680 F.3d 412
4th Cir.2012Background
- December 1999: Delebreaus refinanced with Option One; note $84,500 and deed of trust securing on property.
- Bayview begins servicing the loan in March 2004 under Option One’s agreement.
- Frequent late payments lead Bayview to assess fees and notify breach.
- June 2006 foreclosure looming, leading to a loan modification extending maturity to June 1, 2030.
- June 5, 2007 Bayview accelerates the loan; entire amount becomes due; no further payments scheduled.
- March 18, 2009 Delebreaus file a class action alleging improper fees; bankruptcy petition filed July 2007 and later dismissed in December 2009.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether limitations run from acceleration or loan maturity | Delebreaus: last scheduled payment date is maturity (2030) | Bayview: acceleration date (2007) is last scheduled payment date | Acceleration date governs the statute period |
| Does acceleration alter the 'due date of the last scheduled payment' under WV law | Acceleration is not a scheduled payment date | Acceleration clause makes June 5, 2007 the due date | Yes; acceleration creates the last scheduled payment date for limitations purposes |
Key Cases Cited
- Tidewater Fin. Co. v. Williams, 498 F.3d 249 (4th Cir. 2007) (statutes of limitations aim to avoid stale claims)
- Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998) (purpose is to keep stale litigation out of courts)
- Davey v. Estate of Haggerty, 219 W.Va. 453, 637 S.E.2d 350 (W.Va. 2006) (to promote prompt initiation and avoid fraud in claims)