Stevenson v. Bank of America
359 S.W.3d 466
Ky. Ct. App.2011Background
- Stevenson executed a February 8, 2008 promissory note to TBW secured by a Jefferson County mortgage.
- TBW endorsed the note in blank, making it bearer paper under Kentucky law.
- BAC acquired rights to the note and mortgage in August 2009; an assignment of the mortgage was recorded November 12, 2009.
- Stevenson defaulted in February 2009; BAC filed foreclosure on November 6, 2009 and Stevenson answered pro se.
- A supplemental complaint with the note, mortgage, and assignment was filed February 11, 2010; the Master Commissioner found BAC was the holder and the trial court granted summary judgment on October 20, 2010; Stevenson appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is BAC the real party in interest with standing to foreclose? | Stevenson: BAC lacks standing. | BAC: BAC is the holder and entitled to enforce the note. | Yes; BAC had standing as holder and real party in interest. |
Key Cases Cited
- Louisville & N. R. Co. v. Mack Mfg. Corp., 269 S.W.2d 707 (Ky.1954) (real party in interest when assignment transfers cause of action)
- Works v. Winkle, 234 S.W.2d 312 (Ky.1950) (assignment transfer of cause of action establishes ownership)
- United States v. Aetna Casualty & Surety Co., 338 U.S. 366 (1949) (bearer instrument transfer by possession without endorsement)
- Kentucky Center for the Arts v. Whittenberg Eng. & Constr. Co., 746 S.W.2d 71 (Ky.App. 1987) (significant interest supports real party in interest)