Galvin v. U.S. Bank, N.A., No. 15-2436 (1st Cir. 2017)Annotate this Case
Plaintiffs took out a loan to buy a property in Massachusetts. Plaintiffs executed a mortgage naming the Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee and executed a promissory note to Chevy Chase Bank, FSB. Plaintiffs later fell behind on their mortgage. U.S. Bank, which was assigned the mortgage and came into physical possession of the note, conducted a foreclosure sale of the property and purchased the property. Plaintiffs filed suit against U.S. Bank, MERS and other defendants, alleging, inter alia, a claim for a declaratory judgment that the foreclosure was invalid. The district court disposed of the complaint by (1) granting Defendants’ partial motion to dismiss several counts for failure to state a claim; (2) granting summary judgment to U.S. Bank on its counterclaim for possession; and (3) granting summary judgment to Defendants on Plaintiffs’ remaining claims and to U.S. Bank on its counterclaim for deficiency. The First Circuit reversed in part and affirmed in part, holding (1) the entry of judgment in favor of U.S. Bank on its deficiency claim was in error because U.S. Bank did not comply with Mass. Gen. Laws ch. 244, 17B; and (2) the judgment of the district court was otherwise without prejudicial error.