Montgomery v. Bank of America

740 S.E.2d 434, 321 Ga. App. 343, 2013 Fulton County D. Rep. 1099, 2013 WL 1277830, 2013 Ga. App. LEXIS 310
CourtCourt of Appeals of Georgia
DecidedMarch 29, 2013
DocketA12A0514
StatusPublished
Cited by40 cases

This text of 740 S.E.2d 434 (Montgomery v. Bank of America) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery v. Bank of America, 740 S.E.2d 434, 321 Ga. App. 343, 2013 Fulton County D. Rep. 1099, 2013 WL 1277830, 2013 Ga. App. LEXIS 310 (Ga. Ct. App. 2013).

Opinions

Ray, Judge.

Roosevelt Montgomery filed suit against Bank of America, BAC Home Loans Servicing, Inc. (“BAC”), Mortgage Electronic Registration Systems, Inc. (“MERS”), Prommis Solutions, LLC, and McCalla Raymer, LLC (collectively, “Appellees”) asserting claims for wrongful foreclosure, slander of title, slander of credit, quiet title, fraud, and intentional infliction of emotional distress. Montgomery appeals from the trial court’s order granting Appellees’ motion for judgment on the pleadings as to all claims. For the following reasons, we affirm.

When, as in this case, [the defendants] file[ ] a motion for judgment on the pleadings and do[ ] not introduce affidavits, depositions or interrogatories in support of the motion, such motion is the equivalent of a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. Such a motion should not be granted unless the averments in the complaint disclose with certainty that the plaintiff would not be entitled to relief under any state of facts which could be proved in support of the plaintiff’s claim. On appeal, we review de novo the trial court’s decision on a motion for judgment on the pleadings, and we construe the complaint in a light most favorable to the appellant, drawing all reasonable inferences in his . . . favor.1

So viewed, the record shows that, on May 16, 2008, Montgomery obtained a mortgage from the National Bank of Kansas City and, in conjunction therewith, executed a promissory note and security deed. The security deed named MERS as a nominee of the lender and as the [344]*344grantee under the security instrument. The security deed conveyed to MERS, and its successors and assigns, the right to exercise any or all of the interests granted under the security deed, including the right to foreclose and sell the property. In 2010, MERS assigned all of its right, title and interest in and to the security deed to BAC. The assignment was duly filed and recorded on April 16, 2010. After Montgomery defaulted on his mortgage payments, BAC retained the law firm of McCalla Raymer, LLC to assist with initiation of nonjudicial foreclosure.

In response, Montgomery filed suit against Appellees. Montgomery predicated each of his claims on the allegations that BAC lacked the authority to initiate nonjudicial foreclosure on his property because (1) MERS lacked the authority to assign such authority to BAC and (2) such assignment was not valid.

1. Montgomery contends that the trial court erred in granting Appellees’ motion for judgment on the pleadings. We disagree.

Broadly construed in Montgomery’s favor, the claims set forth in the complaint are essentially based on two allegations: (1) that MERS had no legal interest with respect to the promissory note or security deed, and, thus, had no interest to assign to BAC; and (2) that the McCalla Raymer attorney executing the assignment on MERS’ behalf did so improperly or without the appropriate authority.

“Under Georgia law... a security deed which includes the power of sale is a contract and its provisions are controlling as to the rights of the parties thereto and their privies.”2 Furthermore, OCGA § 23-2-114 provides:

. . . Unless the instrument creating the power [of sale] specifically provides to the contrary, a . . . successor of the grantee in a mortgage, . . . deed to secure debt, ... or other like instrument, or an assignee thereof... may exercise any power therein contained; and such powers may so be exercised regardless of whether or not the transfer specifically includes the powers or conveys title to the property described. . . .

The security deed at issue in this case expressly provides that “MERS is the grantee under this Security Instrument,” that “Borrower does hereby grant and convey to MERS ... and the successors and assigns of MERS, with power of sale,” with regard to the property, and... “[t]o have and to hold this property unto MERS ... and to the successors and assigns of MERS . . . .” The security deed further [345]*345provides:

Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but... MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security instrument.3

Thus, the security deed expressly conveyed title to the interests in the security deed to MERS, gave MERS the right to invoke the power of sale, and authorized MERS to assign its rights and interests in the security deed to BAC.

Montgomery also contends that Appellees failed to comply with the filing requirements of OCGA § 44-14-162 (b).4 However, the pleadings clearly indicate that Appellees filed the assignment of the security deed on April 16, 2010 and that the foreclosure sale was scheduled for May 4, 2010. Accordingly, this argument lacks merit.

2. In related enumerations of error, Montgomery contends that the trial court erred in granting the motion for judgment on the pleadings, in part, because the trial court wrongfully determined that the assignment of the security deed was valid, and that Montgomery lacked standing to contest the validity of the assignment. We discern no error.

Montgomery argues that MERS did not have an interest in the promissory note at the time of the assignment and, therefore, did not assign the promissory note to BAC along with the security deed. Montgomery further argues that acceleration of the promissory note is a condition precedent to invoking the power of sale contained in the security deed, thereby inferring that one must possess both the promissory note and the security deed in order to carry out a nonjudicial foreclosure. There is no statutory authority or case law from Georgia courts to support this argument.5

[346]*346Montgomery also contends that the trial court erred in upholding the validity of the assignment because the attorney who purportedly executed the assignment on MERS’ behalf (C. Troy Crouse) did not, in fact, execute the assignment. At the motions hearing, Montgomery argued that Crouse’s signature on the assignment did not match his signature on other documents. In addressing this claim, the trial court found that the assignment was contractual, and because Montgomery was not a party to the assignment, that he lacked the standing to contest its validity.

As the trial court correctly found, the assignment at issue is a contract between MERS and BAC.6 Even if we were to assume, for the purposes of argument, that Crouse’s execution of the assignment on behalf of MERS was flawed, the proper party to bring a claim against MERS would be the other party to the assignment, BAC.7 Accordingly, Montgomery has no basis to contest the validity of the assignment.

3.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

BURGOS v. SAND CANYON CORP
M.D. Georgia, 2019
In re Morgan
600 B.R. 725 (N.D. Georgia, 2019)
Timbes v. Deutche Bank National Trust Co.
708 F. App'x 971 (Eleventh Circuit, 2017)
Bank of America, N.A. v. Johnson
792 S.E.2d 704 (Supreme Court of Georgia, 2016)
Bazemore v. U.S. Bank, N.A.
167 F. Supp. 3d 1346 (N.D. Georgia, 2016)
Ames v. Jp Morgan Chase Bank, N.A.
783 S.E.2d 614 (Supreme Court of Georgia, 2016)
Alexander Harvin v. Nationwide Title Clearing
632 F. App'x 599 (Eleventh Circuit, 2016)
Francene McCloud v. HSBC Bank USA, NA
618 F. App'x 660 (Eleventh Circuit, 2015)
Cindy J. Ames v. J.P. Morgan Chase Bank, N.A.
623 F. App'x 983 (Eleventh Circuit, 2015)
Johnson v. Bank of America, N.A.
773 S.E.2d 810 (Court of Appeals of Georgia, 2015)
Joan Haynes v. McCalla Raymer, LLC
793 F.3d 1246 (Eleventh Circuit, 2015)
Tina Restivo v. Bank of America Corporation
618 F. App'x 537 (Eleventh Circuit, 2015)
STOUDEMIRE Et Al. v. HSBC BANK USA, N.A.
776 S.E.2d 483 (Court of Appeals of Georgia, 2015)
Nisha D. Martin v. Everbank
615 F. App'x 531 (Eleventh Circuit, 2015)
William B. Shannon v. The Albertelli Firm, P.C.
610 F. App'x 866 (Eleventh Circuit, 2015)
Marcuzzo v. Bank of the West
290 Neb. 809 (Nebraska Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
740 S.E.2d 434, 321 Ga. App. 343, 2013 Fulton County D. Rep. 1099, 2013 WL 1277830, 2013 Ga. App. LEXIS 310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-v-bank-of-america-gactapp-2013.