Opinion ID: 201972
Heading Depth: 2
Heading Rank: 1

Heading: States Resources Corporation's Interest in the Capizzi Property

Text: 4 In October 1988, Michael Capizzi (Capizzi) signed a $750,000 adjustable-rate note, secured by a $750,000 mortgage on his property at 236 Lincoln Road, Lincoln, MA, memorializing a loan from Winchendon Savings Bank (WSB) for use in developing his property. After WSB became insolvent, other institutions obtained and assigned the mortgage until SRC became the mortgagee in 1998. 5 SRC first initiated foreclosure proceedings against Capizzi in state court in January 1999, alleging that he was in default on the note. Due to a series of partial payments and defaults by Capizzi and his wife, Catherine Capizzi, SRC cancelled and recommenced foreclosure proceedings against Capizzi several times. The Capizzis filed several lawsuits against SRC and bankruptcy petitions to prevent the foreclosure, none of which was successful. During the course of a state court action filed by the Capizzis against SRC, SRC removed the case to federal court based on diversity jurisdiction. On June 9, 2003, the district court granted a motion by SRC for default judgment against the Capizzis for their failure to plead or otherwise defend against SRC's counterclaims, and entered judgment in favor of SRC for $875,203.38. 6