Hubbard v. BancorpSouth BankAnnotate this Case
The residence of Brent and Amy Hubbard secured a note and deed of trust held by Trustmark National Bank. Additionally, the Hubbards obtained a second loan, which was secured by a note and second deed of trust held by BancorpSouth on the same residence. Trustmark foreclosed on the first deed of trust and sold the property. More than a year later, BancorpSouth sued the Hubbards for money due under the second note. The Hubbards admitted they were in default, but asserted as an affirmative defense that BancorpSouth’s claim was time barred under the one-year statute of limitations prescribed in Mississippi Code Section 15-1-23. After a hearing on the motion, the circuit court found Section 15-1-23 inapplicable and ruled instead that Mississippi Code Section 15-1-49 provides the proper limitations period (three years). The circuit court entered judgment in favor of BancorpSouth. On appeal, the Hubbards argued that the circuit court erred in granting BancorpSouth’s judgment on the pleadings because the action was barred by the one-year statute of limitations prescribed by Section 15-1-23. The Supreme Court affirmed the circuit court’s grant of judgment on the pleadings. However, the three-year statute of limitations provided under Section 15-1-49 was inapplicable in this case; the proper limitations period for suits on promissory notes for nonforeclosing lenders is Mississippi Code Section 75-3-118, which provided a six-year statute of limitations, rather than the three-year statute of limitations set forth in Section 15-1-49.