July 12, 2015
By Attorney John Ennis
A Watershed Moment in Foreclosure Battle: Judge McConnell Hailed as Savior to Thousands of Downtrodden Homeowners
Federal Court Judge John J. McConnell issued a decision in the Cosajay v. MERS case this week. This case provides the plaintiffs with an opportunity to over-turn thousands of home foreclosure cases and will be viewed as a watershed moment in foreclosure law.
Judge McConnell's decision in the case puts to bed once and for all the contention that homeowners have no right to challenge fraudulent assignments appearing in their chain of title.
In the 11 page decision, he wrote, in part:
“The Court DENIES Defendants’ Motion to Dismiss (ECF No. 5) and finds that Ms. Cosajay has standing to bring this lawsuit against Defendants … the Court finds that Rhode Island law provides that same dual ideas basis for deviating from the general contract rule … Therefore, the Court finds that Rhode Island law provides that same protection to mortgagors in the same situations in which the first circuit found the Culhane and Woods plaintiffs under Massachusetts law.”
This ruling will impact not only every foreclosure case filed in Rhode Island Supreme Court, but also every foreclosure case across the country. “By far, this is the biggest decision concerning home foreclosure by a judge in the country in recent years.” said Attorney Babcock. “Judge McConnell took one swoop of his pen and changed the outcome of thousands of home foreclosure cases”
Over the last five years the issue of whether or not a plaintiff (homeowner) can sue a defendant (a lender) has been challenged at every step of the ongoing home foreclosure battle. This ruling by McConnell will bring a new perspective to every home foreclosure case ruling thus far in the Rhode Island Courts, and reinvigorates homeowners resolve to continue fighting the bank and mortgage servicers.
“As a result of the visionary decision by Judge McConnell, today is a new day in home foreclosure law.”