U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust, and SN Servicing Corporation v. Marco J. Bonilla

Supreme Court of Alabama·Decided May 15, 2026·No. SC-2025-0433·Published

Opinion

Rel: May 15, 2026

Notice: This opinion is subject to formal revision before publication in the advance sheets of Southern Reporter. Readers are requested to notify the Reporter of Decisions, Alabama Appellate Courts, 300 Dexter Avenue, Montgomery, Alabama 36104-3741 ((334) 229-0650), of any typographical or other errors, in order that corrections may be made before the opinion is printed in Southern Reporter.

SUPREME COURT OF ALABAMA OCTOBER TERM, 2025-2026

SC-2025-0433

U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust, and SN Servicing Corporation

v.

Marco J. Bonilla

Appeal from Shelby Circuit Court (CV-23-900315)

McCOOL, Justice.

U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust ("U.S. Bank"), and SN Servicing Corporation ("SN") appeal from a summary judgment that the Shelby Circuit Court entered against them and in favor of Marco J. Bonilla. That judgment awarded Bonilla $114,000 in compensatory damages, plus $14,913.70 in interest, and awarded him $75,000 in punitive damages. For the reasons set forth herein, we affirm the judgment in part, reverse it in part, and remand the case for further proceedings.

Facts and Procedural History In 2007, Elizabeth Ellison obtained a loan to purchase certain real property ("the Ellison property") located in Shelby County. That loan was secured by a mortgage and was eventually sold to U.S. Bank, and SN serviced the loan on behalf of U.S. Bank. It appears that Ellison later defaulted on her loan, and, in April 2022, U.S. Bank purchased certain real property at a foreclosure sale in Shelby County. The foreclosure deed identified the foreclosed property as the property located at "77 Wildwood Chapel Rd." in Columbiana, and the deed indicated that that property was the Ellison property.

In May 2022, SN contracted with Paul Garris, a real-estate broker, to sell the property that U.S. Bank had purchased at the foreclosure sale. Garris testified in his deposition that the first step for him to take in conducting that sale was "to check occupancy," which required him to "go to the property … to physically determine occupancy." However, when Garris "went to Wildwood Chapel Road," he "did not find a 77 marked on a mailbox or a house." According to Garris, "that's not unusual with rural properties," so he later checked "to see if any of the tax records mentioned 77 Wildwood." After reviewing those records, Garris discovered that the foreclosed property appeared to be "a bricked over … double-wide trailer," so he relayed that information to his contact at SN, who "had [him] go check occupancy on it."

When Garris arrived at the double-wide trailer, he "knocked on the door and met Ellison, who was living there at the time." Garris told Ellison that he "th[ought] th[e] property might have been foreclosed" and "ask[ed] her about the address." Ellison told Garris that the address of the property was "actually 67 Wildwood Chapel Road but it could have been 77 at one time," and she "said that she didn't know that it was foreclosed but she had been five or six months behind on her payments

so it might have been." Garris then relayed that information to his contact at SN. According to Garris, despite the uncertainty as to which property U.S. Bank had purchased at the foreclosure sale, no survey was conducted. Rather, Ellison simply agreed to vacate the Ellison property in exchange for $3,500, and Garris, on behalf of U.S. Bank, subsequently listed for sale the property located at "77 Wildwood Chapel Rd." despite the fact that, "to [Garris's] knowledge," "77 Wildwood Chapel Road" "does not exist."

In August 2022, U.S. Bank contracted to sell Bonilla the property located at "67 Wildwood Chapel Rd." for $95,000. However, before closing the sale, U.S. Bank and Bonilla "amended [the contract] to have the correct address as … 77 Wildwood Chapel Rd." Both Garris and Bonilla believed that the Ellison property was "the house Bonilla was agreeing to purchase," and Bonilla later attested in his affidavit that "[i]t was expressly represented to [him] by Garris that the property [he] entered into a contract to buy was a "double wide manufactured home that had been bricked on all four sides." The contract contained a provision recommending that Bonilla "obtain a survey," but Bonilla checked the box indicating that he was "not request[ing] a survey by a registered

Alabama land surveyor." U.S. Bank and Bonilla subsequently closed the real-estate transaction, and U.S. Bank executed a special warranty deed conveying to Bonilla the property located at "77 Wildwood Chapel Road." Garris then personally delivered to Bonilla the keys to the double-wide trailer that was located on the Ellison property. However, the legal description of the property transferred by the special warranty deed is similar, but not identical, to the legal description of the property transferred by the foreclosure deed.

Bonilla "first … learned there was a problem" with his purchase "[w]hen [he] tried to sell the property" to another individual for $114,000. During the course of arranging that sale, someone at a title company "informed [Bonilla] that the legal description [of the property he was attempting to sell, i.e., the Ellison property,] did not match the address on the property that [he] had purchased," and that person told Bonilla that the "house [he] actually bought" was a house located at "101 Wildwood," which was a "couple houses down the street." That property, according to Bonilla, appraised for a little more than half the value of the Ellison property. Bonilla conceded that, "if [he] had had a survey done

before [he] closed on [his] purchase, [he] would have known it was 101 [Wildwood]" that he was purchasing.

Bonilla later sued U.S. Bank and SN ("the defendants"), asserting claims of conversion, breach of contract, negligence, and wantonness, as well as a claim seeking the recission of the special warranty deed.1 In support of his claims, Bonilla alleged that U.S. Bank had not sold him the property that he had actually contracted to buy, i.e., the Ellison property; that U.S. Bank in fact could not have sold him the Ellison property because it "did not have good title to convey"; that Ellison was actually "still the owner" of the Ellison property; that, as a result, he had been unable to sell the Ellison property to another individual who had agreed to purchase it for $114,000; and that U.S. Bank had "not returned the purchase price [he had] paid for [the Ellison property]."

The defendants moved for a summary judgment, arguing that "there is no genuine issue of fact to be tried and that [they] are entitled

1Bonilla also asserted a claim of "gross negligence/wantonness,"

separate and apart from his claims for negligence and wantonness. However, "[t]he word 'gross,' when used in connection with the word 'negligence,' implies nothing more than simple negligence." Town of Loxley v. Coleman, 720 So. 2d 907, 909 (Ala. 1998). Likewise, there is no difference between a claim of "gross wantonness" and wantonness.

to judgment as a matter of law." In the brief they submitted in support of that motion, the defendants admitted that Bonilla "did not own the [Ellison property]" and that he had instead purchased the "real property located at 101 Wildwood Chapel Road." However, the defendants argued that Bonilla's claims "fail as a matter of law because the contract between the parties specified that the sale of the property was 'AS IS.' " The defendants also argued that Bonilla's claims were "barred under the doctrine of contributory negligence." In support of that argument, the defendants noted Bonilla's concessions that U.S. Bank had recommended that he obtain a survey before closing the real-estate transaction and that, if he had done so, "he would have known what property he was actually buying."

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U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust, and SN Servicing Corporation v. Marco J. Bonilla, (Ala. 2026).

U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust, and SN Servicing Corporation v. Marco J. Bonilla (U.S. Bank Trust National Association, as trustee of the Igloo Series IV Trust, and SN Servicing Corporation v. Marco J. Bonilla) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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