Flagstar Bank,FSB v. Moore

925 N.E.2d 203, 185 Ohio App. 3d 659
CourtOhio Court of Appeals
DecidedFebruary 5, 2010
DocketNo. 92882
StatusPublished

This text of 925 N.E.2d 203 (Flagstar Bank,FSB v. Moore) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flagstar Bank,FSB v. Moore, 925 N.E.2d 203, 185 Ohio App. 3d 659 (Ohio Ct. App. 2010).

Opinion

Christine T. McMonagle, Presiding Judge.

{¶ 1} Defendants-appellants, Roosevelt Moore and Rick Braxton, appeal the trial court’s judgment granting summary judgment in favor of plaintiff-appellee Flagstar Bank, FSB. We reverse and remand.

[661]*661 Final Appealable Order and Appellate Jurisdiction

2} This foreclosure action was filed on December 27, 2006, by Sovereign Bank, FSB,1 against Moore, Braxton, and other defendants. Upon the bank’s motion for summary judgment, the trial court entered a judgment in favor of the bank, and Moore and Braxton appealed. This court dismissed the appeal for lack of a final appealable order. Flagstar Bank, FSB v. Moore, Cuyahoga App. No. 91145, 2008-Ohio-6163, 2008 WL 5050139. The trial court then issued two more judgments from which Moore and Braxton again appealed; this court again dismissed for lack of a final appealable order. Flagstar Bank, FSB v. Moore, Cuyahoga App. No. 92882, 2009-Ohio-5703, 2009 WL 3490941. Upon Braxton and Moore’s motion for reconsideration, this court vacated its prior dismissal and ordered a limited remand for the trial court to file a final appealable order. Flagstar Bank, FSB v. Moore, Cuyahoga App. No. 92882, 2009-Ohio-6222, 2009 WL 4170935.

{¶ 3} Pursuant to that remand, the court issued a judgment entry on December 10, 2009. In that judgment, among other things, the trial court granted default judgment against two of the defendants: (1) Jane Doe, the unknown spouse of Moore, and (2) Jane Doe, the unknown spouse of Braxton. However, because the Doe parties were neither served nor identified within one year, the action never commenced against them, and they should have been dismissed, not defaulted. See Civ.R. 3(A) and 15(D). Ordinarily, we would remand the case to the trial court to correct this error. But because this case has already been remanded twice, and because the action never commenced against the Doe parties, we correct the record herein to state that the Doe defendants are dismissed, and we find that the error does not create an issue as to whether the December 10 judgment was final and appealable. See Kohout v. Church of St. Rocco Corp., Cuyahoga App. No. 88969, 2008-Ohio-1819, 2008 WL 1747217, ¶ 7.

{¶ 4} In regard to another defendant, Irma J. Wilder, who appeared and set forth a claim to the subject property, the trial court stated: “The Court further finds that the Defendant Irma Wilder on September 26, 2006 under Case No. JL 06-274301 obtained a judgment lien on the amount of $2,000.00 against Defendant Richard Braxton. Having filed an answer in this matter, the Court finds that Defendant Irma Wilder claims an interest in the subject property by virtue of the judgment lien. The Court finds that Defendant Irma Wilder’s judgment hen is subsequent to the lien of the Substitute Plaintiff; and that, there is no just cause for delay.” In its order distributing the proceeds of the sale, however, the trial court failed to mention Wilder. We find this to be a clerical mistake and that Wilder should have been included in the order of proceeds as the “fifth” order, [662]*662and the original “fifth” order should have been the “sixth” order. This clerical mistake likewise does not affect the finality of the December 10 judgment.

Facts

{¶ 5} The complaint sought a monetary judgment against Moore only2 (it requested that the other defendants “answer and set up any claim that they may have in said premises or be forever barred”). Count 1 of the complaint alleged in its entirety as follows:

{¶ 6} “Plaintiff says that it is the holder of a certain promissory note, a copy of which is attached hereto, marked Exhibit ‘A’, and made a part hereof; that by reason of default in the payment of the note and mortgage securing same, it has declared said debt due; and, that there is due and unpaid thereon the sum of $114,887.69, plus interest at the rate of 8.000% per annum from August 1, 2006.”

{¶ 7} Count 2 incorporated the above allegations and alleged that plaintiff “is the holder of a certain mortgage deed, securing the payment of said promissory note, a copy of which mortgage deed is attached hereto, marked Exhibit ‘B’, and made a part hereof; and, that said mortgage is a valid and first lien upon the premises described in said mortgage deed.”

{¶ 8} The note was executed by Moore and named “Lenders Choice Mortgage, LLC, a[n] Ohio LLC,” as the lender; the mortgage was executed by Moore and Braxton and named “Lenders Choice Mortgage LLC” as the lender. The mortgage further stated that “MERS is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender’s successors and assigns. MERS is the mortgagee under this Security Instrument.”

{¶ 9} Moore and Braxton jointly answered the complaint and asserted several affirmative defenses: (1) failure to state a claim; (2) plaintiff was not the real party in interest; and (3) payment.

{¶ 10} As previously mentioned, Flagstar Bank was substituted for Sovereign Bank as the plaintiff. The May 23, 2007 “assignment of mortgage” attached to the motion to substitute provided that “MERS, Mortgage Electronic Registration Systems, Inc., as nominee for Lenders Choice Mortgage LLC (Assignor)” was transferring and assigning the note and mortgage to Flagstar Bank, FSB.

{¶ 11} Flagstar Bank filed a motion for summary judgment claiming default in the payment of the note, which triggered the acceleration provision. The [663]*663following were attached in support of the motion: (1) the affidavit of Robert Stoudemire, assistant vice president of Flagstar Bank, (2) a copy of the note, and (3) a copy of the mortgage deed.

{¶ 12} Stoudemire averred that he served as the loan-servicing contractor for Sovereign Bank and that he “examined the loan account of Roosevelt Moore,” which was “under his supervision,” and determined that the “account has been and remains in default.” Stoudemire further averred that there was “due a principal balance of $114,887.69 plus interest” and that the bank had properly “exercised the option contained in said mortgage note and has accelerated and called due the entire principal balance due thereon.”

{¶ 13} Moore and Braxton opposed the bank’s summary-judgment motion and argued that (1) the bank presented only conclusions, with no facts in support of the motion, (2) Sovereign Bank was not the real party in interest, (3) genuine issues existed regarding the alleged default, and (4) the bank failed to prove that it provided notice of the claimed default prior to exercising the acceleration provision.

{¶ 14} Moore’s affidavit was submitted in opposition to the summary-judgment motion. He averred that after he executed the note, he received notice that the original lender of the note, Lenders Choice Mortgage, L.L.C., assigned the note to Flagstar Bank. He then began issuing his monthly payments to Flagstar Bank and continued to do so through December 2006. Moore averred that after he sent his December 2006 payment to Flagstar Bank, he received a letter dated December 26, 2006, advising that the note had been assigned to Countrywide Mortgage and was no longer serviced by Flagstar Bank; Moore’s December payment was returned. According to Moore, at no time prior to the December 26 letter was he advised that the note had been assigned and/or that he was to direct payment other than to Flagstar Bank.

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Bluebook (online)
925 N.E.2d 203, 185 Ohio App. 3d 659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flagstar-bankfsb-v-moore-ohioctapp-2010.