Fed. Natl. Mtge. Assn. v. McFerren

2018 Ohio 5319
Ohio Court of Appeals·Decided December 31, 2018·No. 28814·Published·Cited by 3 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

FEDERAL NATIONAL MORTGAGE C.A. No. 28814 ASSOCIATION

Appellee APPEAL FROM JUDGMENT

v. ENTERED IN THE COURT OF COMMON PLEAS

GARRICK P. MCFERREN, et al. COUNTY OF SUMMIT, OHIO CASE No. CV 2015 07 3622 Appellant

DECISION AND JOURNAL ENTRY Dated: December 31, 2018

CALLAHAN, Judge.

{¶1} Appellant, Garrick McFerren, appeals from the judgment of the Summit County Common Pleas Court in favor of Appellee, Federal National Mortgage Association (“Fannie Mae”). For the reasons set forth below, this Court reverses and remands.

I.

{¶2} Fannie Mae filed a complaint to foreclose on Mr. McFerren’s residential mortgage and to obtain a personal judgment against him on the note relative to the property located at 3209 Deborah Court in Uniontown.1 None of the defendants filed an answer. Fannie Mae moved for and was granted default judgment and a decree of foreclosure. A week later, Mr.

1 This is the second foreclosure action filed against Mr. McFerren as to this note and mortgage. See BAC Home Loans Servicing, LP v. McFerren, 9th Dist. Summit No. 26384, 2013-Ohio- 3228, ¶ 2-3. (“McFerren I”). The previous foreclosure action involved a different financial entity. Id. In the appeal of that foreclosure action, this Court reversed the trial court’s grant of summary judgment because the record did not demonstrate that the bank had standing to initiate the foreclosure action. Id. at ¶ 5.

McFerren filed a motion to vacate the default judgment and leave to file an answer instanter, both of which were granted. Mr. McFerren’s answer contained various affirmative defenses, including, but not limited to, lack of standing, failure to satisfy conditions precedent, and payment of the note.

{¶3} After unsuccessful mediation attempts, Fannie Mae moved for summary judgment on the complaint. Mr. McFerren filed two identical response briefs, 3 days apart and each by different counsel. Both of Mr. McFerren’s response briefs included an affidavit by him that was not executed or notarized. Mr. McFerren opposed the summary judgment motion by arguing that Fannie Mae lacked standing to bring the foreclosure action, the affidavit submitted by Fannie Mae was insufficient to establish standing, and Fannie Mae failed to establish damages. Fannie Mae filed a reply brief.

{¶4} Upon review of the briefs and the evidence, the trial court reserved ruling on the motion for summary judgment and ordered Fannie Mae to file a supplemental affidavit establishing that it had standing. In accordance with the trial court’s order, Fannie Mae filed a supplemental affidavit with attachments regarding the issue of standing. Despite being granted leave, Mr. McFerren did not file a supplemental response brief or any evidence opposing Fannie Mae’s additional evidence. After consideration of Fannie Mae’s additional evidence, the trial court granted Fannie Mae’s motion for summary judgment.

{¶5} Mr. McFerren timely appeals from this judgment entry, asserting three assignments of error. Of Mr. McFerren’s three assignments of error, the second is dispositive, so this Court addresses it first.

II.

ASSIGNMENT OF ERROR NO. 2

REVIEWING [FANNIE MAE’S] MOTION FOR SUMMARY JUDGMENT DE NOVO, THE RECORD IS CLEAR AND CONVINCING THAT THE TRIAL COURT ERRED TO THE PREJUDICE OF [MR. MCFERREN] BY GRANTING [FANNIE MAE’S] MOTION FOR SUMMARY JUDGMENT IN FAVOR OF [FANNIE MAE].

{¶6} Mr. McFerren argues that the trial court erred in granting summary judgment to Fannie Mae because it did not establish standing. This Court agrees.

{¶7} Appellate courts consider an appeal from summary judgment under a de novo standard of review, using the same standard that the trial court applies. See Bonacorsi v. Wheeling & Lake Erie Ry. Co., 95 Ohio St.3d 314, 2002-Ohio-2220, ¶ 24, citing Doe v. Shaffer, 90 Ohio St.3d 388, 390 (2000). Accordingly, this Court stands in the shoes of the trial court and conducts an independent review of the record.

{¶8} Summary judgment is proper under Civ.R. 56(C) when: (1) no genuine issue as to any material fact exists; (2) the party moving for summary judgment is entitled to judgment as a matter of law; and (3) viewing the evidence most strongly in favor of the nonmoving party, reasonable minds can only reach one conclusion, and that conclusion is adverse to the nonmoving party. Civ.R. 56(C); Temple v. Wean United, Inc., 50 Ohio St.2d 317, 327 (1977).

{¶9} Summary judgment consists of a burden-shifting framework. The movant bears the initial burden of demonstrating the absence of genuine issues of material fact concerning the essential elements of the nonmoving party’s case. Dresher v. Burt, 75 Ohio St.3d 280, 292-293 (1996). Specifically, the moving party must support the motion by pointing to some evidence in the record of the type listed in Civ.R. 56(C). Id. Once the moving party satisfies this burden, the nonmoving party has a “reciprocal burden” to “‘set forth specific facts showing that there is a

genuine issue for trial.’” Id. at 293, quoting Civ.R. 56(E). The nonmoving party “‘may not rest upon the mere allegations or denials of his pleadings,’” but instead must submit evidence as outlined in Civ.R. 56(C). Id., quoting Civ.R. 56(E).

{¶10} The plaintiff moving for summary judgment in a foreclosure action must present

evidentiary-quality materials showing: (1) the movant is the holder of the note and mortgage, or is a party entitled to enforce the instrument; (2) if the movant is not the original mortgagee, the chain of assignments and transfers; (3) the mortgagor is in default; (4) all conditions precedent have been met; and (5) the amount of principal and interest due.

(Internal quotations and citations omitted in original.) The Bank of New York Mellon v. Bridge, 9th Dist. Summit No. 28461, 2017-Ohio-7686, ¶ 10, quoting Bank of Am., N.A. v. Edwards, 9th Dist. Lorain Nos. 15CA010848, 15CA010851, 2017-Ohio-4343, ¶ 10.

{¶11} A plaintiff in a foreclosure action must have standing at the time it files the complaint in order to invoke the jurisdiction of the court over the foreclosure action. See Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13, 2012-Ohio-5017, ¶ 41. See also Bank of Am. N.A. v. Kuchta, 141 Ohio St.3d 75, 2014-Ohio-4275, paragraph three of the syllabus, ¶ 22 (standing addresses a court’s “jurisdiction over a particular case, [and] not subject- matter jurisdiction”). “To prove standing in a foreclosure action, a plaintiff must hold both the note and the mortgage prior to filing the complaint.” Bank of Am., N.A. v. McCormick, 9th Dist. Summit No. 26888, 2014-Ohio-1393, ¶ 8. See also Deutsche Bank Natl. Trust Co. v. Holden, 147 Ohio St.3d 85, 2016-Ohio-4603, ¶ 33.

{¶12} As a preliminary matter, Fannie Mae argues that Mr. McFerren’s assignments of error should be overruled due to his failure to comply with App.R. 16(A)(7) and Loc.R. 7(F). Fannie Mae contends that Mr. McFerren’s counsel used “recycled, boilerplate assertions” in his appellant brief and thereby fails to conform to the appellate rules. While this Court will apply

the appellate rules as necessary to the deficiencies in Mr. McFerren’s appellate brief, we will do so in conjunction with our required de novo review of whether Fannie Mae met its initial Dresher burden in this matter.

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