Palmer v. Ameriquest Mortgage Co.

945 So. 2d 294, 2006 La. App. LEXIS 2793, 2006 WL 3616443
CourtLouisiana Court of Appeal
DecidedDecember 13, 2006
DocketNo. 41,576-CA
StatusPublished
Cited by6 cases

This text of 945 So. 2d 294 (Palmer v. Ameriquest Mortgage Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palmer v. Ameriquest Mortgage Co., 945 So. 2d 294, 2006 La. App. LEXIS 2793, 2006 WL 3616443 (La. Ct. App. 2006).

Opinion

MOORE, J.

|! John Shidler, a notary public in Bossier City, appeals a summary judgment that dismissed his claims of defamation, abuse of process and related matters against Thomas H. Palmer II, Palmer’s attorney, Richard E. Hiller, and a law firm, Shuey Smith LLC. Shidler also contests the trial court’s failure to grant his own motion for summary judgment against Palmer and other parties. For the reasons expressed, we reverse in part, affirm in part and remand.

Factual Background

Palmer, a homeowner in Bossier City, went online in 2002 to refinance his home loan. He received an offer from Ameri-quest Mortgage for a loan of $131,000 at 9.7% APR, and accepted it. Ameriquest, a California corporation, used the New Orleans-based company True Title Inc. to perform the title examination. True Title in turn hired John Shidler to notarize the transaction. The closing was set for September 26, 2002, at Palmer’s house on Hickory Ridge Drive.

Shidler arrived at the appointed place and time carrying a FedEx box from Am-eriquest. The box, however, contained only one set of documents, so there was no copy to be left with Palmer. Eager to process the loan, Palmer signed the only set; Shidler advised him that Ameriquest would forward his copies in a few days. With Shidler’s approval, Palmer’s wife, Brandy, signed various documents as a witness; the house was Palmer’s separate property.

Ameriquest issued two checks covering the loan proceeds and, sometime in November sent Palmer a copy of the mortgage and settlement | ¡.statement. Palmer made his first scheduled payment of $1,130.61 in December 2002, but made no further payments because of a dispute with Ameriquest over the amount of his monthly note.

Palmer did not receive a complete copy of the loan documents until January 13, 2003. This included an adjustable rate note (“ARN”) marked “ne varietur” and notarized by an attorney other than Shi-dler, and the statutory notice of right to cancel within three days. Palmer signed this notice and returned it to Ameriquest [297]*297on January 16, 2003. Apparently Ameri-quest deemed this notice untimely and disregarded it. In February, Ameriquest sent Palmer a notice of intention to foreclose.

Procedural History

In September 2003, Palmer filed this suit against Ameriquest, True Title and Shidler, seeking rescission of the loan and mortgage, together with general damages. With respect to Shidler, he alleged:

(a) at the conclusion of the closing on September 26, 2002, Petitioner did not receive any copies of the refinance loan closing documents, and specifically did not receive the required notice to rescind his loan;
(b) since Mrs. Palmer should have executed the mortgage as an intervening spouse, and not as a witness, Shidler in effect closed this loan with only one witness on the mortgage;
(c) the settlement statement reflects a settlement date of October 3, 2002, when in fact, the settlement occurred on September 26, 2002; further the settlement statement indicated that this date was “estimated”; also the payoff figures used on the settlement statement and the disbursement of funds to Petitioner did not match;
(d) the Adjustable Rate Note is notarized by a completely different notary than Shidler who, in fact, notarized the mortgage itself; in other words, the notary who put his signature on the note as |shaving witnessed Petitioner’s signature on September 26, 2002 was not present when Petitioner signed the note; further, in an attempt to correct this obvious illegality, Ameriquest and Shidler subsequently marked up the Adjustable Rate Note by scratching out the original “Ne Varietur” language and notary’s signature, and then, by a hand-written method, Shidler inserted his own “Ne Varie-tur” language and signature.
(Emphasis added.)

The petition was signed by “Shuey, Smith, Reynolds, Rios & Hiller, LLC” and Richard E. Hiller as attorney for Palmer.

Shidler answered the petition and averred that supplying copies of the loan package was Ameriquest’s duty, not his, and denied that he altered or falsified any of the loan documents. He reconvened against Palmer and Hiller on grounds of defamation, abuse of process, negligent infliction of emotional distress and other claims. Alleging his damages would exceed $50,000, he demanded a jury trial. Later, Shidler amended his reconventional demand to add Hiller’s law firm, now known as Shuey Smith LLC.

Palmer and Hiller initially responded with an exception of no cause of action. They contended that Shidler could have moved for summary judgment or for sanctions, but there was simply no relief afforded by the law of defamation or abuse of process.

At a hearing in June 2005, the district court overruled the exception of no cause of action but suggested that each party file a motion for summary judgment. On the date of the hearing, Shidler filed a motion in limine, essentially seeking to prohibit Palmer and Hiller from testifying or Larguing many of the allegations raised in their original petition. In support, Shidler attached a copy of Palmer’s deposition. In this, Palmer admitted that all his own signatures on the loan documents were genuine; he did not know whether the ARN was improperly notarized; and Shidler’s actions did not prevent him from receiving the loan proceeds. Palmer also admitted that he was financially strapped at the time of the refinance because his overtime [298]*298had ended, and was displeased that Ameri-quest had increased his monthly note by $200 in December and January. However, he conceded that the increase was probably to cover a shortfall in his escrow account due to a hike in homeowner’s insurance. He repeatedly admitted having no idea what if anything Shidler had done wrong, and that filing the suit was Hiller’s idea.1

As requested, Shidler filed a motion for summary judgment (actually part of a longer pleading called “omnibus motions”) urging that Palmer, Ameriquest and True Title failed to show any law or duty that Shidler had breached. After the discovery deadline, Shidler filed a “statement of established facts,” reiterating that he breached no duty and that Palmer was not harmed by any of his actions. To this, he attached a copy of the notice of right to cancel (signed September 26, 2002) and another copy of Palmer’s deposition.

Palmer and Hiller, joined by Shuey Smith LLC, filed their own motion for summary judgment, urging that Shidler had asserted 16 causes of actions. Some of these (negligent infliction of emotional distress, false light |Kto public, negligent information) were not recognized in Louisiana; others (damage to credit, damage to reputation, damage to business reputation) were not causes of action but elements of damage. On the substantive claims — defamation, abuse of process and malicious prosecution — they argued there was no genuine issue of material fact. In support, they attached a statement of uncontested facts which tracked verbatim the allegations in the original petition. They also attached the affidavits of Brandy Palmer and Lois Ann Dawson, who signed the closing documents as witnesses. Finally, they attached the affidavits of Hiller himself and Julio Rios II, the managing member of Shuey Smith LLC. These latter affidavits asserted that Hiller had never been employed by the firm.

Action of the District Court

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Bluebook (online)
945 So. 2d 294, 2006 La. App. LEXIS 2793, 2006 WL 3616443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-ameriquest-mortgage-co-lactapp-2006.