Magistrate Judge Steven Gold
Refinancing home loans, the Robinsons executed a CEMA mortgage consolidating two prior home mortgages from Option One Mortgage Corp. (Option One), now Sand Canyon Corp. They also executed a CEMA Note. Option One assigned the mortgage to H&R Block by indorsing an allonge referencing the CEMA mortgage. The "bundled" allonge was not affixed to the CEMA Note until March 12, 2013, when H&R Block stapled them together. H&R made the original note and mortgage at issue available for the Robinsons’ inspection. They did not examine the documents. District court granted H&R Block and its codefendants summary judgment dismissing the Robinsons’ action asserting fraud and unjust enrichment. In finding defendants entitled to judgment on the fraud claim the courtciting the Second Circuit’s ruling in U.S. Bank N.A. v. Squadron VCD and the bankruptcy court’s ruling in In re Feinbergheld that for assignment purposes Option One’s physical delivery of the note to H&R Block was sufficient. Thus the Robinsons’ technical arguments about defects with the allonge were immaterial. The Robinsons’ unjust enrichment claims were dismissed because a contractual agreement governed the parties’ obligations.
