Articles Posted in Banking

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Appellant filed two legal actions. Appellant filed a complaint in federal court alleging violations of his due process and equal protection rights. The federal district court dismissed the complaint, and Appellant appealed. Appellant also filed this original action seeking a writ of mandamus to compel an employee of JPMorgan Chase Bank to pay him a certain amount of money. The court of appeals dismissed the complaint. The Supreme Court affirmed, holding that Appellant’s claims were barred by res judicata, Appellant had an adequate remedy in the ordinary course of law, and Appellant failed to identify a clear legal right to the relief he sought. View "State ex rel. McQueen v. Weibling-Holliday" on Justia Law

Posted in: Banking, Civil Rights

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Bank filed this foreclosure action against Debtors. Debtors counterclaimed, alleging that Bank did not own the promissory note or the mortgage at the time it commenced the foreclosure action. The trial court granted summary judgment for Bank, finding that Bank was the holder of the note and the assignee of the mortgage prior to the commencement of the action. The court of appeals reversed, concluding (1) only the current holder of both the note and the mortgage has standing to file a foreclosure action, and (2) genuine issues of material fact existed regarding whether Bank owned the note at the time it commenced the foreclosure action. The Supreme Court reversed, holding (1) when debt on a promissory note secured by a mortgage has been discharged by a bankruptcy court, the holder of the mortgage has standing to foreclose on the property and to collect the deficiency on the note from the foreclosure sale of the property; and (2) no genuine issue of material fact existed regarding any of the elements of Bank’s foreclosure action. View "Deutsche Bank Nat’l Trust Co. v. Holden" on Justia Law

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Appellant was granted a default judgment against Bank of America and filed a praecipe for a writ of execution. BAC Field Services filed a motion to stay the execution of judgment and a motion for relief from judgment. The trial court granted the motions. The court of appeals reversed and remanded the case with instructions for the trial court to clarify its reasoning. Thereafter, Appellant moved the trial court to reinstate the default judgment. When the court had not ruled on the motion, Appellant filed this action requesting writs of prohibition barring the trial court from vacating the default judgment and barring BAC from appearing in the case. The court of appeals denied the writs. After Appellant appealed, the trial court again vacated the default judgment and responded to the court of appeals’ instruction to clarify its reasoning. The Supreme Judicial Court (1) declared the petition for a writ of procedendo moot because the trial court had issued a decision clarifying its reasons for vacating the default judgment; and (2) affirmed the court of appeals’ judgment denying Appellant’s petition for writs of prohibition because the court did not patently and unambiguously lack jurisdiction to proceed. View "State ex rel. Haley v. Davis" on Justia Law

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Petitioners executed a promissory note and mortgage in favor of Mortgage Electronic Registrations Systems, Inc. The notary acknowledgment on the mortgage was left blank. The mortgage was subsequently recorded with the county recorder. The interest in the mortgage was later assigned to Bank. Thereafter, Petitioners initiated a Chapter 13 bankruptcy and commenced an adversary proceeding seeking to avoid the mortgage as defectively executed. The bankruptcy court determined that its interpretation of Ohio Rev. Code 1301.401 would be dispositive in this case and certified to the Supreme Court questions of state law concerning whether section 1301.401 has an effect on the case. The Supreme Court answered that section 1301.401 applies to all recorded mortgages in Ohio and acts to provide constructive notice to the world of the existence and contents of a recorded mortgage that was deficiently executed under Ohio Rev. Code 5301.01. View "In re Messer" on Justia Law

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In 2010, Bank filed a foreclosure action against Defendants for allegedly defaulting on a promissory note. The trial court granted Bank’s motion for summary judgment and issued a decree of foreclosure in Bank’s favor. Defendants appealed, asserting four assignments of error, none of which challenged the court’s conclusion that Bank had standing to bring the foreclosure suit. Rather than considering Defendants’ assignments of error, the court of appeals sua sponte considered the issue of standing and held that Bank lacked standing to bring this foreclosure action. The Supreme Court reversed, holding that Bank had standing to file the foreclosure action against Defendants at the time that it filed the complaint in 2010. Remanded. View "Wells Fargo Bank, N.A. v. Horn" on Justia Law

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Bank of America, N.A. filed a complaint in foreclosure against George and Bridget Kuchta, claiming to be the holder of a promissory note and assignee of the mortgage. The trial court granted summary judgment to the bank and entered a decree of foreclosure in its favor. The Kuchtas moved to vacate the summary judgment and decree of foreclosure, arguing that the bank lacked standing to commence the action because it did not prove ownership of the note and because the mortgage assignment was fatally flawed. The trial court denied the motion. The court of appeals reversed, holding that standing is a jurisdictional matter and that Bank of America’s alleged lack of standing would warrant relief from judgment. The Supreme Court reversed, holding that a lack of standing cannot support a motion for relief from judgment, and lack of standing does not render a judgment void for lack of subject matter jurisdiction. View "Bank of Am., N.A. v. Kuchta" on Justia Law

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At issue in this case was whether Ohio Rev. Code 5721.25 permits a mortgage holder to redeem the mortgaged property when it is the subject of a tax foreclosure proceeding. Here, Vanderbilt Mortgage and Finance, Inc. (Vanderbilt) was the holder of both a promissory note and mortgage on certain property. Due to the mortgagors’ failure to pay taxes on the property, the county treasurer initiated a tax foreclosure proceeding for delinquent taxes. The question before the trial court was whether Vanderbilt had the right to redeem. The trial court concluded that Vanderbilt was a “person entitled to redeem” under section 5721.25, granted Vanderbilt’s motion to stay the confirmation of sale and to vacate and set aside the sheriff’s sale. The court of appeals reversed, determining that Vanderbilt was not entitled to redeem the property. The Supreme Court reversed the court of appeals, holding (1) “any person entitled to redeem the land” under section 5721.25 includes “any owner or lienholder of, or other person with an interest in” the property as set forth in section 5721.181; and (2) therefore, Vanderbilt, as a lienholder, was entitled to redeem the land. Remanded. View "In re Foreclosure of Liens for Delinquent Land Taxes v. Parcels of Land Encumbered with Delinquent Tax Liens" on Justia Law

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Defendants executed a promissory note in favor of FirstMerit Bank secured by a mortgage on several parcels of real estate. After Defendants defaulted on the promissory note, FirstBank initiated foreclosure proceedings. The common pleas court entered a decree in foreclosure, and the properties were sold at auction. Because the sale of the properties resulted in a deficiency, FirstMerit obtained a cognovit judgment against Defendants. Defendants moved for relief from judgment pursuant to Ohio R. Civ. P. 60(B), asserting as a defense that they had reached an oral settlement agreement with FirstMerit under which FirstMerit had agreed to cease legal proceedings and release Defendants from their obligations. The trial court denied the motion, concluding that the statute of frauds barred their defense. The appellate court reversed, determining that Ohio Rev. Code 1335.05 did not prohibit Defendants from raising as a defense that the parties orally agreed to modify the terms of their agreement. The Supreme Court reversed, holding that the oral agreement in this case fell within the statute of frauds, and therefore, Defendants were precluded from raising the agreement as a defense in a motion for relief from judgment. View "FirstMerit Bank, N.A. v. Inks" on Justia Law

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This appeal involved two separate actions that were consolidated. In the first action, a married couple raised allegations of fraud and other claims against Residential Finance Corporation (RFC), which had brokered two refinancings of the couple's residential mortgage. The first action was consolidated with a foreclosure case filed later against the couple. Appellant and RFC were named as third-party defendants in the foreclosure case. After consolidation, the case was bifurcated on the basis of subject matter for trial purposes and was scheduled to go to trial only on the refinancing issues. Judge Robert Nichols denominated Appellant as a codefendant in that trial. Appellant field an action for a writ of prohibition to prevent Nichols from requiring him to be a defendant in the trial. The court of appeals denied the writ. The Supreme Court affirmed, holding that Appellant could not establish the elements for a writ of prohibition, as Appellant had an adequate remedy at law and Nichols did not patently and unambiguously lack jurisdiction over Appellant. View "State ex rel. Shumaker v. Nichols" on Justia Law

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After Countrywide Home Loans Servicing filed a complaint in foreclosure against Appellants, the trial court granted default judgment in favor of Countrywide, and the property was sold at a sheriff's sale. Countrywide subsequently filed a notice of voluntary dismissal and then refiled its complaint in foreclosure. The trial court granted the order of foreclosure, rejecting Appellants' claim that the action was precluded by res judicata. The appellate court affirmed, concluding that until the order confirming the sheriff's sale is entered, the plaintiff may terminate the case without prejudice by filing a notice of voluntary dismissal. The Supreme Court reversed, holding that a judgment of foreclosure cannot be dissolved by the filing of a notice of voluntary dismissal after a trial court has entered judgment on the underlying note. Remanded. View "Countrywide Home Loans Servicing, L.P. v. Nichpor" on Justia Law