JPMorgan Chase Bank, N.A. v. Romine
2013 Ohio 4212
Ohio Ct. App.2013Background
- Romine signed a $73,500 note and a mortgage on 424 Stonecrop Court, with Chase Manhattan Mortgage Corp as the initial lender; Chase entities later merged into Chase, which retained the note/mortgage.
- Public records showed Romine conveyed the property to 424 Stonecrop Court Trust with J.A. Gilcher as trustee, later replaced by appellant as successor trustee.
- Chase filed for foreclosure on June 6, 2011, alleging default, noting Chase as holder of the note and mortgage and seeking sale of the property.
- Appellant answered, disputed Chase’s standing, asserted counterclaims to quiet title, and the trial court dismissed those counterclaims under Civ.R. 12(B)(6).
- At trial, Chase’s witnesses testified the note/mortgage had always been held by Chase entities and had not been delivered to another party; a 2002 Assignment of Mortgage to Fannie Mae was not delivered or recorded; the magistrate recommended in rem foreclosure and the court adopted that result, with appellate review focusing on standing to enforce the assignment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to foreclose based on an assignment to Fannie Mae | Chase remained holder; assignment to Fannie Mae existed but was not delivered to Fannie Mae | Assignment validly transferred rights to Fannie Mae | Moot; the court addressed standing to enforce the assignment in the alternative issue |
| Standing to enforce the assignment when borrower not party to the assignment | Chase had valid assignment/real party in interest to foreclose | Borrower lacks standing to challenge assignment; not a party to the assignment | Appellant lacked standing to enforce the assignment; affirmed the trial court; Locke/Whiteman applied |
Key Cases Cited
- LSF6 Mercury REO Invests. Trust Series 2008-1 v. Locke, 2012-Ohio-4499 (2012-Ohio-4499) (borrower lacks standing to challenge assignment where debtor defaulted)
- Deutsche Bank Natl. Trust Co. v. Whiteman, 2013-Ohio-1636 (2013-Ohio-1636) (debtor not party to assignment; lacks standing to challenge validity)
- Bank of New York Mellon Trust Co. v. Unger, 2012-Ohio-1950 (2012-Ohio-1950) (standing to challenge assignment limited when debtor not party to assignment)
- Chase Home Fin., L.L.C. v. Heft, 2012-Ohio-876 (2012-Ohio-876) (support for the standing rule in assignment challenges)
- Williams v. Schatz, 42 Ohio St. 47 (1884) (delivery required for conveyance to take effect)
- Leonard v. Kebler's Admr., 50 Ohio St. 444 (1893) (delivery essential to validity of assignments)
- Gatts v. E.G.T.G., GMBH, 14 Ohio App.3d 243 (1983) (delivery/acceptance required for conveyance of property interests)