William Suser v. Wachovia Mortgage, Fsb
433 N.J. Super. 317
| N.J. Super. Ct. App. Div. | 2013Background
- Suser sued to quiet title and remove two prior mortgages (World Savings/Wachovia and WaMu) encumbering a West New York condo after foreclosure; the World Savings mortgage predates the WaMu mortgage.
- Wells Fargo (successor through mergers) asserted standing to enforce the World Savings mortgage; Deutsche Bank National Trust Company asserted standing to foreclose the WaMu mortgage.
- Discovery dispute led to protective order favoring Deutsche; both defendants moved for summary judgment; Suser cross-moved for summary judgment.
- Court held Wells Fargo’s standing arose by merger/ownership, not assignment, and its standing issues are distinct from Deutsche’s assignment problem.
- Court concluded there were genuine issues about Deutsche’s assignment to foreclose; the quiet-title action may proceed to determine Deutsche’s right to pursue foreclosure, and discovery should continue; the matter was remanded for discovery and further proceedings.
- The decision affirmed in part, vacated in part, reversed in part, and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to foreclose on World Savings mortgage | Suser argues Wells Fargo lacks standing due to attribution by assignment. | Wells Fargo relies on merger/ownership, not assignment, to enforce the mortgage. | Wells Fargo has standing by merger/ownership; merits not dispositive here. |
| Deutsche’s standing from WaMu assignment | Assignment to Deutsche appears defective; triggers lack of standing to foreclose. | Deutsche may have standing if assignment valid; undisclosed facts require discovery. | Assuming assignment defect, relief is not automatic extinction; discovery necessary; Deutsche may pursue foreclosure; remand for discovery. |
| Remedy and scope of quiet-title action | Plaintiff seeks removal of encumbrance; argues for dismissal of liens due to defects. | Quiet-title available to clarify title, not automatically extinguish mortgage; need proper holder identified. | Qc action allowed to adjudicate Deutsche’s right to pursue foreclosure; remand for discovery and proceedings. |
Key Cases Cited
- Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520 (1995) (standards for discovery and summary judgment in incomplete records)
- Velantzas v. Colgate Palmolive Co., 109 N.J. 189 (1988) (scope of summary judgment when discovery is incomplete)
- Bilotti v. Accurate Forming Corp., 39 N.J. 184 (1963) (review of summary judgment from incomplete record; basis to proceed)