JPMorgan Chase Bank, N.A. v. Allton
2014 Ohio 3742
Ohio Ct. App.2014Background
- In 2000 Todd and Carrie Allton executed a $70,000 note and mortgage to First National Funding; assignments on the mortgage trace to Gold Banc and then to Banc One; Chase acquired Banc One by merger in 2006.
- Appellants defaulted and Chase filed a foreclosure complaint in Franklin County in March 2013 seeking judgment on the note and foreclosure.
- Chase moved for summary judgment in December 2013 and supported standing with affidavits (possession of original note/mortgage, copy of unrecorded Gold Banc→Banc One assignment, affidavit explaining lost assignment to Chase, and merger documentation).
- Appellants did not oppose the summary judgment motion and later asserted in their brief that the Affidavit of Assignment was fraudulent and that res judicata barred Chase because Banc One previously foreclosed.
- The trial court granted summary judgment to Chase; the appellate court reviews de novo and affirms, finding Chase had standing and appellants waived or failed to prove res judicata/fraud.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to foreclose | Chase: successor to Banc One, possesses original note/mortgage, lost-assignment affidavit suffices to show interest at filing | Allton: assignment affidavit is fraudulent/robo-signed and does not establish Chase's right to foreclose | Held: Chase established standing by unchallenged affidavits and possession of original instruments; summary judgment appropriate |
| Effect of prior foreclosure / res judicata | Chase: no record shows Banc One obtained a prior judgment against Alltons that would preclude this action; defense waived for not pleading it | Allton: Banc One previously foreclosed; res judicata bars Chase | Held: Res judicata waived because not pleaded; record does not show a prior Banc One judgment disposing of Chase's claims; defense fails |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (recognizes standing to foreclose must exist when suit filed and may be established during the proceeding)
- New Boston Coke Corp. v. Tyler, 32 Ohio St.3d 216 (standing and jurisdictional issues may be raised anytime)
- Rogers v. Whitehall, 25 Ohio St.3d 67 (res judicata bars claims that were or might have been litigated)
- Natl. Amusements, Inc. v. Springdale, 53 Ohio St.3d 60 (policy behind res judicata to end litigation)
- Knapp v. Edwards Laboratories, 61 Ohio St.2d 197 (appellant must show error by reference to the record)
- State v. Ishmail, 54 Ohio St.2d 402 (appellate courts cannot consider matter not part of trial court record)
- Helton v. Scioto Cty. Bd. of Commrs., 123 Ohio App.3d 158 (summary judgment reviewed de novo)
- Mergenthal v. Star Banc Corp., 122 Ohio App.3d 100 (appellate court stands in shoes of trial court on summary judgment)
- Huntington Natl. Bank v. Ross, 130 Ohio App.3d 687 (mortgagee as co-defendant in prior action may not have been required to assert foreclosure claims there)