122 So. 3d 181
Ala. Civ. App.2012Background
- Bank filed ejectment action in Coffee Circuit Court in April 2011 seeking possession of property mortgaged to secure a promissory note that Douglases allegedly defaulted on; bank foreclosed and purchased the property at a mortgagee sale.
- Bank alleged Douglases continued occupying after demand, asserting they forfeited redemption rights.
- Douglases answered admitting the occupancy issue but denying other allegations; bank moved for trial, dates set, and a continuance granted.
- Douglases moved to dismiss on September 1, 2011, arguing lack of subject-matter jurisdiction because bank was not a holder in due course and did not surrender the original wet ink note and mortgage.
- Trial court ruled for the bank after an ore tenus hearing; Douglases appealed, and the case was transferred to this court.
- Court upheld the trial court’s judgment, rejecting the ‘show me the note’ defenses and affirming based on evidence and Alabama foreclosure law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject-matter jurisdiction challenged? | Bank argues jurisdiction exists despite show-me-the-note contentions. | Douglases contend lack of jurisdiction because not holder in due course and lack of original documents. | No jurisdiction defect; ejectment affirmed. |
| Validity of 'show me the note' under non-judicial foreclosure? | UCC/show-me-the-note claims do not bar non-judicial foreclosure in Alabama. | Douglases rely on such claims to invalidate proceedings. | Show-me-the-note claims do not defeat foreclosure; UCC irrelevance recognized. |
| Sufficiency of photocopies as evidence of debt/security? | Photocopies of note and mortgage were admissible and prove bank’s right to ejectment. | Original documents required to establish enforceability. | Photocopies treated as sufficient; presumption supports bank’s right. |
Key Cases Cited
- Farkas v. SunTrust Mortg., Inc., 447 F. App’x 972 (11th Cir. 2011) (foreclosure not governed by UCC; show-me-the-note claims rejected)
- Diessner v. Mortgage Electronic Registration Systems, 618 F. Supp. 2d 1184 (D. Ariz. 2009) (UCC ownership proof not required to foreclose in non-judicial context)
- Triple J Cattle, Inc. v. Chambers, 551 So.2d 280 (Ala. 1989) (mortgage remedies include note action and separate foreclosure)
- Stone v. Stone, 26 So.3d 1228 (Ala.Civ.App. 2009) (trial court judgment presumed supported by omitted record evidence)
- Coleman v. BAC Servicing, 104 So.3d 195 (Ala.Civ.App. 2012) (foreclosure violations of federal statutes may not defeat ejectment)
- Farkas v. SunTrust Mortg., Inc. (alternative citation note used for context), 447 F. App’x at 973 (2011) (endorses above reasoning about non-necessity of proof of claim under UCC)