Haffey v. Deutsche Bank Trust Company, As Trustee For The 2007 QS-10 Trust (In re Haffey)

(Bankr. E.D. Ky. Feb. 2, 2015)

The bankruptcy court grants the defendant’s motion to dismiss the adversary complaint seeking a declaratory judgment that the defendant’s mortgage was invalid. The defendant argued and the bankruptcy court holds that the complaint was barred by the doctrine of res judicata. The parties had litigated the issue to judgment in a prior action before the district court. Opinion below.

2015-02-02 – haffey v deutsche bank

Author: Matt Lindblom

Rogan v. JPMorgan Chase Bank, N.A. (In re Engle)

(Bankr. E.D. Ky. Jan. 14, 2015)

The bankruptcy court grants summary judgment in favor of the mortgagees in this avoidance action. The debtor had executed a special power of attorney, with the intent of giving another individual the authority to purchase and grant mortgages on real property. The power of attorney was recorded and contained ambiguous language as to the extent of authority granted. The mortgages were properly recorded. The trustee sought to avoid the mortgages, arguing that the power of attorney did not grant the authority necessary to execute the mortgages. The court rejects the trustee’s argument. Because the mortgages were properly recorded, they provided the requisite notice. A non-party cannot raise the question of authority of an attorney-in-fact when the parties relying on the power have not made authority an issue. Opinion below.

2015-01-14 – rogan v chase

Author: Matt Lindblom

Kotsopoulos v. Fifth Third Mortgage Co. (In re Kotsopoulos)

(Bankr. N.D. Ind. Oct. 10, 2014)

The bankruptcy court grants the bank’s motion for summary judgment and dismisses the debtors’ adversary complaint against it. Prepetition, the bank had foreclosed on the debtors’ mortgage in state court. The debtors’ complaint alleged that the bank knew it had an invalid mortgage when it sought the relief in state court, which constituted fraud and an abuse of process. The court held that the Rooker-Feldman doctrine barred the complaint. That doctrine prohibits a lower federal court from reviewing a state court’s final judgment. Because the state court enforced the mortgage in favor of the bank, the bankruptcy court could not reconsider whether the mortgage was valid. Opinion below.

2014-10-10 – in re kotsopoulos

In re Hazelwood

(W.D. Ky. Bankr. July 15, 2014)

The court grants the Chapter 13 debtors’ motion to for summary judgment, avoiding the bank’s mortgage due to the bank’s failure to record the mortgage before the filing of the bankruptcy petition. The avoidance action was not commenced until some time after the Chapter 13 plan had been confirmed, which classified the bank’s claim as secured. The court concludes that classification is not a bar to the later lien avoidance. Opinion below.

2014-07-15 – in re hazelwood