KATRINA DANSBY VS. PACIFIC UNION FINANCIAL, LLC (C-000021-20, ESSEX COUNTY AND STATEWIDE)
A-2529-19
N.J. Super. Ct. App. Div.Apr 8, 2021Background
- Dansby executed a mortgage in February 2013, defaulted December 1, 2015, and a foreclosure complaint was filed June 8, 2016.
- Final judgment of foreclosure entered October 23, 2017; property sold at sheriff's sale July 3, 2018; sheriff's deed recorded September 28, 2018 in favor of Pacific Union/Nationstar.
- Eviction was stayed through April 30, 2019 for hardship; Dansby remained in the property.
- Dansby moved to vacate the sheriff's sale (denied February 11, 2020), then filed a quiet title action (Jan 30, 2020) and an order to show cause seeking a preliminary injunction to block eviction (denied February 12, 2020).
- Dansby filed Chapter 7 bankruptcy Feb 12, 2020; her adversary complaint was dismissed with prejudice June 25, 2020; the state quiet title complaint was dismissed with prejudice July 24, 2020 and was not appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court erred in denying a preliminary injunction/stay of eviction | Dansby argued a forged deed and defects in the foreclosure chain make eviction wrongful; she sought to preserve possession | Defendants argued Dansby had full opportunity to litigate in foreclosure/bankruptcy, sheriff's deed is prima facie valid, and eviction had been previously stayed long enough | Denial affirmed: Dansby failed Crowe factors—no settled legal right, no reasonable probability of success, no irreparable harm; equities favor defendant |
| Whether Dansby could relitigate standing/title defects in quiet title after foreclosure | Dansby contended she can bring quiet title and challenge standing/chain of title despite foreclosure | Defendants noted final foreclosure judgment and recorded sheriff's deed, and that Dansby did not appeal those rulings | Quiet title dismissed with prejudice; court noted she did not appeal foreclosure judgment and thus cannot collaterally attack it |
| Whether a recorded instrument (Rutledge Holdings filing) showed a forged deed that voids the sheriff's deed | Dansby claimed a forged deed/irregular recording voids the sheriff's deed and defeats foreclosure | Defendants showed the recorded instrument was a short-term notice instrument per statute, not a deed, and no proof of forgery was offered | Court found no substantiation of forgery; record supports validity of sheriff's deed |
| Whether appeal of the interlocutory denial was proper | Dansby appealed the Feb 12, 2020 interlocutory denial of injunctive relief directly | Defendants argued interlocutory order required leave to appeal and final dismissal was not appealed within time | Court observed the appeal should have sought leave; final dismissal was not appealed; appeal could be dismissed on those grounds but merits review also affirmed lower court |
Key Cases Cited
- Silviera-Francisco v. Bd. of Educ., 224 N.J. 126 (2016) (interlocutory orders require leave to appeal)
- Crowe v. De Gioia, 90 N.J. 126 (1982) (factors for preliminary injunction)
- Waste Mgmt. of N.J., Inc. v. Morris Cnty. Mun. Utils. Auth., 433 N.J. Super. 445 (App. Div. 2013) (less rigid Crowe review when preserving status quo)
- Ayers v. Casey, 72 N.J.L. 223 (E. & A. 1905) (sheriff's deed is prima facie evidence of valid sale and conveyance)
- Burbridge v. Paschal, 239 N.J. Super. 139 (App. Div. 1990) (party may not attack a judgment without having appealed it)
- In re Pfizer Inc., 6 N.J. 233 (1951) (a final judgment vests rights that cannot be later taken away)