Nationstar Mortgage, LLC v. Elsesser, M.
608 MDA 2017
| Pa. Super. Ct. | Nov 30, 2017Background
- In 2006 Elsesser executed a note and mortgage for $173,000; payments stopped in March 2012. Nationstar filed foreclosure in June 2013.
- Trial court granted summary judgment for Nationstar on July 7, 2014 after Nationstar produced the original endorsed note at a July 17, 2014 hearing.
- Elsesser appealed and this Court previously held Nationstar, as holder of the original negotiable note, had standing to foreclose. That ruling was affirmed on a subsequent appeal denying Elsesser’s petition to strike the judgment.
- After a stay was lifted, Nationstar purchased the property at sheriff’s sale on January 6, 2017. Elsesser moved to set aside the sale and vacate the judgment; the trial court denied relief on March 21, 2017.
- Elsesser’s new challenge focuses on photocopies of the note: one image lacked an endorsement (attached to a 2015 motion) while the earlier motion for summary judgment attached an endorsed copy; he contends this undermines authenticity and shows fraud/securitization problems.
- The Superior Court found these claims relitigated issues already decided under the law-of-the-case doctrine, deemed the appeal frivolous and dilatory, affirmed the denial, and remanded to determine appeal costs and counsel fees for Nationstar.
Issues
| Issue | Plaintiff's Argument (Elsesser) | Defendant's Argument (Nationstar) | Held |
|---|---|---|---|
| 1. Whether extrinsic fraud warrants setting aside the sheriff's sale | Elsesser: competing photocopies and timing of production show extrinsic fraud that voids the sale and judgment | Nationstar: produced the original endorsed note at the hearing and had established standing; photocopies do not undermine that | Court: Denied — relitigation of standing barred by law of the case; no extrinsic fraud shown |
| 2. Whether selectively producing two versions of the note proves intentional fraud sufficient to vacate judgment | Elsesser: existence of an unendorsed photocopy versus an endorsed copy demonstrates intentional fabrication or fraud | Nationstar: the original endorsed negotiable note was in Nationstar's possession and proved ownership/standing | Court: Denied — issue already decided; photocopy differences do not negate prior finding of standing |
| 3. Whether equitable relief should void the judgment and sale because enforcement is inequitable | Elsesser: securitization and note inconsistencies make enforcement unjust | Nationstar: enforcement appropriate; prior rulings preclude relitigation | Court: Denied — equitable relief not warranted; appeal frivolous and for delay |
Key Cases Cited
- Kurns v. Soo Line R.R., 72 A.3d 636 (Pa. Super. 2013) (appellant cannot raise issues in a later appeal that could have been raised previously)
- Jackson v. Modern Mailers, Inc., 537 A.2d 878 (Pa. Super. 1988) (frivolous appeals may justify awarding counsel fees and costs)
