Justia Vermont Supreme Court Opinion Summaries

In this case, the plaintiff bank sought to foreclose on a residential property in Vermont after the defendant defaulted on a $365,000 loan originally issued by Countrywide Home Loans, Inc. The mortgage was assigned to the plaintiff, and the bank alleged it was the holder of the note. However, the copy of the note attached to the complaint was made out to the original lender and lacked any indorsement. Over the years, the case was delayed by mediation, bankruptcy, and various motions. At trial, the plaintiff produced the original note with an undated indorsement in blank, but could not establish when it became the holder of the note.The Vermont Superior Court, Windsor Unit, Civil Division, denied the plaintiff’s initial summary judgment motion, finding that the plaintiff had not established standing under the Uniform Commercial Code. A later summary judgment was vacated due to procedural errors. After a hearing, the court found the plaintiff was currently a holder of the note and that the defendant had defaulted, but concluded that the plaintiff failed to prove it had the right to enforce the note at the time the complaint was filed, as required by U.S. Bank National Ass’n v. Kimball. Judgment was entered for the defendant, and the plaintiff’s post-judgment motion to designate the judgment as without prejudice was denied.On appeal, the Vermont Supreme Court affirmed the lower court’s decision. The Court held that a foreclosure plaintiff must demonstrate standing by showing it had the right to enforce the note at the time the complaint was filed, declining to overrule or limit Kimball. The Court also declined to address whether the judgment should be designated as without prejudice, leaving preclusion consequences to future proceedings. View "The Bank of New York Mellon v. Quinn" on Justia Law

The case involves RSD Leasing, Inc., a Vermont-based corporation that leases trucks to commercial operators. Between 2008 and 2014, RSD purchased forty trucks manufactured by Navistar International Corp. and Navistar, Inc. from a nonparty dealer. These trucks were equipped with an emission-control system known as an exhaust gas recirculation system. RSD alleged that the system caused the trucks to lose power, break down, and damage other engine components. RSD leased the trucks to other entities for four-to-six-year terms and intended to sell them at the end of the lease term. RSD filed a complaint against Navistar alleging violation of the Vermont Consumer Protection Act (VCPA), among other claims.In the U.S. District Court for the District of Vermont, Navistar moved for summary judgment on the VCPA claim, arguing that RSD is not a “consumer” under the VCPA and is therefore barred from recovery. The district court granted summary judgment on the VCPA claim, reasoning that RSD did not qualify as a consumer under the VCPA because it purchased the trucks for resale in the ordinary course of its business. RSD appealed to the Second Circuit, which certified the question of whether RSD qualified as a consumer under the VCPA to the Vermont Supreme Court.The Vermont Supreme Court concluded that RSD is not a consumer under the VCPA. The court found that RSD's intent at the time it purchased the trucks was to lease them out and, after each lease term expired, sell them. The court held that the trucks were purchased for resale in the ordinary course of RSD’s business. Therefore, RSD did not qualify as a consumer under the VCPA. The court answered the certified question from the Second Circuit in the negative. View "RSD Leasing, Inc. v. Navistar International Corporation and Navistar, Inc." on Justia Law