Thomas Binkley, Harlene J. Binkley, Roland E. Sturhahn, and Susan J. Sturhahn v. American Equity Mortgage, Inc.
447 S.W.3d 194
Mo.2014Background
- Property owners refinanced mortgages with American Equity Mortgage, Inc.
- HUD-1 in Binkley loans showed origination fees but no document preparation fee.
- HUD-1 in Sturhahn loans showed a separate “Document preparation to” line left blank.
- Mortgage company prepared notes, deeds of trust, and PUD riders from vendor software.
- Property owners alleged unlawful law business under secs. 484.010.2 and 484.020, and MMPA and unjust enrichment claims.
- Trial court granted summary judgment for mortgage company; appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether mortgage company violated secs. 484.010.2 and 484.020 by procuring legal documents | Binkley et al. charged for procuring documents | No separate document prep fee charged | No material fact; no separate fee charged, claims fail |
| Whether MMPA claim survives as independent from sections 484.010.2 and 484.020 | Unfair practice shown by law business | MMPA claim derivative of statutory claims | MMPA claim fails as no ascertainable loss or unfair practice proven |
| Whether unjust enrichment claim survives given no charged fees for legal documents | Mortgage company benefited from unlawful fees | No payment for document preparation occurred | Unaffected; no fee charged, claim fails |
Key Cases Cited
- Hargis v. JLB Corp., 357 S.W.3d 574 (Mo. banc 2011) (definition of law practice and procuring; limits on nonlawyer drawing)
- Naylor Senior Citizens Housing, LP v. Side Const. Co., Inc., 423 S.W.3d 238 (Mo. banc 2014) ( judiciary defines practice of law; role in duty to supervise)
- Eisel v. Midwest BankCentre, 230 S.W.3d 335 (Mo. banc 2007) (procuring/drawing legal documents; law business guidance)
- ITT Commercial Fin. Corp. v. Mid-Am. Marine Supply Corp., 854 S.W.2d 371 (Mo. banc 1993) (summary judgment standard; record-viewing for de novo review)
- Ward v. West County Motor Co., Inc., 403 S.W.3d 82 (Mo. banc 2013) (MMPA elements; ascertainable loss standard)