Bank of America, N.A. v. James A. Cloutier
2013 ME 17
| Me. | 2013Background
- Bank of America, N.A. sued James A. Cloutier for foreclosure on a residential mortgage in York County.
- Mortgage identified MERS as record mortgagee and later assigned to BAC Home Loans Servicing, LP.
- Promissory note shows a chain of endorsements ending in blank; Freddie Mac purchased the note in 2006 and retains beneficial ownership.
- Bank of America now possesses the note and services the loan for Freddie Mac.
- Cloutier defaulted January 1, 2010, and Bank of America moved for summary judgment in 2010; the Superior Court reported a question of law under M.R. App. P. 24(a).
- Court holds that a foreclose action plaintiff must identify the owner or economic beneficiary of the note and produce required evidence under 14 M.R.S. § 6321 for foreclosure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What proof of ownership is required under §6321(3)? | Cloutier argues only the owner may sue; 6321(3) mandates proof of ownership. | Cloutier contends statutory language limits foreclosure to the owner/economic beneficiary. | Plaintiff must identify the owner or economic beneficiary and prove enforceability if not the owner. |
| Does §6321(1) align with Article 3-A on who may enforce the note? | Bank of America asserts alignment via holder/enforcer rights. | Cloutier argues standing restrictions may arise from enforcement rules. | Section 6321 defines who may enforce consistent with Article 3-A; a holder entitled to enforce may sue even without being the owner. |
| Is a holder in possession with a blank endorsement sufficient to enforce under Maine law? | BOA holds the note with a blank endorsement and asserts enforceability. | Cloutier contends evidence of ownership/enforceability is required. | A holder in possession with blank endorsement is entitled to enforce the note; ownership proof still required under §6321. |
Key Cases Cited
- Chase Home Finance LLC v. Higgins, 2009 ME 136 (Me. 2009) (foreclosure proof of ownership required; ownership/evidence considerations (note/mortgage))
- Wells Fargo Bank, NA v. deBree, 2012 ME 34 (Me. 2012) (vacated summary judgment for lack of ownership evidence)
- HSBC Bank USA, N.A. v. Gabay, 2011 ME 101 (Me. 2011) (sufficiency of ownership evidence in statements of material facts)
- Mortgage Electronic Registration Systems, Inc. v. Saunders, 2010 ME 79 (Me. 2010) (statutory interpretation of §6321(3) and ownership proof)
- JPMorgan Chase Bank v. Harp, 2011 ME 5 (Me. 2011) (enforcement rights under UCC 3-1301 and relation to foreclosure standing)
- ExpressJet Airlines, Inc. v. ..., 2011 ME 123 (Me. 2011) (contextual reference to enforceability and policy considerations)