Note Capital Group, Inc. v. Michele Perretta

Excerpt

In this foreclosure action, the defendants, Michele Perretta and Anna M. Perretta, appeal from a Superior Court order granting partial summary judgment in favor of the plaintiff, Note Capital Group, Inc. First, the Perrettas argued that an appeal from the Superior Court's interlocutory order was appropriate because the grant of partial summary judgment had an element of finality, as that order allowed Note Capital to foreclose on the Perrettas' property. Second, the Perrettas contended that Note Capital was not entitled to enforce the note because the chain of title of the note was tainted by an improper transfer. Third, the Perrettas proffered that, due to the existence of several versions of the lost note, the hearing justice had erred in granting summary judgment. Fourth, the Perrettas averred that Note Capital was not entitled to enforce the note evidencing a debt owed on their property because the note had been lost by the previous holder of the note, American Residential Equities, LIX, LLC, prior to its assignment to Note Capital. The Supreme Court first held that the Perrettas' interlocutory appeal was proper because it fell into the exception permitting appeals from interlocutory orders regarding a sale of real or personal property. Second, the Court held that the Perrettas lacked standing to contest the allegedly tainted transfer because the doctrine of estoppel by deed rendered that transfer voidable and not void. Finally, the Court held that summary judgment was inappropriate because the hearing justice had made an impermissible factual determination regarding the validity of the lost note, in light of the fact that several versions of the note had been entered into the record below. Accordingly, the Court vacated the order of the Superior Court and remanded the case, with instructions that the Superior Court may consider, inter alia, the Supreme Court's opinion in SMS Financial XXV, LLC v. Corsetti, 186 A.3d 1060 (R.I. 2018).