U.S. Bank Natl. Assn. v. Harper

2020 Ohio 4674
Ohio Court of Appeals·Decided September 30, 2020·No. 19CA011499·Published·Cited by 4 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF LORAIN )

U.S. BANK NATIONAL ASSOCIATION, C.A. No. 19CA011499 as Trustee under Pooling and Servicing Agreement dated as of September 1, 2006 MASTR Asset-Backed Securities Trust 2006-NC2 Mortgage Pass-Through APPEAL FROM JUDGMENT Certificates, series 2006-NC2 ENTERED IN THE COURT OF COMMON PLEAS

Appellee COUNTY OF LORAIN, OHIO CASE No. 18CV195663

v.

MEGAN E. HARPER, et al.

Appellant

DECISION AND JOURNAL ENTRY Dated: September 30, 2020

SCHAFER, Judge.

{¶1} Defendant-Appellant, Jerry Harper, appeals the judgment of the Lorain County Court of Common Pleas granting summary judgment to Plaintiff-Appellee, U.S. Bank National Association, as Trustee under Pooling and Servicing Agreement dated as of September 1, 2006 MASTR Asset-Backed Securities Trust 2006-NC2 Mortgage Pass-Through Certificates, Series 2006-NC2 (“U.S. Bank”), on its complaint in foreclosure. For the reasons that follow, this Court reverses the trial court’s judgment in part, and remands.

I.

{¶2} U.S. Bank filed a complaint for foreclosure on July 5, 2018, in the Lorain County Court of Common Pleas. The complaint asserts Megan Harper, Mr. Harper’s wife, defaulted on a

note and seeks to foreclose on the mortgage securing U.S. Bank’s interest in the property subject to the mortgage. The Harpers1 thereafter filed a litany of pro se motions appearing to challenge the complaint in several respects. The trial court construed one said filing—a “request for quash and vacate complaint”—as the Harpers’ answer to U.S. Bank’s complaint.

{¶3} Following a pretrial hearing, a magistrate issued an order setting a dispositive motion deadline of November 30, 2018, and stating that any brief in opposition to a dispositive motion would be due within 21 days of the filing of the dispositive motion. The order further stated that any reply to a brief in opposition would be due within 14 days of the brief in opposition.

{¶4} U.S. Bank filed its motion for summary judgment on November 29, 2018. On December 13, 2018, the Harpers filed a purported counterclaim and a “motion for summary judgment on objection of proof of claim & statute of limitations.” U.S. Bank then filed a brief in opposition to the Harpers’ motion for summary judgment and moved to strike the counterclaim. The Harpers filed a response to U.S. Bank’s motion to strike and a response to U.S. Bank’s brief in opposition to the Harper’s motion for summary judgment.

{¶5} On March 12, 2019, U.S. Bank filed a notice of filing a supplemental affidavit in support of its motion for summary judgment. Despite being filed beyond the dispositive motion deadline, U.S. Bank filed this notice without leave of court.

{¶6} On March 22, 2019, the trial court issued a journal entry granting U.S. Bank’s motion for summary judgment, entering judgment on the note, and ordering foreclosure of the property at issue. In the journal entry, the trial court states that it construed the Harper’s motion for summary judgment as a brief in opposition to U.S. Bank’s motion for summary judgment. That

1 It is unclear, upon a review of the trial court record, whether these motions were filed by both Mr. and Mrs. Harper. The trial court, however, treated the filings as if they had been filed by both and neither the Harpers nor U.S. Bank objected.

same day, the trial court issued a second journal entry granting U.S. Bank’s motion to strike the Harper’s counterclaim.

{¶7} Mr. Harper filed this timely appeal, raising six assignments of error for our review.

We elect to consider Mr. Harper’s assignments of error out of order because our resolution of assignment of error three renders assignments of error two, four, and six moot.

II.

Assignment of Error I

The [l]ower [c]ourt erred when it ignored UCC [g]uidelines governing [the Harpers’] [l]awful [n]otices and multiple attempts to “[p]ay the [d]ebt in [f]ull” to which [U.S. Bank] ignored and failed to respond.

{¶8} In his first assignment of error, Mr. Harper contends the trial court erred in granting summary judgment to U.S. Bank because it did not address the Harpers’ claim that they had attempted to settle this matter, but the loan servicer ignored their settlement notices in violation of the Uniform Commercial Code. Mr. Harper appears to argue that because the loan servicer did not respond to settlement offers related to the debt evidenced by the promissory note, U.S. Bank lacked standing to bring suit to enforce the note.

{¶9} As an initial matter, we must address whether Mr. Harper has standing to raise this assignment of error. Upon review of the initial filings in this appeal, this Court concluded that the appeal was not properly perfected for both Mrs. and Mr. Harper because the notice of appeal bears only one signature. See R.C. 4705.01 (only a licensed attorney may represent or file documents on behalf of another party in this Court); see also Hineman v. Brown, 11th Dist. Trumbull No. 2002-T-0006, 2003-Ohio-926, ¶ 28-30 (Grendell, J. concurring) (stating that “each appellant, acting pro se, must be named in the text of the notice of appeal and personally sign the notice of appeal and appellate briefs. Otherwise, the signing of the notice of appeal by one non-lawyer pro

se individual on behalf of another pro se individual would constitute the unauthorized practice of law.”). Consequently, this Court ordered the appellant to file a response stating who signed the notice of appeal and was, therefore, the proper appellant in this matter. Mr. Harper subsequently filed a response indicating that he had signed the notice of appeal. As a result, this Court concluded that Megan Harper did not perfect an appeal with this Court and dismissed the appeal initiated by Mr. Harper on her behalf.

{¶10} The issue of Mr. Harper’s standing to raise this assignment of error stems from the fact that he was not a party to the promissory note and the trial court did not enter judgment against him on U.S. Bank’s claim to enforce the note. The Supreme Court of Ohio has “long recognized that an action for a personal judgment on a promissory note and an action to enforce mortgage covenants are ‘separate and distinct’ remedies.” Deutsche Bank National Trust Co. v. Holden, 147 Ohio St.3d 85, 2016-Ohio-4603, ¶ 25. “‘The right to proceed, in equity, to enforce the mortgage lien, and the right to proceed, at law, to collect the mortgage debt, are different but concurrent remedies.’” Id. quoting Giddings v. Barney, 31 Ohio St. 80, 82 (1876). “The person entitled to enforce the note pursuant to R.C. 1303.31 has standing to seek a personal judgment against the promisor on that obligation, while the mortgagee or its successor and assign has standing to foreclose on the mortgage.” Id. at ¶ 35.

{¶11} In this case, the trial court entered a personal judgment against Megan Harper and in favor of U.S. Bank on its claim alleging Megan Harper had defaulted on the note. The trial court then found that to secure payment of the note, both Mrs. Harper and Mr. Harper executed and delivered the mortgage described in the second count of U.S. Bank’s complaint, thereby conveying a mortgage interest in the property at issue. The trial court further found that the mortgage was duly filed with the Recorder of Lorain County, the conditions of the mortgage had

been broken, and that U.S. Bank was entitled to the equity of redemption and dower of all defendants. The trial court ordered that unless the sums due on the promissory note together with the costs of the action were paid within three days of the decree, “the equity of redemption and dower of all parties in and to the [p]roperty shall be foreclosed, and the property shall be sold according to law[.]”

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