U.S. Bank National Association as Trustee for Banc of America Funding Corporation, Mortgage Pass-Through Certificates, Series 2004-2 Versus Cyril G. Lowe, Jr.

CourtLouisiana Court of Appeal
DecidedMarch 17, 2020
Docket19-CA-411
StatusUnknown

This text of U.S. Bank National Association as Trustee for Banc of America Funding Corporation, Mortgage Pass-Through Certificates, Series 2004-2 Versus Cyril G. Lowe, Jr. (U.S. Bank National Association as Trustee for Banc of America Funding Corporation, Mortgage Pass-Through Certificates, Series 2004-2 Versus Cyril G. Lowe, Jr.) 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.

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U.S. Bank National Association as Trustee for Banc of America Funding Corporation, Mortgage Pass-Through Certificates, Series 2004-2 Versus Cyril G. Lowe, Jr., (La. Ct. App. 2020).

Opinion

U.S. BANK NATIONAL ASSOCIATION AS NO. 19-CA-411 TRUSTEE FOR BANC OF AMERICA FUNDING CORPORATION, MORTGAGE FIFTH CIRCUIT PASS-THROUGH CERTIFICATES, SERIES 2004-2 COURT OF APPEAL

VERSUS STATE OF LOUISIANA

CYRIL G. LOWE, JR.

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA NO. 778-719, DIVISION "P" HONORABLE LEE V. FAULKNER, JR., JUDGE PRESIDING

March 17, 2020

JOHN J. MOLAISON, JR. JUDGE

Panel composed of Judges Susan M. Chehardy, Marc E. Johnson, and John J. Molaison, Jr.

DISMISSED AS MOOT JJM SMC MEJ COUNSEL FOR PLAINTIFF/APPELLEE, U.S. BANK NATIONAL ASSOCIATION AS TRUSTEE FOR BANC OF AMERICA FUNDING CORPORATION, MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2004-2 Angelina Christina Kaja S. Elmer

COUNSEL FOR DEFENDANT/APPELLANT, CYRIL G. LOWE, JR. Cyril G. Lowe, Jr. MOLAISON, J.

This is a devolutive appeal by Cyril Lowe, Jr., appellant, from a judgment

granting U.S. Bank National Association’s motion for summary judgment to

dismiss appellant’s petition for injunctive relief to arrest the seizure and sale of his

property. For the reasons that follow, we dismiss the appeal.

PROCEDURAL HISTORY

On June 30, 2004, appellant, Cyril Lowe, Jr., executed a $161,900.00

promissory note in favor of Sterling Financial Services, LLC. The note was

secured by a mortgage on 809 Vouray Drive in Kenner, Louisiana, a rental

property that Mr. Lowe purchased in 2003. By assignment, appellee, U.S. Bank,

became the holder of the note and mortgage, with CitiMortgage servicing the loan.1

On December 15, 2017, appellee filed a petition for executory process to enforce

their rights, alleging that appellant failed to make payments on the note beginning

on May 1, 2016.2 On December 20, 2017, the district court ordered the writ of

seizure and sale of the property, and a foreclosure sale was scheduled for

September 5, 2018.3

On September 4, 2018, appellant filed a petition for injunctive relief,

including a Petition for Temporary Restraining Order (TRO), Preliminary and

Permanent Injunction requesting a sixty-day injunction.4 The trial court granted

1 Sterling Financial Services assigned the mortgage to CitiMortgage on August 31, 2016. On April 20, 2017, CitiMortgage assigned the mortgage to the trustee for holders of Banc of America Funding Corporation Pass-through Certificates, Series 2004-2. Appellee, U.S. Bank, is the current trustee. 2 Appellee claims that appellant failed to pay the May 1, 2016 and “subsequent monthly installments.” It is not clear if this means all subsequent installments. Appellant claims in his brief that his compensation was reduced until November 2016 due to heart surgery in April and July of 2015. 3 On January 16, 2018, a deputy sheriff personally served notice of seizure on appellant. A judicial advertisement of sale at public auction was published on July 27, 2018 and August 31, 2018. Mennonite searches were conducted on August 28, 2018 by attorneys for U.S. Bank. 4 Appellant asserts that he had been trying to obtain a loan modification from CitiMortgage before filing the petition. He claims he submitted an application to CitiMortgage which had been approved in September of 2017 but CitiMortgage withdrew due to appellant’s failure to timely execute documents. A modification appeal was declined by CitiMortgage on July 30, 2018, due to insufficient current income and assets, with borrower showing a negative surplus of income from rental properties. Appellant was advised that he could reapply for a modification. On August 21, 2018, appellant contacted CitiMortgage loss mitigation department to fax documents for the modification review process to stop the forfeiture process.

19-CA-411 1 the TRO and set a hearing for September 14, 2018 “to show cause why the

Temporary Restraining Order should not be made a Preliminary Injunction and

thereafter a Permanent Injunction, prohibiting the Sheriff’s sale of Defendant’s

subject property for a period of 60 days from the date of issuance of a Judgment

pertaining to the aforementioned Petition.” The parties agreed to continue the

hearing to allow appellant to seek a loan modification.5

On January 26, 2019, appellee filed a motion for summary judgment seeking

an order to dismiss appellant’s petition.6 Appellant failed to file an opposition or

to appear for the rule on April 2, 2019. The trial court granted the motion for

summary judgment, finding that the temporary restraining order had expired by

operation of law, and dismissed the other claims in appellant’s petition in their

entirety. On June 10, 2019, appellant filed a motion for devolutive appeal. The

property was sold at auction on June 12, 2019.7

DISCUSSION

Appellant alleges the trial court erred in granting the motion for summary

judgment due to appellee’s breach of its agreement to not proceed with foreclosure

referral or sale during his application for a loan modification. Appellant raises the

issue of whether he has a cause of action for injunctive relief based on that breach.

This Court cannot find a cause of action for injunctive relief, however, as the

foreclosure sale has already occurred.

Under the provisions of La. Code of Civil Procedure article 2642, appellant

could have filed a suspensive appeal from the December 20, 2017 order of the writ

5 On October 16, 2018, CitiMortgage delivered a request for missing documents to appellant for his modification request, requesting the documents by October 31, 2018. CitiMortgage closed its file on the loan modification application as incomplete, denying the modification request. While appellant claims he submitted all necessary documents, counsel for appellee submitted to the trial court on April 2, 2019 that appellant did not submit a complete application by failing to provide a contribution letter from his wife. 6 The trial court originally issued a rule to show cause for March 6, 2019, which was reset after five unsuccessful attempts to serve appellant. On February 23, 2019, appellant accepted service of the rule to show cause set for April 2, 2019. 7 On May 3 and June 7, 2019, appellee published judicial advertisement of the sale at public auction.

19-CA-411 2 of seizure and sale of the property, in addition to his injunction proceeding.

Instead, appellant chose to only pursue an injunction to arrest the seizure and sale

on September 4, 2018. This very issue was clearly addressed in Acme Mortgage

Co., Inc. v. Cross, 464 So.2d 945, 946–947 (La. App. 4 Cir. 1985):

A suspensive appeal taken within fifteen days from the issuance of the writ of seizure and sale suspends its execution during the pendency of the appeal, and the property cannot be sold. On the other hand, if a defendant chooses to seek injunctive relief and the Trial Court denies it, there is no right to a suspensive appeal, La. C.C.P. art. 3612, and while there is a right to a devolutive appeal, more probably than not, the property will be sold while the appeal is pending.

Appellant’s notice of appeal failed to request a stay of the proceedings

pending appeal to prevent the sale. Under La. Code of Civil Procedure article

3612, only the injunctive proceeding can be stayed during the pendency of the

appeal. It does not suspend the executory proceeding unless ordered by the court.

Associates Financial Services of America, Inc. v. Eliser, 486 So.2d 33, 35 (La.

App. 5 Cir. 1985). As this Court has previously cautioned in Greater New Orleans

Homestead Ass'n v. Washington Square Co., 514 So.2d 251, 252-53 (La. App. 5

Cir. 1987), writ denied, 516 So.2d 372 (La.

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