Deutsche Bank Trust Co. v. Newble
2013 Ohio 5019
Ohio Ct. App.2013Background
- Deutsche Bank filed a foreclosure complaint April 9, 2009, alleging Newble defaulted on a note secured by a mortgage.
- Exhibits showed the note naming Saxon Mortgage as Lender and Newble as Borrower, and a 2005 mortgage securing the property.
- An Assignment of Mortgage dated April 2, 2009 purportedly transferred the mortgage and note from Saxon to Deutsche Bank as Indenture Trustee.
- Astor Place HOA later filed a lien for unpaid fees; the HOA cross-claimed against Newble.
- Summary judgment for Deutsche Bank was granted May 6, 2010; the property was sold at sheriff’s sale on October 25, 2010.
- Newble moved to vacate the judgment on August 25, 2011; the trial court denied the motion, and the magistrate’s decision was adopted in December 2012; the appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing—whether Deutsche Bank was real party in interest at filing | Newble contends DB lacked standing | Newble argues assignment or PSA defect undermines standing | DB had standing; assignment showed real party in interest |
| Effect of PSA on assignment validity and standing | DB’s assignment may be invalid under PSA | PSA noncompliance doesn’t defeat standing | PSA defects do not defeat standing; not a basis to vacate; res judicata applies to challenge |
| Timeliness and merits of motion to vacate foreclosure judgment | Motion to vacate timely and properly supported | No timely or proper basis to vacate | Trial court did not abuse discretion; judgment affirmed |
Key Cases Cited
- Deutsche Bank Natl. Trust Co. v. Triplett, 2011-Ohio-478 (8th Dist. Cuyahoga No. 94924 (2011)) (standing requires real party to own the mortgage at filing)
- Wells Fargo Bank, N.A. v. Stovall, 2010-Ohio-236 (8th Dist. Cuyahoga No. 91802 (2010)) (current holder of note and mortgage is real party in interest)
- Chase Manhattan Mtge. Corp. v. Smith, 2007-Ohio-5874 (1st Dist. Hamilton No. C061069 (2007)) (standing standards in mortgage foreclosure)
- ABN Amro Mtge. Group, Inc. v. Evans, 2013-Ohio-1557 (8th Dist. Cuyahoga No. 98777 (2013)) (timing and impact of standing challenges)
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 2012-Ohio-5017 (Ohio Supreme Court) (standards for foreclosure standing)
- Waterfall Victoria Master Fund v. Yeager, 2013-Ohio-3206 (11th Dist. Lake No. 2012-L-071 (2013)) (assignment defects generally do not nullify standing; res judicata concerns)
- Deutsche Bank Natl. Trust Co. v. Rudolph, 2012-Ohio-6141 (8th Dist. Cuyahoga No. 98383 (2012)) (mortgage assignment challenges by mortgagor lack standing to contest)
- Unger v. Bank of New York Mellon, 2012-Ohio-1950 (8th Dist. Cuyahoga No. 97315 (2012)) (standing and assignment-related defenses not from mortgagor)
- Locke v. LSF6 Mercury REO Inv. Trust, 2012-Ohio-4499 (10th Dist. Franklin No. 11AP-757 (2012)) (assignment does not alter mortgagor’s obligation)