U.S. Bank, N.A. v. Ugrin
150 Conn.App. 393
Conn. App. Ct.2014Background
- Defendant executed a $1,787,500 note secured by a mortgage on 57 Warner Hill Rd, Fairfield; Chevy Chase Bank initially held the note.
- U.S. Bank, N.A., as trustee, purchased the note and foreclosed; default judgment and foreclosure by sale were entered.
- Defendant moved to dismiss for lack of standing (subject matter jurisdiction) arguing the plaintiff might not be holder of the note.
- At the May 2, 2012 hearing, plaintiff produced the original note; defendant claimed alteration and questioned authority to endorse.
- Plaintiff submitted an affidavit claiming the note was properly endorsed to it; subsequent briefing explored whether a blank-to-special endorsement changed enforceability.
- Court ultimately denied the motion to dismiss, finding plaintiff held the note and had standing; appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court erred by not ordering another evidentiary hearing on standing | Plaintiff had prima facie holder evidence; defendant failed to refute. | A second hearing was needed due to factual disputes about possession and endorsements. | No second hearing required; court's ruling affirmed standing. |
| Whether plaintiff had standing to foreclose as the holder of the note | Note endorsed in blank gave holder status; plaintiff possessed the note. | Ambiguity in endorsements suggested lack of standing. | Plaintiff possessed the note endorsed in blank prior to suit; standing established. |
| Whether alleged alteration of the note created a genuine issue of material fact | Alteration claims do not defeat prima facie evidence of possession. | Special endorsement after blank endorsement implied alteration. | Alteration alone did not negate holder status; no genuine issue affecting standing. |
| Whether denial of reargument was proper given changed governing law | Rely on existing holdings favorable to plaintiff. | Equity One v. Shivers jurisprudence changed by later Supreme Court decision. | Reargument denial upheld; law considered but harmless given record. |
Key Cases Cited
- Equity One, Inc. v. Shivers, 310 Conn. 119 (2013) (standing to foreclose determined without full evidentiary hearing if prima facie possession shown)
- RMS Residential Properties, LLC v. Miller, 303 Conn. 224 (2011) (mortgage follows the note; holder has standing to foreclose)
- J.E. Robert Co. v. Signature Properties, LLC, 309 Conn. 307 (2013) (servicer entitled to enforce note under pooling and servicing agreements)