Madison v. Groseth
230 Ariz. 8
| Ariz. Ct. App. | 2012Background
- Madison borrowed $; deed of trust security on Glendale property; MERS and Executive Trustee substituted as beneficiaries/ trustee
- Notice of trustee’s sale recorded for Sept. 2009 and later March 25, 2010; sale postponed
- Madison sought to enjoin foreclosure in Feb. 2010; lis pendens recorded; sale occurred; Groseths bought property and obtained trustee’s deed
- Madison was evicted; Groseths obtained forcible detainer judgment; Madison retained possession
- December 2010 Madison filed tort-suit against Groseths and others seeking return of property and damages; court dismissed under Rule 12(b)(6) and declared vexatious litigant
- Madison appeals challenging dismissal and vexatious-litigant ruling; issues focus on waiver under § 33-811(C) and on pre-filing restrictions
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 33-811(C) waives defenses to the sale and bars tort claims | Madison argues waiver should not bar due-process claims | Groseths argue waiver applies to bar challenges to sale | Waiver applies; tort claims dismissed |
| Whether the vexatious-litigant order was properly issued | Madison contends record shows no frivolous/harassing pattern | Groseths contend multiple suits justify restrictions | Reversed portion of judgment; no proper finding of frivolous/harassing lawsuits |
| Whether notice/due process issues affect applicability of waiver | Madison asserts improper notice undermines waiver | Groseths rely on waiver language regardless of notice specifics | Waiver applied; Madison had notice sufficient to seek injunction; due process not violated |
Key Cases Cited
- Mathews ex rel. Mathews v. Life Care Ctrs. of Am., Inc., 217 Ariz. 606 (App. 2008) (interpretation of waiver provisions and notice requirements under § 33-811(C))
- Cook v. Losnegard, 228 Ariz. 202 (App. 2011) (due process and notice principles under waiver statute)
- BT Capital, LLC v. TD Service Co. of Ariz., 229 Ariz. 299 (Ariz. 2012) (lis pendens cannot negate waiver provision; affects title conveyance)
- De Long v. Hennessey, 912 F.2d 1144 (9th Cir. 1990) (standards for vexatious-litigant pre-filing restrictions)
- Acker v. CSO Chevira, 188 Ariz. 252 (App. 1997) (courts’ inherent authority to curb abusive litigation)
- Cannon v. Ariz. Game & Fish Comm’n ex rel. Attorney General, 85 Ariz. 1 (1958) (res judicata effect of forcible detainer judgment on possession)