Jenifer Bailey v. Wells Fargo Bank, N.A.

CourtCourt of Appeals of Mississippi
DecidedJune 18, 2019
Docket2017-CA-00156-COA
StatusPublished

This text of Jenifer Bailey v. Wells Fargo Bank, N.A. (Jenifer Bailey v. Wells Fargo Bank, N.A.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jenifer Bailey v. Wells Fargo Bank, N.A., (Mich. Ct. App. 2019).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI

NO. 2017-CA-00156-COA

JENIFER BAILEY APPELLANT

v.

WELLS FARGO BANK, N.A., JEREMIAH E. APPELLEES SCHROEDER II, MARIE SCHROEDER, REMAX CHOICE PROPERTIES AND REMAX, LLC

DATE OF JUDGMENT: 01/06/2017 TRIAL JUDGE: HON. LAWRENCE PAUL BOURGEOIS JR. COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT, FIRST JUDICIAL DISTRICT ATTORNEY FOR APPELLANT: MICHAEL W. CROSBY ATTORNEYS FOR APPELLEES: FREDERICK N. SALVO III ADRIA H. JETTON SAMUEL D. GREGORY DONALD RAFFERTY NATURE OF THE CASE: CIVIL - PERSONAL INJURY DISPOSITION: AFFIRMED - 06/18/2019 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

J. WILSON, P.J., FOR THE COURT:

¶1. Jenifer Bailey bought a house from Jeremiah (“Jay”) and Marie Schroeder. Bailey

later sued the Schroeders, alleging that they failed to disclose that there had once been a meth

lab in the house. The Schroeders filed a motion for summary judgment, supported by

affidavits and deposition testimony, arguing that there was no genuine issue of material fact

and that they were entitled to judgment as a matter of law because there was no evidence that

there had been a meth lab in the house—let alone evidence that they knew or should have known about it. In response, Bailey failed to produce any affidavits or other competent

evidence to show that there was a genuine issue of material fact. Therefore, the circuit court

granted the Schroeders’ motion for summary judgment. We affirm.

FACTS AND PROCEDURAL HISTORY

¶2. On November 23, 2010, Bailey filed a complaint in Harrison County Circuit Court

against the Schroeders, Re/Max Choice Properties, and Re/Max LLC. In relevant part, the

complaint alleged as follows: Jay was a broker/agent and principal of Re/Max Choice

Properties, which was an agent of Re/Max LLC. The Schroeders owned a rental house in

Gulfport. In 2008, they listed the house for sale with the Re/Max defendants. As required

by Mississippi law, the Schroeders completed and signed a “Property Condition Disclosure

Statement,” which required them to answer the following question:

Are you aware of any problems which may exist with the property by virtue of prior usages such as, but not limited to, Methamphetamine Labs, Hazardous/Toxic waste disposal, the presence of asbestos components, Lead-Based Paint, Urea-Formaldehyde Insulation, Mold, Radon Gas, Underground Tanks or any past industrial uses of the premises?

The Schroeders checked “No” in response to this question. In January 2009, Bailey bought

the house from the Schroeders. Bailey alleges that she later discovered that a former

occupant of the house had been arrested in 2007 for operating a meth lab in the house. She

further alleges that the Schroeders knew or should have known about the meth lab. Bailey’s

complaint asserted claims against the Schroeders1 for fraud, negligent misrepresentation,

violation of statutory real estate disclosure requirements, and breach of contract. The

1 We will refer to all defendants collectively as “the Schroeders.”

2 complaint also named Wells Fargo Bank N.A. as an additional “plaintiff.” The complaint

asserted that Wells Fargo was “a necessary and indispensable party to this litigation” because

it held a deed of trust on the subject property.

¶3. The Schroeders answered the complaint, denying Bailey’s allegations that there had

been a meth lab in the house or that they knew or should have known about a meth lab.

Wells Fargo filed a “Response” to the complaint in which it asserted that it was “not a

Plaintiff and should be treated as a Rule 19 Defendant.”2 Wells Fargo stated that it should

be considered a Rule 19 defendant because it held a deed of trust on the property and that its

interest in the case, if any, was limited to its rights associated with the deed of trust. Wells

Fargo stated it had “not joined in [Bailey’s] claims” but “reserve[d] the right to seek leave

. . . to join in [Bailey’s] claims or assert counter and/or cross claims at a later date.”

¶4. The parties engaged in discovery during 2011 and 2012. In October 2013, the clerk

filed a motion to dismiss for failure to prosecute, but Bailey opposed the motion and noticed

depositions, and the court administratively terminated the clerk’s motion. In July 2015, after

another year of inactivity, the clerk filed another motion to dismiss for failure to prosecute,

but Bailey filed a response to the motion, and the motion was denied.

¶5. On November 4, 2016, Wells Fargo filed a “Motion to Dismiss.” Wells Fargo argued

that it should be dismissed from the case because no claims were asserted against it and

because it no longer held a deed of trust on the property (and, thus, was no longer a necessary

party). Bailey did not file a response to Wells Fargo’s motion.

2 See M.R.C.P. 19(a) (A necessary party “may be made a defendant or, in a proper case, an involuntary plaintiff.”).

3 ¶6. On November 28, 2016, the Schroeders filed a motion for summary judgment. They

argued that they were entitled to judgment as a matter of law because there was no evidence

that there had been a meth lab in the house or that they knew or should have known about a

meth lab. The motion was supported by the Schroeders’ affidavits and deposition testimony

from three of their former tenants—Barbara Broadus and two of her children, Daniel and

Tena Broadus. The Broaduses testified that they lived in the house during the time when

Bailey alleged that a meth lab had been in operation there. They all denied that there had

been a meth lab in the house. They testified that Barbara’s son Tim was only an occasional

guest at the house but did not live there permanently. They knew that Tim used drugs, but

they never saw him with drugs in the house. Barbara testified that she would not have

allowed Tim to bring drugs into the house. On July 30, 2017, Barbara found a green plastic

bottle in the backyard that she thought was unusual and might be related to drugs. After

consulting a friend, she decided to call the police, and the police arrested Tim at the house

for possession of precursors. The police found additional precursors in Tim’s car. Police

searched the house but only found some ordinary household batteries in the bedroom where

Tim was sleeping. Barbara, Daniel, and Tena all testified that they never smelled any odors

in the house or saw anything else to suggest that Tim was making meth in the house. They

lived in the house for a year after Tim’s arrest and never experienced any health issues.

Barbara testified that she told Marie Schroeder that she had to have Tim arrested. However,

she did not tell the Schroeders that Tim had been making meth at the house (because she did

not believe that he had been). In affidavits, Jay and Marie Schroder both swore that no one

4 ever told them that there was a meth lab in the house.

¶7. On December 8, 2016, Bailey filed a response to the Schroeders’ motion. However,

all but the first page of the response is missing because of an apparent filing error by Bailey.

Bailey submitted three pages of exhibits with her response. One page is what purports to be

an August 6, 2007 memorandum to Jay and Marie Schroeder from Detective Aaron Fore of

the Gulfport Police Department. The memorandum states:

Mr. and Mrs. Schroeder,

This letter is to inform you of a Methamphetamine Lab that was discovered in and about the residence located at [the subject address].

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Jenifer Bailey v. Wells Fargo Bank, N.A., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jenifer-bailey-v-wells-fargo-bank-na-missctapp-2019.