Dobson v. Substitute Trustee Services, Inc.
212 N.C. App. 45
| N.C. Ct. App. | 2011Background
- Dobson and spouse borrowed $50,400 on 31 July 1996 at 12.41% interest; executed note and deed of trust on Magnolia property.
- September 2001: Equivantage assigned note/deed of trust to Wells Fargo Bank Minnesota, N.A.
- October 2001: Dobson delinquent; 2002 modification capitalized $3,987.30, new balance $53,276.26, new payment, new maturity date 1 November 2026.
- November 2003: Dobson stopped payments; March 2004 Wells Fargo foreclosed; Dobson filed bankruptcy to stay foreclosure; case dismissed July 2007.
- September 2007: STS filed foreclosure; clerk dismissed with prejudice after finding insufficient evidence of default.
- December 2009: trial court granted partial summary judgment enjoining foreclosure until ownership and debt amount proven; Wells Fargo and ASC appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wells Fargo is the holder of the note. | Dobson disputes validity of photocopy as true copy. | Wells Fargo introduced affidavits and photocopies showing holder status. | Remand; trial court erred in concluding lack of holder evidence. |
| Whether the amount owed by Dobson on the note is proven. | Evidence insufficient to determine the debt. | Notes, modifications, and payment records establish amount. | Remand; court allowed analysis at later stage. |
| Whether photocopies can support possession under Helms/Adams. | Photocopies alone are insufficient when authenticity contested. | Copies can prove possession when originals not required. | Holds the exception applies only if copies are uncontested; not here. |
| Whether the trial court correctly applied summary judgment standard. | Defendants failed to show no genuine issue of material fact. | Evidence shows holder and owed amount. | Reversed; remanded for full consideration. |
Key Cases Cited
- In re Adams, 693 S.E.2d 705 (N.C.App. 2010) (photocopies may suffice if not contested as true copies; original not required in some foreclosures)
- In re Helms, 284 S.E.2d 553 (N.C.App. 1982) (best evidence rule may not require originals when copies are admitted and not disputed)
- Connolly v. Potts, 306 S.E.2d 123 (N.C.App. 1983) (possession determines holder status; originals may be required when possession contested)