Molde v. CitiMortgage, Inc.

781 N.W.2d 36, 2010 Minn. App. LEXIS 50, 2010 WL 1439694
CourtCourt of Appeals of Minnesota
DecidedApril 13, 2010
DocketA09-796
StatusPublished
Cited by16 cases

This text of 781 N.W.2d 36 (Molde v. CitiMortgage, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Molde v. CitiMortgage, Inc., 781 N.W.2d 36, 2010 Minn. App. LEXIS 50, 2010 WL 1439694 (Mich. Ct. App. 2010).

Opinion

OPINION

JOHNSON, Judge.

An attorney representing CitiMortgage, Inc., conducted a foreclosure by advertisement pursuant to section 580.05 of the Minnesota Statutes. The home foreclosed upon was sold at a sheriffs auction. After the .redemption period lapsed, the former owner of the home, Troy A. Molde, commenced this action to rescind the sale on the ground that the foreclosure documents did not satisfy the requirements of section 580.05. The district court entered summary judgment in favor of CitiMortgage. Molde’s primary argument on appeal is that the document evidencing the authority of CitiMortgage’s attorney to act on behalf *38 of CitiMortgage was not recorded in the tract index. We affirm.

FACTS

In September 2006, Molde borrowed $843,000 from Winstar Mortgage Partners, Inc. To secure the loan, Molde granted Mortgage Electronic Registration Systems, Inc. (MERS), a mortgage interest in his Lakeville residence. The mortgage was recorded in Dakota County in October 2006.

Molde later fell behind in his mortgage payments. In November 2007, MERS assigned the mortgage to CitiMortgage. The assignment was recorded in Dakota County on November 13, 2007. That same day, a document entitled Notice of Pen-dency of Proceeding and Power of Attorney to Foreclose Mortgage also was recorded in Dakota County. The Notice of Pendency of Proceeding and Power of Attorney to Foreclose Mortgage described CitiMortgage’s intent to foreclose Molde’s mortgage by advertisement. The Notice of Pendency of Proceeding and Power of Attorney to Foreclose Mortgage was executed by James A. Geske, Esq., on November 9, 2007. Above the signature line is the notation, “Wilford & Geske, P.A. as Attorney in Fact for CitiMortgage, Inc.”

Wilford & Geske’s authority to foreclose Molde’s mortgage on behalf of CitiMort-gage derives not from the document that was recorded in November 2007 but from another document, which was executed and recorded in February 2004. On January 8, 2004, Pamela Schmidt, a vice-president of CitiMortgage, executed a document entitled Limited Power of Attorney. In the Limited Power of Attorney, Citi-Mortgage appointed the Wilford & Geske law firm to be “its true and lawful Attorney” for purposes of executing foreclosure documents on behalf of CitiMortgage. The Limited Power of Attorney was recorded in Dakota County on February 17, 2004.

In Jánuary 2008, CitiMortgage was the highest bidder at the foreclosure sale of Molde’s house and, accordingly, purchased the house for $358,839. The Sheriffs- Certificate of Sale and Foreclosure Record was promptly recorded in Dakota County. The redemption period lapsed in early July 2008. See Minn.Stat. § 580.23, subd. 1(a) (2008).

In August 2008, Molde commenced this action against CitiMortgage. In his complaint, he requested two forms of relief. First, he sought a declaratory judgment that the foreclosure sale is null and void and that he holds fee title to the residence. This request is based on Molde’s allegations that CitiMortgage “cannot locate and, in fact, does not have the original note” and that CitiMortgage did not comply with the requirements of section 580.05. Second, Molde sought to rescind the foreclosure sale, essentially for the same reasons.

The district court’s pre-trial order set a discovery deadline of April 2009. In November 2008, Molde filed a motion for summary judgment. He argued, among other things, that the district court should set aside the foreclosure and sheriffs sale on the ground that CitiMortgage did not follow statutory procedures in recording the 2004 Limited Power of Attorney and the 2007 Notice of Pendency of Proceeding and Power of Attorney to Foreclose Mortgage. In December 2008, CitiMortgage filed its own motion for summary judgment. CitiMortgage argued that the foreclosure sale was conducted in accordance with statutory procedures and, thus, is valid. In February 2009, the district court granted CitiMortgage’s motion and denied Molde’s motion. The district court concluded that CitiMortgage “was entitled to enforce the Mortgage and foreclose the Mortgage” and that the 2004 Limited Pow *39 er of Attorney and the 2007 Notice of Pendency of Proceeding and Power of Attorney to Foreclose Mortgage “were signed and recorded in conformity with Minnesota law.” Molde appeals.

ISSUES

I. Did CitiMortgage comply with the requirements of section 580.05 when conducting a foreclosure by advertisement of Molde’s residence?

II. Did Molde create a genuine issue of material fact on his allegations that Citi-Mortgage did not hold the note or that he is entitled to recoupment?

III. Did the district court err by granting CitiMortgage’s motion for summary judgment without allowing Molde to conduct additional discovery?

ANALYSIS

Molde raises three issues, each of which relates to the district court’s grant of Citi-Mortgage’s motion for summary judgment. A district court must grant a motion for summary judgment' “when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that either party is entitled to a judgment as a matter of law.” Fabio v. Bellomo, 504 N.W.2d 758, 761 (Minn.1993); see also Minn. R. Civ. P. 56.03. A genuine issue of material fact exists if a rational trier of fact, considering the record as a whole, could find for the party against whom summary judgment was granted. Frieler v. Carlson Mktg. Group, Inc., 751 N.W.2d 558, 564 (Minn.2008). We apply a de novo standard of review to the district court’s decision to grant summary judgment, viewing the evidence in the light most favorable to the non-moving party. Osborne v. Twin Town Bowl, Inc., 749 N.W.2d 367, 371 (Minn.2008).

I.

Molde first argues that CitiMortgage did not comply, in two respects, with section 580.05. Molde’s arguments raise questions of statutory interpretation, to which we apply a de novo standard of review. Goodman v. Best Buy, Inc., 777 N.W.2d 755, 758 (Minn.2010).

A. 2004 Limited Power of Attorney

Molde first contends that CitiMort-gage did not comply with the statutory requirements of a foreclosure by advertisement because the 2004 Limited Power of Attorney “was not recorded against his property but, rather, as a miscellaneous document in the Dakota County Recorder’s -Office.” He asserts that, because the document was not recorded in the tract index, a reasonable search would not have led to its discovery and, thus,, there was no way to know that Wilford & Geske was authorized to commence foreclosure proceedings on behalf of CitiMortgage.

Molde’s argument is based on the following statute:

When an.attorney at law is employed to conduct such foreclosure, the authori- .

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Bluebook (online)
781 N.W.2d 36, 2010 Minn. App. LEXIS 50, 2010 WL 1439694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/molde-v-citimortgage-inc-minnctapp-2010.