Southbridge RE, LLC v. Kiavi Funding Inc.

Full title: SOUTHBRIDGE RE, LLC, Plaintiff, v. KIAVI FUNDING INC. & CHRISTIANA TRUST…

Court: United States District Court, D. Massachusetts

Case: 3:21-cv-30061-KAR

Date published: Mar 29, 2023

Fact:

This case arises out of foreclosure proceedings on two commercial properties purchased by Southbridge RE, LLC (Plaintiff) in 2018. Plaintiff obtained loans from Defendant LendingHome Funding Corporation (LendingHome) now known as Kiavi Funding (Kiavi), to purchase the real estate at 103 Prospect Street in Springfield (Springfield Property) and 25 Pleasant Street in Westfield (Westfield Property).The loans were secured by mortgages on the properties in favor of LendingHome. Plaintiff contends that LendingHome’s assignments of the mortgages to Defendant Christiana Trust, a division of Wilmington Savings Fund, FSB, not in its individual capacity but as trustee for Victoria Capital Trust (Christiana Trust), which foreclosed  on the properties, were not valid because LendingHome had previously assigned the mortgages to Toorak Capital Partners (Toorak). Before the court are the parties’ cross-motions for summary judgment (Dkt. Nos. 28 & 32). The parties have consented to this court’s jurisdiction (Dkt. No. 11). See 28 U.S.C. § 636(c); Fed.R.Civ.P. 73. For the reasons set forth below, the court denies Plaintiff’s cross-motion for summary judgment and grants in part and denies in part Defendants’ summary judgment motion.

Issue:

CONCLUSION:

For the foregoing reasons, Plaintiff’s cross motion for summary judgment (Dkt. No. 28) is DENIED. Defendants’ motion for summary judgment (Dkt. No. 32) is GRANTED as to Counts II, III, IV, and VII in the counterclaim, DENIED as to Count I (Slander of Title) and DENIED without prejudice as to Count VIII (Possession of the Westfield property). The Clerk’s Office is directed to schedule a status conference in the near future on a date convenient to the parties and the court.

It is so ordered.

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