769 F. Supp. 2d 7
D. Mass.2011Background
- Kathleen Crafts executed a $368,600 mortgage note to Accredited on Dec 21, 2005, secured by her Amesbury, MA home.
- Accredited sold the loan to Citigroup Global on Mar 16, 2007; Regions serviced the loan for Citigroup Global during default.
- Kathleen sued Accredited in state court in Mar 2007 for predatory practices; Regions informed of assignment and servicing in 2007.
- In Apr 2008 Kathleen entered into a Release and Settlement with Accredited; the release purportedly covers claims related to the loan.
- Kathleen and Robin filed this lawsuit in Apr 2008 asserting claims against Regions, Citigroup Global, CitiFinancial, and Citigroup for lending laws, negligence, and 93A/related claims.
- The court later held the Release bars claims arising before Apr 7, 2008 and granted the defendants’ renewed summary judgment
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Release bar pre-April 7, 2008 claims? | Crafts argue Release excludes post-formation claims; no binding effect on Regions/Citigroup | Release unambiguously releases all claims arising from the Accredited Loan pre-April 7, 2008 | Yes; Release bars pre-April 7 claims against the defendants |
| Does the Release exclude post-Release conduct claims? | Potential post-Release conduct not clearly released | Release covers only pre-Release conduct related to the loan | No; post-Release claims not released |
| Is the Release enforceable under Massachusetts law given pro se status and timing? | Release may be unfair or not explicitly limited against certain parties | Massachusetts general releases are enforceable; terms unambiguous | Yes; Release enforced for four stated reasons |
Key Cases Cited
- Sharon v. City of Newton, 437 Mass. 99 (Mass. 2002) (enforcement of releases favored under Massachusetts law)
- Eck v. Godbout, 444 Mass. 724 (Mass. 2005) (general release terms govern scope; expansive releases enforceable)
- Atlas Tack Corp. v. Crosby, 41 Mass.App.Ct. 429 (Mass. App. Ct. 1996) (explicit exclusion clauses govern release scope)
- Lisciotti v. Lattanzio, 2006 WL 2848675 (Mass. Super. Sept. 15, 2006) (not included due to lack of official reporter citation)
- Mesnick v. Gen. Elec. Co., 950 F.2d 816 (1st Cir. 1991) (summary judgment standard and burden shifting)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (burden on movant to show no genuine issue of material fact)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (material facts must be in dispute for trial)