David Wayne Lester v. Nationstar Mortgage, LLC
2016 Mo. App. LEXIS 1319
Mo. Ct. App.2016Background
- Bonita J. Lester acquired Lake Lotawana property in 2007, executed a deed of trust to Pinnacle Bank, and executed a recorded beneficiary deed naming her sons David Wayne Lester and Craig Daniel Lester to take at her death.
- Pinnacle released its deed of trust in 2008; Bonita executed and recorded a new deed of trust to Bank of America the same year.
- Bonita died July 3, 2012. In August 2012, Lester and Craig (and their wives) recorded a warranty deed purporting to vest all their interest in the property in Lester.
- In April 2013 Bank of America assigned its deed of trust to Nationstar, which recorded the assignment.
- In September 2013 Lester sued to quiet title, arguing Nationstar’s lien was extinguished because no probate estate was opened and Nationstar failed to apply to open an estate within statutory time limits; Nationstar moved for summary judgment arguing its lien survived as a nonprobate encumbrance and § 473.360(3) preserves mortgage enforcement.
- The trial court granted summary judgment for Nationstar; Lester appealed and the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 473.360 (probate claim-bar rule and its exception) applies when no estate was opened | Lester: § 473.360 applies only to claims against opened estates; no estate was opened so Nationstar must have used § 473.020 procedures and timely open an estate | Nationstar: § 473.360(3) preserves actions to enforce mortgages and liens on property regardless of estate opening | Court: § 473.360(3) exception applies because lien enforcement is not barred; but analysis rests on nonprobate transfer—beneficiary took subject to existing lien, so Nationstar may enforce lien |
| Whether Nationstar needed to open an estate or appoint a personal representative to enforce the deed of trust (and satisfy deed notice/condition precedents) | Lester: Without a personal representative/estate, Nationstar could not meet deed conditions and thus could not enforce lien | Nationstar: Beneficiary deed caused property to pass at death by nonprobate transfer; beneficiaries take subject to liens so Nationstar can enforce directly against property/beneficiaries | Court: Beneficiary deed transferred title at death subject to liens; Nationstar’s security interest survived and could be enforced without opening an estate; Lester’s quiet title claim fails |
Key Cases Cited
- ITT Commercial Fin. Corp. v. Mid-Am. Marine Supply Corp., 854 S.W.2d 371 (Mo. banc 1993) (summary judgment standard)
- Roberts v. BJC Health Sys., 391 S.W.3d 433 (Mo. banc 2013) (moving party's routes to judgment as matter of law)
- Robson v. Diem, 317 S.W.3d 706 (Mo. App. 2010) (purpose and burden in quiet title actions)
- Fairdealing Apostolic Church, Inc. v. Casinger, 353 S.W.3d 396 (Mo. App. 2011) (quiet title adjudicates title only as to parties)
- Wills v. Whitlock, 139 S.W.3d 643 (Mo. App. 2004) (appellate summary judgment review principles)
- In re Fowler, 400 S.W.3d 796 (Mo. App. 2013) (probate procedures and timelines)
- Estate of Keen, 488 S.W.3d 73 (Mo. App. 2016) (nonprobate transfer; property not part of probate estate when beneficiary deed applies)