Deutsche Bank Trust Company Americas v. Kendall

CourtSuperior Court of Maine
DecidedOctober 4, 2019
DocketCUMre-17-303
StatusUnpublished

This text of Deutsche Bank Trust Company Americas v. Kendall (Deutsche Bank Trust Company Americas v. Kendall) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deutsche Bank Trust Company Americas v. Kendall, (Me. Super. Ct. 2019).

Opinion

STATE OF MAINE SUPERIOR COURT

Cumberland, ss.

DEUTSCHE BANK TRUST COMPANY AMERICAS

Plaintiff

V. Civil Action Docket No. CUMSC-RE-17-303

JOHN KENDALL et al.

Defendants

AMENDED ORDER ON DEFENDANTS' MOTION FOR SUMMARY JUDGMENT 1

Defendants in this residential foreclosure action, John Kendall and S. Sherman

B. Kendall, have filed a Motion for Summary Judgment on statute of limitations

grounds. Plaintiff Deutsche Bank Trust Co. Americas has filed an Opposition and

Defendants have filed a Reply.

The court elects to decide the Motion without oral argument. See M.R. Civ. P.

7(b )(7).

Undisputed Background Facts

On December 29, 2006, the Defendants executed a Fixed/ Adjustable rate Note

for $850,000 in favor of Homecomings Financial, LLC, and a mortgage securing the

note upon property at 28 Hammond Road, Falmouth, Maine. In May 2009, the

1 This Order amends the October 1, 2019 Order to correct a reference to the Law Court's Pushard decision. See M.R. Civ. P. 60(a).

Office ATTORNEYS: 1 Andrew Schaefer, Esq. (for plaintiff) Peter Clifford, Esq. (for defendants) Defendants executed an Adjustable Rate Modification Agreement, modifying their

loan obligation.

In 2009, Defendants were notified that Homecomings Financial had transferred

its right to collect payments on the note, as modified, to GMAC Mortgage.

In February 2010, GMAC Mortgage sent Defendants a Notice of Default

pursuant to 14 M.R.S. § 6111, advising them of their right to cure and indicating that

the loan would be accelerated if they did not cure within the time stated.

Later in 2010, Plaintiff Deutsche Bank commenced a foreclosure action against

the Defendants, seeking the entire balance alleged to be due on the note. See Deutsche

Bank Trust Co. Americas v. Kendal~ Me. Super. Ct., Cum. Cty., Docket No. CUMSC-

RE-10-465. That case was voluntarily dismissed without prejudice. There were two

more notices of default sent to the Defendants in 2012 and 2013 and another

foreclosure action commenced, which was also voluntarily dismissed without

prejudice. See Deutsche Bank Trust Co. Americas v. Kendal~ Me. Super. Ct., Cum. Cty.,

Docket No. CUMSC-RE-13-235.

There are additional facts but the court does not deem them material to the

decision.

Analysis

For purposes of this Motion, the Defendants do not challenge Plaintiffs

standing, nor do they contend that the two prior foreclosures should be given

preclusive effect in this case. (Neither of those matters is conceded; it is only that

2 neither is put into issue by Defendants' Motion). There do not appear to be any

disputed material facts.

The sole issue 1s whether this third foreclosure action by Plaintiff against

Defendants is barred by the statute of limitations. Under M.R. Civ. P. 56, the

Defendants' Motion requires them to show that they are entitled to judgment as a

matter oflaw on that issue.

Although Defendants argue that the general six-year statute of limitations

applies, see 14 M.R.S. § 752, the statute of limitations applicable to residential

foreclosure actions is 20 years from the expiration of the time for full performance of

the conditions of the mortgage. See 14 M.R.S. § 6104 2 ; see also Johnson v. McNeil, 2002

ME 99, ~~12-14, 800 A.2d 702. In Johnson, the Law Court made it clear that the

expiration of the statute oflimitations for an action on the note does not preclude an

action to foreclose the mortgage. 2002 ME 99, ~ 13, 800 A.2d 702. Defendants

contend that the statute oflimitations on the note has expired but that issue need not

be decided here because it does not bear on Plaintiffs right to pursue foreclosure of

the mortgage.

2 Section 6104 is an unusual statute oflimitations in that it does not set a definite limit in years for commencement of a residential foreclosure action. Rather, once twenty years have passed from the maturity date of the debt obligation, the mortgagor may commence what could be deemed a declaratory judgment action in Superior Court for the mortgage to be declared no longer valid. Id. Once the Superior Court has rendered judgment in that action, "[t]hereafter no action shall be brought by any person to enforce a title under said mortgage." Id. If the mortgagor does not initiate any such action, there would appear to be no limit on when the foreclosure action could be commenced.

3 Defendants contend that the Law Court's recent decision in Pushard v. Bank ef

America, 2017 ME 230, 175 A.3d 103, changes the analysis and entitles them to

summary judgment. In Pushard, the Law Court decided that that a judgment in favor

of the debtors in a prior foreclosure action barred relitigation of the debtors' liability

on the note and mortage, because the bank had accelerated payment on the note before

the prior foreclosure, thereby converting a periodic payment obligation into a "unitary

obligation" that had been adjudicated on its merits in the prior judgment. 2017 ME

230, ~35, 175 A.3d 103.

The Law Court's Pushard decision had nothing to do with statute oflimitations

issues, but it could mean that the first acceleration of the debt in 2010 created a

"unitary obligation" at that point, which in turn could indicate that the subsequent

notices of default and subsequent accelerations were surplus or null. That question

need not be decided here.

Because it is clear that the six-year statute oflimitations does not apply and no

deadline for commencement of this action has expired, IT IS ORDERED:

Defendants' Motion for Summary Judgment is hereby denied.

Pursuant to M.R. Civ. P. 79(a), the Clerk is hereby directed to incorporate this

Order by reference in the docket.

Dated October 4, 2019

A. M. Horton, Justice

4 STATE OF MAINE SUPERIOR COURT

DEUTSCHE BANK TRUST CO. AMERICAS as Trustee

V. Civil Action Docket No. CUMSC-RE-17-SOS

ORDER ON DEFENDANTS' MOTION FOR SUMMARY JUDGMENT

Defendants in this residential foreclosure action, John Kendall and S. Sherman

B. Kendall, have filed a Motion for Summary Judgment on statute of limitations

grounds. Plaintiff Deutsche Bank Trust Co. Americas has filed an Opposition and

The court elects to decide the Motion without oral argument. See M.R. Civ. P.

On December 29, 2006, the Defendants executed a Fixed/ Adjustable rate Note

for $850,000 in favor of Homecomings Financial, LLC, and a mortgage securing the

note upon property at 28 Hammond Road, Falmouth, Maine. In May 2009, the

Defendants executed an Adjustable Rate Modification Agreement, modifying their

1 In 2009, Defendants were notified that Homecomings Financial had transferred

its right to collect payments on the note, as modified, to GMAC Mortgage.

In February 2010, GMAC Mortgage sent Defendants a Notice of Default

pursuant to 14 M.R.S. § 6111, advising them of their right to cure and indicating that

the loan would be accelerated if they did not cure within the time stated.

Later in 2010, Plaintiff Deutsche Bank commenced a foreclosure action against

the Defendants, seeking the entire balance alleged to be due on the note. See Deutsche

Bank Trust Co. Americas v. Kendall, Me. Super. Ct., Cum. Cty., Docket No. CUMSC-

RE-10-465. That case was voluntarily dismissed without prejudice. There were two

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Related

Johnson v. McNeil
2002 ME 99 (Supreme Judicial Court of Maine, 2002)
Heidi Pushard v. Bank of America N.A.
2017 ME 230 (Supreme Judicial Court of Maine, 2017)

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