Frank S. Smith, Jr. v. Secretary of Veterans Affairs, an officer of the United States of America
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((334)
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ALABAMA COURT OF CIVIL APPEALS
OCTOBER TERM, 2011-2012
2100194
Frank S. Smith, J r .
v.
S e c r e t a r y o f Veterans A f f a i r s , an o f f i c e r o f the U n i t e d
S t a t e s o f America
Appeal from J e f f e r s o n C i r c u i t
Bessemer D i v i s i o n
(CV-09-504)
Court,
A f t e r Remand f r o m t h e A l a b a m a Supreme
Court
PER CURIAM.
The
judgment
Alabama
of
this
Supreme
court,
Court
Smith
( 1 ) has reversed
v.
Secretary
of
the p r i o r
Veterans
2100194
Affairs,
Civ.
[Ms. 2100194,
June
24, 2011]
So. 3d
(Ala.
App. 2 0 1 1 ) , w h i c h r e v e r s e d t h e j u d g m e n t o f t h e J e f f e r s o n
Circuit
Court,
Bessemer D i v i s i o n ,
cause f o r f u r t h e r p r o c e e d i n g s
and
c o n s i s t e n t w i t h i t s o p i n i o n . See
Ex p a r t e S e c r e t a r y o f V e t e r a n s A f f a i r s ,
2012]
___ So. 3d ___
o f F r a n k S. S m i t h ,
prior decision.
Frank
summary
Affairs,
[Ms. 1101171, Feb. 10,
( A l a . 2 0 1 2 ) . We now a d d r e s s an argument
J r . ("Frank"),
t h a t we d i d n o t r e a c h i n o u r
1
argues
judgment
that
the t r i a l
i n favor
an o f f i c e r
of
court
the
of the United
Secretary"),
because,
trial
established a
court
( 2 ) h a s remanded t h e
Frank
says,
erred
i n entering a
Secretary
States
issue
Veterans
of America
the evidence
genuine
of
("the
before
of material
the
fact
r e g a r d i n g t h e i d e n t i t y o f t h e p a r t y who s o l d h i s p r o p e r t y a t
the
foreclosure sale.
The
Secretary
supported
h i s summary-
j u d g m e n t m o t i o n w i t h , among o t h e r t h i n g s , an a f f i d a v i t
by S c o t t H i a t t , a c o p y o f t h e p r o m i s s o r y
a
copy
o f t h e mortgage
subsequent
assignments
signed
by
signed
note s i g n e d by Frank,
Frank,
o f t h e mortgagee's
copies
of
interest
three
i n the
The f a c t u a l b a c k g r o u n d o f t h i s c a s e a n d i t s p r o c e d u r a l
h i s t o r y i n the t r i a l
court are r e c i t e d i n our o r i g i n a l
d e c i s i o n . See S m i t h v. S e c r e t a r y o f V e t e r a n A f f a i r s , s u p r a .
1
2
2100194
mortgage,
the
a copy o f an a f f i d a v i t
Alabama Messenger,
Hiatt's
affidavit
and a copy o f t h e
states
that
A m e r i c a , N.A.," s o l d F r a n k ' s p r o p e r t y
On
t h e o t h e r hand,
sale
t h a t was
included
"Plaintiff,
signed
Bank
by
which
the p u b l i s h e r
s t a t e s t h a t t h e S e c r e t a r y w o u l d be
Frank's
at
foreclosure
auctioneer
property
The
three
deed
who
the
foreclosure
states
that
Dana
mortgage
consist
Mortgage
Company
of
an
the
("Franklin
the
selling
the
Wright
McGowin,
the
sale,
from
American")
s o l d Frank's
of the
mortgagee's
assignment
of
Likewise,
a t t h e f o r e c l o s u r e s a l e on b e h a l f
of
was
sale.
conducted the f o r e c l o s u r e
assignments
of
foreclosure
Alabama Messenger,
property
of the
at the f o r e c l o s u r e s a l e .
i n the Alabama Messenger,
the a f f i d a v i t
of
foreclosure
the copy of the n o t i c e of the
published
with
by t h e p u b l i s h e r
the newspaper i n w h i c h n o t i c e
f o r e c l o s u r e s a l e was p u b l i s h e d ,
deed.
signed
Secretary.
interest
Franklin
to
North
in
the
American
American
M o r t g a g e Company ("North A m e r i c a n " ) ; an a s s i g n m e n t f r o m N o r t h
American
("MERS"),
t o Mortgage
as
nominee
Electronic Registration
for
PNC
Mortgage
Systems,
Corp.
of
Inc.
America
("PNC"); and an a s s i g n m e n t f r o m MERS, as nominee f o r PNC,
the
Secretary.
The p r o m i s s o r y n o t e s i g n e d
3
to
by F r a n k i n d i c a t e s
2100194
that
Franklin
American
signed
an
indorsement
making t h e
promissory note payable t o the order o f North American;
North
American
note payable
s i g n e d an i n d o r s e m e n t
making
the promissory
t o t h e o r d e r o f MERS, as nominee f o r PNC; a n d
t h a t MERS, as nominee f o r PNC, s i g n e d an i n d o r s e m e n t
the
that
making
p r o m i s s o r y n o t e p a y a b l e t o t h e o r d e r o f t h e S e c r e t a r y . The
r e c o r d does n o t c o n t a i n a n y e v i d e n c e i n d i c a t i n g t h a t B a n k o f
A m e r i c a , N.A., was e v e r t h e owner o f t h e m o r t g a g e e ' s
in
t h e mortgage
o r t h e owner
o f t h e debt
m o r t g a g e . See Coleman v. BAC S e r v i c i n g ,
2012]
the
secured
interest
by t h e
[Ms. 2100453, F e b . 3,
___ So. 3d ___ , ___ ( A l a . C i v . App. 2 0 1 2 ) ( h o l d i n g
that
power o f s a l e i n a m o r t g a g e may be e x e c u t e d b y a n y p e r s o n
who owns t h e d e b t even i f he o r s h e h a s n o t b e e n a s s i g n e d t h e
mortgagee's
Moreover,
interest
i n t h e mortgage
securing
t h e r e c o r d does n o t c o n t a i n a n y e v i d e n c e
the debt).
indicating
t h a t Bank o f A m e r i c a , N.A., was a u t h o r i z e d t o a c t as an a g e n t
for
the
Secretary
in
selling
Frank's
property
at the
f o r e c l o s u r e s a l e . T h u s , H i a t t ' s a f f i d a v i t s t a t i n g t h a t Bank o f
A m e r i c a , N.A., s o l d F r a n k ' s p r o p e r t y a t t h e f o r e c l o s u r e
sale
i s i n c o n f l i c t w i t h t h e n o t i c e o f t h e f o r e c l o s u r e s a l e and t h e
a u c t i o n e e r ' s deed and c r e a t e s a genuine i s s u e o f m a t e r i a l
4
fact
2100194
regarding
whether
Secretary
who
Moreover,
i t was
because
Bank
of
s o l d Frank's property
there
America,
N.A.,
at the f o r e c l o s u r e
i s s u b s t a n t i a l evidence
p r o v e t h a t Bank o f A m e r i c a , N.A.,
or
the
sale.
tending
d i d n o t have t h e
to
authority
to s e l l Frank's property
a t t h e f o r e c l o s u r e s a l e e i t h e r on i t s
own
of the Secretary,
that
behalf
o r on b e h a l f
Bank
of
foreclosure
America,
sale
N.A.,
creates
a
sold
Frank's
genuine
Hiatt's
property
issue
of
statement
at
material
the
fact
r e g a r d i n g w h e t h e r F r a n k ' s p r o p e r t y was s o l d a t t h e f o r e c l o s u r e
s a l e by a p a r t y who
because
h a d t h e a u t h o r i t y t o do s o .
the evidence creates
Furthermore,
a genuine i s s u e of m a t e r i a l
fact
r e g a r d i n g w h e t h e r F r a n k ' s p r o p e r t y was s o l d a t t h e f o r e c l o s u r e
s a l e by a p a r t y who
also
creates
a
h a d t h e a u t h o r i t y t o do s o , t h a t e v i d e n c e
genuine
issue
of
material
fact
regarding
w h e t h e r t h e S e c r e t a r y , who b a s e s h i s c l a i m t o t i t l e t o F r a n k ' s
property
on t h e f o r e c l o s u r e deed,
has
e j e c t m e n t a c t i o n . See S t u r d i v a n t v. BAC
LP,
[Ms.
C i v . App.
2100245, Dec.
2011)
16,
(holding
2011]
that
standing
to bring
this
Home L o a n s S e r v i c i n g ,
So.
3d
,
an e j e c t m e n t - a c t i o n
that based i t s c l a i m to t i t l e to the property
(Ala.
plaintiff
on a f o r e c l o s u r e
deed l a c k e d s t a n d i n g t o b r i n g the e j e c t m e n t a c t i o n because
5
the
2100194
evidence
indicated
that
the
foreclosure proceedings lacked
the
party
who
initiated
the
a u t h o r i t y t o i n i t i a t e them on
date i t d i d s o ) .
Although
Frank
d i d not argue
property
at the foreclosure sale e s t a b l i s h e d the existence of
issue
of
f o r e c l o s u r e was v a l i d ,
not
be w a i v e d ,
of
material
America,
fact
2d
regarding
sold
the
whether
the
"[t]he issue of a lack of standing
may
a n d an a r g u m e n t c o n c e r n i n g
a s s e r t e d f o r t h e f i r s t t i m e on a p p e a l . "
at
N.A.,
that
statement
genuine
Bank
court
Hiatt's
a
that
to the t r i a l
standing
Sturdivant,
may
be
So. 3d
( c i t i n g R L I I n s . Co. v. MLK A v e . Redev. C o r p . , 925 So.
914, 918 ( A l a . 2 0 0 5 ) ) .
Accordingly,
and
this
we r e v e r s e
t h e judgment o f t h e t r i a l
remand t h e c a u s e f o r f u r t h e r p r o c e e d i n g s c o n s i s t e n t
court
with
opinion.
REVERSED AND REMANDED.
Thompson,
Bryan,
joins.
P . J . , a n d Thomas a n d Moore, J J . , c o n c u r .
J., dissents,
with
6
writing,
which
Pittman,
J.,
2100194
BRYAN, J u d g e ,
dissenting.
Consistent
Loans
my
dissent
i n Sturdivant
v. BAC
S e r v i c i n g , L P , [Ms. 2100245, Dec. 16, 2011]
,
whether
of
a
genuine
issue
of m a t e r i a l
fact
Home
So. 3d
( A l a . C i v . App. 2 0 1 1 ) , I am o f t h e o p i n i o n
existence
that the
regarding
t h e f o r e c l o s u r e s a l e was c o n d u c t e d b y a p a r t y who h a d
authority
fact
with
t o do s o e s t a b l i s h e s
regarding
a genuine
the a f f i r m a t i v e
defense
Smith, J r . ("Frank"), t h a t the S e c r e t a r y
an o f f i c e r o f t h e U n i t e d
States
issue
of material
asserted
by
Frank
of Veterans A f f a i r s ,
of America
("the S e c r e t a r y " ) ,
i s n o t e n t i t l e d t o p r e v a i l on h i s e j e c t m e n t c l a i m b e c a u s e t h e
foreclosure
was
Secretary's
not v a l i d ,
b u t i t does
not i m p l i c a t e the
s t a n d i n g t o b r i n g t h i s e j e c t m e n t a c t i o n . See B e r r y
v. D e u t s c h e Bank N a t ' l T r u s t Co., 57 So. 3d 142, 149-50
Civ.
App.
2010)
plaintiff
bases
foreclosure
(holding
h i s or
deed,
that,
her
evidence
when
claim
tending
f o r e c l o s u r e s a l e and r e s u l t i n g
an
to
ejectment-action
legal
to
title
prove
on
that
f o r e c l o s u r e d e e d were
than
plaintiff
tending
lacked
to
standing
prove
that
to bring
7
the
a
the
invalid
t e n d s t o p r o v e an a f f i r m a t i v e d e f e n s e t o t h e e j e c t m e n t
rather
(Ala.
claim
ejectment-action
the ejectment
action).
2100194
Because,
i n my
opinion,
t h e argument
upon
o p i n i o n bases i t s r e v e r s a l of the t r i a l
not i m p l i c a t e t h e S e c r e t a r y ' s
not p r e s e n t
which t h e main
c o u r t ' s j u d g m e n t does
s t a n d i n g , and because Frank d i d
t h a t argument t o t h e t r i a l
c o u r t , I d i s s e n t from
the main o p i n i o n b e c a u s e i t bases i t s r e v e r s a l o f t h e t r i a l
c o u r t ' s j u d g m e n t on an argument t h a t F r a n k w a i v e d b y
failing
to
773 So.
present
i t to the t r i a l
c o u r t . See Ex p a r t e R y a l s ,
2d 1011, 1013 ( A l a . 2000) ("[T]he a p p e l l a t e c o u r t c a n c o n s i d e r
an argument a g a i n s t t h e v a l i d i t y o f a summary j u d g m e n t o n l y t o
the
extent
the t r i a l
t h a t t h e r e c o r d on a p p e a l
court record presenting
court before
contains
m a t e r i a l from
t h a t argument t o t h e t r i a l
or a t the time of submission
of the motion f o r
summary j u d g m e n t . Andrews v. M e r r i t t O i l Co., 612 So. 2d 409
(Ala.
1992).").
Pittman,
J . , concurs.
8
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