View as PDF

Recent victory at the Supreme Judicial Court streamlines loan recovery process for lenders

When Beal Bank had its hard-earned judgment overturned by the Massachusetts Appeals Court, it turned to Chris Litterio to take the case to the Supreme Judicial Court. The stakes were not simply the mid-six figure judgment, but reversing the stringent standard set by the appellate court for proving a debt owed by a creditor. Under the Appeal Court's decision, a bank that acquired a loan in the secondary market would be forced to resurrect a witness from every other bank that had previously owned that loan to testify as to what payments were made while that bank owned the loan. In modern day banking, buying and selling loans is routine. Had the Appeals Court's decision stood, banks that owned large portfolios of purchased loans stood to lose hundreds of millions of dollars. The cost of credit could have increased significantly.

In Beal Bank v. Eurich, the Massachusetts Supreme Judicial Court held that bank records of a loan payment history based on the records of prior owners of the loan were admissible without the need to have a witness from the prior owners testify about the accuracy of that information. In doing so, the court observed:

We recognize that the problem of proving a debt that has been assigned several times is of great importance to mortgage lenders and financial institutionsl Given the common practice of banks buying and selling loans, we conclude that it is normal business practice to maintain accurate business records regarding such loans and to provide them to those acquiring the loan. Therefore, the bank need not provide testimony from a witness with personal knowledge regarding the maintenance of the predecessors' business records. The bank's reliance on this type of record keeping by others renders the records the equivalent of the bank's own records. To hold otherwise would severely impair the ability of assignees of debt to collect the debt due because the assignee's business records of the debt are necessarily premised on the payment records of its predecessors.

For more information, please contact Chris Litterio at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Maureen Mulligan was quoted in "Online IR Companies Take Fraud Charges to Mediation" in the April 29th issue of the Boston Business Journal. The article discusses the decision to mediate the fraud and trade secret case Shareholder.com v. CCBN.com Inc. et al.

Ruberto, Israel & Weiner, P.C. congratulates four of its attorneys who have been named Massachusetts Rising Stars. Bradley Croft, Barry Dicker, Brian French and Stacey Friends will be listed in the May 2005 issue of Boston Magazine and Massachusetts Super Lawyers - Rising Star Edition.

The distinction, awarded to less than five (2.5%) percent of all Massachusetts lawyers, was based on ballots cast by Massachusetts attorneys, asking them to identify the best up-and-coming lawyers whom they had personally observed in action.

On Tuesday May 3, 2005 Chris Litterio, Head of the Firm's Litigation Department, argues on behalf of a banking client before the Supreme Judicial Court of Massachusetts. The matter relates to the admissibility, under the business records exception to the hearsay rule, of loan documents acquired from the records of predecessors in interests.

The outcome could have broad implications for holders of notes seeking to recover monies due, as well as for other businesses which have acquired assets and later seek to prove an issue through the business records of the prior business.

The case is Beal Bank, SSB v. Richard R. Eurich, SJC Docket No. 09408, and may be seen streaming live on the internet at www.suffolk.edu/sjc.

We are pleased to announce that Amy Mastrobattista has joined the firm as a shareholder. Her practice focuses primarily on corporate and transactional business law and reflects the entrepreneurial values of her clients, be they emerging companies, mature private companies, or public companies, as they confront a rapidly evolving and competitive market place. She is a member of the Corporate Department and the Technology Group.

We are pleased to announce that Maureen Mulligan and Debra Chionchio are now Shareholders of the firm.

Maureen Mulligan is a member of the Litigation Group. A trial lawyer, her practice focuses on complex commercial litigation and general business disputes in the areas of corporate and professional liability, banking and finance, employment, securities and technology issues. In addition to her litigation practice, Ms. Mulligan acts as a mediator for commercial disputes.

Debra A. Chionchio is a member of the corporate department and the food, beverage and hospitality group. Ms. Chionchio counsels closely-held businesses and also handles real estate matters and commercial financing.

Chris Litterio was quoted in the June 4, 2004 issue of the Worcester Telegram and Gazette. Chris argued on behalf of Baystate Financial Services LLC on a trademark dispute over their name.

Chris Litterio was quoted in the March 22, 2004 issue of Massachusetts Lawyers Weekly regarding his recent tip pooling case. The article "Employment Bar Waits For Decision In Tip-Pool Case" discusses the argument that Chris made before the Massachusetts Supreme Judicial Court. No decision has been made yet in this case.  

View Article