Wells Fargo Bank, N.A. v. Johnson
2016 Ohio 1114
Ohio Ct. App.2016Background
- In 2006, Kelly Johnson borrowed $118,100 to buy property at 3230 Glenn St., Toledo; the mortgage named MERS as nominee and the borrowers included David Johnson.
- In 2008, Johnsons modified the loan to lower monthly payments to $815.92.
- In 2014, MERS assigned the mortgage to Wells Fargo Bank, N.A., as trustee for Carrington Mortgage Loan Trust, Series 2007-RFC1.
- Wells Fargo filed suit in 2014 seeking note execution, mortgage foreclosure, and sale; the Johnsons answered and Wells Fargo sought dismissal of counterclaims.
- The trial court granted Wells Fargo’s motion to dismiss counterclaims under Civ.R. 12(B)(6), then granted Wells Fargo summary judgment and issued a foreclosure decree for about $113,224.57 plus interest.
- On appeal, Johnson argues standing, fraud, declaratory relief, quiet title, slander of title, and intentional infliction of emotional distress; Wells Fargo contends it has standing and valid entitlement to foreclose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the court properly dismiss counterclaims under Civ.R. 12(B)(6)? | Johnson asserts counterclaims survive dismissal. | Wells Fargo contends counterclaims fail to state a claim. | Yes; dismissal affirmed. |
| Was leave to amend counterclaim properly denied? | Johnson needed amendment to state claims. | Amendment would be futile. | Yes; denial affirmed. |
| Did Wells Fargo establish no genuine issues of material fact for summary judgment? | Johnson disputes standing and other facts. | Affidavits and records show proper note/mortgage chain and deficiency. | Yes; summary judgment proper. |
| Did Osterman's affidavit adequately prove standing given the note/mortgage history? | Note recording/status challenges standing. | Standing shown by current holder of note and mortgage. | Yes; standing established. |
| Was there judicial bias against Johnson? | Bias taints proceedings. | No demonstrated bias. | No; no substantial bias found. |
Key Cases Cited
- O’Brien v. Univ. Community Tenants Union, Inc., 42 Ohio St.2d 242 (1975) (Civ.R. 12(B)(6) standard; dismissal standards)
- State ex rel. Hanson v. Guernsey Cty. Bd. of Commrs., 65 Ohio St.3d 545 (1992) (standards for reviewing judgment dismissals)
- Garofalo v. Chicago Title Ins. Co., 104 Ohio App.3d 95 (1995) (pleading adequacy and Civ.R. 9(B) particularity)
- H & M Landscaping Co., Inc. v. Abraxus Salt, L.L.C., 8th Dist. Cuyahoga No. 94268 (2010) (fraud elements related to inducement and concealment)
- Surace v. Wuliger, 25 Ohio St.3d 229 (1986) (absolute privilege in judicial proceedings)
- Aust v. Ohio State Dental Bd., 136 Ohio App.3d 677 (2000) (elements of declaratory relief; justiciable controversy)