Aliberti v. GMAC Mortgage, LLC
2011 U.S. Dist. LEXIS 45858
| D. Mass. | 2011Background
- Plaintiffs refinanced two loans secured by a mortgage on 531-537 Lowell Street, Lawrence, MA in June 2006 totaling $450,000.
- Loans were assigned to GMAC Mortgage, LLC through intermediaries; GMAC ultimately held the mortgage.
- Defaults began in 2008; January 2010 oral modification for a trial period to pursue a permanent modification.
- June 2010 Repayment Agreement required three monthly payments for suspension of foreclosure and further review for a workout.
- October 2010 GMAC approved a permanent modification subject to conditions, but plaintiffs failed to return documents by Oct. 13, 2010; GMAC later denied the modification.
- Plaintiffs filed suit in state court on January 6, 2011, asserting multiple contract, fraud, and misrepresentation claims; GMAC removed to federal court and sought dismissal and dissolution of a state-court injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Remand viability and amount-in-controversy | Alibertis seek remand; amount under $75,000 per complaint | Remand denied; value of permanent modification exceeds $75,000 | Remand denied; amount-in-controversy met by $124,500 modification value |
| Breach of contract (Counts I-III) | GMAC breached oral/repayment/October 2010 contracts | No breach; deadlines and ongoing review control | Counts I-III dismissed |
| Mass. Gen. Laws ch. 266, § 35A claims (Counts IV-VII) | GMAC misled borrowers during loan-mod process | Statute creates criminal penalties; no private civil action | Counts IV-VII dismissed |
| Misrepresentation claims (Counts VIII-XV) | GMAC made false statements to induce modification | No reliance due to offeree's power of acceptance vanishing; statements improper | Counts VII-XV dismissed for failure to plead reasonable reliance |
Key Cases Cited
- Hunt v. Washington Apple Adver. Comm'n, 432 U.S. 333 (1977) (equitable relief value measures amount in controversy)
- Richard C. Young & Co. v. Leventhal, 389 F.3d 1 (1st Cir. 2004) (value of litigation's pecuniary consequences governs amount in controversy for equitable claims)
- Mathewson Corp. v. Allied Marine Indus., Inc., 827 F.2d 850 (1st Cir. 1987) (deadline-based offer/acceptance; power vanishes at deadline)
- Ibanez (U.S. Bank Nat'l Assoc. v. Ibanez), 458 Mass. 637, 941 N.E.2d 40 (2011) (standing/holder of mortgage at time of notice and sale governs foreclosure; Ibanez decision cited for injunction posture)
- Valerio v. U.S. Bank, N.A., 716 F. Supp. 2d 124 (D. Mass. 2010) (notes distinction between note holder and mortgagee in power of sale)