Bank of New York Mellon v. Blouse
2013 Ohio 4537
Ohio Ct. App.2013Background
- Defendants-appellants Ernest L. Blouse and Cathryn D. Blouse challenge foreclosure by Bank of New York Mellon after note/mortgage transfers.
- The note/mortgage were originally issued to Full Spectrum Lending and secured Jeffersonville, Ohio residence.
- Chain of title: note/mortgage transferred to Countrywide, then to Bank of New York Mellon, then Countrywide repurchased and later sold to Bank of New York Mellon (as current plaintiff).
- Bank of New York Mellon filed foreclosure Oct. 4, 2011, supported by the original note, a blank-indorsed allonge, and a mortgage assignment.
- Trial court granted summary judgment and foreclosure on Jan. 3, 2013; Blouses appeal, arguing lack of standing and real party in interest.
- Court held Bank of New York Mellon had standing and was the real party in interest when suit was filed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff had standing to sue | BNY Mellon showed current holder status via note, allonge indorsed in blank, and mortgage assignment | Blouses contend no standing or real-party-in-interest authority | BNY Mellon had standing and was real party in interest |
| Whether counsel's authority to sue needed proof of agency | Authority need not be shown; entry of appearance presumptively valid | No authority shown for counsel to file suit on behalf of bank | No requirement to prove counsel's authority for standing; proper party proved |
| Effect of Schwartzwald on standing in foreclosure | Foreclosure proper if holder/enforcer of note; standing met | Lack of initial interest in note/mortgage | Schwartzwald controls; standing established at commencement |
| Real party in interest vs. standing distinctions | Real party in interest is current holder of note/mortgage; Civ.R. 17 not about standing | Question whether bank was real party in interest | Bank of New York Mellon was real party in interest and had standing |
| Chain of assignments to establish enforceable interest | Evidence of chain of assignments and possession of the note established enforceability | Challenge to chain of title | Chain of title established; plaintiff had enforceable interest |
Key Cases Cited
- Schwartzwald, 134 Ohio St.3d 13 (2012-Ohio-5017) (standing requires current interest in note; cannot be cured later by assignment)
- Kincaid v. Erie Ins. Co., 128 Ohio St.3d 322 (2010-Ohio-6036) (standing as a jurisdictional preliminary inquiry; de novo review)
- Payton v. Rehberg, 119 Ohio App.3d 183 (1997) (entry of appearance presumptively proves authority of counsel)
- Deutsche Bank Natl. Trust Co. v. Sexton, 2010-Ohio-4802 (12th Dist. Butler No. CA2009-11-288) (real-party-in-interest in foreclosure is the current holder of note/mortgage)