26 March, 2024

QPWB Secures Dismissal for Creditor in Mortgage Lien Suit with Quick and Cost Effective Defense

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In: Verdicts

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Partner, Matthew Reinhardt and Managing Bankruptcy Partner, Justin Plean successfully defended a mortgage servicer in court, resulting in the dismissal of an adversary proceeding. The debtor sought to strip the creditor’s mortgage lien based on Michigan’s statute of limitations, arguing foreclosure wasn’t initiated within the required timeframe. Reinhardt and Plean's motion to dismiss effectively countered the allegations, securing a swift victory for their client.

Overview of the Case

  • Matthew Reinhardt and Justin Plean, successfully defended a mortgage servicer (the client) in court.
  • In this case, the debtor attempted to challenge the validity of a second priority mortgage lien on their property, arguing that it should be stripped due to the statute of limitations set forth in Michigan's law.
  • Specifically, the debtor claimed that the creditor (the entity holding the mortgage) could not foreclose on the property because the foreclosure action wasn't initiated within 15 years after the mortgage became due or within 15 years after the last payment was made.
  • QPWB, representing the mortgage servicer, analyzed the claims made by the debtor in their legal motion to dismiss the case.
  • Their argument was successful, resulting in the dismissal of the adversary proceeding, meaning that the court ruled in favor of the mortgage servicer, rejecting the debtor's claim to strip the mortgage lien.

Claims Made Against Our Client

  • The creditor's lien should be stripped off the debtor's real property pursuant to Michigan’s statute of limitations MCL 600.5803.

Key Difference-Makers Involved

  • Matthew Reinhardt and Justin Plean dissected the adversary complaint in their motion to dismiss by challenging standing, service, the pleadings, and application of MCL 600.5803 to the creditor's secured loan.

Impact on the Final Decision

  • QPWB was able to expose fatal weaknesses in the debtor's adversary complaint early in the case and addressed them head on in our motion to dismiss.
  • The outcome was described as a "quick and cost-effective win" for the mortgage servicer, indicating that the legal defense provided by Matthew and Justin efficiently protected their client's interests without excessive time or expense.

Predicting the Future

  • Our bankruptcy group will aggressively and cost-effectively represent our client's interests in chapters 7, 11, and 13 bankruptcy cases.

About QPWB

Quintairos, Prieto, Wood & Boyer, P.A., is the largest minority and women-owned law firm in the nation with jurisdiction in 45 states and territories in the U.S. allowing us to serve a broad spectrum of industries with over 100 areas of practice. Our lawyers provide representation for businesses and their leaders in litigation, regulatory, and corporate matters.

Discover the QPWB Difference

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