BAC Home Loans Servicing, L.P. v. Komorowski
2012 Ohio 1341
Ohio Ct. App.2012Background
- Terese Komorowski appeals denial of a Civ.R. 60(B) motion to vacate foreclosure decree and sheriff's-sale order.
- BAC filed foreclosure on Kenneth Komorowski (sole obligor) and Terese as title holder; later substituted Unknown Heirs for Kenneth’s heirs.
- Mortgage identified MERS as nominee for lender; assignment to BAC executed by Hill on behalf of MERS.
- Kenneth defaulted in April 2009; BAC accelerated the loan and Kenneth died June 14, 2009.
- Terese sent partial payments after Kenneth’s death, but BAC refused them as she was not a party to the loan; sale occurred after default.
- Foreclosure judgment and sale were finalized; Terese moved to vacate alleging lack of service on Kenneth’s estate; court denied; Terese appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court had jurisdiction to enter foreclosure despite service on Kenneth’s estate | BAC argues heirs were properly substituted and Terese served; service adequate | Terese claims estate not served; judgment void ab initio | No reversible error; service and substitution were proper |
| Whether BAC lacked standing to sue due to alleged invalid assignment | Hill’s MERS-assignment valid; BAC stood as holder | Assignment insufficient to confer standing | Standing properly established; assignment valid |
| Whether the trial court erred in striking Terese's late answer and in denying leave to plead | Court properly managed docket; no consent to extend deadline | Stipulation for leave to plead should have been allowed | No abuse of discretion; rulings affirmed |
| Whether the default judgment and foreclosure decree were void for lack of necessary-party service | Heirs/Unknown Heirs were properly served via substitution/ publication | Estate not served directly; judgment void | Judgment not void for lack of service; affirmed |
Key Cases Cited
- Rose Chevrolet, Inc. v. Adams, 36 Ohio St.3d 17 (Ohio 1988) (abstention from relief requires proper service and basis for Civ.R. 60(B))
- GTE Auto. Elec., Inc. v. ARC Indus., Inc., 47 Ohio St.2d 146 (Ohio 1976) (Civ.R. 60(B) standards applied to relief from judgment)
- Patton v. Deimer, 35 Ohio St.3d 68 (Ohio 1988) (void judgment when lacking jurisdiction)
- New Boston Coke Corp. v. Tyler, 32 Ohio St.3d 216 (Ohio 1987) (standing affects jurisdiction; may be raised any time)