Cenlar FSB v. Malenfant, Jr.Annotate this Case
The lender Cenlar FSB appealed a judgment in favor of the borrowers Laurie and Joseph Malenfant, Jr. in the lender’s second action for a judgment on the note and foreclosure, after the first was dismissed with prejudice. The lender argued that the first dismissal could not be interpreted as vacating the judgment on the note and for foreclosure that the trial court had previously issued in that case. Alternatively, the lender contended that its notice of default in the initial foreclosure action was sufficient to satisfy its notice obligation in connection with its second foreclosure action. After review, the Supreme Court concluded that the trial court’s dismissal with prejudice of the first action on the promissory note and complaint for foreclosure did effectively vacate that court’s prior judgment for lender on the note and for foreclosure. Furthermore, the lender was not, on this record, entitled to pursue a second action because it had not taken any steps to reinstate borrower’s monthly payment obligations after lender had accelerated the note. Accordingly, the Supreme Court affirmed the trial court's judgment.