Deutsche Bank National Trust Co. v. Richardson
273 P.3d 50
Okla.2012Background
- Deutsche Bank National Trust Co., as trustee, filed a foreclosure petition against Cory L. Richardson in Oct. 2010 alleging it was the present holder of the note and mortgage.
- An undated blank indorsement appeared in the note only as an exhibit to the May 26, 2011 motion for summary judgment, not in the original petition.
- Deutsche Bank filed an Assignment of Real Estate Mortgage with Oklahoma County on Feb. 22, 2011, claiming an effective date of Dec. 28, 2010, after the petition had been filed.
- The Assignment of Mortgage was executed by MERS as nominee for WMC; it purported to transfer the mortgage to Deutsche Bank as trustee of MASTR 2007-02.
- The trial court granted summary judgment in July 2011; Richardson appealed, challenging Deutsche Bank’s standing to foreclose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Deutsche Bank has standing to foreclose. | Deutsche Bank held the note via blank indorsement and an assignment; ownership tied to enforce the note. | Richardson argued Deutsche Bank lacked proof of being the proper party to enforce the note before filing. | Summary judgment reversed; standing unresolved; remand for determination of entitlement to enforce. |
| Whether the assignment of mortgage resolves the enforceability issue. | Assignment post-petition supports Deutsche Bank's right to enforce. | Assignment does not prove delivery or possession of the note prior to filing. | Question of fact remained; remand appropriate. |
| Whether the record shows the plaintiff is the holder or nonholder in possession with rights of a holder. | Indorsement in blank and assignment suggest holder status. | Lack of timely, proper documentation and proof of delivery creates uncertainty. | Fact issues existed; summary judgment improper. |
| Whether pleading rules require the plaintiff to have all supporting documentation at filing. | Plaintiffs may continue discovery; no requirement to possess all evidence at filing. | Not explicitly addressed; material issues remain unresolved. | Remand allowed; potential amendment of petition. |
Key Cases Cited
- Gill v. First Nat. Bank & Trust Co. of Oklahoma City, 195 Okla. 607, 159 P.2d 717 (Okla. 1945) (ownership of note carries with mortgage security; bifurcation not allowed)
- Engle v. Federal Nat. Mortg. Ass'n, 300 P.2d 997 (Okla. 1956) (proof of note ownership ties to mortgage security)
- BAC Home Loans Servicing, L.P. v. White, 256 P.3d 1014 (Okla. Civ. App. 2011) (note ownership and security relationship; no bifurcation)
- Hendrick v. Walters, 865 P.2d 1232 (Okla. 1993) (standing defined as legal right to seek relief; can be raised at any stage)
- Fent v. Contingency Review Board, 163 P.3d 512 (Okla. 2007) (standing; three threshold criteria; can be raised sua sponte; clarifies standing’s nature)