2014 Ohio 4135
Ohio Ct. App.2014Background
- In 2008 Lois M. Blank executed a $382,500 promissory note and mortgage to Chase Bank USA, N.A.; the mortgage was recorded and later assigned to JPMorgan Chase Bank, N.A. (Chase).
- Chase filed a foreclosure complaint on June 28, 2012, alleging default and attaching the note, mortgage, and an assignment of mortgage; the assignment was recorded in June 2012.
- Chase produced an acceleration/demand letter stamped “return service requested” stating default beginning August 1, 2009; Chase relied on a vice-president’s affidavit attaching the demand letter.
- Blank denied receiving any notice of default or acceleration (by regular mail, certified mail, or personal delivery) and filed an affidavit to that effect in opposition to summary judgment.
- The trial court granted Chase summary judgment and a decree of foreclosure; the court of appeals reversed and remanded, finding genuine issues of material fact about notice and conditions precedent.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue/foreclose | Chase showed assignment of mortgage to it and thus had standing at filing | Blank argued missing allonge on complaint and alleged assignment didn’t transfer the note so standing was unclear | Court: Chase demonstrated parties intended note and mortgage to transfer together; Chase had standing |
| Compliance with mortgage notice/conditions precedent (acceleration) | Notice was mailed (Chase produced demand letter and business-records affidavit) so conditions precedent were met | Blank denied receipt; mortgage requires first-class mail or actual delivery depending on method, and Chase didn’t prove mailing method or delivery | Court: Genuine issue of material fact exists whether notice was sent by first-class mail or delivered; summary judgment improper on this ground |
| Admissibility/weight of Blank’s affidavit | — | Blank’s sworn affidavit denied receipt of any notice and was not a prohibited self-serving affidavit | Court: Blank’s affidavit raised a genuine factual dispute about receipt of notice and could not be disregarded; it defeated summary judgment |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (Ohio 2012) (standing to sue in foreclosure is evaluated at time complaint is filed)
- Temple v. Wean United, Inc., 50 Ohio St.2d 317 (Ohio 1977) (standard for summary judgment)
- State ex rel. Dallman v. Franklin Cty. Court of Common Pleas, 35 Ohio St.2d 176 (Ohio 1973) (party lacks standing absent a real interest in subject matter)