PENNYMAC LOAN SERVICES, LLC v. PETER NATSIOS, Trustee, & Others.

CourtMassachusetts Appeals Court
DecidedOctober 5, 2023
Docket22-P-1210
StatusUnpublished

This text of PENNYMAC LOAN SERVICES, LLC v. PETER NATSIOS, Trustee, & Others. (PENNYMAC LOAN SERVICES, LLC v. PETER NATSIOS, Trustee, & 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
PENNYMAC LOAN SERVICES, LLC v. PETER NATSIOS, Trustee, & Others., (Mass. Ct. App. 2023).

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

22-P-1210

PENNYMAC LOAN SERVICES, LLC

vs.

PETER NATSIOS, trustee, 1 & others. 2

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

A Land Court judge granted the plaintiff's motion for

summary judgment in a quiet title action on one of two issues

submitted, and declared that the plaintiff had a valid mortgage

on all four adjacent lots comprising the property at issue,

despite a typographical error in part of the mortgage's property

description referring to only one of the four lots. Defendant

Peter Natsios, in his role as trustee of the 173 Kingsley Road

Realty Trust (trustee), appeals, claiming that the intent of the

parties to the mortgage was a disputed fact that should have

been resolved at trial. We affirm.

1 Of the 173 Kingsley Road Hull Realty Trust. 2 Therese Marcel and Pilgrim Investors, LLC. Neither of those defendants has participated in this appeal. Background. The material, undisputed facts are as follows.

In 2002, Therese Marcel purchased a residential property located

at 173 Kingsley Road in Hull. The recorded deed (2002 deed)

conveyed to Marcel lots 222, 223, 224, and 225, as labeled in a

previously recorded plan of the area.

In September 2009, Marcel took out a new loan on her

property to refinance two existing loans, both of which were

secured by mortgages encumbering all four lots. In connection

with the new loan, she granted a mortgage to a nominee of Bank

of America, N.A. (2009 mortgage), which was later assigned to

the plaintiff, PennyMac Loan Services, LLC (PennyMac). The

mortgaged property was identified as "173 Kingsley Road, Hull"

and described in an attached property description as: "All that

parcel of land in township of Hull, Plymouth County . . . being

shown as lots 225 through 225 inclusive being more fully

described by deed in book 22171, page 187, filed on 05/30/2002"

(emphasis added). The deed referenced in the description is the

2002 deed to Marcel.

PennyMac foreclosed on the 2009 mortgage in 2018. After

selling the property to itself at auction, PennyMac entered into

a purchase and sale agreement with the trustee. In 2019,

apparently having learned of the potential discrepancy between

the 2009 mortgage and the 2002 deed, the trustee paid $1,000 to

Marcel for a quitclaim deed purporting to convey lots 222, 223,

2 and 224. The trustee then cancelled his purchase and sale

agreement with PennyMac.

In response, PennyMac brought this suit seeking, among

other remedies, either a declaration that the 2009 mortgage, as

written, encumbered all four lots, or reformation of the 2009

mortgage based on the mutual mistake of the parties. The judge

ordered summary judgment for PennyMac on the former claim and

dismissed the reformation claim as moot. 3

Discussion. We review the judge's grant of summary

judgment de novo to determine whether the undisputed material

facts, when viewed in the light most favorable to the trustee,

entitle PennyMac to judgment as a matter of law. See Miller v.

Cotter, 448 Mass. 671, 676 (2007); Augat, Inc. v. Liberty Mut.

Ins. Co., 410 Mass. 117, 120 (1991). In this case, we agree

with the judge that PennyMac was entitled to summary judgment

based on the language of the 2009 mortgage alone.

"The basic principle governing the interpretation of deeds

is that their meaning, derived from the presumed intent of the

grantor, is to be ascertained from the words used in the written

instrument, construed when necessary in the light of the

3 The judge ruled against PennyMac on the second issue submitted, concluding that PennyMac's 2018 foreclosure was ineffective because the notice of sale's property description did not put potential purchasers sufficiently on notice that all four lots were to be auctioned. PennyMac has not cross-appealed from that portion of the judgment.

3 attendant circumstances." Sheftel v. Lebel, 44 Mass. App. Ct.

175, 179 (1998). Interpretation of a deed or similar conveyance

presents an issue of law appropriate for summary judgment when,

looking at the conveyance as a whole, the intent of the parties

may be ascertained. See Sullivan v. O'Connor, 81 Mass. App. Ct.

200, 204-205 (2012).

It is well settled that reference to a deed in a conveyance

has "the same effect as if the entire description in that deed

had been copied into each conveyance" unless the copied

description would be "inconsistent" with a more particular grant

in the conveyance. Abbott v. Frazier, 240 Mass. 586, 593

(1922). See Coogan v. Burling Mills, 124 Mass. 390, 393 (1878)

("[A]ll the deeds referred to must be taken into account in

determining what is conveyed"); Foss v. Crisp, 20 Pick. 121,

123-124 (1838). See also In re Adams, 462 B.R. 1, 5 n.28

(Bankr. D. Mass. 2011), citing Abbott, supra. In each of those

cases, a conveyance described land both in particular terms and

by reference to a deed that described additional land; those

descriptions were treated as not inconsistent, and the

additional land was held to be included in the conveyance. See

4 Abbott, supra at 593-594; Coogan, supra at 392-393; Foss, supra;

Adams, supra. 4

Here, we agree with the judge that the 2009 mortgage's

reference to the 2002 deed is properly read to encumber all four

lots conveyed in that deed. The purported encumbrance of "lots

225 through 225 inclusive" in the 2009 mortgage's property

description, although more specific than the grant in the

referenced deed, is nevertheless not "inconsistent" with that

deed, Abbott, 240 Mass. at 593, where no language in the

property description excludes lots 222, 223, and 224. See

Adams, 462 B.R. at 5 ("Although the [d]eed's property

description enlarges the [m]ortgage's property description

. . ., the descriptions are not inconsistent, because both can

be given effect at the same time -- they are not mutually

exclusive"). Moreover, where the grant states that the

mortgaged parcel was "more fully described" by the 2002 deed, we

think it evident that the reference was "used in order to make

sure that the whole estate of the grantors was covered."

4 On appeal, the trustee cites In re Benton, 563 B.R. 113, 124 (Bankr. D. Mass. 2017) for the proposition that where a deed incorporates a recorded plan, the plan will control if inconsistent with the deed.

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Related

Augat, Inc. v. Liberty Mutual Insurance
571 N.E.2d 357 (Massachusetts Supreme Judicial Court, 1991)
Coogan v. Mills
124 Mass. 390 (Massachusetts Supreme Judicial Court, 1878)
Abbott v. Frazier
134 N.E. 635 (Massachusetts Supreme Judicial Court, 1922)
Miller v. Cotter
448 Mass. 671 (Massachusetts Supreme Judicial Court, 2007)
Sheftel v. Lebel
689 N.E.2d 500 (Massachusetts Appeals Court, 1998)
Chace v. Curran
881 N.E.2d 792 (Massachusetts Appeals Court, 2008)
Sullivan v. O'Connor
961 N.E.2d 143 (Massachusetts Appeals Court, 2012)
Agin v. JPMorgan Chase Bank, N.A. (In re Adams)
462 B.R. 1 (D. Massachusetts, 2011)
Eastern Bank v. Benton (In re Benton)
563 B.R. 113 (D. Massachusetts, 2017)

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