Fannie Mae v. Branch

CourtMassachusetts Supreme Judicial Court
DecidedJuly 12, 2024
DocketSJC 13510
StatusPublished

This text of Fannie Mae v. Branch (Fannie Mae v. Branch) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fannie Mae v. Branch, (Mass. 2024).

Opinion

NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

SJC-13510

FANNIE MAE1 & another2 vs. ANTHONY MICHAEL BRANCH.

Plymouth. March 6, 2024. - July 12, 2024.

Present: Budd, C.J., Gaziano, Kafker, Wendlandt, & Dewar, JJ.

Summary Process, Appeal. Practice, Civil, Summary process, Moot case, Intervention, Substitution, Counterclaim and cross- claim, Summary judgment. Mortgage, Real estate, Foreclosure, Validity. Notice, Foreclosure of mortgage.

Summary process. Complaint filed in the Southeast Division of the Housing Court Department on June 12, 2017.

The case was heard by Wilbur P. Edwards, Jr., J., on a motion for summary judgment; and after transfer to the Metro South Division of the Housing Court Department, a motion to intervene, substitute a party, and amend the judgment was heard by Neil K. Sherring, J.

After review by the Appeals Court, the Supreme Judicial Court granted leave to obtain further appellate review.

Anthony Michael Branch, pro se. Karl F. Stammen, Jr., for the intervener. Thomas J. Santolucito for the plaintiff. Grace C. Ross, pro se, amicus curiae, submitted a brief.

1 Also known as Federal National Mortgage Association. 2 Roberto Pina Cardoso, intervener. 2

KAFKER, J. After being assigned the high bid at the 2016

foreclosure sale of Anthony Michael Branch's property in

Brockton, the Federal National Mortgage Association, better

known as Fannie Mae, commenced a summary process action against

Branch in the Housing Court. Judgment for possession entered in

Fannie Mae's favor, and Branch appealed. In December of 2018,

during the pendency of the appeal, Fannie Mae sold the property

to a third party, Roberto Pina Cardoso. Over the next four

years, while Branch remained in possession of the property,

Cardoso would successfully intervene and be joined as a party as

of right with Fannie Mae and be awarded use and occupancy

payments. In an unpublished May 2023 decision, however, a panel

of the Appeals Court vacated the Housing Court's judgment of

possession as moot, reasoning that after the sale to Cardoso,

Fannie Mae's possessory interest was no longer superior to

Branch's. The panel likewise declared moot Branch's appeal from

the order allowing Cardoso to intervene but affirmed dismissal

of Branch's counterclaims. See Fannie Mae v. Branch, 102 Mass.

App. Ct. 1121 (2023) (memorandum and order pursuant to rule

23.0). The Appeals Court decision thereby required Cardoso to

reestablish a right to possession and use and occupancy payments

in a new and separate case in the Housing Court. We granted

further appellate review. 3

We disagree with the Appeals Court's determinations of

mootness. Because it is undisputed that Fannie Mae transferred

its entire interest in the property -- including any possessory

interest -- to Cardoso after foreclosure, we conclude that he

maintains a live stake in adjudication of the judgment for

possession. We therefore affirm the order allowing Cardoso to

intervene and, reaching the summary judgment issues that the

Appeals Court did not, affirm entry of judgment for possession

in favor of Fannie Mae. We likewise affirm the dismissal of

Branch's counterclaims.3

Background. In 2009, Branch purchased the subject property

using a loan from Pentagon Federal Credit Union (Pentagon),

secured by a mortgage on the property. On February 28, 2013,

Pentagon mailed Branch a notice informing him that his loan was

in default.4 Further notices followed on June 12, 2013, and June

30, 2014. Branch was unsuccessful in negotiating a loan

modification, and when he did not cure the default, Pentagon

elected to move forward with foreclosure. A foreclosure sale

was scheduled but was subsequently canceled after Branch filed

3 We acknowledge the amicus brief submitted by Grace C. Ross. 4 The earliest missed payment in the record is June 1, 2012. Branch does not dispute that he was in default. 4

for bankruptcy in January 2016. Bankruptcy proceedings were

terminated in June of 2016.

In August 2016, Pentagon gave notice of an impending

foreclosure sale, both by mailed notice to Branch and

publication in a local newspaper.5 The sale was held on

September 14, 2016. Pentagon was the high bidder and assigned

its bid to Fannie Mae. On November 15, 2016, a foreclosure deed

granting the property to Fannie Mae was recorded with the

Plymouth County registry of deeds.6

On April 6, 2017, Fannie Mae served Branch with a fourteen-

day notice to quit, followed on June 5, 2017, by a summary

process summons and complaint, which sought both possession and

use and occupancy payments. A trial date was set for June 28.

On June 19, 2017, Branch timely filed his answer and

brought a number of counterclaims.7 He also requested discovery,

and the trial date was continued. In November 2017, Fannie Mae

moved for partial summary judgment on its claim for possession

5 Prior to the foreclosure sale, Branch attempted to work out a sale of the property on his own; he notified Pentagon of at least one offer, but it was rejected as too low. 6 Various affidavits concerning the mortgage, foreclosure, and sale were also recorded. 7 The counterclaims were based on promissory estoppel, negligent misrepresentation, violations of G. L. c. 93A, and violations of G. L. c. 244, § 35C. 5

and on Branch's counterclaims.8 On March 21, 2018, the motion

judge ruled in Fannie Mae's favor on all issues, entering a

judgment for possession and dismissing Branch's counterclaims.

Branch appealed. Shortly thereafter, Branch was also ordered to

pay $1,800 per month to Fannie Mae for use and occupancy.

Branch appealed from that order; that appeal took over four

years to resolve.9 See generally Branch v. Federal Nat'l Mtge.

Ass'n, 491 Mass. 1009, 1009-1011 (2022).

On December 10, 2018, during the pendency of Branch's

appeals, Fannie Mae sold the subject property to Cardoso,

transferring "all the estate, right, title interest, lien equity

and claim whatsoever" to Cardoso via quitclaim deed. See G. L.

c. 183, § 17 (listing applicable quitclaim covenants). Cardoso

filed a summary process complaint against Branch and

successfully moved to intervene in the existing Appeals Court

case.

In September 2020, a panel of the Appeals Court held that

the dispute over use and occupancy payments owed to Fannie Mae

was moot, as Fannie Mae no longer sought those payments after

selling the property to Cardoso. The panel did, however, remand

8 Fannie Mae did not move for summary judgment on its claim for use and occupancy payments. 9 He initially saw some success: a single justice of the Appeals Court reduced his payment to $500 per month. 6

the case to the Housing Court and "grant Cardoso leave to file,

and the Housing Court leave to consider, a motion to intervene

or to substitute Cardoso as the plaintiff in the summary process

action."

Cardoso thereafter filed such a motion on November 3, 2020.

Branch opposed.

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