PHH Mtge. Corp. v. Ramsey
17 N.E.3d 629
Ohio Ct. App.2014Background
- PHH Mortgage Corp. appealed Franklin County C.P. judgment after remand from Ramsey I (2012-Ohio-672).
- Appellee Andrew Ramsey allegedly defaulted in Aug.–Nov. 2009 due to PHH’s online payment system failures.
- PHH previously foreclosed/initiated foreclosure litigation; court remanded after Ramsey I to evaluate genuine issues of material fact.
- Magistrate denied foreclosure and awarded Ramsey $1,550; PHH objections were overruled.
- Trial court later issued nunc pro tunc judgment confirming denial of PHH’s note claim; PHH appeals.
- PHH argued electronic payments and six-year acceptance waived default and permitted late payments; court rejected on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PHH was entitled to judgment on the note. | PHH: Ramsey defaulted by not tendering August 2009 payment. | Ramsey: PHH waived electronic payments and late payments for six years; no default. | Overruled; no default; PHH denied judgment on note. |
| Whether foreclosure was proper given no default. | PHH: default warranted foreclosure. | Ramsey: no default due to waived timely payment and Speedpay issues. | Overruled; foreclosure not granted. |
| Whether reformation of the mortgage should be addressed. | PHH raised reformation issue post-remand. | Issue not raised below; waived on appeal. | Overruled; issue waived. |
Key Cases Cited
- EAC Properties, L.L.C. v. Brightwell, 2011-Ohio-2373 (10th Dist. 2011) (waiver and good-faith disputes in contract enforcement)
- Jenkins v. Mapes, 53 Ohio St. 110 (1895) (payment perfected by acceptance; tender requirements)
- Cranberry Fin., L.L.C. v. S & V Partnership, 186 Ohio App.3d 275 (6th Dist. 2010) (contract interpretation; implied covenant of good faith)
- Suter v. Farmers' Fertilizer Co., 100 Ohio St. 403 (1919) (widely cited for waiver concepts)
- Ed Schory & Sons, Inc. v. Soc. Natl. Bank, 75 Ohio St.3d 433 (1996) (good-faith performance; contract enforcement)
- State ex rel. Wallace v. State Med. Bd. of Ohio, 89 Ohio St.3d 431 (2000) (waiver concepts; estoppel)
- Chubb v. Ohio Bur. of Workers' Comp., 81 Ohio St.3d 275 (1998) (waiver by estoppel; inconsistent conduct)
- National City Bank v. Rini, 162 Ohio App.3d 662 (2005) (waiver and contract interpretation)