RBS Citizens, N.A. v. Krasnov
2014 Ohio 4217
Ohio Ct. App.2014Background
- Krasnov signed a fixed-rate Note for $88,000 and a Mortgage securing it, with RBS Citizens, N.A. as lender and Tatiana Khodakova signing to release dower.
- RBS notified Krasnov that the loan was assigned to Fannie Mae as trustee, while RBS remained the loan servicer and Krasnov was instructed to continue payments to RBS.
- RBS filed foreclosure on Nov. 29, 2010; Krasnov counterclaimed for fraud and bad faith on Feb. 7, 2011, later struck by motion and denied on appeal later.
- Appellants sought interpleader and other procedural motions; various motions to dismiss or exclude parties were denied.
- Foreclosure judgment entered Sept. 10, 2012, against Krasnov for $87,058.16 plus 5.25% interest, but final order as to all claims was clarified on remand in 2014 with summary judgment for RBS on all claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing and enforcement rights | RBS held the note and mortgage and was entitled to enforce. | RBS's standing was challenged due to assignments to Fannie Mae. | RBS had standing as holder and enforcer; current ownership to investors does not defeat standing. |
| Necessary party involvement | Tatiana Khodakova has rights in the property and should be joined. | Tatiana lacked note obligations but had dower-related interests. | Tatiana properly joined; her involvement extinguished her property rights, but did not defeat foreclosure against Krasnov. |
| Resolution of counterclaims on summary judgment | Counterclaims were unsupported; RBS satisfied Civ.R. 56 with evidence. | Counterclaims merited trial and discovery. | Summary judgment granted on all claims, including counterclaims, due to lack of evidentiary support from appellants. |
| Discovery and timing of summary judgment | Discovery responses were adequate; Civ.R. 56(F) remedy not pursued. | Judgment before completion of discovery prejudiced them. | No reversible error; record shows compliance with discovery rules and no need to delay judgment. |
Key Cases Cited
- Deutsche Bank Natl. Trust Co. v. Najar, 2013-Ohio-1657 (8th Dist. Cuyahoga 2013) (standing to foreclose requires holder or entitled to enforce instrument)
- Fed. Home Loan Mortgage Corp. v. Schwartzwald, 134 Ohio St.3d 13 (Ohio 2012) (standing must exist at time complaint is filed)
- CitiMortgage, Inc. v. Patterson, 2012-Ohio-5894 (8th Dist. 2012) (holding of standing when plaintiff is holder or entitled to enforce)
- BAC Home Loans Servicing, L.P. v. Kolenich, 2012-Ohio-5006 (12th Dist. 2012) (definition of holder and enforceable rights under Ohio Rev. Code)
- Bank of Am., N.A. v. Pate, 2014-Ohio-1078 (8th Dist. 2014) (Civ.R. 56 evidence standards and summary judgment)