University Mall, LLC v. Okorie
2:24-cv-00091
S.D. Miss.Nov 21, 2024Background
- University Mall, LLC acquired the property at 3700 Hardy Street, Hattiesburg, MS, via foreclosure sale on March 28, 2024, after Citizen's Bank foreclosed due to defaults on a commercial loan secured by the property.
- Royal Oaks Rental Properties, LLC, previously owned 3700 Hardy Street and is controlled by Dr. Ikechukwu Okorie, who also owns Inland Family Practice, LLC, operating St. Michael’s Urgent Care at the location.
- After foreclosure, Okorie and the LLCs refused to surrender possession to University Mall, challenging the foreclosure’s validity and asserting residual ownership based on prior deeds.
- Okorie removed the state court action to federal court, claiming both federal question and diversity jurisdiction, and sought to enjoin eviction; the court found diversity jurisdiction proper.
- The court consolidated the hearing on preliminary injunction with the trial on the merits, evaluated extensive documentary and testimonial evidence, and determined that all right to possession passed to University Mall as of the foreclosure sale, not to Okorie or his entities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Right to Possession Post-Foreclosure | University Mall, as buyer at foreclosure, is entitled to possession under Mississippi law. | Okorie claims continued ownership via prior warranty and quitclaim deeds; challenges foreclosure process. | University Mall is entitled to possession; Okorie's right to possess expired at foreclosure. |
| Validity of Foreclosure and Due Process | Foreclosure followed all statutory and contractual requirements. | Foreclosure violated Okorie's rights and was procedurally flawed. | No evidence of due process violation; foreclosure was valid. |
| Standing of Dissolved LLCs to Defend/Evict | Dissolution does not bar LLCs from defending or being sued; Okorie cannot represent LLCs. | Dissolved LLCs lack legal standing in litigation. | Dissolved LLCs can still be sued and defend under MS law. |
| Compensation for Use and Occupation After Foreclosure | Entitled to rent or reasonable value for use since foreclosure date. | No compensation due—no valid transfer of title. | University Mall entitled to back rent from date of foreclosure. |
Key Cases Cited
- Moore v. Marathon Asset Mgmt., LLC, 973 So. 2d 1017 (Miss. Ct. App. 2008) (mortgagee gains title and possession rights following mortgagor default)
- Harvey v. Federal Nat’l Mortg. Ass’n, 200 So. 3d 461 (Miss. Ct. App. 2016) (unlawful entry and detainer is an eviction, not a proceeding to adjudicate title)
- McCallum v. Gavin, 116 So. 94 (Miss. 1928) (title deeds are admissible for determining right to possession)
- Gandy v. Citicorp, 985 So. 2d 371 (Miss. Ct. App. 2008) (summary remedy for possession when right evidence expires)
