Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Deutsche Bank National Trust Co. v. McDonough

Supreme Court of Rhode Island

May 24, 2017

Deutsche Bank National Trust Company, as Trustee for Registered Holders of Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates 2004-R11
v.
John A. McDonough, Jr.

         Providence County Superior Court Associate PC 12-5180 Justice Joseph A. Montalbano

          For Plaintiff: Samuel C. Bodurtha, Esq. Lauren A. Solar, Esq.

          For Defendant: John B. Ennis, Esq.

          Present: Suttell, C.J., Goldberg, Flaherty, Robinson, and Indeglia, JJ.

          OPINION

          Gilbert V. Indeglia Associate Justice

         The defendant, John A. McDonough, Jr. (McDonough or defendant) appeals the Superior Court's grant of summary judgment in favor of the plaintiff, Deutsche Bank National Trust Company, as Trustee for Registered Holders of Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates 2004-R11 (Deutsche Bank or plaintiff). This matter came before the Supreme Court on May 2, 2017, pursuant to an order directing the parties to appear and show cause why this Court should not summarily decide the issues raised by this appeal. After hearing counsels' arguments and reviewing the parties' memoranda, we are satisfied that cause has not been shown. Accordingly, we shall decide this matter at this time without further briefing or argument. For the reasons outlined below, we affirm the judgment of the Superior Court.

         I Facts and Travel

         This case originates from defendant's ownership interest in two properties in Lincoln, Rhode Island: one on Woodland Court (Woodland Court property) and the other, of principal concern to this case, on Arnold Street (Arnold Street property). In relation to these properties, defendant executed two notes in favor of Ameriquest Mortgage Company (Ameriquest). The first note (Arnold Street note), executed on or about November 10, 2004, for $280, 500, was secured by a mortgage on 26-28 Arnold Street in Lincoln (Arnold Street mortgage), which was recorded in the Town of Lincoln Land Evidence Records (registry) on November 23, 2004. The second note (Woodland Court note), also in favor of Ameriquest, was executed by defendant on November 16, 2004, in the amount of $300, 900. This note was secured by a mortgage on 13-19 Woodland Court (Woodland Court mortgage), recorded with the registry.

         Importantly, the property description within an exhibit appended to the Arnold Street mortgage referenced the Woodland Court property rather than the Arnold Street property despite the fact that the Arnold Street note specified the property address as 26-28 Arnold Street. Indeed, the Arnold Street mortgage described the encumbered property as 26-28 Arnold Street and listed the tax assessor's plat and lot number for the Arnold Street property. Other documents associated with the Arnold Street mortgage were also linked to the Arnold Street property. Additionally, defendant's completed uniform residential loan application listed 26-28 Arnold Street as the subject property address in connection with the Arnold Street note. On July 20, 2006, a certificate of satisfaction (certificate) that referenced the Woodland Court property and its loan number was recorded with the registry. The certificate specified that Ameriquest received full payment and satisfaction of the mortgage, which discharged the mortgage. In discharging the mortgage, however, the certificate also referenced recording information that corresponded with the Arnold Street mortgage. Upon realizing this error, plaintiff instituted efforts to correct it. First, an affidavit of scrivener's error was recorded on or about October 2, 2008, with the registry, which provided that the Arnold Street mortgage, in its recorded form, contained an inaccuracy in the legal description. In addition to pinpointing this error, the affidavit of scrivener's error identified the correct legal description associated with the Arnold Street property.

         The plaintiff also asserts that, on or about August 12, 2008, Ameriquest assigned the Arnold Street mortgage to Deutsche Bank through a confirmatory assignment of mortgage (confirmatory assignment), which was recorded with the registry. This document provided that Ameriquest had granted, assigned, and transferred all of its right, title, and interest in the Arnold Street mortgage to plaintiff, Deutsche Bank. Further, the confirmatory assignment was intended "to replace the original assignment [with respect to the mortgage dated November 10, 2004] which due to inadvertence and/or mistake was lost * * * ."

         Next, on January 27, 2009, a notice of rescission of deed of release, satisfaction of mortgage (notice of rescission) was recorded with the registry. This document provided that the obligations under the Arnold Street note had not been satisfied and an outstanding principal amount remained due. Moreover, on February 6, 2009, the servicer of the Arnold Street note informed defendant that the certificate was erroneously recorded and, as such, outstanding payments remained due on the Arnold Street note.[1] Subsequently, a revocation of certificate of satisfaction (revocation), dated March 31, 2009, was recorded with the registry to reinstate the Arnold Street mortgage and revoke the prior certificate. The revocation declared that the certificate had been executed and recorded in error, and that the Arnold Street mortgage should be restored.

         On July 28, 2009, defendant filed for Chapter 7 bankruptcy with the United States Bankruptcy Court for the District of Rhode Island. The defendant received a bankruptcy discharge on November 13, 2009; and, on January 20, 2010, his Chapter 7 case was closed. On January 21, 2010, defendant filed for Chapter 13 bankruptcy in the same court. On May 20, 2010, defendant initiated an adversary proceeding against plaintiff in that court, wherein he sought a finding as to whether the Arnold Street mortgage was valid and asserted that he owned the Arnold Street property free of any encumbrances and that plaintiff was not the holder in due course of any documents corresponding to the Arnold Street property. A judge of the United States Bankruptcy Court for the District of Rhode Island granted plaintiff's motion to stay proceedings to allow issues related to the Arnold Street mortgage to be litigated in state court.

         On October 5, 2012, plaintiff commenced this litigation by verified complaint. In count one of the complaint, plaintiff sought a declaratory judgment that (1) the Arnold Street mortgage was a valid, perfected first-priority mortgage on the Arnold Street property; (2) the Arnold Street mortgage was revived by the notice of rescission and revocation; and (3) full payment or satisfaction had not been received on the Arnold Street note. In count two, plaintiff sought a judgment that reformed the Arnold Street mortgage to remedy the incorrect legal description of the property. In count three, plaintiff cited equitable principles to request "a decree declaring a mortgage exists, fully enforceable against McDonough, on the Arnold Street Property, as reformed." Finally, in count four, plaintiff sought "a decree declaring that it is subrogated to the rights of the prior, senior mortgages which were satisfied with the proceeds of the Arnold Street Mortgage loan * * * ."

         In its answer, in addition to denying plaintiff's allegations, defendant counterclaimed that "Deutsche Bank is not a holder in due course of any documents relating to Plaintiff's Arnold Street residence." The defendant also submitted that plaintiff lacked standing to foreclose on the Arnold Street property and that ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.