Fed. Home Loan Mtge. Corp. v. Grindall
2014 Ohio 5641
Ohio Ct. App.2014Background
- Foreclosure action filed by Freddie Mac on a note and mortgage against Grindall (and potential interest by PNC).
- Note and mortgage show endorsements/from entities tracing to Freddie Mac; chain of assignments includes Woodside Mortgage, National City Bank, National City Mortgage, PNC, and Freddie Mac.
- Grindalls answered; Freddie Mac moved for summary judgment and default against PNC; court granted summary judgment August 16, 2013.
- Grindall appeals asserting lack of standing/possession of the note, admissibility and personal knowledge of records, and notice issues.
- Trial court relied on an affidavit from Freddie Mac’s presumed servicer (PNC) about possession of the note and underlying business records.
- On review, appellate court reverses summary judgment and remands for proceedings consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to foreclose at filing | Grindall argues Freddie Mac lacked standing to enforce the note. | Grindall contends absence of evidence that Freddie Mac possessed the note when suit filed. | Grinder: Standing not established; remand for proper proof. |
| Admissibility and personal knowledge of records | Freddie Mac's records/affidavit based on business records; Grindall challenges personal knowledge. | Arthur relied on business records; records should be admissible; personal knowledge via review. | Affidavits insufficient to prove possession and admissibility; remand for proper authentication/attachment. |
| Notice of default (ripe review) | Proper notice of default existed; no injunctive issue to resolve. | Contends notice issue may be material if standing fixed. | Issue not ripe for review on this appeal; will be addressed on remand. |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (2012) (standing to foreclose; need standing at filing to invoke jurisdiction)
- Bank of Am., N.A. v. Loya, 2014-Ohio-2750 (9th Dist. Summit) (evidence requirements for business records; personal knowledge from records)
- Deutsche Bank Natl. Trust Co. v. Dvorak, 2014-Ohio-4652 (9th Dist. Summit) (affiant must attach records; lack of attachment undermines Dresher burden)
- U.S. Bank Natl. Assn. v. Umphrey, 2014-Ohio-4461 (9th Dist. Summit) (personal knowledge and record-keeping specifics for note possession)