Narrative Opinion Summary
The case involves Maine homeowners facing foreclosure who filed a lawsuit against GMAC Mortgage, LLC, alleging statutory violations under the Unfair Trade Practices Act (UTPA). The plaintiffs claimed that GMAC engaged in deceptive practices by using false affidavits in foreclosure proceedings. Initially filed in Maine Superior Court, the case was removed to federal court under diversity jurisdiction, where common law claims were dismissed. The remaining UTPA claim challenges whether GMAC's actions, allegedly shielded by the judicial proceedings privilege, constitute unfair trade practices. The lack of precedent in Maine on applying this privilege to statutory claims prompted the federal court to certify a question to the Maine Supreme Judicial Court. The court must decide if the privilege extends to the UTPA claim, which will influence the decision on GMAC's motion to dismiss. Plaintiffs seek damages and injunctive relief, and the outcome hinges on the interpretation of Maine's judicial proceedings privilege concerning statutory claims. The procedural aspects include certification to the state supreme court, and the dismissal of a breach of good faith claim, distinguishing the case from prior Maine rulings.
Legal Issues Addressed
Certification to State Supreme Courtsubscribe to see similar legal issues
Application: The federal court certified a question to the Maine Supreme Judicial Court due to lack of precedent on whether judicial privilege applies to UTPA claims.
Reasoning: The Clerk is directed to certify twelve copies of this Order to the Maine Supreme Judicial Court.
Diversity Jurisdiction and Removal to Federal Courtsubscribe to see similar legal issues
Application: The defendant removed the case to federal court under diversity jurisdiction and successfully moved to dismiss common law claims.
Reasoning: The defendant removed the case to federal court, citing diversity jurisdiction, and successfully moved to dismiss the common law claims for failure to state a claim.
Judicial Proceedings Privilege under Maine Lawsubscribe to see similar legal issues
Application: The court examines whether Maine's absolute judicial proceedings privilege applies as an affirmative defense to a statutory claim under the Unfair Trade Practices Act (UTPA).
Reasoning: The United States District Court for the District of Maine certified a question of state law to the Maine Supreme Judicial Court regarding the applicability of Maine's absolute judicial proceedings privilege to a statutory claim under the Unfair Trade Practices Act (UTPA).
Procedural Handling of State Law Claimssubscribe to see similar legal issues
Application: The procedural handling involves certification to the state supreme court and dismissal of certain common law claims.
Reasoning: There is no certification regarding common law claims for abuse of process and fraud on the court, as the requirements for these claims are clear under Maine law.
Unfair Trade Practices Act (UTPA) Claimssubscribe to see similar legal issues
Application: Plaintiffs allege that false affidavits used in foreclosure constitute unfair trade practices under the UTPA, seeking damages and injunctive relief.
Reasoning: Plaintiffs argue that GMAC's false documents constitute unfair trade practices under the Maine Unfair Trade Practices Act (UTPA), allowing for relief under 5 M.R.S.A. 213.