Edwards, Jr. v. John Hancock

CourtCourt of Appeals for the First Circuit
DecidedSeptember 4, 1992
Docket91-2317
StatusPublished

This text of Edwards, Jr. v. John Hancock (Edwards, Jr. v. John Hancock) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edwards, Jr. v. John Hancock, (1st Cir. 1992).

Opinion

USCA1 Opinion


September 4, 1992 UNITED STATES COURT OF APPEALS
September 4, 1992 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
FOR THE FIRST CIRCUIT
____________________
____________________

No. 91-2317
No. 91-2317

A. GREER EDWARDS, JR.,
A. GREER EDWARDS, JR.,

Plaintiff, Appellant,
Plaintiff, Appellant,

v.
v.

JOHN HANCOCK MUTUAL LIFE
JOHN HANCOCK MUTUAL LIFE
INSURANCE COMPANY,
INSURANCE COMPANY,

Defendant, Appellee.
Defendant, Appellee.

____________________
____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT
APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS
FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Robert E. Keeton, U.S. District Judge]
[Hon. Robert E. Keeton, U.S. District Judge]
___________________

____________________
____________________

Before
Before

Breyer, Chief Circuit Judge,
Breyer, Chief Circuit Judge,
___________________

Cyr, Circuit Judge,
Cyr, Circuit Judge,
_____________

and Fust ,* District Judge.
and Fust ,* District Judge.
______________

____________________
____________________

Maria L. Sveikauskas for appellant.
Maria L. Sveikauskas for appellant.
____________________
Edward S. Rooney, Jr., with whom Lyne, Woodworth & Evarts was on
Edward S. Rooney, Jr., with whom Lyne, Woodworth & Evarts was on
_______________________ _________________________
brief, for appellee.
brief, for appellee.

____________________
____________________

____________________
____________________

*Of the District of Puerto Rico, sitting by designation.
*Of the District of Puerto Rico, sitting by designation.

CYR, Circuit Judge. Plaintiff A. Greer Edwards, Jr.,
CYR, Circuit Judge.
______________

appeals a district court judgment dismissing his action against

John Hancock Mutual Life Insurance Company [hereinafter

"Hancock"] to recover damages allegedly caused by an

underinclusive property description in the notices of foreclosure

sale relating to certain Nevada ranch properties. Count I of the

complaint, a negligence claim, was dismissed as time-barred. The

breach of contract claim in count II was dismissed on the grounds

that Hancock had assumed no contractual obligation with respect

to the foreclosure sale and that the trustees under the Nevada

deeds of trust were not Hancock's agents.

I
I

BACKGROUND
BACKGROUND
__________

As these claims were dismissed pursuant to Fed. R. Civ.

P. 12(b)(6), we review the order of dismissal de novo, Garita
__ ____ ______

Hotel Ltd., Partnership v. Ponce Federal Bank, 958 F.2d 15, 17
________________________ ___________________

(1st Cir. 1992); McCoy v. Massachusetts Institute of Technology,
_____ _____________________________________

950 F.2d 13, 15 (1st Cir. 1991), accepting all well-pleaded

allegations in the complaint and drawing all reasonable

inferences in favor of the plaintiff, see Dartmouth Review v.
___ _________________

Dartmouth College, 889 F.2d 13, 16 (1st Cir. 1989). According to
_________________

the complaint, during 1975 and 1976 Hancock loaned approximately

$1,000,000 to a general partnership in which Edwards remains the

only interested partner. The Hancock loans were secured by first

2

deeds of trust on two Nevada ranch properties owned by the

partnership. Farmers Home Administration later extended loans

secured by second deeds of trust on the same properties.

The partnership defaulted on its loan obligations to

Hancock, which instituted foreclosure proceedings in July 1985.

The notices of the foreclosure sale specifically excluded

mineral, oil and gas rights from the property interests to be

sold at public auction. At the auction, Farmers Home Administra-

tion, the only bidder, acquired both ranch properties for

approximately $1,232,000. Freeport-McMoran Gold Company had

"expressed great interest" in acquiring the properties and was in

attendance at the auction, but refrained from bidding due to the

mineral rights exclusion.

After paying Hancock approximately $1,250,000 to

release its interest in the ranch properties, Farmers Home

Administration instituted an action against Edwards in the United

States District Court for the District of Nevada to recover a

deficiency approximating $600,000. On January 5, 1988, the

Nevada federal district court ruled the foreclosure sale invalid

on the ground that the notices of sale violated the Nevada

foreclosure statutes by excluding the mineral, oil and gas

rights. Farmers Home Administration subsequently transferred its

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