TBF Financial, LLC v. Gregoire

Defendants Barrett and Linda Gregoire, sought to amend or set aside judgments of foreclosure in favor of plaintiff bank based on claims of fraud and misrepresentation. The dispute underlying this case concerned four multi-family rental properties: three in Washington County and one in Caledonia County that were part of defendants' rental-property business. The bank's loans to defendants were secured by the properties and were cross-collateralized with each other. In March and April 2010, the bank filed foreclosure complaints with respect to the properties. The parties executed a forbearance agreement under which defendants retained control of the properties as landlords, but the tenants were to pay rent directly to the bank. The parties stipulated to the appointment of a receiver to collect rent for the bank. The receiver filed a report with the court stating that defendant Barrett Gregoire was renting to new tenants and collecting rents and security deposits without turning over the funds to the receiver. Shortly thereafter, the bank filed an emergency motion to enforce the receivership order based on allegations that defendant Barrett Gregoire was substantially interfering with the receivership. The court issued a supplemental order, expanding the receiver's authority and placing the receiver in full control of the properties. The bank notified the court that the forbearance was no longer in place, and that it would proceed with foreclosure. The trial court denied the Gregoires' motions to set aside the trial court's grant of the bank's motions. On appeal, defendants argued that there was no final judgment so the order could have been amended without resort to post-judgment proceedings, and even if it was a final order, the court erred in denying their request for relief and in entering judgment of default. Finding no reversible error in the trial court's decision, the Supreme Court affirmed. View "TBF Financial, LLC v. Gregoire" on Justia Law