Reynolds v. Bank of America

• Court: Superior Court of Maine
• Decided: February 7, 2019
• Docket: YORre-18-0055
• Status: Unpublished

Opinion

STATE OF MAINE SUPERIOR COURT YORK, ss. CIVIL ACTION DOCKET NO. RE-2018-0055

CLAYTON B. REYNOLDS ) ) Plaintiff, ) ORDER ON ) DEFENDANT'S MOTION TO DISMISS V. ) & ) PLAINTIFF'S MOTION FOR LEAVE BANK OF AMERICA, N.A. ) TO AMEND COMPLAINT ) Defendant. )

Plaintiff Clayton B. Reynolds brought this quiet title and declaratory judgment action,

under 14 M.R.S. §§ 6651-6661 and 14 M.R.S. §§ 5951-5963, against Defendant Bank of

America, N.A. ("BANA''). Pending before the Court are BANA's Motion to Dismiss

Reynolds's Second Amended Complaint pursuant to M.R. Civ. P. 12(b)(6) and Reynolds's

Motion for Leave to Amend his Complaint pursuant to M.R. Civ. P. 15(a).

I. Background

Mr. Reynolds resides at a parcel of real estate located at 6 Winter Street Extension in

Saco, Maine ("the Property"), which he has owned since September 3, 2008. (PL 's 2d Am.

Comp!. ,r,r I, 3.) Reynolds granted BANA an interest in the Property ("the Mortgage") by virtue

of a mortgage deed dated November 14, 2009 as security for a note in the amount of $195,260

("the Note"). (Id. ,r 10.)

On August 27, 2015, BANA brought a complaint against Reynolds with respect to the

Mortgage, seeking a judgment of foreclosure on the Propetiy and to recover the entire balance

due on the Note secured by the Mortgage (Docket No. ALFSC-RE-15-0088). (Id. ,r 11; Ex. 2.)

On December 28, 2016, the Court entered a Judgment denying BANA's complaint for

I foreclosure on the basis that BANA had not sustained its burden of proof. (Pl.'s 2d Am. Comp!.

,r 12; Ex. 3.) The Judgement is now final. (PL 's 2d Am. Comp!. ,r 12.) Plaintiff, in his Second Amended Complaint, seeks to quiet title to the Property and the

entry of a judgment declaring the Mortgage and the Note which it secures are unenforceable, and

that Reynolds holds title to the Property free and clear ofBANA's interest.

BANA timely moved to dismiss the Second Amended Complaint on the bases that

Plaintiff has not alleged sufficient facts which, if proven, would entitle him to prevail on his

claim to quiet title, and that Reynolds is not entitled to the declaratory relief he seeks.

Plaintiff has moved to amend his Complaint pursuant to M.R. Civ. P. 15(a) to omit any

request for relief under the quiet title statutes and to proceed solely on his claim for declaratory

judgment. (See Pl.'s Mem. Opposing Def.'s Mot. to Dismiss, at 2.)

II. Discussion A. Reynolds's Motion to Amend Complaint

A party may amend their pleadings "by leave of comt ... and leave shall be freely given

when justice so requires." M.R. Civ. P. 15(a). "Whether to allow a pleading amendment rests

with the court's sound discretion.... if the moving party is not acting in bad faith or for delay,

the motion will be granted in the absence of undue prejudice." Kelly v. Michaud's Ins. Agency,

651 A.2d 345,347 (Me. 1994) (internal citations and quotation marks omitted).

BANA has not shown or alleged that Reynolds seeks to amend his complaint in bad faith

or for a dilatory motive, or that BANA would be unduly prejudiced if the Court permits

Reynolds to amend his Complaint. Accordingly, Reynolds's motion to amend his Complaint to

pursue relief only under the Declaratory Judgments Act is granted.

2 B. BANA's Motion to Dismiss

BANA's Motion to Dismiss is premised on Maine law that predates the Law Court's

holding in Pushard v. Bank ofAmerica, NA., 2017 ME 230, 175 A.3d 103, which is dispositive

on the question of whether Reynolds's Complaint states a claim for relief under the Declaratory

Judgments Act.

In Pushard, the Law Court held that plaintiffs were entitled to the entry of a "judgment

declaring that the note and mortgage are unenforceable and that the [plaintiff]s hold title to their

property free and clear of the [defendant]'s mortgage encumbrance" when the summary judgment

record established the defendant/mortgagee had a final judgment entered against it in its prior

action against mortgagors seeking foreclosure and for judgment on the entire amount due on the

note. 2017 ME 230, ,r,r 6-7, 36, 175 A.3d 103.

BANA has failed to meaningfully distinguish Mr. Reynolds's claim for declaratory relief

from the Pushard plaintiffs' claim for declaratory relief. Accordingly, the entry shall be:

"Plaintiffs motion for leave to amend his complaint to omit references to the quite title

statutes are GRANTED."

"Defendant's Motion to Dismiss the Plaintiffs Second Amended Complaint, as amended,

is DENIED."

The Clerk is requested to enter this Order on the docket for this case by incorporating it by

reference. M.R. Civ. P. 79(a).

SO ORDERED. /

Dated: 2 /7{ C/ r I ' John O'Neil, Jr.

Entered on the Docket on i!Ph on: -~Jcr Justice, Maine Superior Couti

u-~::;J; ·. /,1f LJ:ti:!J'MJ ·· " • .