MTGLQ INVESTORS, LP v. JOHN M. MCGILLEN & Others.

CourtMassachusetts Appeals Court
DecidedSeptember 6, 2024
Docket23-P-0800
StatusUnpublished

This text of MTGLQ INVESTORS, LP v. JOHN M. MCGILLEN & Others. (MTGLQ INVESTORS, LP v. JOHN M. MCGILLEN & Others.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MTGLQ INVESTORS, LP v. JOHN M. MCGILLEN & Others., (Mass. Ct. App. 2024).

Opinion

NOTICE: Summary decisions issued by the Appeals Court pursuant to M.A.C. Rule 23.0, as appearing in 97 Mass. App. Ct. 1017 (2020) (formerly known as rule 1:28, as amended by 73 Mass. App. Ct. 1001 [2009]), are primarily directed to the parties and, therefore, may not fully address the facts of the case or the panel's decisional rationale. Moreover, such decisions are not circulated to the entire court and, therefore, represent only the views of the panel that decided the case. A summary decision pursuant to rule 23.0 or rule 1:28 issued after February 25, 2008, may be cited for its persuasive value but, because of the limitations noted above, not as binding precedent. See Chace v. Curran, 71 Mass. App. Ct. 258, 260 n.4 (2008).

COMMONWEALTH OF MASSACHUSETTS

APPEALS COURT

23-P-800

MTGLQ INVESTORS, LP

vs.

JOHN M. MCGILLEN & others.1

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

This is a post-foreclosure summary process action brought

by the plaintiff, MTGLQ Investors, LP, against the pro se

defendants, John, Amy, Abigail, and Katy McGillen, to recover

possession of a residence located in Harwich, Massachusetts (the

premises). After a bench trial, a judge of the Housing Court

found in favor of the plaintiff on its claim of possession. On

appeal, the defendants make several claims of error,2 including

1Abigail E. McGillen, Amy J. McGillen, and Katy K. McGillen. Abigail E. McGillen is now named Abigail Phaup, but as is our custom, we spell the defendant's name as it was spelled in the complaint.

2One of the defendants' arguments is that the trial judge lacked professionalism and integrity. In part they rely on a recent public reprimand of the judge by the Supreme Judicial that the trial judge did not consider certain evidence they

claim proves that the foreclosure auction was fraudulent, which

they argue would void the foreclosure sale. Because the judge

appears to have not considered evidence that the defendants had

submitted to the court in support of their motion to dismiss and

subsequently relied on at trial regarding the deficiencies in

the foreclosure auction, we vacate the judgment in favor of the

plaintiff and remand the case for a new trial.

Background. In 2007, facing financial difficulty with

unsecured debts, John and Amy McGillen sought to execute a

mortgage and promissory note.3 They claim that when they arrived

at the closing and learned that their monthly payments were more

than what they were led to believe and more than they could

afford, they walked out of the closing without signing the loan

documents. However, on that same day, a promissory note was

created, and the mortgage on the premises was recorded. About

two months after the closing, John and Amy McGillen began

receiving mortgage statements seeking monthly payments for the

Court. See Matter of a Judge, Supreme Judicial Court, No. OE- 150 (Dec. 22, 2022). Neither the facts described in the text of this opinion, nor that reprimand, singly or together, require reversal of the judgment.

3 The allegations that form the basis of the defendants' primary defense in the summary process action surrounding the mortgage can be found in John and Amy McGillen's first amended complaint in McGillen vs. JP Morgan Chase Bank, N.A., U.S. Dist. Ct., No. 19-11917 (D. Mass. Jan. 31, 2020).

2 2007 loan. They claim they later learned that Amy McGillen's

signature was forged on the mortgage application, and they

attempted to contact various agencies including the original

bank but were unsuccessful in their attempts to resolve the

issue. The plaintiff sent a notice of default in April of 2008.

In 2020, the plaintiff acquired title to the premises by

foreclosure deed following a foreclosure sale at auction of the

mortgaged premises. On May 11, 2022, after sending notice to

the defendants to vacate the premises, the plaintiff filed this

summary process action in the Housing Court seeking possession.4

The parties were notified that their first court appearance

would be on June 16, 2022, for court-ordered mediation. The

defendants did not file an answer but appeared in court on

numerous occasions, and both the plaintiff and the defendants

met with a housing specialist for court-ordered mediation. On

September 7, 2022, the defendants filed a written motion to

dismiss the summary process action and attached to their motion

a thumb drive containing proposed exhibits that purportedly

included video footage of the foreclosure sale.5

4 The summary process action was docketed on May 17, 2022.

5 A docket entry confirmed that the defendants filed a motion to dismiss "with exhibits and thumb drive."

3 On November 28, 2022, after several unsuccessful attempts

to resolve the matter by way of mediation, the parties appeared

for the summary process trial. At the beginning of the summary

process trial, the judge first heard arguments on the

defendants' motion to dismiss. The defendants first argued that

the 2020 foreclosure auction was conducted fraudulently. The

defendants then contended that in 2007 Amy McGillen's signature

was forged on the original mortgage application and that

dismissal was warranted because the original mortgage was

fraudulently obtained. After hearing argument, the judge noted

that the issue of the forged mortgage instruments was raised by

the defendants in a Federal court action that was later

dismissed with prejudice. The judge denied the defendants'

motion to dismiss based on principles of res judicata.6 The

judge did not address the defendants' claim that the 2020

foreclosure auction was fraudulent, thereby potentially

invalidating the deed.

The case then proceeded to trial. The plaintiff did not

call any witnesses but called to the judge's attention proposed

exhibits filed with the clerk's office including certified

copies of the underlying mortgage, various assignments, the

6 The outcome of that motion is not argued on appeal.

4 order of notice, affidavits and the certificate of entry, and a

certified copy of the foreclosure deed. The plaintiff then

argued that these documents established a prima facie case of

possession and asserted that because the defendants had failed

to file an answer to the complaint, there were no defenses.

The judge then turned to the defendants. The defendants

did not call any witnesses or introduce any exhibits. Instead,

they presented a host of reasons why they believed they should

not be evicted, including that the plaintiff should have offered

a loan modification; the public auction was riddled with fraud;

the plaintiff refused to allow them to repurchase the home and

in doing so discriminated against them; and they had filed an

action with the Massachusetts Commission Against Discrimination

(MCAD). Abigail McGillen detailed her observations of the

foreclosure auction and noted that a video of the foreclosure

auction had been submitted. The judge explained to the

defendants that the issue of the MCAD action or the propriety of

the originating loan was not before him, and reminded the

defendants that the narrow issue to be decided at the trial was

who had superior right of possession of the premises. The

defendants then focused their arguments on their claim that the

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Related

Bank of New York v. Bailey
951 N.E.2d 331 (Massachusetts Supreme Judicial Court, 2011)
Wells Fargo Bank, N.A. v. Cook
87 Mass. App. Ct. 382 (Massachusetts Appeals Court, 2015)
Bank of America, N.A. v. Rosa
999 N.E.2d 1080 (Massachusetts Supreme Judicial Court, 2013)
Chace v. Curran
881 N.E.2d 792 (Massachusetts Appeals Court, 2008)
Adjartey v. Cent. Div. of the Hous. Court Departmentand
120 N.E.3d 297 (Massachusetts Supreme Judicial Court, 2019)

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