Kondaur Capital Corp. v. Matsuyoshi
Annotate this CaseAfter Leigh Matsuyoshi fell behind on her mortgage payments, the property was auctioned off at a foreclosure sale. Thereafter, the mortgagee, who was also the purchaser of the foreclosed property, executed a quitclaim deed conveying the property to Kondaur Capital Corporation. Kondau filed a complaint for possession of the property against Matsuyoshi. The circuit court granted summary judgment for Kondaur. The Intermediate Court of Appeals (ICA) ultimately affirmed. Matsuyoshi appealed, citing Ulrich v. Security Investment Co. and arguing that the ICA misapplied the summary judgment standard by requiring her to present evidence when Kondaur had failed to present a prima facie case establishing that the sale of the property was valid. The Supreme Court vacated the judgments of the lower courts, holding (1) the duties set forth in Ulrich remain viable law and are applicable to non-judicial foreclosures of real property mortgages; (2) when a mortgagee acts as both the seller and the purchaser of property at a non-judicial foreclosure sale, that mortgagee or its quitclaim transferee bears the burden of proving compliance with the requirements of Ulrich; and (3) in this case, because Kondaur failed to satisfy its initial burden of showing that the foreclosure sale was conducted in compliance with the requirements of Ulrich, the burden never shifted to Matsuyoshi, and summary judgment was erroneously granted.
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