). First Tracks rests its
motion entirely on the affidavit of its own Vice President, Michael Cianchette,
and he only claims to have "knowledge" of the matters about which he testifies.
2 This is not adequate under the rule, as made evident by Mr. Cianchette's reliance
on the affidavi t of Deutsche Bank Vice President Steve Yamamoto. Mr.
Y<1m<1moto claims to have Ms. Merrill's records available to him, but he does not
claim to have actually read them or have any knowledge pertaining to Ms.
Merrill's mortgage, note, or alleged breach. This is not an adequate evidentiary
basis for First Tracks' motion for summary judgment.
First Tracks h<1s left the following necessary facts out of its statement of
material f<1cts, due in part to [<1ck of'<1dmissible evidence and in part to sheer
omission. It has not included the street address of the subject property, or
indic<1ted whether there are any amounts owed to other parties-in-interest and
their priority. Chase HOllie Fina/lce LLC v. HiggiJis, 2009 ME 136, 9I 11, 985 A.2d
508,510-11. It has not shown that Ms. Merrill breached her mortgage, or proven
the amount due on the note. Td. It has not provided evidence of a properly served
notice of def<1ult pursuant to 14 M.R.S. § 4111, or included proof of completed
mediation. Td. Given that First Tracks interprets Ms. Merrill's handwritten
responses <1S no response <1t all, it should have included <1 statement and affidavit
clddressing whether or not Ms. Merrill is in military service in accordance with
the Servicemembers Civil Relief Act. rd. Finally and most seriously, First Tracks
has not shown that ei ther it or Deutsche B<1nk have <1ny interest in the
promissory note <1nd mortg<1ge <1t the heC1ft of this action.
While First Tracks has included the assignment from Deutsche Bank to
itself with Mr. Cianchette's affidavit, it has not placed the assignment from
MERS to Deutsche Bank in the summary judgment record. l More importantly,
J A copy of this assignment is attZlched to the complaint, but the court may not independently search the record for evidence not cited in the moving party's 3 First Tracks only alleges that MERS assigned the mortgage to Deutsche Bank. No
party has alleged that American ever assigned the promissory note. A mortgage
interest is collateral to the debt obligation it secures, and generally an attempt to
transfer the mortgage without the promissory note is ineffectual. Averill v. Cone,
129 Me. 9, 12, 149 A. 297, 299 (1930) (cited in Mortgage Electronic Registmtion
Systems, fne. v. Saunders, 2010 ME 79, err 11 n.3, 2 A.3d 289, _); Wyman v. Porter,
108 Me. 110, 120, 79 A. 371, 375 (J 911); 4-37 Powell on Real Property § 37.27(2)
(Michael Allan Wolf ed., 1997). While the mortgage will automatically follow an
assignment of the note, an attempt to assign the mortgage without the note is a
nullity. Averill, 129 Me. at 12,149 A. at 299. Even if two entities do succeed in
separating the note and the mortgage, the possessor of the mortgage merely
holds it in trust for the holder of the debt interest. Wyman, 108 Me. at 120, 79 A. at
375.
Furthermore, MERS was never a mortgagee in this case because it was
never entitled to enforce the debt obligation held by American. Mortgage
Electronic Registratioll SystelJ/s, Illc. v. Saunders, 2010 ME 79, err 11, 2 A.3d 289, _ .
MERS's only rights were to possess and record the mortgage document.
fd. ([([ 10-11, 2. A.3d at _ . If the assignment from MERS to Deutsche Bank had
any effect, it was only to give Deutsche Bank the bare right to possess and record
the mortgage document as American's nominee. To foreclose on a mortgage and
enforce a promissory note, the foreclosing party must prove ownership of both
and produce evidence of all assignments and endorsements relating to each. 14
M.R.S. § 6321. Deutsche Bank clearly never had the promissory note, and itis
doubtful that it had even a nominal interest in the mortgage. It had no standing
statement of material facts. Mortgage Electronic Registratioll Systems, ll/c. V. Sallllders, 2010 ME 79, err 22,2 A.3d 289,_. 4 to initiate this foreclosure action, and could not give any greater interest to First
Tracks.
The en try is:
First Tracks' motion for summary judgment does not meet the evidentiary
requirements of Rule 56 and does not show that First Tracks is enti tled to a
foreclosure judgment.
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STATE OF MAINE SUPERIOR COURT CUMBERLAND, ss. CIVIL ACTION I ~ . .;;).l.(~ DOCKET NO: ((~:g 252 h
Rrl C ,:-, " , (I -,, _ J - : i'1'1 ' ",' 0 10 c'
DEUTSCHE BANK NATIONAL TRUST CO., AS TRUSTEE UNDER j THE POOLING AND SERVICING AGREEMENT RELATED TO IMPAC SECURED ASSETS CORP., MORTGAGE PASS-THROUGH CERTTFICATES SERIES 2003-3 ORDER Plaintiff,
v.
SALLY MERRILL,
Defendant
Deutsche Bank National Trust Company moves to substitute First Tracks
Investments, LLC, for itself as plaintiff pursuant to Rule 25(c). First Tracks, as the
alleged assignee of Deu tsche Ban k' s rights, moves for summary judgment
i:lgi:linst defendant Sally Merrill in this foreclosure action. First Tracks' motion is
denied due to numerous deficiencies in its Rule 56 statement of material facts.
Additionally, First Tracks does not appear to be the real party in interest in this
case.
BACKGROUND
Ms. Merrill owns property located in Cumberlilnd Cente~, Miline. On July
11,2006, she executed and delivered to American Residential Mortgage il
promissory note in the originul principal ilmount of $548,000.00. The note was
secured by a mortgage executed on the Silme date and delivered to Mortgage
Electronic Registriltion Systems, Inc. (MERS) as nominee for American. On
1 FebruJry 18, 2010, MERS assigned the mortgage to Deutsche Bank National Trust
Company, as trustee under the pooling and servicing agreement related to Impac
Secured Assets Corporation, Mortgage Pass-Through Certificates, Series 2006-3.
Deutsche Bank initiated this foreclosure action on May 28, 2010, in Superior
Court. Ms. Merrill responded with a handwritten filing stating that she expected
to settle the case within forty-five days. Mediation was scheduled to occur on
September 24, 2010.
On August 5, 2010, Deutsche Bank purported to assign both the mortgage
and the promissory note to First Tracks. Deutsche Bank filed a motion to
substitute First Tracks for itself as plaintiff in this suit. Ms. Merrill filed a
handwritten objection. First Tracks then filed its motion for summary judgment
on September 20, 201 O. Mediation was attempted on September 24, 2010, but the
parties were not able to reach an agreement.
DISCUSSION
Summary judgment is appropriate where there are no genuine issues of
material fact and the moving party is entitled to judgment as a matter of law.
M.R. Civ. P. 56(c); see nlso Levil/e v. RB.K. Cnly Corp., 2001 ME 77, <[ 4,770 A.2d
653, 655. A motion for summary judgment must be supported by citations to
record evidence of a quality that would be admissible at trial. [d. at (IT 6, 770 A.2d
at 65() (citing M.R. Civ. P. 56(e)). Judgment may be rendered against the moving
party if appropriate. M.R Ci v. P. 56(c).
Affidavits supporting a motion for summary judgment must be made on
the affiant's "personal knowledge." M.R. Civ. P. 56(e). First Tracks rests its
motion entirely on the affidavit of its own Vice President, Michael Cianchette,
and he only claims to have "knowledge" of the matters about which he testifies.
2 This is not adequate under the rule, as made evident by Mr. Cianchette's reliance
on the affidavi t of Deutsche Bank Vice President Steve Yamamoto. Mr.
Y<1m<1moto claims to have Ms. Merrill's records available to him, but he does not
claim to have actually read them or have any knowledge pertaining to Ms.
Merrill's mortgage, note, or alleged breach. This is not an adequate evidentiary
basis for First Tracks' motion for summary judgment.
First Tracks h<1s left the following necessary facts out of its statement of
material f<1cts, due in part to [<1ck of'<1dmissible evidence and in part to sheer
omission. It has not included the street address of the subject property, or
indic<1ted whether there are any amounts owed to other parties-in-interest and
their priority. Chase HOllie Fina/lce LLC v. HiggiJis, 2009 ME 136, 9I 11, 985 A.2d
508,510-11. It has not shown that Ms. Merrill breached her mortgage, or proven
the amount due on the note. Td. It has not provided evidence of a properly served
notice of def<1ult pursuant to 14 M.R.S. § 4111, or included proof of completed
mediation. Td. Given that First Tracks interprets Ms. Merrill's handwritten
responses <1S no response <1t all, it should have included <1 statement and affidavit
clddressing whether or not Ms. Merrill is in military service in accordance with
the Servicemembers Civil Relief Act. rd. Finally and most seriously, First Tracks
has not shown that ei ther it or Deutsche B<1nk have <1ny interest in the
promissory note <1nd mortg<1ge <1t the heC1ft of this action.
While First Tracks has included the assignment from Deutsche Bank to
itself with Mr. Cianchette's affidavit, it has not placed the assignment from
MERS to Deutsche Bank in the summary judgment record. l More importantly,
J A copy of this assignment is attZlched to the complaint, but the court may not independently search the record for evidence not cited in the moving party's 3 First Tracks only alleges that MERS assigned the mortgage to Deutsche Bank. No
party has alleged that American ever assigned the promissory note. A mortgage
interest is collateral to the debt obligation it secures, and generally an attempt to
transfer the mortgage without the promissory note is ineffectual. Averill v. Cone,
129 Me. 9, 12, 149 A. 297, 299 (1930) (cited in Mortgage Electronic Registmtion
Systems, fne. v. Saunders, 2010 ME 79, err 11 n.3, 2 A.3d 289, _); Wyman v. Porter,
108 Me. 110, 120, 79 A. 371, 375 (J 911); 4-37 Powell on Real Property § 37.27(2)
(Michael Allan Wolf ed., 1997). While the mortgage will automatically follow an
assignment of the note, an attempt to assign the mortgage without the note is a
nullity. Averill, 129 Me. at 12,149 A. at 299. Even if two entities do succeed in
separating the note and the mortgage, the possessor of the mortgage merely
holds it in trust for the holder of the debt interest. Wyman, 108 Me. at 120, 79 A. at
375.
Furthermore, MERS was never a mortgagee in this case because it was
never entitled to enforce the debt obligation held by American. Mortgage
Electronic Registratioll SystelJ/s, Illc. v. Saunders, 2010 ME 79, err 11, 2 A.3d 289, _ .
MERS's only rights were to possess and record the mortgage document.
fd. ([([ 10-11, 2. A.3d at _ . If the assignment from MERS to Deutsche Bank had
any effect, it was only to give Deutsche Bank the bare right to possess and record
the mortgage document as American's nominee. To foreclose on a mortgage and
enforce a promissory note, the foreclosing party must prove ownership of both
and produce evidence of all assignments and endorsements relating to each. 14
M.R.S. § 6321. Deutsche Bank clearly never had the promissory note, and itis
doubtful that it had even a nominal interest in the mortgage. It had no standing
statement of material facts. Mortgage Electronic Registratioll Systems, ll/c. V. Sallllders, 2010 ME 79, err 22,2 A.3d 289,_. 4 to initiate this foreclosure action, and could not give any greater interest to First
Tracks.
The en try is:
First Tracks' motion for summary judgment does not meet the evidentiary
requirements of Rule 56 and does not show that First Tracks is enti tled to a
foreclosure judgment. First Tracks' and Deutsch Bank's allegations do show, and
the entire record supports, that neither First Tracks nor Deutsch Bank are proper
parties to this litigation. Deutsch Bank and First Tracks have until
Pc! C OA \, erl, tvpto show that this action is being prosecuted in the name of the real party in interest pursuant to Rule 17. Failure
dismissal.
5 CLERK OF COURTS Cumberland County 205 Newbury Street, Ground Floor Portland, ME 04101
Uti1/1c/ !?r}vv CS> ./ pl· P 0 8 () (' lJl.!Cj Po/" I-ltr1J (7v lJiI/ / L
CLERK OF COURTS Cumberland County 205 Newbury Street, Ground Floor Portland, ME 04101
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