Justia Vermont Supreme Court Opinion Summaries

Plaintiffs Peter and Nicole Dernier appealed the dismissal of their action for: (1) a declaratory judgment that defendant U.S. Bank National Association could not enforce the mortgage and promissory note for the debt associated with plaintiffs' purchase of their house based on irregularities and fraud in the transfer of both instruments; (2) a declaration that U.S. Bank has violated Vermont's Consumer Fraud Act (CFA) by asserting its right to enforce the mortgage and note; and (3) attorney's fees and costs under the CFA. They also appealed the trial court's failure to enter a default judgment against defendant Mortgage Electronic Registration Systems, Inc. (MERS). Plaintiffs fell behind on their mortgage, and brought suit against two parties: Mortgage Network, Inc. (MNI), which is in the chain of title for both the note and the mortgage, and MERS, which is in the chain of title for the mortgage as a "nominee" for MNI. Plaintiffs sought a declaratory judgment that the mortgage was void, asserting that: (1) MERS, as a nominee, never had any beneficial interest in the mortgage; (2) MNI had assigned its interest in both instruments to others without notifying plaintiffs; and (3) no party with the right to foreclose the mortgage had recorded its interest. MNI responded that plaintiffs had named MNI as a party in error, because MNI did "not own the right to the mortgage in question." MERS did not respond. Around this time, plaintiffs received a letter in which U.S. Bank represented that it possessed the original promissory note and mortgage and that it had the right to institute foreclosure proceedings on the property. The trial court denied plaintiffs' motion to amend and dismissed plaintiffs' case for failure to state a claim. Plaintiffs appealed. After careful consideration of the trial court record, the Supreme Court concluded the trial court erred in dismissing Counts 1 and 2 of plaintiffs' amended complaint for lack of standing, to the extent that these counts alleged irregularities in the transfer of the note and mortgage unconnected to the pooling and servicing agreement. The Court affirmed as to dismissal of Counts 3 and 4 of plaintiffs' proposed amended complaint. The case was remanded for further proceedings. View "Dernier v. Mortgage Network, Inc." on Justia Law

Applicant Charles Ferrera and property owners Ronald and Susan Fenn appealed a Superior Court, Environmental Division order that affirmed the Town of Middlebury's denial of their application to operate a gravel pit. Applicants contended: (1) several key findings and conclusions were unsupported by the evidence; and (2) provisions of the Town's zoning regulations are unconstitutionally vague. Finding no error, the Supreme Court affirmed. View "In re Ferrera & Fenn Gravel Pit" on Justia Law

The Probate Court appointed Theodore Ballard's niece, Leala Bell, as Ballard's guardian. Bell signed a promissory note to a mortgage as a "borrower"; she did not expressly indicate that she was signing as Ballard's guardian or that her signature indicated only her "approval" of Ballard's action. The loan was secured by a mortgage on Ballard's real property. The mortgage deed granted and conveyed Ballard's property to CitiFinancial, including the power to sell the property. Ballard signed the mortgage deed but Bell did not. There was no showing that the probate court licensed the mortgage. CitiFinancial alleged that Ballard had failed to make the payments called for under the note and mortgage, and therefore breached these agreements. Ballard moved for summary judgment, arguing in relevant part that he lacked the legal capacity to execute a mortgage deed and promissory note while he was under guardianship. Upon review, the Supreme Court found that Ballard's argument relied on the notion that Bell participated in the transaction with CitiFinancial, subjected herself to personal liability as a cosigner of the note, signed the settlement statement as well as the promissory note, but did not actually approve Ballard's signing of the note. Although the mortgage deed purportedly executed by Ballard and the promissory note secured by that deed were executed as part of the same overall transaction, the two documents created distinct legal obligations. The Supreme Court concluded that the trial court erred in analyzing the note and mortgage as if they were one and the same, both subject to the requirement of probate court approval. Therefore the Court reversed the award of summary judgment to Ballard on CitiFinancial's claim on the promissory note and remanded the case back to the trial court for further proceedings on that claim. View "CitiFinancial, Inc. v. Balch" on Justia Law

The question in this case was whether the trial court's dismissal of plaintiff's eviction action on account of her lawyer's failure to attend a scheduled status conference can withstand a motion to set aside the judgment pursuant to Vermont Rule of Civil Procedure 60(b) given the facts of this case. After careful review of those facts, the Supreme Court concluded that it could not and reversed. View "Ying v. Heide" on Justia Law

Plaintiff Thomas Kellogg owned a house and land in Bethel.  In 1999, he entered into a rent-to-own agreement with William Oren whereby Oren would pay over time for the property, at which point ownership would be transferred to him. Beginning in 2000 and then from 2001 onwards, defendant Cindy Shushereba began to occupy the house with Oren in a romantic relationship. By August 2004, it was contemplated that defendant would co-own the property.  Plaintiff indicated that he wished to come to an agreement to sell the property to defendant and Oren. To that end, defendant liquidated her savings and paid plaintiff for a downpayment on the house.  Plaintiff credited Oren and defendant with the amount Oren had paid in rent.  These two contributions left roughly $98,721 to be paid to reach the purchase price.  The parties agreed orally that the balance would be paid monthly over fifteen years. No written purchase and sale agreement was ever prepared, but the parties intended that Oren and defendant would receive title immediately and give a mortgage secured by a promissory note for the installments. Plaintiff delivered a signed warranty deed to defendant, but defendant never signed the promissory note or the mortgage.  Because defendant could not pay the property transfer tax that would be due on recording, she never recorded the warranty deed.  Plaintiff testified that, at the time, he considered himself the mortgage holder only. Ultimately, the relationship between Oren and defendant dissolved, and, in May 2008, Oren moved out. A couple of months later, plaintiff and defendant became sexually involved.  During this time, plaintiff sought neither rent nor the purchase installments from defendant, and she made no payments. At some point in 2010, plaintiff began seeking rent from defendant, and she did make between two and four monthly rental payments of $650. Plaintiff paid the property taxes on the property throughout the time that defendant lived by herself in the house. Oren then sued plaintiff and defendant, seeking to be declared half-owner of the property along with defendant, from whom he sought a partition and accounting.  In September 2009, the superior court rejected Oren's claims. Defendant counterclaimed, contending that she owned the property or, in the alternative, that plaintiff had been unjustly enriched by defendant’s payments to him.  Prior to trial, the court dismissed as res judicata defendant’s claim that she owned the property, leaving the unjust-enrichment claim in her counterclaim. After a bench trial, the trial court ruled in favor of plaintiff’s claims for back rent and property taxes. However, the trial court ruled in favor of defendant with regard to her unjust enrichment claims for the return of the downpayment on the purchase price and several of her alleged capital and repair contributions. Both parties appealed. Upon review, the Supreme Court concluded that the contract between plaintiff and defendant was a contract for deed; the trial court erred in concluding it was a landlord-tenant relationship. Because the agreement between plaintiff and defendant was a contract for deed, the amount of $833 per month that defendant had agreed to pay plaintiff went entirely toward the purchase price plus interest. When the periodic payments were complete, defendant would become the owner of the property, free and clear of any interest of plaintiff, without a further payment. There was not an agreement to pay rent; the $833 monthly payment was not part of a rental agreement between plaintiff and defendant. View "Kellogg v. Shushereba" on Justia Law

Appellees' (two brothers and a sister) family owned and operated a farm in Pomfret. In 2009, neighbors appealed to the Environmental Division from a decision by the Town’s zoning board of adjustment (ZBA) granting a construction permit for a planer building on farm property. They also appealed a ZBA denial of their request to enforce what they considered to be zoning violations concerning the building of a sawmill and kiln buildings on farm property. The trial court issued a written ruling on the parties’ cross-motions for summary judgment, concluding that the wood-processing buildings at issue did not satisfy the criteria for a permit exemption under the Pomfret zoning ordinance, but that factual issues remained as to whether they qualified as “farm structures” exempt from local zoning regulation under state law. Accordingly, the Supreme Court found no basis to disturb the judgment the trial court's decision, and affirmed it. View "In re Moore Accessory Structure Permit and Use" on Justia Law

In consolidated cases, the common issue centered on whether Vermont laws allowed the Town of Colchester to consider certain intangible factors in assessing seasonal lakefront camps located on leased land. The Supreme Court held that the Town was not precluded from considering such factors in assessing properties. View "Lesage v. Town of Colchester" on Justia Law

Vanderminden, a Family Limited Partnership, owned a contiguous piece of property in the adjoining towns of Poultney and Wells. The Wells portion was at issue in this case: the state appraiser affirmed the Town's valuation of the property. On appeal, the partnership argued that the appraiser failed to supply a sufficient explanation for its decision to accept the Town's valuation; in assessing the Wells and Poultney properties as a single parcel then valuing the Wells portion as a seasonal dwelling; and for not accepting the partnership's evidence that the Wells portion was assessed above fair market value of the entire parcel. Upon review, the Supreme Court concluded that the valuation of a single property in more than one town includes both the fair market value of the entire parcel, and of the portion in the town involved in the appeal. Because the partnership presented evidence to demonstrate that the Wells portion's valuation exceeded the fair market value of the entire parcel, Wells' appraisal should have been reduced accordingly. Furthermore, the state appraiser should have given its reason for the high valuation. Accordingly, the Court remanded the case for further proceedings. View "Vanderminden, A Family LTD Partnership v. Town of Wells" on Justia Law

The Town of Hartford and Marc and Susan Wood have been involved in a property dispute for over a decade. At issue: the construction of a large concrete retaining wall along the Woods property. They appealed the latest superior court decision in the matter. In 1999, the Town approved the Woods' application for a zoning permit to construct the wall. In early 2000, Woods began stockpiling recycled concrete slab sections in order to construct it. The Town served Woods a Notice of Violation (NOV) and filed an enforcement action, arguing that the concrete was not what was specified in the zoning permit. A court determined that Woods failed to meet the specifications for the permit. Woods appealed, and thus began the litigation that ultimately wound up before the Supreme Court in this case. In 2011, the superior court concluded that Woods still had not adhered to the permit's specifications. Woods raised thirteen claims of error on appeal, mostly challenging the sufficiency of evidence and errors in interpretation of the zoning code. Finding no error in the superior court's 2011 decision, the Supreme Court affirmed. View "In re Wood NOV, Town of Hartford v. Wood" on Justia Law

The Town of Fairfax cited homeowner Leon Beliveau for changing the use of his property from a single-family dwelling to a rooming-and-boarding house without obtaining the necessary zoning permits. Beliveau argued on appeal that the trial court erred in finding his property was used as a boarding house, and that the Town's zoning laws were unconstitutionally vague. Finding no error in the trial court's view of Beliveau's property, and that the town's zoning laws were not unconstitutionally vague, the Supreme Court affirmed. View "In re Beliveau NOV, Town of Fairfax v. Beliveau" on Justia Law