Beneficial Maine Inc. v. Carter
2011 ME 77
| Me. | 2011Background
- Beneficial Maine, Inc. filed a foreclosure suit against Timothy G. and Kathleen A. Carter on November 4, 2009 in District Court for a $378,803.43 debt alleged under the note and mortgage on their Kennebunk property.
- Beneficial moved for summary judgment after mediation failed, relying on two affidavits, including Shana Richmond’s from HSBC as Beneficial's servicer.
- Carters objected to Richmond’s affidavit and attached exhibits for lack of hearsay foundation and insufficient business-records foundation under M.R. Evid. 803(6).
- The Maine Supreme Judicial Court previously addressed the proper foundation for business records in foreclosure, notably in Murphy and Barr, guiding the required custodian/qualified witness showing.
- The Court vacated the summary judgment because the Richmond affidavit failed to establish Beneficial’s records’ admissibility and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of Beneficial’s records via Richmond affidavit | Carter argues inadequate foundation | Beneficial claims HSBC knowledge suffices | Insufficient foundation; records not admissible on summary judgment |
| Qualified witness requirement for business records | Richmond lacks firsthand knowledge | Role as servicer provides basis for knowledge | No proper qualified witness established |
| Impact of inadmissible records on summary judgment | Judgment should be reversed | Judgment should stand if records adequate | Summary judgment vacated; remanded |
Key Cases Cited
- HSBC Mortgage Servs., Inc. v. Murphy, 2011 ME 59 (Me. 2011) (foundation for business records admissibility in foreclosure; de novo review on summary judgment)
- Barr v. Bank, 2010 ME 124 (Me. 2010) (establishes bifurcated standard for admissibility and abuse of discretion on summary judgment)
- Soley v. Northeast Bank & Trust, 481 A.2d 1123 (Me. 1984) (valuer of custodian/qualified witness required for business records)
- Murphy v. HSBC Mortgage Servs., 2011 ME 59 (Me. 2011) (foundational elements for admissibility of business records; knowledge and regular business practice)
- Chase Home Finance LLC v. Higgins, 2009 ME 136 (Me. 2009) (minimum foreclosure proof requirements; notice and mediation context)
- Ne. Bank & Trust Co. v. Soley, 481 A.2d 1123 (Me. 1984) (agency-custodian knowledge in business-records chain)