Deschamps v. Treasure State Trailer Court, Ltd.
254 P.3d 566
Mont.2011Background
- Deschamps purchased a mobile home park in 2003 from the Estate, financed via a Montana Trust Indenture Note secured by STFA.
- Deschamps stopped payments and alleged misrepresentation/breach in a prior 2003–2006 action; fraud claims were time-barred and not added.
- In 2007 the Estate initiated nonjudicial foreclosure by notice of trustee's sale; court enjoined sale and required a bond.
- After a 2009 jury verdict clearing the Estate of negligent non-disclosure, injunctions were lifted but the foreclosure bond history continued.
- In August 2009 Deschamps filed the instant suit challenging the enforceability of the Note and seeking injunctions against the foreclosure, arguing the nonjudicial foreclosure should have been a compulsory counterclaim.
- The district court granted summary judgment for the Estate, denying Deschamps’ attempt to treat the nonjudicial foreclosure as a compulsory counterclaim and barring fraud-based defenses; this appeal follows and seeks attorney-fee relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the nonjudicial foreclosure was a compulsory counterclaim | Deschamps argued the foreclosure arose from the sale and was compulsory | Estate contends nonjudicial foreclosure is not a judicial claim and need not be pled | Not a compulsory counterclaim; foreclosure allowed nonjudicially under STFA |
| Whether Deschamps can revive fraud-related claims as an affirmative defense | Deschamps sought to revive time-barred fraud claims as defenses | Estate argues no defense available because no judicial action to defend against | Fraud claims barred; no affirmative defense possible in nonjudicial context |
Key Cases Cited
- Zimmerman v. Connor, 958 P.2d 1195 (Mont. 1998) (logically related claims must be pled in one suit; here no compulsory counterclaim for nonjudicial foreclosure)
- Knucklehead Land Co. v. Accutitle, Inc., 172 P.3d 116 (Mont. 2007) (trustee may foreclose nonjudicially under STFA)
- Midfirst Bank v. Ranieri, 848 P.2d 1046 (Mont. 1993) (foreclosure by ad/notice permitted; 'may' foreclose nonjudicially)
- Chase v. Bearpaw Ranch Assn., 133 P.3d 190 (Mont. 2006) (attorney fees provisions in contracts enforceable; notes may include fees)
- Rocky Mt. Bank v. Stuart, 928 P.2d 243 (Mont. 1996) (trust indenture/contracts enforceable; STFA foreclosures allowed)
- Deschamps I, v. Treasure St. Trailer Ct., Ltd., 230 P.3d 800 (Mont. 2010) (earlier related holding affirming nonjudicial foreclosure viability and fee issues)