U.S. Bank, N.A. v. SawyerAnnotate this Case
In 2009, David and Debra Sawyer defaulted on a mortgage held by U.S. Bank N.A. In 2012, the Bank filed a complaint for foreclosure. At the time the complaint was filed, J.P. Morgan Chase Bank N.A. had taken over as loan servicer. Four court-ordered mediations subsequently took place, during which time the Sawyers attempted to negotiate a modification with Chase. The mediations were unsuccessful, largely due to Chase’s repeated delays and requests to submit documentation that the Sawyers had already submitted. At a show cause hearing, the superior court subsequently dismissed the Bank’s complaint with prejudice, concluding that the Bank was not prepared to proceed at the hearing. The Supreme Court affirmed, holding (1) the sanction was not excessive under the circumstances, and (2) there was evidence that the Sawyers were prejudiced by the Bank’s failure to participate in the mediation process in good faith.