138 So. 3d 1005
Ala. Civ. App.2013Background
- AFC loaned $283,000 to the Stones in June 2003, secured by a mortgage on ~40 acres in Marshall County, Alabama.
- AFC, originally Federal Land Bank Association, called the loan in full after missed payments in Nov 2010 and May 2011, leading to foreclosure proceedings.
- Foreclosure sale occurred July 14, 2011; AFC purchased the property for $112,500, short of the balance owed.
- Foreclosure deed recorded July 14, 2011; AFC gave written possession-demand on July 18, 2011; Stones refused to vacate and did not pay rent.
- AFC filed ejectment and rent action on Oct 11, 2011; Stones, pro se, sought discovery and received over 800 pages of documents plus offer to inspect originals.
- Trial court granted summary judgment for AFC on July 30, 2012; Stones’ separate motion to dismiss and later motions were resolved; final judgment issued Nov 30, 2012 awarding AFC $3,000 for rental value.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to pursue ejectment and foreclosure | AFC possessed the mortgage and documents; thus standing is proper. | Stones claimed AFC lacked custody/possession of original documents, challenging standing. | AFC had standing; production of documents and copies supported standing. |
| Validity of summary judgment given evidence of title | AFC showed it held the mortgage, foreclosed properly, and obtained a deed with notice and demand to vacate. | Stones argued foreclosure was fraudulent and title was in doubt, citing documents photos; no substantial evidence of fraud was produced. | Summary judgment proper; AFC entitled to ejectment and rent claim. |
| Requirement to produce original loan/mortgage documents | Rule 34 disclosures and production of 804 Bates-stamped pages; originals available for inspection; photocopies permissible under Rule 1003 when not in questionably authentic. | AFC must produce original documents to prove entitlement; failure undermines standing and rights. | No legal defect; photocopies and produced documents suffice; original production was not required. |
| Stones’ post-judgment/standing to appeal | Final judgment resolved all claims; Stones appealed, preserving issues on ejectment and rent. | But Jon Stone was not a party; the Stones lacked proper standing to appeal certain aspects. | Appellate standing concerns resolved; Stones’ appeal affirmed as to ejectment/rent issues; Jon Stone not a proper party. |
| Sanctions for frivolous appeal | Stones pursued delay and harassment; warrants sanctions. | Stones had right to appeal; sanctions inappropriate. | Sanctions denied; appeal not frivolous. |
Key Cases Cited
- Mars Hill Baptist Church of Anniston v. Mars Hill Missionary Baptist Church, 761 So.2d 975 (Ala.1999) (standing to appeal requires party to be in judgment below)
- Duncan v. First Nat’l Bank of Jasper, 573 So.2d 270 (Ala.1990) (nonparties cannot appeal final judgments)
- Triple J Cattle, Inc. v. Chambers, 621 So.2d 1221 (Ala.1993) (standing to appeal rule for nonparties)
- White Sands Group, L.L.C. v. PRS II, LLC, 998 So.2d 1042 (Ala.2008) (standards for briefing and waiver; evidentiary sufficiency rules)
- Douglas v. Troy Bank & Trust Co., 122 So.3d 181 (Ala.Civ.App.2012) (photocopies of note and mortgage admissible; substantial evidence standard)
- Berry v. Deutsche Bank Nat’l Trust Co., 57 So.3d 142 (Ala.Civ.App.2010) (prima facie ejectment showing requires title and right to possession)
- Muller v. Seeds, 919 So.2d 1174 (Ala.2005) (summary judgment standard; evidence requirements)