Odom v. Bank of N.Y. Mellon

2020 MT 58N
CourtMontana Supreme Court
DecidedMarch 10, 2020
DocketDA 19-0013
StatusUnpublished

This text of 2020 MT 58N (Odom v. Bank of N.Y. Mellon) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Odom v. Bank of N.Y. Mellon, 2020 MT 58N (Mo. 2020).

Opinion

03/10/2020

DA 19-0013 Case Number: DA 19-0013

IN THE SUPREME COURT OF THE STATE OF MONTANA 2020 MT 58N

WILLIAM R. ODOM,

Plaintiff, Appellant, and Cross-Appellee,

v.

THE BANK OF NEW YORK MELLON f/k/a THE BANK OF NEW YORK, as Trustee for the Certificate holders of CWMBS, Inc., CHL Mortgage Pass-Through Trust 2006-20, Mortgage Pass-Through Certificates, Series 2006-20,

Defendants, Appellees, and Cross-Appellants.

APPEAL FROM: District Court of the Eleventh Judicial District, In and For the County of Flathead, Cause No. DV-15-345C Honorable Heidi J. Ulbricht, Presiding Judge

COUNSEL OF RECORD:

For Appellant:

Sean S. Frampton, Frampton Purdy Law Firm, Whitefish, Montana

For Appellees:

Chandler P. Thompson, Akerman LLP, Salt Lake City, Utah

Mark D. Etchart, Morgan M. Weber, Browning, Kaleczyc, Berry & Hoven PC, Missoula, Montana

Submitted on Briefs: January 2, 2020

Decided: March 10, 2020

Filed:

cir-641.—if __________________________________________ Clerk Justice Ingrid Gustafson delivered the Opinion of the Court.

¶1 Pursuant to Section I, Paragraph 3(c), Montana Supreme Court Internal Operating

Rules, this case is decided by memorandum opinion and shall not be cited and does not

serve as precedent. Its case title, cause number, and disposition shall be included in this

Court’s quarterly list of noncitable cases published in the Pacific Reporter and Montana

Reports.

¶2 Plaintiff, Appellant, and Cross-Appellee William R. Odom (Odom) appeals a series

of rulings issued by the Montana Eleventh Judicial District Court, Flathead County, along

with the accompanying final judgment entered on November 30, 2018. The Bank of New

York Mellon fka the Bank of New York, as Trustee for the Certificateholders of CWMBS,

Inc., CHL Mortgage Pass-Through Trust 2006-20, Mortgage Pass-Through Certificates,

Series 2006-20 (BNYM) cross-appeals several rulings made by the District Court. We

affirm.

¶3 In 2006, Odom borrowed $1,170,000 from First National Bank of Montana to build

a home on Little Bitterroot Lake near Marion. Odom signed a Deed of Trust encumbering

the house and a portion of his 42 acres of land near the lake. Odom’s loan was initially

serviced by Countrywide Home Loans, Inc., until Bank of America acquired Countrywide

in 2008 and began servicing Odom’s loan. After building the house, Odom went through

a divorce and learned his home was valued at roughly $600,000 less than the amount he

borrowed. While seeking to get a principal reduction on his loan, Odom continued to make

payments until September 2012. In September 2012, Odom stopped making payments and

2 went into default. After defaulting, Odom primarily resided in California, but returned to

visit the lake house a few times per year.

¶4 After Odom went into default, the Deed of Trust was assigned to BNYM. In August

2013, Bank of America contracted with Shellpoint Mortgage Services (Shellpoint)1 to

service Odom’s loan. Shellpoint informed Odom of its intent to begin foreclosure

proceedings and Odom hired counsel. Shellpoint subcontracted with Mortgage

Contracting Services (MCS) to inspect Odom’s property to confirm it was occupied and

secure. MCS hired subcontractors to find local inspectors who would visually inspect the

property.

¶5 Shellpoint’s inspectors visually inspected the property beginning in August 2013.

For several months, the inspectors reported to Shellpoint that the property appeared to be

occupied. In September 2014, however, inspector Larry Eslick (Eslick) visited the property

and determined it was vacant after performing his inspection. Eslick then informed MCS

that the property was vacant. MCS reviewed Eslick’s report and found it credible. Neither

MCS nor Shellpoint contacted Odom regarding the vacancy report to determine whether

the house was indeed vacant or abandoned.

¶6 In October 2014, MCS contractors secured the house. The contractors replaced the

front lock, padlocked the garage, winterized the house, and drilled out internal locks on

Odom’s office and workshop to inspect for possible hazards. The contractors did not

change the lock on the back door. In addition, the contractors left a key to the front door

1 At the time known as Resurgent Mortgage Services. For clarity, we refer to the company as Shellpoint throughout. 3 in a coded lockbox and posted a number Odom could call to get the code. In November

2014, Eslick again reported the property as vacant after his inspection. In December 2014,

Odom’s friend, Robert Mack (Mack), visited the house and discovered the lockbox.

Odom’s counsel then obtained the code to the lockbox and Mack returned later in

December to re-winterize the house.

¶7 In February 2015, Odom visited the house for the first time since it was reported as

vacant and found the lockbox unlocked. Odom removed the lockbox and MCS’s locks,

reinstalled his own locks, and then left after a few hours. Mack returned in late May of

2015 and de-winterized the house. Odom visited the house in mid-June of 2015 and

discovered that the house had apparently been burglarized as several items were missing.

Odom reported the burglary to police, but the burglary was not solved.

¶8 On April 27, 2015, BNYM filed its Complaint in this matter, seeking to foreclose

on the entirety of Odom’s property. On July 22, 2015, Odom filed an Answer and

Counterclaim, confessing judgment to the portion of land pledged in his Deed of Trust (but

not the entirety of his property as sought in BNYM’s Complaint) and counterclaiming

against BNYM for breach of contract, breach of the implied covenant of good faith and

fair dealing, bad faith, and constructive fraud. After BNYM amended its complaint, Odom

amended his answer and added further counterclaims for declaratory judgment, trespass,

conversion, and negligence. The matter ultimately went to a week-long trial in March of

2018. The jury found that BNYM breached the deed of trust, that Odom suffered no

damages, and that BNYM was not liable for trespass. Odom appeals and BNYM

cross-appeals. Additional relevant facts will be discussed below as necessary.

4 Odom’s Appealed Issues

¶9 Odom identified six issues for appeal, which we restate as follows: (1) whether the

District Court abused its discretion by excluding a portion of the testimony of Jean

Knowles; (2) whether the District Court abused its discretion by denying Odom’s motion

for a continuance; (3) whether the District Court erred by striking Odom’s contention

number 11 from the Pretrial Order; (4) whether the District Court abused its discretion by

precluding Odom from arguing that his loan servicer told him to stop paying his mortgage

in order to qualify for a loan program; (5) whether the District Court erred by granting

BNYM’s motion for judgment as a matter of law regarding Odom’s tortious bad faith

claim; and (6) whether the District Court abused its discretion by not awarding Odom

attorney fees.

¶10 “A district court retains broad discretion in determining whether evidence is relevant

and admissible, and we will not overturn its evidentiary determinations absent an abuse of

discretion.” Schindler v. United Servs. Auto. Ass’n, 2011 MT 129, ¶ 29, 360 Mont. 528,

254 P.3d 583 (citation omitted). “A witness may not testify as to a matter unless evidence

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