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U.S.BANKv.MOORE2012OK32CaseNumber:109763Decided:04/10/2012THESUPREMECOURTOFTHESTATEOFOKLAHOMANOTICE:
if
HISOPINIONHASNOTBEENRELEASEDFORPUBLICATIONIN
if
HEPERMANENTLAWREPORTS.UNTILRELEASED,ITISSUBJECTTOREVISIONORWITHDRAWAL.
u.s.
BANK,NATIONALASSOCIATION,NOTINITSINDIVIDUALCAPACITYBUTSOLELYASTRUSTEEONBEHALFOFGSAAHOMEEQUITYTRUST2006-6,Plaintiff/Appellee,
v.
DAVIDF.MOORE,a/k/aDAVIDF.MOOREandBARBARAMOOREa/k/aBARBARAK.MOORE,Defendants/Appellants.ONAPPEALFROMTHEDISTRICTCOURTOFOKLAHOMACOUNTYHONORABLEBRYANC.DIXON
DISTRICTJUDGE
~o
AppealofasummaryjudgmentgrantedonMay13,2011,infavorofChaseHomeFinance,LLC,andagainstDavidF.andBarbaraMoore.InaJournalEntryofJudgment,filedonAugust26,2011,thetrialcourtfoundtheAppellantwastheundisputedownerandholderoftheNoteandMortgage.TheMooresappealedonSeptember23,2011,arguingstanding,andthisCourtretainedthematteronNovember18,2011.REVERSEDANDREMANDEDWITHINSTRUCTIONSGaryL.Blevins,GARYL.BLEVINS
&
ASSOCIATES,PC,OklahomaCityOklahoma,forDefendants/Appellants.BryanMilesHarringtonandA.GrantSchwabe,KIVELL,RAYMENTANDFRANCIS,PC,Tulsa,Oklahoma,forPlaintiff/Appellee.COMBS,J.FACTUALANDPROCEDURALHISTORY~1OnOctober21,2005,DavidF.MooreandBarbaraMoore,husbandandwife(hereinafter"Appellants"),executedaNoteandMortgageinfavorofColonialBank,N.A.(hereinafter"Lender"),forpropertylocatedinOklahomaCounty,Oklahoma.MortgageElectronicRegistrationSystems,Inc.
 
(hereinafter"MERS"),wasdesignatedasthenomineeforthelenderpursuanttosubsection(C)oftheMortgage.lWithintheMortgagewasasecurityinterestprovisionwiththefollowinggrantingclause:BorrowerunderstandsandagreesthatMERSholdsonlylegaltitletotheinterestsgrantedbyBorrowerinthisSecurityInstrument,but,ifnecessarytocomplywithlaworcustom,MERS(asnomineeforLenderandLender'ssuccessorsandassigns)hastheright:toexerciseanyorallofthoseinterests,including...therighttoforecloseandselltheProperty.~2AlsocontainedintheMortgagewasaprovisionentitled"SaleofNote;ChangeofLoanServicer."Perthetermsofthisprovision:TheNoteorapartialinterestintheNote(togetherwiththisSecurityInstrument)canbesoldoneormoretimeswithoutpriornoticetoBorrower.Thus,theborrowermayhavedifficultyindeterminingwhoholdsthenoteandmortgage,andtowhomthepaymentisdue.~3AppellantsdefaultedontheNoteduringAugustof2008.U.S.Bank,NationalAssociation,commencedforeclosureproceedingsonDecember24,2008,notinitsindividualcapacity,butsolelyastrusteeonbehalfofGSAAHomeEquityTrust2006-6(hereinafter"Appellee").Accordingtotheverifiedpetition,theAppelleewas"thepresentholderofsaidNoteandMortgagehavingreceiveddueassignmentthroughmesneassignmentsofrecordorconveyanceviamortgagingservicingtransfer."Theoriginalpetitiondidnotattachacopyofthenoteinquestionsuedupon.Appellantsanswered,prose,onMay20,2009.AppellantsdisputedallallegationsandrequestedthattheAppellee's"submitadditionaldocumentationtoprovetheirclaimsincludingtherepresentationthattheywerethe"presentholderofsaidNote."Appelleesubsequentlyfiledanamendedpetitionandasecondamendedpetitiontoaddadditionaldefendants.Neitheroftheseamendmentsincludedacopyofthenotesuedupon.~4AppelleesubmitteditsMotionforSummaryJudgment(hereinafterthe"Motion")tothecourtonNovember20,2009.Again,theAppelleerepresentedthatitwastheholderoftheNote.DocumentationattachedtotheMotionattemptedtosupportthisrepresentation:itincludedtheMortgage,theNote,anAssignmentofMortgage,andanAffidavitinSupportofAppellee'sMotionforSummaryJudgment.Forthefirsttime,AppelleesubmittedtheNoteandMortgagetothetrialcourt.Thenotewasindorsedinblankandcontainednodatefortheindorsement.
 
~5ExecutedonOctober21,2005,theNotedesignatedtheAppellantsastheBorrowersandColonialBank,N.A.,astheLender.Thefollowingagreement,interalia,wasmade:I[Appellants]understandthattheLendermaytransferthisNote.TheLenderoranyonewhotakesthisNotebytransferandwhoisentitledtoreceivepaymentsunderthisNoteiscalledthe'NoteHolder.'AnAssignmentofMortgage(hereinafterthe"Assignment")wasattachedtothemotion.MERS,againasnomineefortheLender,assignedtheMortgage,whichsecured"thepaymentofacertainpromissorynote"describedtherein,totheAppellee.2TheAssignmentwasexecutedandnotarizedonFebruary11,2009;itwasrecordedoneweeklater,butmadeeffective"11/27/2008."Inotherwords,theAssignmentwasexecutedaftertheforeclosuresuitcommenced,butmadeeffectivebeforethefilingofthepetitionaswellasanysubsequentamendmentstothepetition.~6AppellantsdidnotrespondtoAppellee'sMotion,andthetrialcourtenteredadefaultjudgmentagainstthem.Thetrialcourtenteredafinaljudgment,onDecember17,2009,(hereinafter"Judgment")infavoroftheAppellee.ThejudgmentconcludedthatAppelleewastheownerandholderoftheNoteandMortgage;thecourtthenapprovedanOrderofSale.Approximatelysix(6)weekslater,onJanuary31,2010,theAppellantsfiledforprotectionunderChapter7ofTitleXIoftheUnitedStatesBankruptcyCode,whichstayedtheproceedings.OnMarch2,2011,thebankruptcycourtgrantedAppellee'sMotiontoLifttheAutomaticStay.Shortlythereafter,onMarch18,2011,withtheassistanceofcounsel,theAppellantsfiledaPetitiontoVacatetheJudgment.ThetrialcourtsubsequentlydismissedtheAppellantsPetitiontoVacatetheJudgment.STANDARDOFREVIEW~7Thestandardofreview3foratrialcourt'srulingeithervacatingorrefusingtovacateajudgmentisabuseofdiscretion.FergusonEnterprises,Inc.v.WebbEnterprises,Inc.,2000OK78,~5,13P.3d480,482;Hassellv.Texaco,Inc.,1962OK136,372P.2d233.Aclearabuse-of-discretionstandardincludesappellatereviewofbothfactandlawissues.Christianv.Gray,2003OK10,~43,65P.3d591,608.Anabuseofdiscretionoccurswhenacourtbasesitsdecisiononanerroneousconclusionoflaw,orwherethereisnorationalbasisinevidencefortheruling.Fentv.OklahomaNaturalGasCo.,2001OK35,~12;27P.3d477,481.ANALYSIS
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