Sims v. JPMC Specialty Mortgage, LLC

218 So. 3d 376, 2016 Ala. Civ. App. LEXIS 216
CourtCourt of Civil Appeals of Alabama
DecidedAugust 26, 2016
Docket2150437
StatusPublished
Cited by1 cases

This text of 218 So. 3d 376 (Sims v. JPMC Specialty Mortgage, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sims v. JPMC Specialty Mortgage, LLC, 218 So. 3d 376, 2016 Ala. Civ. App. LEXIS 216 (Ala. Ct. App. 2016).

Opinion

THOMAS, Judge.

Carolyn E. Sims appeals an order of the Mobile Circuit Court (“the circuit court”) entering summary judgment in favor of JPMC Specialty Mortgage, LLC (“JPMC”), and JPMorgan Chase Bank, N.A. (“Chase”), and denying her summary-judgment motion. We affirm in part, reverse in part, and remand.

Background

The proceedings below (“the 2013 action”) commenced with a complaint that Sims filed on February 26, 2018, in the circuit court against JPMC and other fictitiously named parties, in which she requested declaratory relief and asserted claims of trespass, trespass to chattels, and conversion. Sims’s claims related to JPMC’s entry upon certain real property (“the property”) and actions that JPMC allegedly committed after JPMC’s foreclosure upon the property in 2009. In support of her claims, Sims alleged that JPMC had lacked authority to foreclose upon the property because JPMC had not been qualified to do business in Alabama and that JPMC’s entry upon the property and disposal of certain personal property after the 2009 foreclosure had therefore been tortious.

In response, JPMC filed a motion for a summary judgment, arguing that Sims’s claims were barred by the doctrine of res judicata and because they were compulsory counterclaims that Sims had failed to assert in an ejectment action that JPMC had brought against her in 2009 (“the 2009 action”) after its foreclosure upon the property. As evidentiary support for its motion, JPMC attached as exhibits several filings and orders from the 2009 action and from another action that had been commenced by Sims’s sister, Marian A. Tipp, against JPMC, Chase, and other defendants in 2011 (“the 2011 action”). The record does not contain every filing and order from the 2009 action and the 2011 action, but the following summary of those actions has been compiled by examination of certain documents that were attached as exhibits to the parties’ filings in the 2013 action.

I. The 2009 Action

The 2009 action that JPMC referenced in its summary-judgment motion in the 2013 action was an ejectment action that it commenced in the circuit court against Sims, the mortgagor, in July 2009, seeking her removal from the property. Sims thereafter filed in the circuit court a copy of a quitclaim deed that she had already executed and recorded in the probate office, whereby she had conveyed any interest that she had had in the property to Tipp in August 2009.1 After additional [379]*379filings by the parties and Tipp and after apparently receiving permission from the circuit court to do so, Tipp filed in the 2009 action a “Complaint in Intervention” in which she alleged that JPMC had lacked authority to foreclose upon the property because JPMC had not been qualified to do business in Alabama and because an assignment of the mortgage to JPMC had not been recorded in the probate office. In light of her allegations, Tipp asserted claims of wrongful foreclosure, slander of title, trespass, and trespass to chattels against JPMC in the 2009 action.

In response, JPMC filed a motion requesting, among other things, that the circuit court dismiss Tipp’s complaint in the 2009 action “[pursuant to] Rule 12(b)(6)[, Ala. R. Civ. P.], as ... Tipp ha[d] failed to state a claim ... upon which relief can be granted.” In support of its motion, JPMC argued that Tipp “lack[ed] standing”2 to assert the claims alleged in her complaint, at least in part because any interest that Tipp had acquired via the quitclaim deed from Sims had been conveyed to Tipp after JPMC’s foreclosure upon the property and therefore JPMC’s allegedly wrongful foreclosure and its actions pursuant thereto could not have infringed upon any interest of Tipp at the time of the foreclosure.

JPMC also alleged that its acquisition of the mortgage was proper pursuant to an agreement between the Federal Deposit Insurance Corporation and JPMC’s parent company, Chase, and that Tipp had failed to offer any legal authority in support of her assertion that JPMC had been required to record the assignment of the mortgage to JPMC. JPMC also contended that it had, in fact, had “full authority to conduct foreclosures and initiate ejectment proceedings in Alabama” under federal law, contrary to Tipp’s assertions. Also relevant to this appeal is JPMC’s allegation that “[t]he true defendant, ... Sims, has already filed an [ajnswer ... with the assistance of counsel and is able to defend [JPMCJ’s ejectment claim against [her].”

Tipp filed a response in which she construed JPMC’s motion to dismiss as a summary-judgment motion and therefore argued that genuine issues of material fact existed, at least one of which, she asserted, was whether JPMC had been “the owner of record of the subject mortgage and the holder of the original promissory note thereby secured.” JPMC filed a reply in which it argued, among other things, that it had “already placed copies of the mortgage, the assignment, the executed and recorded foreclosure deed, and the demand for possession before th[e circuit court]” and that “Sims, the true defendant, ha[d] not challenged the foreclosure sale, and ... Tipp lack[ed] standing to do so.”

In July 2010, the circuit court entered an order that stated, in its entirety: “MOTION TO DISMISS PURSUANT TO RULE 12(B) filed by JPMC SPECIALTY MORTGAGE, LLC is hereby GRANTED.” (Capitalization in original.) Approximately one month later, JPMC filed a [380]*380motion requesting that the circuit court dismiss its ejectment claim against Sims without prejudice because the property was allegedly vacant. The circuit court entered an order granting JPMC’s motion to .dismiss the 2009 action against Sims.

II. The 2011 Action

As stated above, the 2011 action that JPMC referenced in its summary-judgment motion in the 2013 action was initiated by a complaint that Tipp had filed in 2011 Against JPMC, Chase, and other defendants in which she requested declaratory relief and asserted claims of wrongful foreclosure, slander of title, trespass, trespass' to .chattels, and fraud on the court. In support of her claims, Tipp’s complaint included several allegations of fraudulent activities by the parties named as defendants therein and allegations that JPMC had lacked authority to foreclose upon the property for a variety of reasons. JPMC, Chase, and the other defendants in the 2011 action moved for a summary judgment on Tipp’s claims, and the circuit court granted their motion. Tipp filed an appeal of the circuit court’s judgment in the 2011 action to our supreme court, and the supreme court affirmed the circuit court’s judgment, without an opinion, on October 12, 2012. See Tipp v. JPMorgan Chase Bank, N.A. (No. 1110677, Oct. 12, 2012), 166 So.3d 997 (Ala.2012)(table).

Although the record does not contain a copy of. the summary-judgment motion that -was. filed by JPMC, Chase, and the other defendants in the 2011 action and although the circuit court’s summary judgment in that case does not recite the specific basis for its determination, the record contains a , copy of the appellate brief that was'filed in the supreme court by JPMC, Chase, and the other defendants. Their brief sets out what they assert were the bases for the circuit court’s determination that a summary judgment in their favor in the 2011 action was appropriate.

In their appellate brief in the 2011 action, JPMC, Chase, and the other defendants stated:

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218 So. 3d 376, 2016 Ala. Civ. App. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sims-v-jpmc-specialty-mortgage-llc-alacivapp-2016.