Vision Mortgage Corp., Inc. v. Patricia J. Chiapperini

In Vision Mortgage Corp., Inc. v. Patricia J. Chiapperini, 156 N.J. 580, 584, 722 A.2d 527 (1999), the Supreme Court was faced with determining whether or not a second suit claimed to be barred by the entire controversy doctrine arose from the same series of transactions. In Vision, the plaintiff retained the defendant to appraise real-estate for the purpose of determining the amount that it would loan on a purchase money mortgage. Id. at 582, 722 A.2d 527. The defendant appraised two separate parcels of property and, based upon his opinion, the plaintiff entered into mortgage loans. Ibid. When one of the mortgagors defaulted, the plaintiff foreclosed and learned that the property was worth significantly less than the amount of the appraisals. Id. at 583, 722 A.2d 527. The plaintiff sued for negligent appraisal regarding one of the properties and settled before trial. Ibid. The plaintiff, thereafter, brought a second suit against the defendant for negligence in appraising the other parcel. Ibid. The defendant sought summary judgment based upon the entire controversy doctrine and the fact that the plaintiff was aware of the second cause of action prior to the settlement of the first. Ibid. The trial court granted the defendant's motion and dismissed the second suit. Ibid. In affirming our reversal of the trial court, the Supreme Court pointed out that the transactional facts were different enough to warrant not invoking the entire controversy doctrine. Id. at 584, 722 A.2d 527. The Supreme Court indicated that the facts would have been stronger had there been a master contract between Chiapperini and Vision. Ibid. The New Jersey Supreme Court rejected the argument that the cause of action in a mortgage foreclosure case accrued at the time of default or the sale of the mortgaged premises. "The better analysis leads us to conclude that the accrual of a cause of action should not await the sale of the mortgaged properties, but rather that the cause of action should accrue when the mortgagee knows or has reason to know that its collateral has been impaired or endangered by the negligent appraisal. At that time, the mortgagee knows that it has suffered legal injury." 156 N.J. at 585-86, 722 A.2d 527. There is no question that plaintiffs knew of defendant's alleged error as evidenced by the exchange of correspondence and discourse which occurred in 1991.