Pine Lawn Bank & Trust Co. v. Schnebelen

579 S.W.2d 640, 1979 Mo. App. LEXIS 2258
CourtMissouri Court of Appeals
DecidedJanuary 30, 1979
DocketNo. 38991
StatusPublished
Cited by8 cases

This text of 579 S.W.2d 640 (Pine Lawn Bank & Trust Co. v. Schnebelen) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pine Lawn Bank & Trust Co. v. Schnebelen, 579 S.W.2d 640, 1979 Mo. App. LEXIS 2258 (Mo. Ct. App. 1979).

Opinion

STEWART, Presiding Judge.

This is an appeal by plaintiff, Ladue-In-nerbelt Bank & Trust Company, formerly Pine Lawn Bank & Trust Company (Bank) from a judgment upon motion for summary judgment filed by defendant, Diversifiéd Mortgage Investors (DMI).

We affirm.

Bank in this action seeks to have a deed of trust which it holds on Bonneville Plaza Shopping Center declared to be superior to a deed of trust held by DMI.

Facts conceded by both parties are that DMI made a loan of $1,300,000 to JMC Investments, Inc. (JMC), the owner of Bonneville Plaza Shopping Center (Bonneville) in Bonne Terre, Missouri. A note for the amount of the loan and a deed of trust as security for the note were executed by JMC on May 29, 1973. JMC also made an assignment of existing and future leases and rental contracts conditioned upon breach of its contractual obligations. Upon breach DMI was authorized to exercise all rights of lessor; to collect the rents and apply them to the payment of taxes, insurance and the note. The deed of trust was recorded at 10:54 AM on June 6, 1973.

JMC borrowed $300,000 from Bank as evidenced by a note and deed of trust dated May 30,1973. The deed of trust in favor of Bank was recorded at 10:57 AM on June 6, 1973.

Before we can delineate the remaining facts we must first determine the basis for our factual determination. Bank filed a petition seeking various kinds of relief. DMI filed a motion for summary judgment with affidavits and supporting documents. Bank filed an “Affidavit in Opposition to [642]*642Motion for Summary Judgment.” DMI did not file an answer to Bank’s petition before filing the motion for summary judgment and affidavits. Bank contends that under the circumstances we must consider the facts alleged in the petition as true. In support of its contention Bank cites Reisel v. Winsor, 140 Mo.App. 612, 120 S.W. 1186 (1909). The rule espoused by Bank is applicable, according to Reisel, when the case is before the appellate court “solely upon the petition.”

In the instant case we are governed by Rule 74.04(e) which, in part, states: “When a motion for summary judgment is made ánd supported as provided in this Rule, an adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this Rule, must set forth specific facts showing that there is a genuine issue for trial. If he does not so respond, summary judgment, if appropriate, shall be entered against him.”

Although a party may not rely solely upon the allegations of his pleadings, those allegations not controverted by the affidavits and other supporting documents of the movant may be considered as admitted by the moving party. Hurwitz v. Kohm, 516 S.W.2d 33 (Mo.App.1974).

With these principles in mind we review the additional facts as presented to the trial court. Many of the facts contained in the briefs of the parties, including random pages from a deposition contained in Bank’s brief, are dehors the record and will not be considered. Holt v. Rabun, 519 S.W.2d 561 (Mo.App.1975).

We glean from the uncontroverted allegations of the petition that in March of 1974 JMC was in default of its obligation under Bank’s deed of trust and that Bank advertised foreclosure of its deed of trust. JMC agreed to correct all its deficiencies in order to induce Bank to forestall foreclosure. Upon inquiry Bank was advised by DMI that JMC was current on DMI’s deed of trust, “Taking this into consideration the owner [JMC] did correct all other breaches of the Plaintiff Bank’s deed of trust and having been so told by DMI that there was no breach of the DMI deed of trust, Plaintiff Bank did cancel the advertising of foreclosure of its deed.”

On March 31, 1974 the principal owed on the note secured by deed of trust held by DMI was $1,200,000 and the interest owed was $88,199.97.

On March 18, 1974 attorney for DMI wrote to the tenants of Bonneville advising that JMC’s note was in default and that future rent payments were to be made to the attorney for DMI.

On March 27, 1974 DMI advised the tenants to make rental checks payable to DMI and send them to Don Shrum and Associates, Box 191, Bonne Terre, Missouri. Upon receipt of these letters the tenants of Bonneville refused to pay rents to Bank.

On May 6,1974 DMI wrote to the tenants of Bonneville advising them to send these rental checks made payable to DMI to Bank, attention Douglas W. Dodds, President.

On October 25, 1974 Bank foreclosed under its deed of trust and bought in the property at the foreclosure sale for the face amount of its note.

On March 4, 1975 DMI through its attorney notified the tenants of Bonneville that the note secured by deed of trust held by it was again in default and advised them to send all rent payments to DMI in care of its attorney.

Foreclosure proceedings were commenced thereafter. Bank unsuccessfully sought to enjoin the foreclosure. See Kelley v. Sehnebelen, 545 S.W.2d 332 (Mo.App.1976). After the termination of the injunction proceedings DMI again advertised the foreclosure for August 18, 1975. Prior to the date of sale the principal and accrued interest was $1,464,499. DMI offered to discharge the indebtedness and thus release the lien of the deed of trust upon payment by Bank of $1,000,000. The payment was not made and DMI foreclosed under its deed of trust.

Before summary judgment may be granted, it must appear from the pleadings, [643]*643depositions and admissions on file, together with affidavits and other proof that there is no genuine issue of fact and that judgment should be entered as a matter of law. Rule 74.04(c), (h). Allen v. St. Lukes Hospital of Kansas City, 532 S.W.2d 505 (Mo.App.1975) cert. denied, 429 U.S. 804, 97 S.Ct. 37, 50 L.Ed.2d 65.

Bank urges that there are genuine issues of material facts to be resolved. As we have detailed the facts above we find no such factual issues. As we now view the facts the only issue of fact urged by Bank is the ownership of Bonneville in DMI. Bank’s affidavit denies that DMI is the owner of Bonneville “because the foreclosure is a nullity.” The statement of Bank is not a statement of fact but a conclusion. The question to be resolved by the court in this case concerns the priority of the two deeds of trust. If, in fact, Bank’s deed of trust had priority the effect of the foreclosure would be a nullity and whether such priority exists is a question of law under the facts. The fact that foreclosure by DMI has taken place does not moot the issue to be determined here.

As stated above the facts have been determined by considering those facts alleged in the petition that are not controverted by DMI’s affidavits as true, by taking the facts stated in DMI’s affidavits and admissible exhibits as true where they are not specifically denied by the affidavit of Bank.

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Bluebook (online)
579 S.W.2d 640, 1979 Mo. App. LEXIS 2258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pine-lawn-bank-trust-co-v-schnebelen-moctapp-1979.