Flagstar Bank, F.S.B. v. Richison
2012 Ohio 3198
Ohio Ct. App.2012Background
- On Sep. 19, 2007, Richisons signed a promissory note with Nation One Mortgage for $214,200; the note bears an endorsement to Flagstar Bank, F.S.B.
- The note is secured by a mortgage on the property at 383 Triple Crown Way, Marysville, Ohio.
- Flagstar filed foreclosure on Feb. 4, 2011, alleging possession and entitlement to enforce the note and mortgage, with a balance of $209,583.06 plus interest.
- Richisons answered on Apr. 1, 2011.
- Flagstar moved for summary judgment on Oct. 5, 2011, attaching the note, mortgage, mortgage assignment, and an affidavit from its foreclosure analyst.
- Richisons argued genuine issues existed about Flagstar’s status as holder in due course and about the applicability of the assumption of risk doctrine; the trial court granted summary judgment on Dec. 9, 2011, and this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Flagstar entitled to enforce the Note as a holder? | Flagstar is a holder and thus entitled to enforce the Note. | Richison(s) contended Flagstar’s status as holder in due course was disputed. | Flagstar is a holder and can enforce the Note. |
| Do defenses like holder in due course and assumption of risk defeat enforcement? | Holder in due course defenses not required since Flagstar is holder. | Defendants alleged defenses including lack of holder in due course and applicability of assumption of risk. | Defenses not proven; assumption of risk not applicable in foreclosure; case affirmed. |
Key Cases Cited
- Dresher v. Burt, 75 Ohio St.3d 280 (1996) (initial burden on moving party in summary judgment; need specific nonmovant facts)
- Murphy v. Reynoldsburg, ast Ohio St.3d 356 (1992) (summary judgment standard; evidence construed in movant's favor and in nonmovant’s favor as needed)
- Hillyer v. State Farm Mut. Auto. Ins. Co., 131 Ohio App.3d 172 (1999) (summary judgment de novo review)
- Diamond Wine & Spirits, Inc. v. Dayton Heidelberg Distr. Co., 2002-Ohio-3932 (3d Dist. 2002) (summary judgment standard; reasonable minds can differ)
- Arcanum Natl. Bank v. Hessler, 69 Ohio St.2d 549 (1982) (holder in due course issue not reached unless defenses shown)