101 A.3d 860
R.I.2014Background
- Decedent Etta Malinou took out a reverse mortgage in 1991 from RIHMFC; upon her death in 2003 the lender could demand payment in full. No payments had been made during her life.
- RIHMFC assigned the mortgage to Seattle Savings Bank (assignment recorded June 3, 2003); Seattle demanded payment and later foreclosed in 2007. Seattle was highest bidder at foreclosure and conveyed the property to Fannie Mae by quitclaim deed in 2007.
- Fannie Mae served a termination-of-tenancy notice and, after the occupant (Martin Malinou) refused to vacate, sued for trespass and ejectment; the District Court transferred the case to Superior Court by stipulation because title issues were raised.
- At a nonjury Superior Court trial, defendant relied on a flawed recorded assignment (naming Seattle Mortgage Company as assignor but no assignee) and a 2012 tax-sale deed to challenge Fannie Mae’s right to possession; he also sought late subpoenas to third parties (LPS and BOA).
- The trial justice found in favor of Fannie Mae, applying a presumption in favor of the record title holder and deeming the Seattle Mortgage Company assignment extraneous to Fannie Mae’s chain of title; the 2012 tax-sale purchaser’s title was subject to Fannie Mae’s right of redemption.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject-matter / personal jurisdiction over the estate | Fannie Mae: defendant appeared and litigated; parties stipulated transfer to Superior Court; Superior Court had jurisdiction over title issues | Malinou: Superior Court lacked jurisdiction because the estate was not served (no personal jurisdiction) | Waived on appeal; general appearance and stipulation to transfer cured defect; Superior Court had subject-matter jurisdiction because parties agreed transfer was appropriate when title was in issue |
| Standard of review for documentary-based findings | Fannie Mae: trial justice’s factual findings entitled to deference even when based on documents | Malinou: documentary evidence requires de novo review | Court affirms deference to trial justice’s findings in nonjury cases, including those based on documents |
| Quantum of proof to overcome presumption of record title | Fannie Mae: record title presumptively correct; defendant failed to rebut title by preponderance | Malinou: required only to show preponderance (or argued clear-and-convincing was wrong) | Court notes prior cases do not require clear-and-convincing here but finds defendant failed even under preponderance; Fannie Mae entitled to possession |
| Enforcement of subpoenas duces tecum to LPS and BOA | Fannie Mae: subpoenas were untimely, overbroad, and would delay trial | Malinou: subpoenas necessary to challenge chain-of-title evidence | Trial justice did not abuse discretion in refusing to enforce eve-of-trial, overbroad subpoenas in light of closed discovery |
| Effect of 2012 tax-sale deed on Fannie Mae’s possession | Fannie Mae: tax-sale purchaser’s rights are contingent and redemption rights remained; Fannie Mae retained right to possess | Malinou: tax-sale deed divested Fannie Mae of possession | Tax-sale purchaser did not obtain possession until one year and while Fannie Mae’s redemption rights remained, Fannie Mae retained right to possess; judgment for Fannie Mae affirmed |
Key Cases Cited
- Malinou v. Seattle Sav. Bank, 970 A.2d 6 (R.I. 2009) (prior decision affirming Seattle Savings Bank’s right to foreclose)
- Providence & Worcester Co. v. Exxon Corp., 359 A.2d 329 (R.I. 1976) (recognizing presumption favoring record title holder)
- Newport Yacht Club, Inc. v. Deomatares, 171 A.2d 78 (R.I. 1961) (discussing title presumptions)
- Butera v. Boucher, 798 A.2d 340 (R.I. 2002) (refusing to enforce overbroad, untimely subpoenas on the eve of trial)
- Martineau v. King, 386 A.2d 1117 (R.I. 1978) (permitting removal/transfer of a trespass and ejectment action to Superior Court where title issues are raised)
- Alberston v. Leca, 447 A.2d 383 (R.I. 1982) (tax-sale purchaser’s title is contingent on nonredemption)