Bank of New York Mellon v. Morgan
2013 Ohio 4393
Ohio Ct. App.2013Background
- In 2006 Morgan and Kaylor borrowed $511,200 from Kemper Mortgage and executed a mortgage and adjustable-rate note on 9321 Ash Hollow Lane; they later defaulted.
- Bank of New York Mellon (BNYM) filed foreclosure in July 2011 attaching copies of the note (showing endorsement Kemper → Decision One → blank) and recorded assignments of mortgage (Kemper → MERS → BNYM).
- Homeowners answered pro se, asserted counterclaims and filed a separate quiet-title action; the actions were consolidated.
- After BNYM moved for summary judgment, homeowners retained counsel, moved to amend their answer (to add third-party claims against Kemper) and filed a Civ.R. 56(F) motion seeking more discovery about BNYM’s possession/standing and inspection of the original note.
- The trial court denied leave to amend, denied the Civ.R. 56(F) continuance, and granted BNYM summary judgment on both foreclosure and the homeowners’ quiet-title claim; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Denial of leave to amend pleadings | Denied amendment was harmless; amendment unnecessary because claims already before court | Morgan/Kaylor: sought to clarify defenses and add third-party claims vs Kemper (breach of fiduciary duty, slander of title) | Affirmed — denial not an abuse of discretion; third-party claims did not fit Civ.R.14(A) scope |
| Denial of Civ.R.56(F) continuance | BNYM: discovery responses were provided and contact info given; plaintiffs not diligent | Morgan/Kaylor: needed more time to depose witness (Vela), inspect original note, and obtain assignment evidence | Affirmed — plaintiffs had contact info and BNYM had produced records; no showing likely to discover material facts |
| Grant of summary judgment / standing to foreclose | BNYM: submitted affidavits and business records showing it is holder of note and assignee of mortgage; copies authenticated; note endorsed in blank | Morgan/Kaylor: challenged Vela’s affidavit and lack of production of original note; asserted competing assignment to Decision One | Affirmed — Vela’s affidavit and business records admissible; copies sufficient; note endorsed in blank made it bearer paper and BNYM was holder; mortgage follows note so standing established |
Key Cases Cited
- Turner v. Cent. Local School Dist., 85 Ohio St.3d 95 (1999) (leave to amend may be denied for bad faith, undue delay, or prejudice)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (abuse of discretion standard explained)
- Zivich v. Mentor Soccer Club, Inc., 82 Ohio St.3d 367 (1998) (summary judgment standard)
- Mitseff v. Wheeler, 38 Ohio St.3d 112 (1988) (moving party’s burden on summary judgment)
- Dresher v. Burt, 75 Ohio St.3d 280 (1996) (nonmoving party’s burden to show specific facts creating genuine issue)