HSBC Bank USA, N.A. v. Mahon

2025 IL App (1st) 232462-U
Appellate Court of Illinois·Decided February 11, 2025·No. 1-23-2462·Unpublished

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.

¶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

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

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

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).

¶ 12 As to her methodology, Marsh testified having used the American Society for Testing and Materials International’s guidelines to determine whether Binion’s signature was authentic. She described her methodology in detail. Marsh received a copy of Binion’s voter registration records from the Chicago Board of Election Commissioners. The signature on those reecords was the starting point of her analysis. Rather than paraphrasing Marsh’s description of her methodology that followed, we reproduce it here:

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

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