Wells Fargo Bank, N.A. v. Greene

2024 Ohio 667, 236 N.E.3d 907
CourtOhio Court of Appeals
DecidedFebruary 22, 2024
Docket113017 & 113053
StatusPublished
Cited by1 cases

This text of 2024 Ohio 667 (Wells Fargo Bank, N.A. v. Greene) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells Fargo Bank, N.A. v. Greene, 2024 Ohio 667, 236 N.E.3d 907 (Ohio Ct. App. 2024).

Opinion

[Cite as Wells Fargo Bank, N.A. v. Greene, 2024-Ohio-667.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

WELLS FARGO BANK, N.A., ET AL., :

Plaintiffs-Appellants, : Nos. 113017 and 113053

v. :

RICHARD A. GREENE, ET AL., :

Defendants-Appellees. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: February 22, 2024

Civil Appeal from the Cuyahoga County Court of Common Pleas Case Nos. CV-20-927885 and CV-22-963370

Appearances:

LOGS Legal Group LLP and Phillip Barragate, for appellants.

EILEEN A. GALLAGHER, P.J.:

In this consolidated appeal, plaintiff-appellant Wells Fargo Bank,

N.A. (“Wells Fargo”) and plaintiff-appellant Plaza Revolving Trust (collectively,

“appellants”) appeal the trial court’s denial of Civ.R. 60(B) motions for relief from

orders of confirmation of sale appellants filed in two unrelated foreclosure actions

— Wells Fargo Bank, N.A. v. Richard A. Greene, Cuyahoga C.P. No. CV-22-963370

(“963370”), and Plaza Revolving Trust v. Dwayne Gidden, Jr., Cuyahoga C.P. No. CV-20-927885 (“927885”) (collectively, the “confirmations of sale”). Appellants

sought relief from the confirmations of sale so that they could seek reimbursement

of advances they had made for taxes, insurance and property preservation.

In each case, the decree of foreclosure entered by the trial court

acknowledged the mortgagee’s right to seek reimbursement for such advances;

however, the appellant failed to file a motion for reimbursement of advances within

the deadline established in the decree of foreclosure, and the trial court then

confirmed the sale of the foreclosed property without accounting for all of the

appellant’s alleged advances. Appellants argue that the confirmations of sale were

not final, appealable orders because they did not include a distribution of proceeds.

In the alternative, appellants argue that the trial court erred in denying their

motions for relief from judgment under Civ.R. 60(B)(1), (4) and (5) because it would

be “inequitable” to “penalize” appellants and “deprive them of their right to the sales

proceeds or the right to be credited for [their] advances.” For the reasons that

follow, we affirm.

Procedural and Factual Background

Wells Fargo Bank, N.A. v. Richard A. Greene

In April 2019, Greene executed a note payable to Union Capital

Mortgage Corporation in the amount of $115,862, which was secured by a mortgage

on a property in Parma, Ohio. Greene defaulted on the note, and on May 12, 2022,

Wells Fargo (the then-holder of the note) filed a complaint for foreclosure in the

Cuyahoga County Court of Common Pleas. The complaint sought the balance of $87,353.93 due on the note, plus interest at the rate of 5.5 percent per annum from

April 1, 2020, and advances Wells Fargo had made pursuant to the terms of the

mortgage, including payments for real estate taxes, insurance premiums, property

inspections, preservation and protection.

On October 26, 2022, the trial court granted Wells Fargo’s motion for

default judgment and entered judgment in favor of Wells Fargo in the amount of

$87,353.93 plus interest at the rate of 5.5 percent per annum from April 1, 2020.

The trial court ordered that the property be sold if the amount due, together with

the costs of the action, were not fully paid within three days.

With regard to the distribution of proceeds of the sale, the decree of

foreclosure stated:

And, coming now to distribute the proceeds of said sale, it is ordered that the Sheriff or Private Sale Officer out of the funds in his hands pay:

First The costs herein, including the sum of $263.00 payable to LOGS Legal Group LLP for the Judicial Report filed herein, which sum is hereby taxed as costs.

Second IF THE PLAINTIFF IS THE PURCHASER AND HAS ELECTED TO FORGO THE PAYMENT FROM THE SALE PROCEEDS OF CERTAIN TAXES AS PROVIDED IN R.C. §323.47(B):

To the Treasurer of Cuyahoga County, Ohio, taxes, accrued taxes, assessments, and penalties on the premises hereinafter described, as shown on the tax duplicate;

OTHERWISE:

To the Cuyahoga County Treasurer, taxes, assessments, interest, the lien for which attaches before the date of sale but that are not yet determined, assessed and levied for the year that includes the date of sale, apportioned pro rata to the part of that year that precedes the date of sale, and all other taxes, assessments, penalties, and interest which attached for a prior tax year but have not been paid on or before the date of sale.

Third To the Plaintiff, the sum of $87,353.93 plus interest thereon at the rate of 5.5% per annum from April 1, 2020, together with advances, if any.

Fourth The balance, if any, to the Clerk of Courts to be held pending further order.

In the event Plaintiff is the successful bidder at the sale, the amount of the deposits made herein by Plaintiff and the cost of the preliminary judicial report in the sum of $263.00, shall be deducted from the total amount of Court costs otherwise payable herein.

With regard to the advances made by Wells Fargo, the decree of

foreclosure further stated, in relevant part:

IT IS FURTHER ORDERED ADJUDGED AND DECREED that there may be due Plaintiff, additional sums advanced by it under the terms of the note and mortgage to pay real estate taxes, hazard insurance premiums, and property protection, which sums are to be determined by further Order.

***

IT IS FURTHER ORDERED ADJUDGED AND DECREED that, if a successful sale occurs, the parties are ordered to file any motions for reimbursement of advances pursuant to R.C. §5301.233 within 21 days from the sale. A party may move the court to extend this deadline for good cause shown. No party will be granted reimbursement for advances if such a motion is not filed before this deadline. Within 7 days from the filing of a motion for reimbursement, a party may file a brief in opposition. The court will then make a careful examination of the sale pursuant to the applicable statutes. If, however, this case does not involve advances or no mortgagee intends to seek advances, a party may file a notice to this effect within seven days of the sale. * * * (Emphasis added.)

On January 30, 2023, the property was sold to Wells Fargo for

$111,400. Wells Fargo did not file a motion for reimbursement of advances (or a

motion for extension of time to file such a motion) within 21 days of the sale, as

ordered in the decree of foreclosure. On April 10, 2023, the trial court entered an

order of confirmation of the sale. Wells Fargo did not appeal the trial court’s order

confirming the sale.

Instead, on June 21, 2023, Wells Fargo filed a “motion for relief from

the decree of confirmation filed on April 10, 2023” pursuant to Civ.R. 60. Wells

Fargo argued that it was entitled to relief from the order confirming the sale under

Civ.R.60(B)(1), (4) and (5) because (1) “any neglect in failing to submit evidence of

its advances” was “excusable” given that “neither Plaintiff, nor its counsel[,] acted

with disregard for the judicial system,” (2) “foreclosure is an equitable action” and

(3) “it is inequitable in a foreclosure action to deprive the Plaintiff of the opportunity

to seek reimbursement for sums it advanced on behalf of the Defendant to pay for

taxes, insurance and property preservation.” Wells Fargo asserted that its motion

was timely and that it had a meritorious claim to present because it had advanced

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Cite This Page — Counsel Stack

Bluebook (online)
2024 Ohio 667, 236 N.E.3d 907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-bank-na-v-greene-ohioctapp-2024.