Bank of New York Mellon v. Hayes

2019 IL App (1st) 180385-U
CourtAppellate Court of Illinois
DecidedOctober 24, 2019
Docket1-18-0385
StatusUnpublished

This text of 2019 IL App (1st) 180385-U (Bank of New York Mellon v. Hayes) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of New York Mellon v. Hayes, 2019 IL App (1st) 180385-U (Ill. Ct. App. 2019).

Opinion

2019 IL App (1st) 180385-U No. 1-18-0385 Order filed October 24, 2019 Fourth Division

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ THE BANK OF NEW YORK MELLON, f/k/a The Bank ) Appeal from the of New York, as Trustee (CWALT 2006-OC4), ) Circuit Court of ) Cook County. Plaintiff-Appellee, ) ) v. ) No. 15 CH 5510 ) DEBORAH HAYES, KATHRYN REICH, THOMAS ) REICH, and PNC BANK, N.A., Successor in Interest to ) MidAmerica Bank, FSB, ) ) Defendants, ) Honorable ) Daniel Patrick Brennan, (Deborah Hayes, Defendant-Appellant). ) Judge, presiding.

JUSTICE LAMPKIN delivered the judgment of the court. Justices Reyes and Burke concurred in the judgment.

ORDER

¶1 Held: In a mortgage foreclosure case, the trial court properly entered summary judgment in favor of the plaintiff mortgagee, which had standing to foreclose as the holder of the note. The trial court also properly exercised its discretion when it denied a request to delay adjudication of the summary judgment motion for additional time No. 1-18-0385

to conduct discovery, and approved the foreclosure sale where the plaintiff showed it had properly published notice of the sale in the newspaper.

¶2 Plaintiff, The Bank of New York Mellon, f/k/a The Bank of New York, as trustee

(CWALT 2006-OC4), filed a complaint to foreclose on the mortgage after the borrowers, who

had failed to make payments and defaulted under the terms of the mortgage and note, conveyed

their interest in the property to defendant Deborah Hayes via a quitclaim deed. Subsequently, the

trial court granted summary judgment in favor of plaintiff and against Hayes, entered a default

judgment against the borrowers, and entered a judgment of foreclosure.

¶3 On appeal, Hayes argues that the trial court (1) erroneously granted summary judgment

because plaintiff failed to show it had standing to bring this foreclosure action, (2) abused its

discretion by denying Hayes’ request for additional time to conduct discovery before ruling on

plaintiff’s summary judgment motion, and (3) abused its discretion by approving the foreclosure

sale because plaintiff failed to comply with statutory provisions regarding notice of the sale.

¶4 For the reasons that follow, we affirm the judgment of the circuit court. 1

¶5 I. BACKGROUND

¶6 In 2006, borrowers Kathryn and Thomas Reich executed a note secured by a mortgage

that encumbered their property in Forest Park, Illinois. However, they defaulted under the terms

of the mortgage and note by failing to make payments beginning in August 2010. In January

2015, the borrowers conveyed their interest in the property to Hayes via a quit claim deed.

¶7 In April 2015, plaintiff filed a complaint against Hayes, the borrowers, and others to

foreclose on the mortgage. Plaintiff named Hayes, who was not a party to the note or mortgage,

1 In adherence with the requirements of Illinois Supreme Court Rule 352(a) (eff. July 1, 2018), this appeal has been resolved without oral argument upon the entry of a separate written order.

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as a defendant in the foreclosure action to extinguish her title interest in the property. Plaintiff

attached as exhibits to the complaint the mortgage, the note with a blank endorsement, and an

assignment of the mortgage to plaintiff.

¶8 Hayes’ June 2015 answer raised one affirmative defense, alleging that plaintiff did not

have standing to bring this action to enforce the mortgage. Hayes’ answer, however, admitted the

allegations of paragraph 3(j) of the complaint, which alleged that plaintiff’s capacity in this

foreclosure was as the holder of the note secured by the mortgage.

¶9 On September 30, 2016, plaintiff moved the court for leave to file its response to Hayes’

affirmative defense; for summary judgment against Hayes; for a default judgment against the

borrowers; and for a judgment of foreclosure and sale. Plaintiff argued that Hayes’ answer

admitted that plaintiff was the holder of the note secured by the mortgage, the allegations of fact

in the complaint were proved by affidavit, and there was no genuine issue as to any material fact

and plaintiff was entitled to judgment as a matter of law. In addition to its exhibits of the

complaint, note, mortgage, and assignment of the mortgage, plaintiff also attached to its

summary judgment motion the prove-up affidavit of Keli Smith, a document coordinator of

Bayview Loan Servicing LLC (Bayview), regarding her knowledge of the loan service business,

the business records, the servicing records pertaining to the default in the note and mortgage at

issue here, and the amounts due and owing. The relevant payment history documents were

attached to Smith’s affidavit. Plaintiff argued that it had proven its standing to pursue foreclosure

because the valid assignment established the transfer of the prior mortgage and note from the

original mortgagee to plaintiff, and plaintiff was the holder of the note, which was endorsed in

blank and thereby converted to bearer paper and negotiable by transfer of possession alone.

-3- No. 1-18-0385

¶ 10 On October 26, 2016, Hayes served on plaintiff interrogatories and a request to produce

documents.

¶ 11 On November 2, 2016, the court issued a briefing schedule on plaintiff’s summary

judgment motion and set it for a January 25, 2017 hearing.

¶ 12 In her December 21, 2016 response to the summary judgment motion, Hayes asked the

court to continue the motion until she received and reviewed responses to her discovery and

followed up with further interrogatories, depositions and other inquiry to support her case in

rebuttal. Hayes filed an affidavit, pursuant to Illinois Supreme Court Rule 191(b) (eff. Jan. 4,

2013), regarding material facts known to persons whose affidavits the affiant was unable to

procure. Hayes averred that plaintiff’s responses to her discovery requests were due November

24, 2016, she had not received those responses, and she believed those responses would “provide

a basis for a defense against this action, and persons to depose or other avenues of inquiry to

rebut and contradict the allegations” in plaintiff’s summary judgment motion.

¶ 13 In its reply, plaintiff argued that summary judgment should be entered as a matter of law

and Hayes’ affidavit failed to comply with Rule 191(b) and was merely a delaying tactic.

Specifically, plaintiff asked the court to strike the affidavit because Hayes failed to state the

material facts she believed were only known by persons whose affidavits she was unable to

obtain. She also failed to identify the names of those persons, the material facts she believed they

would testify to, or explain the reason for her belief. Plaintiff also argued that Hayes’ discovery

request, which sought to explore the issue of plaintiff’s standing and the integrity of its

documents, would not assist her in crafting a defense to plaintiff’s motion for summary judgment

because Hayes was not a party to the mortgage or note; was not entitled to the nonpublic

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personal information of the borrowers pertaining to their loan; failed to show either that she had

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2019 IL App (1st) 180385-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-new-york-mellon-v-hayes-illappct-2019.