Nationstar Mortgage, LLC v. Canale
10 N.E.3d 229
Ill. App. Ct.2014Background
- Nationstar Mortgage filed a foreclosure complaint against Wayne Canale on Sept. 8, 2011, alleging default and claiming to be the mortgagee and holder of the note; the attached note showed endorsement to Ohio Savings Bank.
- RBS Citizens and SBM Charter One appeared and answered; Canale did not answer and later defaulted. Nationstar moved for judgment; the court entered a foreclosure judgment on June 5, 2012 and ordered sale of the property.
- A judicial sale occurred on Oct. 11, 2012; Nationstar was the winning bidder and moved to confirm the sale. Canale appeared pro se and objected; the court confirmed the sale on April 4, 2013.
- Canale moved to vacate the confirmation, first asserting lack of opportunity to argue and then, for the first time, claiming Nationstar lacked proper assignment/standing. The trial court denied relief as Canale had forfeited the standing defense by not pleading an answer.
- Canale appealed, arguing Nationstar’s alleged failure to plead statutory foreclosure capacity/standing rendered the judgment void for lack of subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether failure to plead statutory foreclosure capacity/standing deprives court of subject-matter jurisdiction | Nationstar: foreclosure claim is a justiciable matter invoking court’s subject-matter jurisdiction even if pleading defects exist | Canale: statutory requirement to plead capacity/standing is jurisdictional; omission renders judgment void | Court: Pleading defects as to standing affect legal sufficiency/justiciability but not subject-matter jurisdiction; judgment not void |
| Whether Canale preserved standing defense | Nationstar: standing is an affirmative defense that Canale forfeited by not answering | Canale: standing is fundamental and cannot be forfeited because it affects jurisdiction | Court: Standing may be forfeited as an affirmative defense; here Canale forfeited it |
| Whether appellate court should reach the merits of standing anyway | Nationstar: no reason to reach merits because jurisdiction exists and defendant didn’t meet equitable standard to vacate after confirmation | Canale: asks court to address standing for public importance/plain error | Court: Declines to reach merits; defendant didn’t satisfy statutory/equitable standard to set aside confirmation |
| Effect of attached documents contradicting complaint’s allegation of Nationstar’s status | Nationstar: documents don’t deprive court of jurisdiction; standing question remains for merits | Canale: attachments undermine Nationstar’s claim to be mortgagee/holder—shows lack of standing | Court: Notes Standing doubtful on the merits but refuses to decide because lack of standing does not make judgment void; defendant failed to meet relief standards |
Key Cases Cited
- Lebron v. Gottlieb Memorial Hosp., 237 Ill.2d 217 (supreme court) (standing may be an affirmative defense forfeited if not pleaded)
- Belleville Toyota, Inc. v. Toyota Motor Sales, U.S.A., Inc., 199 Ill.2d 325 (supreme court) (subject-matter jurisdiction exists where the claim is a justiciable matter; statutory pleading defects do not defeat jurisdiction)
- In re Luis R., 239 Ill.2d 295 (supreme court) (defective pleading may still invoke subject-matter jurisdiction)
- People v. Greco, 204 Ill.2d 400 (supreme court) (standing is an element of justiciability)
- City Natl. Bank of Hoopeston v. Langley, 161 Ill. App.3d 266 (appellate court) (older decision treating foreclosure pleading defects as jurisdictional)
- Wells Fargo Bank, N.A. v. McCluskey, 2013 IL 115469 (supreme court) (standards for vacating confirmation of judicial sale and equitable discretion)
- Shultz v. Milburn, 366 Ill. 400 (supreme court) (equitable discretion to set aside sales is not to protect parties from consequences of their own negligence)