Michael H. Johnson, Jr. v. Wells Fargo Bank, N.A.
2014 U.S. App. LEXIS 3458
8th Cir.2014Background
- Johnson, a homeowner, seeks to stop foreclosure and alleges the mortgage was not validly assigned to the Trust, so the Trust cannot foreclose.
- Wells Fargo, as trustee of the SASCO 2007 MLN1 Trust Fund (REIMC), moved for summary judgment confirming a valid pre-startup-date assignment of the mortgage.
- The Trust’s startup date is March 13, 2007; under New York law, the Trust cannot acquire a new mortgage after startup unless the note was acquired on or before startup.
- The mortgage was assigned to the Trust on February 1, 2011, after startup, raising whether an exception applies if the underlying promissory note was in the Trust at startup.
- An exception exists if the Trust held the promissory note at startup; if not, the assignment is void and foreclosure cannot proceed.
- The district court found, and this court ultimately agrees, that the note was in the Trust’s possession at startup based on the initial certification and related records.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the note was in the Trust’s possession at startup | Johnson contends the note was not received by the Trust by startup. | Wells Fargo argues the note was possessed at startup, satisfying the exception. | Yes; the Trust possessed the note at startup. |
| Whether initial certification supports possession of the note at startup | Johnson claims the certification shows the note was missing or not in possession. | Wells Fargo contends the certification evidences possession because it pertains to the mortgage and indicates the note was not missing. | Initial certification supports possession; the note was not missing. |
| Whether misinterpretation of the certification affects the outcome | Johnson asserts the district court misread the certification as showing the note was missing. | Wells Fargo argues any misreading does not change the ultimate conclusion that the note was possessed at startup. | Misinterpretation occurred, but the ultimate conclusion remains correct. |
Key Cases Cited
- Residential Funding Co., LLC v. Terrace Mortg. Co., 725 F.3d 910 (8th Cir. 2013) (summary-judgment standards and deference to record evidence)
- Cherne Contracting Corp. v. Marathon Petroleum Co., LLC, 578 F.3d 735 (8th Cir. 2009) (summary judgment standards; existence of disputes does not preclude judgment when no genuine issue)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment standard; burden shifting)
- Reuter v. Jax Ltd., Inc., 711 F.3d 918 (8th Cir. 2013) (judgments can be affirmed on any grounds supported by the record)