US Bank National Ass'n v. Cox
2011 Mo. App. LEXIS 739
| Mo. Ct. App. | 2011Background
- Coxes owned the Cox Property as tenants by the entirety, with an Adjacent Tract later added.
- In 2005 the Coxes refinanced via Homecomings, creating the Second Homecomings Loan.
- Katherine signed the Promissory Note and a Deed of Trust; Dennis did not sign and his signature on the Deed was disputed as a forgery.
- The Deed of Trust described the Adjacent Tract rather than the Cox Property, and Dennis reportedly never consented to encumber the Cox Property.
- US Bank learned of the signature forgery and the incorrect legal description after default and sued to reform the Deed of Trust or for unjust enrichment.
- The trial court ruled for the Coxes, declaring the Deed of Trust void and denying reform and unjust enrichment; US Bank appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Unjust enrichment elements relevance | US Bank asserts elements met including benefits and retention | Coxes contends no unjust retention because no personal obligation arose | Denied; unjust retention not proven; judgment affirmed for Coxes |
| Unjust enrichment weight of the evidence | US Bank claims all elements proven | Coxes argue third element not satisfied | Denied; evidence supports lack of unjust retention and wrong conduct not required |
| Reformation of the Deed of Trust | Bank seeks to replace legal description to Cox Property | Deed lacked Dennis's signature; no pre-existing agreement; not mutual mistake | Denied; no valid predicate for reformation; Deed not enforceable against Cox Property |
| Deed of Trust as a cloud on title remaining of record | Deed could stay to potentially become valid upon Dennis's death | Denied; cannot leave void Deed as cloud; not permissible to retain |
Key Cases Cited
- Graves v. Berkowitz, 15 S.W.3d 59 (Mo.App. W.D. 2000) (unjust enrichment requires more than mere receipt of benefits; no implicit guarantee by owner)
- R.L. Sweet Lumber Co. v. E.L. Lane, Inc., 513 S.W.2d 365 (Mo. 1974) (deed of trust is a lien; debt is core, lien is incidental)
- American Standard Ins. Co. of Wisconsin v. Bracht, 103 S.W.3d 281 (Mo.App. S.D. 2003) (unjust enrichment based on implied contract; beneficiary must retain unjustly)
- Ethridge v. Perryman, 363 S.W.2d 696 (Mo. banc 1963) (burden to show reformation clear and convincing; preexisting agreement required)
- Ethridge v. TierOne Bank, 226 S.W.3d 127 (Mo. banc 2007) (tenancy by the entirety requires both spouses to convey; one spouse cannot convey alone)