HSBC Bank USA, N.A. v. Mahon

2025 IL App (1st) 232462-U
CourtAppellate Court of Illinois
DecidedFebruary 11, 2025
Docket1-23-2462
StatusUnpublished

This text of 2025 IL App (1st) 232462-U (HSBC Bank USA, N.A. v. Mahon) 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
HSBC Bank USA, N.A. v. Mahon, 2025 IL App (1st) 232462-U (Ill. Ct. App. 2025).

Opinion

2025 IL App (1st) 232462-U SECOND DIVISION February 11, 2025 No. 1-23-2462

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ HSBC BANK USA, N.A. as Trustee for Wells Fargo ) Appeal from the Circuit Court Asset Securities Corporation Home Equity Asset-Backed ) of Cook County. Certificates, Series 2006-3, ) ) Plaintiff-Appellee, ) ) v. ) No. 07 CH 21012 ) CHIQUITA MAHON, ) Honorable ) William B. Sullivan, Defendant-Appellant. ) Judge Presiding.

PRESIDING JUSTICE VAN TINE delivered the judgment of the court. Justices McBride and Howse concurred in the judgment.

ORDER

¶1 Held: The circuit court did not err in finding that the conveyor’s signature was forged in a deed that purported to transfer real property to another individual. Because the signature was forged, the property did not transfer, and the subsequent mortgage that the conveyor executed against the same property was valid. 1-23-2462

¶2 In 1994, Chiquita Mahon and Bobby Binion (not a party to this appeal) jointly purchased

real estate property. In 2001, Binion purportedly transferred his interest in the property to Mahon

through a warranty deed. In 2006, Binion executed a mortgage against that same property. In 2007,

Binion defaulted on the loan, and the lender, HSBC Bank USA (HSBC), filed a complaint against

him seeking to foreclose the mortgage. In 2014, Mahon intervened in the litigation and sought to

void the mortgage by claiming that Binion did not have an interest in the property when he

executed the 2006 mortgage because he transferred his interest to Mahon in 2001. In 2015, Mahon

filed a counterclaim seeking a declaratory judgment that (1) she was the sole owner of the property

from 2001 onward, and (2) the 2006 mortgage was void or voidable. In 2018, HSBC filed its

second amended complaint to add Mahon as a defendant and include a claim for an equitable lien

against the property. In 2019, the circuit court entered judgment in favor of HSBC, finding that

the 2001 property transfer was fraudulent because Binion’s signature was forged. Accordingly,

Binion retained his interest in the property at the time he executed the 2006 mortgage, and

therefore, the mortgage was valid as to both Binion and Mahon. Mahon appeals. For the following

reason, we affirm.

¶3 I. BACKGROUND

¶4 The operative complaint in this appeal is HSBC’s two-count second amended complaint,

which it filed on October 26, 2018. HSBC brought count I, mortgage foreclosure, against Binion,

Mahon, and others. HSBC alleged that Binion executed a mortgage against the subject property

on August 18, 2006, and defaulted on the monthly mortgage payments beginning in April 2007.

HSBC requested the court enter a judgment of foreclosure and sale, and an order granting it

possession of the property. Under count II, brought in the alternative, HSBC sought an equitable

lien against Mahon, alleging that it had paid property taxes and hazard insurance from April 2007

2 1-23-2462

onward. HSBC alleged that Mahon, as an individual with an interest in the property, was unjustly

enriched in the amount of $108,499.01. Thus, HSBC requested a lien for this amount if Mahon

would be successful in voiding the 2006 mortgage, as it would have no adequate remedy at law.

On November 20, 2018, Mahon answered the second amended complaint. As to count I, Mahon

denied that the mortgage was valid and legally enforceable. She admitted being the current owner

of the property. Mahon did not respond substantively to the allegation that she would be unjustly

enriched by HSBC’s payment of taxes and insurance. On December 5, 2018, the court set the

matter for a bench trial.

¶5 A. Trial Testimony

¶6 The central issue at trial was whether Binion signed the 2001 warranty deed. Mahon’s only

witness was herself, as the court had stricken her proposed expert prior to trial. The court’s decision

to strike Mahon’s expert is not at issue here. HSBC called two fact witnesses and Diane Marsh, a

forensic document examiner. The two fact witnesses’ testimony is also not at issue in this appeal.

Binion did not testify. Mahon challenges the court’s determination as to her credibility and Marsh’s

qualifications and methodology. Accordingly, we review only Mahon’s and Marsh’s trial

testimony.

¶7 1. Chiquita Mahon

¶8 On direct examination, Mahon explained that she had a long romantic and professional

relationship with Binion, predating the 1994 purchase of the subject property. She averred having

ended her relationship with Binion in both 2001 and 2007, and that she was in a relationship with

him in 2011. She testified that she believed that her name had been on the title of the subject

property since 2001. She stated that she personally observed Binion sign the 2001 warranty deed,

remembered the notarization of the deed, and was familiar with Binion’s signature. She executed

3 1-23-2462

a reverse mortgage on the property in 2017. On cross-examination, Mahon was asked about

deposition testimony she gave in May and July 2017. Mahon confirmed that she had testified

during those prior depositions that she was not familiar with Binion’s signature, and did not know

whether his signature was on the 2001 deed. On redirect, Mahon stated that now that she had

reviewed the documents again she realized that she “did know these documents and [she] was

familiar with these documents.” She testified that she knew she was familiar with these documents

because she was “there when [Binion] signed the Warranty Deed.”

¶9 On cross-examination, Mahon admitted that she provided different years for when her

relationship with Binion ended, but did not explain the discrepancies. She also admitted to

providing different times regarding when Binion moved out of the subject property.

¶ 10 2. Diane Marsh

¶ 11 HSBC called Marsh to testify as an expert witness as to whether the signature on the

warranty deed was Binion’s. Marsh described herself as a forensic document examiner, having

been involved in the study of questioned documents for 37 years. She has worked for banks, law

firms, corporations, insurance companies, security firms, public defenders, prosecutors, and

government entities. She had testified more than 200 times in state and federal courts. She

belonged to several document examiner organizations, including the Independent Association of

Questioned Document Examiners and the World Association of Document Examiners, and

lectured at some of them. She received specialized training under two forensic document

examiners, attended 70 training seminars, and engaged in over 4,800 hours of self-study. She has

written 25 articles on questioned documents. On cross-examination, opposing counsel elicited

testimony that Marsh did not become a full-time document examiner until 1990 (meaning she had

28 years of full-time experience rather than 37); did not become certified by the American Board

4 1-23-2462

of Forensic Document Examiners; studied under individuals who may have been graphoanalysts

rather than document examiners; and has only been a self-employed document examiner (rather

than working in a supervised environment).

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Bluebook (online)
2025 IL App (1st) 232462-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hsbc-bank-usa-na-v-mahon-illappct-2025.