Derrick Millon v. JPMorgan Chase Bank
518 F. App'x 491
8th Cir.2013Background
- Millon financed a home in 2006 with a promissory note and deed of trust to Long Beach; deed allowed nonjudicial foreclosures and sale after default.
- Long Beach Mortgage Loan Trust 2006-3 was formed; Deutsche Bank served as trustee for the trust.
- Chase acquired the loan and servicing rights from the FDIC in 2008; Deutsche Bank filed a 2008 appointment of substitute trustee.
- Millon entered a 2009 loan modification identifying Deutsche Bank as the note holder and mortgagee, waiving claims against the Trust and its agents.
- Chase filed an assignment of the deed of trust in 2010 listing Deutsche Bank as assignee; Millon received notices of default continuing through 2011.
- The district court granted summary judgment for Chase and Deutsche Bank; Millon appealed, arguing issues about ownership, authority, and notices.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Holder and appointment authority for successor trustee | Millon contends no proof Deutsche Bank held the note or authorized the trustee | Deutsche Bank is holder and appointed the successor trustee via recorded instruments | No material dispute; holder and appointment valid |
| Effect of the 2009 loan modification waiver | Waiver prevents enforcing defenses to foreclosure | Waiver binding and dispositive of challenge | Waiver controls; district court correct to grant summary judgment |
| Signatures, servicer, and notices validity | Disputes over signatures and lender identification | Not material; notices valid and enforceable | No genuine issue; notices and service sufficient |
Key Cases Cited
- Woods v. DaimlerChrysler Corp., 409 F.3d 984 (8th Cir. 2005) (de novo review for summary judgment; record viewed in favor of nonmovant)
- In re Baycol Prods. Litig., 596 F.3d 884 (8th Cir. 2010) (affirm if basis supported by record)
- Shutt v. Chris Kaye Plastics Corp., 962 S.W.2d 887 (Mo. 1998) (parties may modify or waive rights under contract)
- Ayers v. Myers, 939 S.W.2d 447 (Mo. Ct. App. 1996) (strict compliance required for power of sale provisions)