153 N.E.3d 222
Ind. Ct. App.2020Background:
- In 2004 Smith executed a Bank One "Education One" loan; funds disbursed 10/22/2004; her mother cosigned.
- Bank One transferred a pool of Education One loans (including Smith’s) to National Collegiate Funding, LLC via a Pool Supplement on 2/23/2005; that pool was sold to National Collegiate Student Loan Trust 2005-1 (NCSLT) by Deposit and Sale Agreement the same day.
- Smith stopped paying (last payment 11/21/2017) and owed an outstanding balance; NCSLT sued on 1/24/2019 seeking ~$6,854.75 plus interest for breach of the loan agreement.
- NCSLT moved for summary judgment and designated an affidavit from Jacqueline Jefferis (custodian at Transworld Systems Inc. (TSI), NCSLT’s subservicer) and business-records exhibits showing the loan’s origination and transfers.
- Smith opposed, arguing the affidavit/exhibits were inadmissible hearsay (no proper 803(6) foundation) and that NCSLT lacked ownership/standing to collect.
- The trial court granted summary judgment for NCSLT; Smith’s motion to correct error was denied, and she appealed.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of Jefferis affidavit and attached records under Evid. R. 803(6) (business‑records hearsay exception) | Jefferis, as TSI custodian and subservicer, provided foundation showing records were made/kept in regular course and incorporated prior servicers’ records; thus admissible | Jefferis lacked personal knowledge of Bank One/third‑party recordkeeping and could not lay foundation for third‑party records; exhibits are inadmissible hearsay | Court held affidavit and exhibits satisfied Rule 803(6): Jefferis showed TSI’s practices, access to prior servicer records, and trustworthiness; records admitted |
| Ownership/standing to collect (chain of transfers) | Designated documents (Pool Supplement and Deposit & Sale Agreement) show Bank One transferred the pooled loans to National Collegiate Funding, LLC, which sold the pool to NCSLT; NCSLT is owner and entitled to collect | Smith contended NCSLT failed to prove it owned her Bank One account and thus lacked standing | Court held the designated materials established NCSLT’s ownership/right to collect; no genuine issue of material fact; summary judgment proper |
Key Cases Cited
- Erie Indem. Co. for Subscribers at Erie Ins. Exch. v. Estate of Harris by Harris, 99 N.E.3d 625 (Ind. 2018) (summary‑judgment standard)
- Schoettmer v. Wright, 992 N.E.2d 702 (Ind. 2013) (nonmoving party’s burden to designate evidence opposing summary judgment)
- Gunderson v. State, Indiana Dep’t of Nat. Res., 90 N.E.3d 1171 (Ind. 2018) (appellate review limited to materials designated at trial)
- Zelman v. Capital One Bank (USA) N.A., 133 N.E.3d 244 (Ind. Ct. App. 2019) (trial court must consider only evidence admissible at trial on summary judgment)
- Holmes v. National Collegiate Student Loan Trust, 94 N.E.3d 722 (Ind. Ct. App. 2017) (Jefferis affidavit previously found insufficient to authenticate third‑party records—distinguished here)
- Speybroeck v. State, 875 N.E.2d 813 (Ind. Ct. App. 2007) (one business cannot always lay foundation for another business’s records without personal knowledge)
- Williams v. Unifund CCR, LLC, 70 N.E.3d 375 (Ind. Ct. App. 2017) (affiant from one business lacking personal knowledge cannot establish admissibility of another business’s records)