U.S. BANK NATIONAL ASSOCIATION, ETC. VS. TRACEY M.CHRISTENSEN(F-027291-14, OCEAN COUNTY AND STATEWIDE)
A-5540-15T1
| N.J. Super. Ct. App. Div. | Oct 19, 2017Background
- In 2005 Tracey and Scott Christensen executed a $220,500 note and mortgage; the mortgage was recorded in Ocean County.
- Defendants defaulted in 2012. Plaintiff (U.S. Bank, as trustee) acquired possession of the original note and recorded mortgage assignments purporting to transfer rights to the plaintiff/trust.
- Plaintiff filed a foreclosure complaint in July 2014 after sending the required notice; defendants answered, alleged multiple defenses including lack of standing, and proceeded to trial.
- At trial the judge found plaintiff had possession of the original note and a valid assignment, struck defendants’ answer, and entered final judgment for plaintiff on November 29, 2015.
- Seven months after service of final judgment and after a sheriff’s sale was scheduled, defendants filed a Rule 4:50-1 motion to vacate, arguing (inter alia) lack of standing, invalid assignment, and that the trust did not exist.
- The motion court denied relief as untimely (not filed within a reasonable time), and on the merits held plaintiff had standing (possession and assignment) and defendants had no basis for relief under subsections (a), (c), (d), or (f).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Rule 4:50-1 motion | Motion was untimely; Rule 4:50-2 requires reasonable time | Delay excusable; issues (standing, assignment) justify relief | Denied: 7-month delay after judgment unreasonable; no excusable neglect |
| Standing to foreclose | Plaintiff had original-note possession and recorded assignment predating complaint | Plaintiff lacked possession/assignment was invalid; trust did not exist | Denied: plaintiff had possession and assignment; therefore standing existed |
| Fraud/misconduct under R. 4:50-1(c) | No evidence of fraud or misconduct | Claimed lack of power of attorney, forged assignment, and non-existent trust | Denied: defendants presented no proof of fraud; fraud claim not established |
| Exceptional circumstances under R. 4:50-1(f) | No exceptional circumstances warranting relief | Enforcement would be unjust given alleged defects in assignment/trust | Denied: no truly exceptional circumstances shown to justify relief |
Key Cases Cited
- U.S. Bank Nat'l Ass'n v. Guillaume, 209 N.J. 449 (discussing standard for Rule 4:50 relief and abuse of discretion)
- Orner v. Liu, 419 N.J. Super. 431 ("reasonable time" requirement for Rule 4:50 motions; one-year outer limit)
- Deutsche Bank Trust Co. Ams. v. Angeles, 428 N.J. Super. 315 (standing to foreclose; distinction between void and voidable judgments)
- Deutsche Bank Nat'l Trust Co. v. Russo, 429 N.J. Super. 91 (excusable neglect and when a judgment is void under Rule 4:50-1(d))
- Deutsche Bank Nat'l Trust Co. v. Mitchell, 422 N.J. Super. 214 (a plaintiff need not physically possess an original note to establish standing if assignment predates complaint)