Pierucci v. U.S. Bank, NA
2015 UT App 80
| Utah Ct. App. | 2015Background
- 2005: Pieruccis obtain mortgage secured by deed of trust on Price, Utah property.
- 2008: Pieruccis fall behind on payments and seek modification; defendants allegedly misstate modification process.
- 2009: Notice of default recorded (April 1); foreclosure proceedings commence; trial-period payments initially rejected after late payment.
- 2011: Complaint filed Feb. 22 seeking injunction; foreclosure sale occurs Feb. 23; service on U.S. Bank acknowledged but bank cannot locate complaint.
- 2011–2012: U.S. Bank default entered Mar. 23; U.S. Bank answers Mar. 28 and moves to set aside default; district court sets aside default; 2012: U.S. Bank and Wells Fargo move for judgment on the pleadings; district court grants; Pieruccis appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court abused discretion in setting aside default. | Pierucci vouches for default should stand due to willfulness. | Bank acted with good cause and meritorious defense. | No abuse; good cause supports setting aside. |
| Whether district court properly used HAMP documents on a 12(c) motion. | HAMP documents not properly considered; outside pleadings. | Documents central to claims; properly considered. | Court did not err; documents central to claims. |
| Whether Pieruccis stated a wrongful foreclosure claim. | Foreclosure tied to denial of HAMP and trial payments. | HAMP does not create private right of action; sale not unjustly set aside. | Wrongful foreclosure claim failed; sale affirmed. |
Key Cases Cited
- Roth v. Joseph, 2010 UT App 332 (Utah Ct. App. 2010) (abuse-of-discretion standard for setting aside default; factors for good-cause)
- Erickson v. Schenkers Intl. Forwarders, Inc., 882 P.2d 1147 (Utah 1994) (default-relief favors merits over default judgments)
- Black's Title, Inc. v. Utah State Ins. Dep't, 991 P.2d 607 (Utah App. 1999) (default judgments disfavored; liberal relief to litigate on merits)
- Oakwood Vill. LLC v. Albertsons, Inc., 104 P.3d 1255 (Utah 2004) (outside-documents on 12(c) motions; centrality of documents referenced in complaint)
- BMBT, LLC v. Miller, 322 P.3d 1172 (Utah App. 2014) (district court may consider public records or noticed documents)
- Reynolds v. Woodall, 285 P.3d 7 (Utah App. 2012) (fraud/unfair dealing in sale requires attendant fraud or unfairness impacting sale)
- Concepts, Inc. v. First Sec. Realty Servs., Inc., 743 P.2d 1158 (Utah 1987) (trustee's sale not set aside absent exceptional circumstances)
- Shurtliff v. Wells Fargo Bank, NA, 2010 WL 4609307 (D. Utah 2010) (no private right of action under HAMP)