Wells Fargo Bank v. Horn
142 Ohio St. 3d 416
| Ohio | 2015Background
- Wells Fargo filed a 2010 foreclosure complaint against Brian and Carol Horn, alleging it was the holder of the promissory note and mortgage; exhibits attached included copies of the note (endorsed in blank) and mortgage naming Norwest Mortgage as original lender.
- Horn raised defenses including that Wells Fargo might not be the real party in interest / lacked standing.
- Wells Fargo later moved for summary judgment and submitted an affidavit and state-corporate filings showing Norwest changed its name to Wells Fargo Home Mortgage and later merged into Wells Fargo, asserting those documents established it held the note and mortgage when the complaint was filed.
- The trial court granted summary judgment and entered a foreclosure decree for Wells Fargo.
- The Ninth District sua sponte held, relying on Schwartzwald, that a foreclosure plaintiff must attach proof of standing to its complaint and remanded to dismiss Wells Fargo's complaint without prejudice for failure to attach documents proving succession.
- The Ohio Supreme Court accepted review and considered whether Schwartzwald requires attaching proof of standing to the complaint or only requires that the plaintiff have standing when the suit is commenced.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Schwartzwald requires a foreclosure plaintiff to attach documentary proof of standing to the complaint | Wells Fargo: No — plaintiff need not attach all evidence of standing to the complaint; proof may be submitted later | Horn: Plaintiff must attach documents proving it was successor/real party in interest when filing | Court: Schwartzwald requires standing when suit is filed but does not require attaching proof to the complaint; proof may be supplied after filing (but standing is measured at filing) |
| Whether lack of attachment under Civ.R.10(D) equals lack of standing | Wells Fargo: Civ.R.10(D) does not determine standing; omission can be addressed by motion for more definite statement | Horn: (argued attachment necessary) | Court: Civ.R.10(D) noncompliance is not equivalent to lack of standing; remedy is a Civ.R.12(E) motion, not dismissal for lack of jurisdiction |
| Whether pleadings must establish standing beyond allegations | Wells Fargo: Pleading that plaintiff is holder of the note is sufficient at pleading stage | Horn: Complaint lacked specific succession allegations | Court: Under notice pleading, factual allegations are taken as true; plaintiff need not prove standing at pleading stage, only allege facts showing entitlement to relief |
| Whether subsequent proof of standing can cure lack of standing at filing | Wells Fargo: Proof submitted after filing but before judgment can show plaintiff had standing at filing | Horn: Post-filing events or proof cannot cure initial lack of standing | Court: If plaintiff lacked standing at time of filing, later acquisition cannot cure that defect (per Schwartzwald); but submitting proof after filing that demonstrates plaintiff already had standing at filing is permissible |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (2012) (standing in foreclosure must exist at filing; later acquisition cannot cure lack of standing)
- Bank of Am., N.A. v. Kuchta, 141 Ohio St.3d 75 (2014) (standing is jurisdictional to invoke the court and is determined as of filing of complaint)
- State ex rel. Dallman v. Franklin Cty. Court of Common Pleas, 35 Ohio St.2d 176 (1973) (party lacks standing unless it has a real interest in the subject matter)
- Mitchell v. Lawson Milk Co., 40 Ohio St.3d 190 (1988) (factual allegations in a complaint are taken as true for pleading-stage determinations)
- Fletcher v. Univ. Hosps. of Cleveland, 120 Ohio St.3d 167 (2008) (failure to attach instruments under Civ.R.10(D) is remedied by Civ.R.12(E), not by treating it as lack of standing)
- York v. Ohio State Hwy. Patrol, 60 Ohio St.3d 143 (1991) (plaintiff is not required to prove the case at the pleading stage)