2014 Ohio 4215
Ohio Ct. App.2014Background
- In November 2011, the court entered default judgment against Gail Jackson on a promissory note in favor of Deutsche Bank National Trust Company.
- Bankruptcy stays delayed the property sale until an Order of Sale was issued in November 2012.
- In January 2013, Jackson, pro se, moved to vacate the default judgment on grounds that the bank lacked standing due to an allegedly defective perfected mortgage instrument.
- The trial court denied the motion, ruling Jackson had no standing to challenge the bank’s means of obtaining the note and mortgage, and that there was no fraud shown.
- Jackson’s first appeal was dismissed for failure to file a brief, and she filed a second motion to vacate in November 2013, which the court again denied for lack of standing and for waiver.
- On appeal, Jackson contends the court erred in finding proper standing; the court holds standing is required to invoke jurisdiction and is distinct from subject matter jurisdiction, and that the judgment is voidable, not void.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Jackson had standing to challenge the bank’s standing | Jackson asserts lack of standing invalidates the bank’s action | Bank contends standing was properly established and challenges to the note/mortgage are irrelevant to standing | Standing properly established; not a basis to vacate |
| Whether lack of standing renders the judgment void or voidable | Lack of standing would render the judgment void | Even if lack of standing, the judgment is voidable, not void | Judgment is voidable, not void; does not void the judgment automatically |
| Whether res judicata bars Jackson’s challenge to standing | Issues could be revisited regardless of prior appeal | Prior appellate dismissal and waiver preclude re-raising standing | Standing challenge barred by res judicata due to prior dismissal and waiver |
Key Cases Cited
- Fed. Home Loan Mortg. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (2012-Ohio-5017) (standing required to invoke jurisdiction as of filing)
- Clifton v. Blanchester, 131 Ohio St.3d 287 (2012-Ohio-780) (standing vs. subject-matter jurisdiction distinction)
- Wells Fargo Bank, N.A. v. Perkins, 2014-Ohio-1459 (10th Dist. Franklin No. 13AP-318) (lack of standing renders judgment voidable)
- ProgressOhio.Org, Inc. v. JobsOhio, 139 Ohio St.3d 520 (2014-Ohio-2382) (standing claims can be waived by failure to raise in appellate court)
- State ex rel. E. Cleveland Fire Fighters’ Assn., Loc. 500, Internatl. Assn. of Fire Fighters v. Jenkins, 96 Ohio St.3d 68 (2002-Ohio-3527) (waiver principle for standing challenges)
- State v. Solnick, 8th Dist. Cuyahoga No. 100541 (2014-Ohio-2535) (res judicata scope in appellate context)
- Bank of New York Mellon v. Hutchins, 8th Dist. Cuyahoga No. 100435 (2014-Ohio-2765) (void vs voidable judgments under standing analysis)
- Chem. Bank, N.A. v. Krawczyk, 8th Dist. Cuyahoga No. 98263 (2013-Ohio-3614) (examples of standing/appeal interplay in foreclosure cases)