Daniely v. Accredited Home Lenders
2013 Ohio 4373
Ohio Ct. App.2013Background
- Daniely appealed a Civ.R. 12(C) dismissal of her declaratory judgment complaint against Accredited Home Lenders, HSBC Mortgage Services, and MERS.
- Daniely’s mortgage at 4650 Whitehall Road, South Euclid, Ohio designated MERS as nominee for the lender and its successors.
- MERS allegedly assigned the mortgage to HSBC; Daniely was told to make payments to HSBC.
- Daniely alleged HSBC violated R.C. 5301.25 by not recording the encumbrance, claiming HSBC fraudulently demanded payments.
- The trial court granted judgment on the pleadings, and the court of appeals affirmed dismissal as the complaint failed to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority of MERS to assign to HSBC | Daniely argues MERS lacked authority to assign the mortgage to HSBC. | Appellees contend MERS, as nominee, had authority to assign the mortgage to HSBC. | MERS had authority; HSBC entitled to receive payments. |
| Effect of non-recording under RC 5301.25 on obligation to pay | Daniely claims non-recording excuses her from paying HSBC. | Appellees argue recording statute does not excuse mortgagor from payment obligation. | Recording statute does not defeat borrower’s obligation to pay mortgagee. |
| Judgment on the pleadings standard | Daniely contends the complaint states a claim for declaratory relief. | HSBC/MERS contend the pleadings show no legal basis for relief. | Judgment on the pleadings proper where no material factual issues exist and plaintiff cannot state a claim. |
Key Cases Cited
- BAC Home Loans Servicing, L.P. v. Hall, 2010-Ohio-3472 (12th Dist. Warren (2010)) (MERS as nominee can assign mortgage to real party in interest)
- Countrywide Home Loans Servicing, L.P. v. Shifflet, 2010-Ohio-1266 (3d Dist. Marion (2010)) (MERS as nominee permitted to assign mortgage)
- Deutsche Bank Natl. Trust Co. v. Ingle, 2009-Ohio-3886 (8th Dist. Cuyahoga (2009)) (Deutsche entitled as real party in interest where MERS assigns as nominee)
- Peterson v. Teodosio, 34 Ohio St.2d 161 (Ohio Supreme Court (1973)) (Judgment on the pleadings standard; limited to pleadings and attached writings)
- Chromik v. Kaiser Permanente, 2007-Ohio-5856 (8th Dist. Cuyahoga (2007)) (Judgment on pleadings requires no genuine issues of material fact)
- State ex rel. Midwest Pride IV, Inc. v. Pontious, 75 Ohio St.3d 565 (Ohio Supreme Court (1996)) (Outlines standard for Civ.R. 12(C) analysis)