Keniston v. JP Morgan Chase Bank

CourtSuperior Court of Maine
DecidedMarch 16, 2006
DocketCUMcv-05-232
StatusUnpublished

This text of Keniston v. JP Morgan Chase Bank (Keniston v. JP Morgan Chase Bank) 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
Keniston v. JP Morgan Chase Bank, (Me. Super. Ct. 2006).

Opinion

STATE OF MAINE SUPERIOR COURT CIVIL ACTION CUMBERLAND, SS. DOCKET NO: CV-05-232

BRENDA FARXIS KEMSTON,

Plaintiff * R ~ \\I~ ED EORDER l JP MORGAN CHASE BANK, * * Defendant *

This case comes before the Court on Defendant JP Morgan Chase Bank's

Motion for Summary Judgment.

UNDISPUTED FACTS

On or about klarch 22,2001, Plaintiff Brenda Farris Keniston (Plaintiff)

was divorced from Dana A. Keniston. Pursuant to the divorce decree, a parcel of

real property located at 152 Bragdon Road in Freeport was set-aside to Plaintiff

as her sole and exclusive property.' The divorce decree further ordered that each

party assume, pay, and hold harmless the other from all credit card and other

debt standing in the name of each party. On or about April 4,2002, Providian

National Bank recovered a judgment against Dana Keniston for approximately

$24,100,00 from the use of a credit card. Shortly thereafter, Providian recorded a

writ of execution in the Cumberland County Registry of Deeds against Dana

Keniston that operates as a lien upon 152 Bragdon Road property. Plaintiff did

1 152 Bragdon Road was jointly owned by Brenda and Dana Keniston during their marriage. not receive notice of the ~ ' r iof t execution. Plaintiff recorded the divorce abstract

on March 5,2004.' JP Morgan Chase Bank (Defendant) is the successor-in-

interest to Providian.

Plaintiff instituted h s Declaratory Judgment action seelung to establish

that Defendant has no right to claim a lien against property solely owned by

Plaintiff based GF,a debt =wed by Dana K e r i s t ~ n .The ~ sole issiie is whe'uELer

Plaintiff's failure to record the divorce abstract before Providian recorded its writ

of execution establishes that Defendant's rights to 152 Bragdon Road are superior

to those of Plaintiff.

DISCUSSION

In moving for summary judgment, Defendant argues that by recording

the writ of execution prior to the recording of the divorce abstract, Defendant is

entitled to priority pursuant to Maine's recordng statute. 33 M.R.S.A. 201. In

respmss, P!aintiff argues that the writ of execut;on is void because Defendant

failed to notify Plaintiff of the writ of execution pursuant to 14 M.R.S.A. § 4651-

A(5). In the alternative, Plaintiff argues that equitable considerations warrant an

outcome in her favor. The Court reviews a motion for summary judgment in the

light most favorable to the non-moving party to decide whether the parties'

statements of material fact and the referenced record evidence indicate any

genuine issue of material fact. Bayviezu Bank, N.A. v. The Highland Gold Mortgagees

Realty Trust, 2002 ME 178, 9 9, 814 A.2d 449,451. Plaintiff admits that there are

n o genuine issues of material fact.

2 Plaintiff became aware of the lien when she tried unsuccessfully to refinance the properv. 3 Dana Keniston received a discharge in bankruptcy o n August 9, 2004. Recording an interest in property is paramount to protecting it from other

interested persons. According to Maine's recording statute, the first person to

properlv record a conveyance in Maine takes priority over all other unrecorded

conveyances. 33 J41.R.S.A. 5 201.4 Recording a writ of execution in the registry of

deeds for the county in w h c h the property is located constitutes perfection of the

attzchrnefit. 14 M.R.S.A. 4154. The serL;rityiintsrest remains peTf2cted u d e s s

the judgment debtor is not notified before the twentieth day of the recording of

the lien. 14 M.R.S.A.5 4651-A(5). Furthermore, according to the divorce laws,

the disposition of property upon a divorce is effective against a person when the

divorce decree or abstract is filed in the registry of deeds for the county where

the real estate is situated. 19-A M.R.S.A. 5 953(7) (Supp. 2004).

Here, although Plaintiff argues that she was not notified of the recording

of the writ of execution, she is not the judgment debtor. The law requires only

that the judgment debtor be notified of the recording of the writ of execution.

The issue then becomes whether Defendant has a priority interest in 152 Bragdon

Road bv nature of recording the writ of execution before Plaintiff recorded the

divorce abstract.

Recording statutes aim to protect "persons who have any interest in

examining the record title to property to w h c h they might thereafter become

owner, either in whole or in part, absolutely or otherwise." Banton v. Shorey, 77

"NO conveyance of a n estate in fee simple, fee tail or for life, or lease for more than 2 years or for a n indefinite term is effectual against any person except the grantor, his heirs and devisees, a n d persons having actual notice thereof unless the deed or lease is acknowledged and recorded i n the registry of deeds . . . Conveyances of the right, title or interest of the grantor, if duly recorded, shall be effectual against prior unrecorded conveyances, as if they purported to convey a n actual title. All recorded deeds, leases or other written instruments regarding real estate take precedence over unrecorded attachments a n d seizures." 33 M.R.S.A. 5 201 (1999). Me. 45 (1988). These statutes protect said persons by providing actual notice of

changes in title. B a y v i m Bank, N.A., 2002 ME 178, ¶ 14, 814 A.2d at 453.

Similarly, after a divorce court divides property between the divorcing parties,

the divorce laws require the recording of divorce decrees or abstracts to provide

notice of changes in ownership of property. Until those decrees or abstracts are

recorded, c ~ e d i t ~ rszch s , as Defendant, are -ii& p i t ox riotice of ckcii-igein

ownershp. Defendant's argument would be greatly weakened if Providian had

actual notice of the divorce and the property disposition prior to recording the

writ.j However, Providan was not aware of the divorce. When Providian filed

the writ of execution, it did so in the county where Dana A. Keniston was a

record joint owner of 152 Bragdon Road.

Notwithstanding Plaintiff's failure to record the divorce abstract, Plaintiff

is aslung the Court to permit her to present facts supporting her request for

zcpitable relief from the writ of e~ecution.The crux of Plaintiff's argument is that

despite her failure to record her ownershp interest in the property, a lien on her

property arising from her ex-husband's debt is improper, unjust, and inequitable

when a divorce decree establishes her sole right to the property.

Although Plaintiff is aslung h s Court for lenience in light of h s

unfortunate situation, the events that have taken place could have been avoided

had Plaintiff simply recorded her divorce decree in 2001. Unfortunately for

Plaintiff, there is an adequate remedy at law. Providian recorded first and

therefore has a priority interest in 152 Bragdon Road.

5 G a p e r v.Kittery W a t e r District, 385 A.2d 206, 207-08 (Me. 1978) ("When the facts known to the purchaser cast doubt upon the very existence of the seller's title, l ~ is e bound to inquire of him whether he has any real title or not."). The entry is as follows:

Defendant JP hlorgan Chase Bank's Motion for Summary Judgment is GRANTED.

DATE: 2- l d 86 COURTS ~dCounty 'x 2 8 7 041 12-0287

KENNETH ALTSHULER ESQ 257 DEERING AVENUE PORTLAND ME 0 4 1 0 3

COURTS ~dCounty )x 2 8 7 e 041 12-0287

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Related

Gagner v. Kittery Water District
385 A.2d 206 (Supreme Judicial Court of Maine, 1978)
Bay View Bank, N.A. v. Highland Golf Mortgagees Realty Trust
2002 ME 178 (Supreme Judicial Court of Maine, 2002)

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Keniston v. JP Morgan Chase Bank, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keniston-v-jp-morgan-chase-bank-mesuperct-2006.