Emigrant Residential LLC v. Pinti

134 F.4th 626
CourtCourt of Appeals for the First Circuit
DecidedApril 11, 2025
Docket24-1404
StatusPublished

This text of 134 F.4th 626 (Emigrant Residential LLC v. Pinti) 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
Emigrant Residential LLC v. Pinti, 134 F.4th 626 (1st Cir. 2025).

Opinion

United States Court of Appeals For the First Circuit

No. 24-1404

EMIGRANT RESIDENTIAL, LLC,

Plaintiff, Appellee,

v.

LINDA S. PINTI,

Defendant, Appellant,

LESLEY R. PHILLIPS; ANY AND ALL OCCUPANTS,

Defendants.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Denise J. Casper, U.S. District Judge]

Before

Montecalvo, Lynch, and Kayatta, Circuit Judges.

Eric E. Renner, with whom Duffy & Sweeney, Ltd., was on brief, for appellant. Brian C. Linehan, with whom Reneau J. Longoria and Doonan, Graves & Longoria, LLC were on brief, for appellee.

April 11, 2025 LYNCH, Circuit Judge. After long-running battles in the

Massachusetts state and federal courts arising from a 2009 default

on mortgage payments, this appeal arrives in a case we will call

Pinti III. This time we affirm the entry of judgment for Emigrant

Residential, LLC ("Emigrant"), which struck a recorded discharge

of a mortgage mistakenly given by Emigrant Mortgage Company (EMC),

a related entity. We also affirm entry of judgment against the

counterclaims brought by appellant Linda Pinti.

I.

We recount the facts of this appeal in the light most

favorable to Pinti and draw all reasonable inferences in Pinti's

favor. See Universal Trading & Inv. Co. v. Bureau for Representing

Ukrainian Ints. in Int'l & Foreign Cts., 87 F.4th 62, 65-66 (1st

Cir. 2023). We review a grant of a motion for summary judgment de

novo, affirming the grant if the record "presents no genuine issue

as to any material fact and reflects the movant's entitlement to

judgment as a matter of law." Mullane v. U.S. Dep't of Just., 113

F.4th 123, 130 (1st Cir. 2024) (quoting McKenney v. Mangino, 873

F.3d 75, 80 (1st Cir. 2017)). In doing so, we "must ignore

conclusory allegations, improbable inferences, and unsupported

speculation." Viscito v. Nat'l Plan. Corp., 34 F.4th 78, 83 (1st

Cir. 2022) (quoting Garcia-Garcia v. Costco Wholesale Corp., 878

F.3d 411, 417 (1st Cir. 2017)).

- 2 - In 1982, Lesley Phillips purchased an apartment located

at 1643 Cambridge Street in Cambridge, Massachusetts, assuming a

preexisting mortgage with a balance of roughly $40,000. Pinti,

Phillips's spouse, lived with Phillips at the property from 1987

onwards and was added to the deed in 2005. As part of refinancing

a 2005 home equity loan, on March 13, 2008, Pinti and Phillips

executed and delivered a promissory note to EMC for $160,000 (the

"Note"). Pinti and Phillips mortgaged the property to EMC to

secure the note and the mortgage was recorded (the "Mortgage").

On August 1, 2009, Pinti and Phillips defaulted on the Note by

failing to make payments. On September 29, 2009, EMC sent Pinti

and Phillips a 90-day notice of right to cure.

Various transactions are relevant between Emigrant

affiliates and Federal Home Loan Bank of New York ("FHLBNY"). In

December 1999, Emigrant's parent company, Emigrant Savings Bank

("Emigrant Bank"), entered into an Advances, Collateral Pledge and

Security Agreement (the "Advances Agreement") with FHLBNY. The

Advances Agreement provided, inter alia, that as security for loans

that FHLBNY may advance to Emigrant Bank, Emigrant Bank "hereby

assigns, transfers, and pledges to [FHLBNY], and grants to [FHLBNY]

a security interest in all of the Capital Stock, Mortgage

Collateral, Securities Collateral and Other Collateral." The

Advances Agreement defined Mortgage Collateral as including "first

- 3 - mortgages and deeds of trust . . . and all notes, bonds or other

instruments evidencing loans secured thereby."

On April 17, 2008, about a month after the execution of

the Note and Mortgage, ESB-MH Holdings, LLC (of which Emigrant,

the appellant, is the successor-by-merger), Emigrant Bank, and

FHLBNY executed a Subsidiary/Affiliate Collateral Pledge and

Security Agreement (the "Pledge Agreement"). The Pledge Agreement

provided that ESB-MH "assigns, transfers, and pledges to [FHLBNY]

and grants [FHLBNY] a security interest in" certain specified

collateral. That collateral also constituted "Collateral for all

purposes under the Advances Agreement," and the Pledge Agreement

established that "in addition to any rights or duties with respect

to the [collateral] otherwise expressly created by this Pledge

Agreement," FHLBNY and ESB-MH "shall have the same rights and

duties with respect to the [collateral] as . . . with respect to

Collateral under the Advances Agreement." The Pledge Agreement

required ESB-MH, inter alia, to deliver the collateral to FHLBNY

on demand.

On August 4, 2009, FHLBNY demanded that Emigrant Bank

deliver the collateral to FHLBNY. FHLBNY informed Emigrant Bank

that it had "moved Emigrant [Bank] to the Listing & Segregation II

collateral category for all its mortgage collateral" and referred

Emigrant Bank to FHLBNY's Members Product Guide and an attached

Delivery of Mortgage Collateral Procedures document. The Listing

- 4 - & Segregation II category imposed on Emigrant Bank and ESB-MH

certain requirements for maintaining collateral, including

endorsing each promissory note in blank and preparing individual

mortgage assignments to FHLBNY in recordable form. ESB-MH was

also required to stamp loan files as assigned to FHLBNY and

maintain the files in a separate vault or storage area marked

"Federal Home Loan Bank of New York." Between roughly November

2009 and January 2010, ESB-MH prepared mortgage assignments and

note allonges for mortgage collateral pledged or to be pledged as

security for loans from FHLBNY.

More specifically, as to Pinti's Note and Mortgage, on

November 30, 2009, EMC assigned the Mortgage to ESB-MH. At the

same time, ESB-MH endorsed the Note in blank and executed another

assignment of the Mortgage to FHLBNY. EMC never physically

delivered that assignment to FHLBNY, but Pinti argues, and Emigrant

disputes, that the assignment was delivered in 2009 based on the

terms of the Advances Agreement and the Pledge Agreement.

On December 28, 2009, the Notice of Right to Cure

expired, and EMC initiated foreclosure proceedings on the

property. Between 2010 and February 2011, Pinti filed for Chapter

7 bankruptcy and obtained a discharge. On August 22, 2011, EMC

issued a written response to a Qualified Written Request from Pinti

and Phillips, stating that ESB-MH was the owner of the loan and

EMC was the servicer of the loan. EMC further stated that the

- 5 - assignment transferring ownership of the Note and Mortgage to ESB-

MH had not been recorded and that the Note, Mortgage, and

assignment were in EMC's possession.

EMC proceeded with a foreclosure sale and sold the

property to Harold Wilion on August 9, 2012. EMC recorded the

foreclosure deed. Joel Marcano, EMC's assistant treasurer,

attested that under "EMC's established loan servicing policies and

procedures, upon receipt of the foreclosure sale proceeds from a

third[-]party purchaser following a foreclosure sale, EMC's loan

servicing department is to prepare a Memorandum" to EMC's loan

payoff department. The memorandum advises the loan payoff

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Bluebook (online)
134 F.4th 626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emigrant-residential-llc-v-pinti-ca1-2025.