520 P.3d 796
Mont.2022Background
- In 2009 the Pennells executed a Deed of Trust under Montana's Small Tract Financing Act (STFA); the deed was assigned to Nationstar in 2016 and First American Title (First American) was appointed Successor Trustee.
- After default, First American initiated a trustee’s sale; notices were mailed, posted, and published before the sale, but those acts were performed by agents (Mackoff Kellogg law firm, Williams Investigations, and the Montana Standard), not directly by First American.
- The trustee’s sale occurred in June 2018; purchaser Daniel Inman received a recorded Trustee’s Deed in July 2018.
- The Pennells sued for declaratory relief, arguing the sale was void because First American impermissibly delegated statutory trustee duties beyond two specific delegations mentioned in the STFA.
- The district court granted summary judgment for Nationstar; the Pennells appealed. The appeal presented only statutory-interpretation questions (no disputed material facts).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a trustee under the STFA may delegate notice duties (certified mailing to grantor, posting notice on property, arranging publication) to agents | Pennell: STFA permits only two delegations—(1) sheriff/constable to post upon trustee request, and (2) trustee’s attorney to conduct the sale; any other delegation invalidates the sale | Nationstar: STFA contains no clear prohibition; general agency law allows delegation unless statute indicates contrary intent; prior precedent permits delegation | Court: Held trustee may delegate these notice duties; no contrary intent in STFA; summary judgment for Nationstar affirmed |
Key Cases Cited
- Knucklehead Land Co. v. Accutitle, Inc., 340 Mont. 62, 172 P.3d 116 (recognizing an indenture trustee may delegate notice duties under the STFA)
- Mont. Vending, Inc. v. Coca-Cola Bottling Co., 318 Mont. 1, 78 P.3d 499 (statutory interpretation: implement legislative objectives; plain meaning controls)
- Mont. Sports Shooting Ass’n v. State, 344 Mont. 1, 185 P.3d 1003 (will not go beyond plain statutory language when unambiguous)
- Associated Mgmt. Servs. v. Ruff, 392 Mont. 139, 424 P.3d 571 (agency principles: principal may authorize agent to perform acts of the principal absent statutory prohibition)
- Pilgeram v. GreenPoint Mortg. Funding, Inc., 373 Mont. 1, 313 P.3d 839 (discussing STFA trustee duties and delegation in related context)