Thompson v. JPMorgan Chase Bank, N.A., No. 18-1559 (1st Cir. 2020)Annotate this Case
The First Circuit affirmed the judgment of the district court granting JPMorgan Chase Bank's (Chase) motion to dismiss Mark and Beth Thompson's action for breach of contract and for violating the statutory power of sale Massachusetts affords mortgagees, holding that the foreclosure sale was not void.
The Thompsons alleged that Chase failed to comply with the notice requirements in their mortgage before foreclosing on their property. The mortgage terms for which Massachusetts courts demand strict compliance include the provisions in paragraph 22 of the mortgage requiring and prescribing the pre-foreclosure default notice. The Thompsons argued that because paragraph 19 of the mortgage included conditions and time limitations on the Thompsons' post-acceleration reinstatement right, Chase failed to strictly comply with paragraph 22's notice requirement by failing to inform the Thompsons of those conditions and limitations. The district court dismissed the case for failure to state a claim. The First Circuit held that the paragraph 22 notice the Thompsons received was potentially deceptive and, therefore, the foreclosure sale was void. The Court then withdrew its decision and certified a question to the Massachusetts Supreme Judicial Court (SJC). Because the SJC held that the paragraph 22 notice could not have been misleading for omitting paragraph 19's deadline, the First Circuit affirmed the judgment of the district court.
This opinion or order relates to an opinion or order originally issued on February 8, 2019.