91 A.3d 336
R.I.2014Background
- Rosano, owner of property at 331 High Street, Bristol, executed a 2007 note to EquiFirst for $379,000, secured by a mortgage designating MERS as nominee.
- Mortgage states MERS may foreclose and exercise the lender's interests if necessary to comply with law or custom.
- MERS, as EquiFirst’s nominee, assigned the mortgage to Sutton Funding in 2009, then Sutton Funding to Bank of New York Mellon Trust Company later that year.
- Bank of New York issued a default notice and foreclosed; sale occurred January 6, 2010; foreclosure deed recorded February 2010.
- Rosano filed suit January 15, 2010 seeking declaratory relief to invalidate assignments and the foreclosure, prompting Rule 12 motions to dismiss.
- Superior Court dismissed on Rule 12(b)(6) for conclusory allegations and Rule 12(b)(7) for failure to join Bank of New York as indispensable party; Bank of New York held title following sale.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Bank of New York an indispensable party to declaratory relief? | Rosano argues joining HomEq suffices to protect Bank of New York's interests. | Defendants contend Bank of New York’s title interests are indispensable and must be joined. | Yes; Bank of New York indispensable; action dismissed under Rule 12(b)(7). |
| Does failure to join Bank of New York deprive the court of jurisdiction over declaratory relief? | Rosano argues lack of joinder does not bar relief. | bank’s interest would be affected and relief cannot be granted without it. | Yes; proper dismissal under Rule 12(b)(7). |
Key Cases Cited
- Burns v. Moorland Farm Condominium Association, 86 A.3d 354 (R.I. 2014) (mandatory joinder when declaratory relief affects all interested parties)
- Meyer v. City of Newport, 844 A.2d 148 (R.I. 2004) (indispensable party must be joined when interest affected by judgment cannot be excluded)
- Root v. Providence Water Supply Board, 850 A.2d 94 (R.I. 2004) (definition of indispensable party and inextricable interests)
- Anderson v. Anderson, 109 R.I. 204, 283 A.2d 265 (1971) (indispensable party analysis and interests in judgment)
- UAG West Bay AM, LLC v. Cambio, 987 A.2d 873 (R.I. 2010) (statutory and rule interpretation; de novo review of questions of law)
- Warwick Sewer Authority v. Carlone, 45 A.3d 493 (R.I. 2012) (de novo review and interpretation of legal standards)
- N & M Properties, LLC v. Town of West Warwick, 964 A.2d 1141 (R.I. 2009) (context for declaratory judgment proceedings and joinder principles)