arc pool v bartels mo
TRANSCRIPT
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INTHECIRCUITCOURTOFTHETENTHJUDICIALCIRCUITOFTHESTATEOFFLORIDAINANDFORPOLKCOUNTY
ARCPOOLI,LLC,AMARYLANDLIMITEDLIABILITYCOMPANY,
Plaintiff,
vs.CASENO.532009CA0124518
GARYBARTELS;YVONNEBARTELS,ETAL,
Defendants._____________________________________/
HEARINGHELDONFEBRUARY17,2012
BEFORETHEHONORABLESTEVENL.SELPH
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DATE:February17,2012
TIME:9:14a.m.-10:14a.m.
PLACE:Pol
CountyCourthouse255NorthBroadwayAvenueHearingRoom7D1Bartow,Florida
APPEARANCES:MARKC.ELIA,ESQUIREVanNessLawFirm,P.A.1239EastNewportCenterDriveSuite110DeerfieldBeach,Florida33442ForthePlaintiff(Appearingtelephonically)
MICHAELF.SINGER,ESQUIREKorte&Wortman,P.A.3001ExecutiveDriveSuite300
Clearwater,Florida33762FortheDefendants
ALSOPRESENT:GARYBARTELS
REPORTER:MELODYOTHIENO========================================================I-N-D-E-X
February17,2012
HEARING........................................3
REPORTER'SCERTIFICATE........................56
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1Thereupon,thefollowingproceedingswerehadand
2ta
en:
3THECOURT:Thisisyourmotionforsummary
4judgment,Ibelieve;isthatright?
5MR.ELIA:Yes,sir,itis.
6THECOURT:O
ay.Letmestartoutbyas
ing
7Mr.Singer,onbehalfofthedefendant,if--if
8youallareopposingamotionforsummaryjudgment?
9MR.SINGER:Weare,YourHonor.
10Andbeforeplaintiffbegins,I'mnotsure
11whetherthecourthasjurisdictiontohearthe
12matterbecausethere'sbeenaFinalDisposition
13FormenteredonApril7th,statingthatthe
14matter'sbeendisposedofbythejudge.
15THECOURT:Really?
16MR.SINGER:Yes,YourHonor.
17THECOURT:O
ay.Well--well,didit
18indicatewhatthedispositionwas?
19MR.SINGER:Itjust--itdoesnot.
20THECOURT:Well,theyhavesubmitteda--a
21proposedonetogoinwiththisjudgmenthere.It
22saysdisposedbyjudge.Butyou'resayingitgot
23filedpreviously?Theypreviouslyfileda
24dispositionform?
25MR.SINGER:Yes,sir,YourHonor.There'sa
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1form,1.998,FinalDispositionForm,withinthe
2courtrecordinthisfiledatedApril7th,2011,
3statingthatthe--therehasbeenameansoffinal
4disposition.Andtheboxmar
eddisposedbyjudge
5hasanXthroughit.
6THECOURT:Isthereajudgmenttogowithit
7orsome
indof--somethingelse--someorderof
8judgmentthatgoesalong--theywerefiledatthe
9sametime?
10MR.SINGER:Thereisnot,YourHonor.There
11wasasettlementagreementwhichwasreached--
12THECOURT:Oh.
13MR.SINGER:--bac then.Ibelievethatwas
14the--why--thatmighthavebeentheground
15supportingthedisposition.
16THECOURT:Huh.Soundsli
ea--soundsli
e
17amista
etome,unlesstherewasanorderof
18dismissal--ornoticeofvoluntarilydismissal
19thatwentalongwithit.Idon't
nowwhythere
20wouldbeafinaldispositiononasettlementuntil
21there'ssomethingindicatingthatthecasewas
22dismissed.
23Mister--
24MR.ELIA:Elia.Yes,sir.It'smy
25understanding--
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1THECOURT:--Elia,canyou--canyou
2commentonthat?
3MR.ELIA:--there'sbeenany--there'sbeen
4novoluntarilydismissalandthere'sbeennofinal
5judgmententeredinthiscase.That'swhywe're
6tryingtogetthefinaljudgmententeredtoday,
7YourHonor.
8THECOURT:Idon't
nowifsomebodysentina
9FinalDispositionFormwithsomeotherdocumentsby
10mista
eorwhateverand--ofcourse,thecler
's
11goingtofileitifitcomesin.
12Iwasgoingtoloo
ituponmycomputer.I
13don'thaveit--havethiscasenumberloggedup--
14loggedonthereyet.Letmejustdothat.Ican
15loo andseeifIcanfindanythinginthecourt
16filethatwouldindicateanactualfinal
17dispositionotherthana--somethingrepresenting
18thatthere'sbeenafinaldisposition.Ithin
the
19FinalDispositionFormmightthrowoff--maycause
20astatisticalerror,butI'mnotsurereally--I
21don'tthin
Iwouldta
ethattomeanthatthecase
22isactuallyfinallydisposedof.That'sreally
23justadeviceforrecording--
24MR.ELIA:YourHonor--
25THECOURT:--caseloadsandallthat.
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1MR.ELIA:I'msorrytointerrupt,sir.
2OpposingcounselwasreferencingaFinal
3DispositionFormshowingdoc
etedonApril7thof
42011.Isthatthedate?
5THECOURT:Isthattheoneyou'rereferring
6to,Mr.Singer?
7MR.SINGER:ThatistheoneI'mreferringto.
8THECOURT:Yes.
9MR.SINGER:Doc eted--
10MR.ELIA:There'sa--acalendarentry
11deletedforthatsamedateat9:00a.m.,Your
12Honor.Soit'smyunderstanding--actually,there
13wasa--amotionforsummaryjudgmentsetforthat
14day.SothatwasaFinalDispositionFormprovided
15tothecourtortothecler inadvanceofamotion
16forsummaryjudgmentsetforthatday.Soit'smy
17understandingitwasdoc
etedinerror.
18THECOURT:Ithin
that'swhathappened.In
19fact,youhaveaFinalDispositionFormwiththis
20pac
etIhaveherenowforthesamereason.
21MR.ELIA:Yes,sir.
22THECOURT:And--and,Iguess,somebody--
23itgotfiledorgotdoc
etedwiththecler
by
24mista
e.Andthecler
--you'resayingthatthe
25cler
deletedit.Showsit'sbeingdeletedafter
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1that.Andtherewasnosummaryjudgmententeredor
2noother--nootheractualdisposition.SoI
3don'tthin
thatdeprivesthecourtof
4jurisdiction.Ithin
wecangoforwardwiththis
5motionforsummaryjudgmenthearing.
6Mr.Elia,doyouwanttoaddressyourmotion
7atthispoint?
8MR.ELIA:Yes.Than
you,sir.Mayit
9pleasethecourt.
10Thisisaloanwhichispastdueforquite
11sometime.Wehavefiledtheoriginalnoteand
12mortgagewiththecourt.I'mloo
ingforthe
13filingdate.
14THECOURT:I'mgoingtoloo
ituptoojust
15so--unfortunately,this--whenwedothisgroup
16doc
etwherewegroupabunchofcasestogether
17li
ethis,thecler
'sofficedoesn'tlistthe
18casesautomaticallyonmycomputerversionofthe
19courtcalendar.Ihavetojustloo
themupby
20casenumber,andI'mgoingtogoaheadanddothat
21nowwhileyou'retal
ingandwhileyou'reloo
ing
22foryour--
23MR.ELIA:Allright,sir.
24THECOURT:--information.
25MR.ELIA:Theoriginalnoteandmortgagewere
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1filedbac
onApril19thof2010.Andthefiling
2ofthosedocumentsshowsthatplaintiffisthe
3properpartywithauthoritytosueonthisloan.
4Wefiledtheappropriatesupportingaffidavits
5showingtheamountdueonthisloan.Wehaven't
6receivedanyaffidavitsinoppositiontoourmotion
7sayingthatanythingis--orcreatinganyissueof
8factwhichwouldprevententryofsummaryjudgment
9today.
10So--and,Ibelieve,thatweprovidedthe
11courtwiththeproposedfinaljudgmentformwhich
12showsthe--thetotalamountdueof$383,324.14.
13Andthatincludestheattorney--attorneyfee
14amountof$1,300,whichIthin
isreasonablefor
15thiscase.
16Than
you,Judge.
17THECOURT:O
ay.I--Inotethatyouall
18filedanamendedaffidavitofindebtedness,I
19guess,toupdatethosenumbersfollowingthe
20previouslyfiledmotionforsummaryjudgmentto
21updatefor--
22MR.ELIA:Yes,sir.That'sstandard
23practice.
24THECOURT:O
ay.Allright.What's
25defendants'positionthen?
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1MR.SINGER:BeforeIbeginmyargument,canI
2inquireastothatamendedaffidavitof
3indebtednessthatyoujustreferredtobecauseI
4wasn'tseeingthatonthecourt'sdoc
et?
5THECOURT:O
ay.Ijust--Ijusthappened
6toseeitwhenIwasscrollingthrough--
7MR.SINGER:Iwasn'tawarethatithadbeen
8filed20daysbeforetoday.
9THECOURT:Letmesee.Itshowsafiling
10dateofDecember1,2011.Andthecler
stamp
11showsDecember1,2011.It'sentitledAmended
12AffidavitofIndebtedness.SignedbyJohnC.
13Murphy.Let'ssee.It'sthreepageslong.Four,
14actually.It'sgotsomeattachmentswithit.So
15it'sfairlylengthywithalltheexhibitsthatare
16attachedtoit.
17Icanprintyouoffacopy.Justthe--
18withouttheexhibitsorsomethingifyouwantthat.
19MR.SINGER:Iwouldappreciatethat,Your
20Honor.
21THECOURT:O
ay.IsayIcan.Letmeseeif
22Icandothat.Itta
estheprinteraminuteto--
23todothat.It's--butitwill--itshouldstart
24printinghereinamoment.
25MR.SINGER:Inthemeantime,Icanaddress
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1otherarguments--
2THECOURT:O
ay.
3MR.SINGER:--notrelatedtothataffidavit.
4THECOURT:Allright.
5MR.SINGER:Allright.Than
you,Your
6Honor.
7Thefirstargumentthatwehaveisthat
8plaintiffdoesnothavetheauthority,underthe
9statutes,tomaintainthisaction.Specifically,
10Statute607.1502,aspertainingtotheconsequences
11oftransactingbusinesswithoutauthority.
12Plaintiff,inthisaction,isaforeign
13corporation.They'reestablishedinMaryland,as
14theircase--asthe--asthecasewouldindicate
15thattheyareaMarylandLimitedLiabilityCompany.
16Andthey'vealsofileda--theircostbondfurther
17affirmthattheyarenotaresidentofthestate.
18TheFloridaDivisionofCorporationsdoesnot
19indicatethatthisorganization,ARCPoolI,has
20anysortofcertificateofauthoritytotransact
21businessinthestate,suchasacquiringinterest
22inpropertiesandnegotiatingwithhomeowners.As
23such,thestatuteprovidesthataforeign
24corporationtransactingbusinessinthestate
25withoutacertificateofauthoritymaynotmaintain
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1aproceedinginany--inthestateuntilit
2obtainssuchcertificateofauthority.Ifthe
3courtfeelsthatadeterminationisneededasto
4whetheraforeigncorporationoritssuccessoror
5assigneeis--ifthecourtneedstodetermine
6whethersuchcorporationrequiresacertificateof
7authority,thecourtmaystaytheactionuntilit
8sodetermines.Andifitsodetermines,thecourt
9mayfurtherstaytheproceedinguntiltheforeign
10corporationoritssuccessorobtainstheir
11certificate.
12Ihavea--acopyof--
13THECOURT:Didyouraisethatasadefensein
14thiscase?
15MR.ELIA:YourHonor,thisisthefirstI've
16heardof--ofthis.Hastherebeenanything
17filed,some
indofamemorandumoranything,
18outlininganyofthis?BecauseI'mbeingambushed.
19THECOURT:That'swhyIas
edifthishas
20beenraisedasadefenseatsomepoint.
21MR.SINGER:Itwasnot,YourHonor.
22Plaintiff'spre--Imean,defendants'previous
23counseldidnotsoraiseit.We'vejustrecently
24comeintothecaseonbehalfofthedefendant.But
25webelievethatitisavalidargumentthatthe
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1statute--
2THECOURT:O
ay.Doyouhaveother--or
3here'sthecopyoftheamendedaffidavit.It--
4it--theprinter,forsomereason,printedafew
5pagesoftheexhibit.I--Ias
editjustto
6printtheaffidavititself,butitdidprintafew
7otheradditionalpages.
8MR.SINGER:ButI'llalsoaddressourother
9argumentswhichIraisedbytheaffirmative
10answers.Thefirstisthatplaintiffdoesnothave
11standing.They'veindicatedthatthenote--
12possessionofthenote,whichhasbeenfiled,
13whetherornotthat'soriginal,Ibelieve,is--is
14aquestionoffact.
15THECOURT:Wasthe--hasthe--letmeas
16thattoclarify.Hastheoriginalnoteand
17mortgagefilebeenfiledinthecourtfile?
18MR.ELIA:Yes,sir.Theywerefiledbac
on
19April19thof2010.
20THECOURT:Well,Iwould--thatwouldseem
21toindicatetheyhadpossessionofitiftheywere
22abletofileit.
23MR.SINGER:Theirpossession,Iwassaying,
24wasn'tthequestion.Thequestioniswhetherit's
25anoriginal.
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1But,furthermore,the--thenotehasnot
2mentionedtheplaintiffthatisnotendorsedin
3blan
orspecificallyendorsedtotheplaintiff.
4Therewasanendorsementonthenotemadebythe
5originalpayee,Ban
UnitedFSB.However,they
6voided--theyhad--supposedlyhadachangeof
7mindbecausethatendorsementandblan
isvoided,
8andthuspossessionofthenotealonetowhich
9plaintiffisn'tapartynorhasablan endorsement
10oraspecificendorsementperthe--thecaseof
11Riggs.Holdonaminute.Letmegetthat.
12THECOURT:I'm--I'mloo
--tryingtoloo
13forthenoteherejustasecondwhileyou'redoing
14that.
15MR.SINGER:Allright.The--thecaseof--
16MR.ELIA:That'strue,YourHonor.There--
17on--onthelastpageofthenote,therewasan
18endorsementstampwhichwasstruc
through.It
19saidpaytotheorderofblan
withoutrecourse
20Ban
UnitedFSB.SignedbyMireyaFoster,Assistant
21VicePresident.Andshesignedit.It'sstruc
22throughwiththewordvoidinboldlettersontop.
23Myunderstandingisthatmayhaveta
en
24place--thisisjustaguess--becauseBan
United
25FSBceasedtoexistwhenitwasta
enoverbythe
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1FDIC.
2Myofficefiledtheassignmentofmortgage
3signedbyBillWilliams,allegedpresidentof
4Ban
UnitedassigneeofFDICasreceiverfor
5Ban
UnitedFSB.That'sattachedtoourplaintiff's
6replytoaffirmativedefensesfiledbydefendants
7GaryBartelsandYvonneBartels.Wefiledthat
8bac
inlateSeptemberorearlyOctoberof2010.
9Well,thisargumentwhich--whichnewdefense
10counselisraisingwasaddressedroughlyayearand
11ahalfago,andit'sinthecourtrecordthere.
12I'mloo
ingforthe--thefilingdateasIreplied
13toaffirmativedefenses.
14THECOURT:Iseeit.
15MR.SINGER:Butasplaintiffisreferencing,
16thisassignmentwasnotdonebythe--theoriginal
17lenders.Notdonebythepayee,Ban
UnitedFSB.
18ItwasdonebyanassigneeofBan
UnitedFSB.The
19entity
nownasBan
United,aseparateentity.
20MR.ELIA:That'strue,YourHonor.That's
21because,asamatterofpublicrecord,Ban
United
22FSBfailed.Weattached--ifyouloo
atthepage
23justbelowtheassignmentunderneathourreply
24there,you'llseetheFDIC'spublicwebsite
25informationandthe--theNationalInformation
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1Center'shistoryonBan
UnitedFSBshowingthatit
2failed.Andthatwasin2009.Theassetswere
3transferredbytheFDICintothenewentity
4Ban
United.Andthat'swhythe--thesigneron
5thatassignmentisBillWilliams,thevice
6presidentofBan
United,assigneeoftheFDICas
7receiverforBan
UnitedF--FSB.
8Mr.Williamstransferredownershipofthis
9loanintoARCPoolI,LLC,whichisthecurrent
10plaintiffinthiscase.That'swhymyclienthad
11theoriginalnoteandmortgageandthat'swhywe
12fileditinthecase.
13THECOURT:O ay.Well,let'sseeif
14Mr.Singerhasanyotherissueshewantstoraise.
15MR.SINGER:Ido,YourHonor.Justthecase
16ofGeeversusUnitedStatesBan
National
17Associationastrustee.It'sa2011case.Idon't
18havetheciteforit,unfortunately,buthere'sa
19copy.LetmehandyouacopyIdidn't--letme
20figureoutwhichcopyIdidn'tnotate.
21Istillthin
thatthere's--thereare
22questionsoflaw.Infact,the--thearguments
23thatplaintiff'sstating,Idon'tbelievethat
24you--there'sbeenanyjudicialnoticeestablished
25astoban
--whetherthis--thiswasorwasnot
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1transferredtoBan
United.Andunderthecaselaw
2thatIjustcited,the--asasummaryjudgment
3hearingwheretheplaintifffailedtoofferany
4proofoftheassignee'sauthoritytoassignthe
5mortgagethatthe--thecourtconcludedthatit
6failedtoestablishitsstandingtobringthe
7foreclosureactionasamatteroflaw.I--I
8don't--Idon'tbelievethatthe--the--the
9lin betweenBan UnitedFSBandBan Unitedhasbeen
10sufficientlyestablished.
11AndI'dalsoli etocallthecourt's
12attentiontothetechnicaladmissionsinthis
13action.Therewasarequestforadmissionsserved
14onJanuary27,2011,towhichplaintifffailedto
15respondandthusthe--theadmissionsaredeemed
16admittedpursuanttoRule1.370.Anddefendanthas
17beenrelyingonthoseadmissionsupandtothis
18point.Andthoseadmissionsincludethatthe
19plaintiffdidnotownorholdtheirnote--the
20plaintiffdidnotownorholdthenoteand/or
21mortgageonNovember13th,2009,thedaythe
22complaintwasfiled.Theplaintiffdidnotgive
23thepre-accelerationnotice,asrequiredbythe
24mortgage,whichisdefendants'secondaffirmative
25defenseandtoprerequisiteconditiontoany
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1entitlementtoenforcetheforeclosure.Number
2fourisadmitthat--plaintiffadmitsthatthey
3werenotauthorizedtoenforcethenoteontheday
4thecomplaintwasfiled.Thatasettlementwas
5reachedinmediation.Thatthemediationagreement
6wasthefullandcompletesettlementagreement,and
7thatplaintiffhasrefusedtocomplywiththe
8settlementagreementreachedinmediation.
9THECOURT:O ay.Well--
10MR.ELIA:Idon'tsee--I'mloo
ingherefor
11any--anyadmissions,YourHonor.Idon'tseeany
12onthedoc
et.
13THECOURT:Iwasjustloo ingfortherequest
14foradmissionstoseeifithadbeenfiled,and
15it--andithadnotbeenrespondedto.Itcould
16bedeemedasadmitted.
17MR.SINGER:ThecopyIobtainedisfromthe
18courtfile.It'sdatedJanuary27th,2011.It's
19beeninthecourtfileforoverayear.
20Certificateofservice--
21MR.ELIA:Januaryof--let'ssee--2011.
22MR.SINGER:Certificateofserviceindicates
23itwasserveduponVanNessLawFirmandReal
24Management,LLC,anotherparty.
25THECOURT:Well,Isee,onJanuary27,an
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1entryforaletterfromattorney'sofficeregarding
2amotionforsummaryjudgment.OnJanuary28th,I
3seeanoticeoffilingdefendants'consentto
4substitutionofcounsel.
5MR.SINGER:Itmaybeinpartofthat
6January31stfilings,theletterfromattorney's
7office.
8THECOURT:Allright.Let'sseewhatthat
9shows.
10MR.SINGER:But,asIsaid,Iobtainedthis
11fromthecourtfile,thecopythatIhaveinfront
12ofme.
13THECOURT:O ay.I'm indofinterestedto
14discussthatsettlementagreement.Hasthere--
15hastherebeenanagreementto--thatwouldserve
16asanovationorasettlementofthisnoteand
17mortgage--
18MR.ELIA:Let'ssee.
19THECOURT:--orwouldhavereplacedit
20with--inthenewagreement?
21MR.ELIA:I'mloo
ingataforbearance
22agreement.Let'ssee.
23THECOURT:Igatherit'snotfiledinthe
24recordinthiscase,butit--butit--
25MR.ELIA:Wasitfiled,sir?I'msorry.
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1THECOURT:IsaidIgatheritwasnotfiled
2unless--inthe--inthecourtfileaspartof
3therecord,but,obviously,thepartiesdidreach
4anagreementthatraisesanissueherethatImight
5needtoconsider.
6MR.SINGER:Idon'tbelievethatthere's
7evidenceofthesettlementagreementwithinthe
8courtrecord.There'sjustplaintiff'sadmission
9thatasettlementagreementwasreachedat
10mediation.Thatthemediationagreementwasthe
11fullandcompletesettlementagreement.And
12admissionnumbersixstatesthatthetermsprovided
13intheforbearanceagreementaredifferentthanthe
14termsagreedtointhemediationsettlement
15agreement.And--
16MR.ELIA:I'mloo
ingatasignedforbearance
17agreement,YourHonor--
18THECOURT:Well,o
ay.
19MR.ELIA:--signedApril7thof2011.
20THECOURT:Whichisaroundthesametimethat
21FinalDispositionFormthatweweretal
ingabout
22earlierwasfiled.
23MR.ELIA:Yes,sir.I'mloo
ingbac
intomy
24notestoseewhat--whatthestoryis,sir.
25THECOURT:O
ay.
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1MR.ELIA:Yes,YourHonor,thatagreementwas
2signed,andthatcausedthatcancellationofthat
3April7thhearing.
4THECOURT:O
ay.So--
5MR.ELIA:I'mloo
ing--
6THECOURT:--isthat--isthatafinal
7resolutionand--Idon't
nowwhatthetermsof
8theagreementwere.Wasit--
9MR.ELIA:No,sir.Yeah,it's--ithasn't
10beenfiledsothetermsofitareconfidentialis
11myunderstanding.
12THECOURT:O
ay.Bytheway,Ididfindthis
13requestforadmissions.Itwasdoc eted.It
14doesn'tshowuponthe--onthelistofdoc
eted
15itemsonthecourt--onthemenuofthecourtfile
16here,butit's--Iloo
edatthefirstsetof
17interrogatories--
18MR.SINGER:Uh-huh.
19THECOURT:--defendants'firstsetof
20interrogatories,wherethosewerefiled,justthe
21questionswithouttheanswers,anditwasplaced
22behindthat.It'sinwiththatrequestfor
23admissions.Soitdoesn'tjumpoutatyouifyou
24werescrollingthroughthecourtfilethatthere's
25arequestforadmissionsthere--intherebut
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1thereis.
2MR.SINGER:It--it--you
now,thatmaybe
3anotherdoc
etingerroraswith--
4THECOURT:Yeah.
5MR.SINGER:--thefirstFinalDisposition
6Form.
7THECOURT:It'sunfortunatewhenwestart
8gettingrelieduponcomputerizedfiles.That's
9whathappenssometimesbut--
10MR.SINGER:Yeah.Butthatdoesn'tchange
11thefact--
12THECOURT:There--thereisarequestfor
13admissionshere.Letmeseewhat--itshows
14instructions.Andthenithastheactual--and
15definitions.Andthenitliststoadmitordeny.
16Itrequiresthenoteandmortgagethroughan
17assignmentthat--thatoccurredafterthefiling
18ofthecomplaint.Thesehavenoanswerstothem.
19MR.ELIA:Well,YourHonor,when--whenthis
20casewasfirstfiled,itwasfiledinthenameof
21Ban
UnitedassigneeoftheFDICasreceiverfor
22Ban
UnitedFSB.
23THECOURT:Well,anewplaintiffcanbe
24substitutedforapreviousplaintiffina
25foreclosureactionsimplybasedonamergerora
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1transferof,you
now,an--aban
orlending
2institutiontoanotherinstitution.
3MR.ELIA:Yes,sir.It'smyunderstanding
4that'swhatoccurredinthiscase.
5THECOURT:And--andthere'sastatutein
6Florida--Idon'thavethestatutenumberoffthe
7topofmyheadhere.Butundertheban
ing
8statutes,itprovidesforsuccessorban
resulting
9of--fromamergeroracquisitionofanother
10ban
--amergerwithoracquisitionofanother
11ban tobedeemed--presumethattheyholdthe
12same,you
now,instrumentsandhadalltheright
13titleinterestofthoseinstrumentsthatwereheld
14bytheban
theymergedwithoracquired.SoI
15don'tthin thefactthatoneban wasthe
16plaintiffatthetimethe--andheldthenoteand
17mortgageatthetimeofthefilingofthe
18foreclosureactionandthentheywereta
enoverby
19anotherban
duringdependencyoftheactionwould
20preventthesuccessorban
or--orsuccessor
21plaintifffrombeingabletoproceedwiththe
22foreclosure.
23Letmejustloo
atthese--letmeloo
at
24theserequestforadmissionsagainjustamoment.
25MR.SINGER:Ibelievenumberthreeisalso
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1quitesignificantasitdoesgotowardsdefendants'
2secondaffirmativedefense.Thesecondaffirmative
3defensestates:Failuretoexhaustnotice
4requirements,conditionsprecedenttofiling,
5plaintifffailedtocomplywiththenotice
6requirementsunderparagraph22ofthemortgage.
7Andtheiradmissionundernumberthree,theyadmit
8thatplaintiffdidnotgivethepre-acceleration
9noticeasrequiredbythemortgage.Thus
10establishingdefendants'--thusestablishingat
11leastageneral--anissueof--offactasto
12whethersaidnoticewasprovidedin--in--in--
13incompliancewithparagraph22ofthemortgage.
14MR.ELIA:Well,YourHonor,there'sacopyof
15thenoticeofdefaultletterattachedtoourreply
16totheaffirmativedefenses.That'sintherecord.
17It'sattachedtoourreplywhichisfiled.Wesent
18itoutSeptember28thof2010.Ibelievethat
19predatesthe--therequestforadmissions.
20ThenoticewassentbyBan
United.Ban
United
21letterhaddatedJuly6of2009.Anditwentto
22Mr.BartelsandMrs.Bartelsattheir--their
23Liverpooladdress.
24THECOURT:Letmegetaclarificationhereon
25theearlierpointbeforeI--beforeIlosetrac
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1ofwhatI'mthin
ingabouthere.
2MR.ELIA:Yes,sir.
3THECOURT:Ontheissueabout,you
now,ifa
4plaintiffta
esamortgageandnotebyassignment
5asopposedtojust,you
now,weretheyjust--
6wereassignedthatoneinstrumentasopposedto
7actuallyta
ingovertheassetsof--ofthe
8previousban
,wemighthave--thatstatuteIwas
9referringtobeforemaynotapply.Itmaybethat
10thecomplaintneed--wouldneedtobeamended
11and--atthatpointorsomethingratherthanjust
12simplytreatingitasanongoingcomplaintwitha
13substitutedplaintiff.
14What--whatwasthesituationhere?Andit
15maybeaddressedinyouraffidavits.Ihaven't
16loo
ed--readthroughallthoseyet.Howisit
17thatARCPoolI,LLC,becamethe--becamethe
18ownerandholderofthisnoteandmortgage?Wasit
19justthroughassignmentofthe--ofthe--ofjust
20afewnotesandmortgages,orwasitta
ingover
21Ban
Unitedorwhat?
22MR.ELIA:No.Thiswas--yeah,ARCPooldid
23notta
eoverBan
United,YourHonor.Thiswasan
24assignmentofoneloan.Theremayhavebeenafew
25loans,butthiswasnot--ARCPooldidnotta
e
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1overBan
United.
2THECOURT:O
ay.Sothat--theremaybea
3validissuebeingraisedhereaboutwhetheratthe
4time--you
now,thatthisplaintiffdidnotown
5andholdthenoteandmortgagetogetitstanding
6tosueat--atthetimebecause--becauseitwas
7adifferent--
8MR.ELIA:Well,whenourcasewasfiled--
9I'mloo ingbac atthelispendensintheoriginal
10complaint--
11THECOURT:Uh-huh.
12MR.ELIA:--whichwefiledbac
inNovember
13of2009.Theoriginalplaintifflistedthereis
14Ban
UnitedassigneeoftheFDICasreceiverof
15Ban UnitedFSB.
16THECOURT:Right.
17MR.ELIA:Andthatwastheowneroftheloan
18atthattime.
19THECOURT:How--howdidARCPoolbecomethe
20plaintiff?Wasitthroughamotionfor
21substitutionofplaintiff,orwasitthrough
22amendedcomplaint?
23MR.ELIA:I'mloo
ing--I'mloo
inghere,
24sir.Sorry.
25MR.SINGER:Toansweryourquestion,itwasa
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1substitutionofplaintiff.However,thatmotion
2wasdoneandexecutedexpartewithout--
3THECOURT:Yeah.
4MR.SINGER:--defendants'--
5THECOURT:Thisis--
6MR.SINGER:--presence.
7THECOURT:--oneofthosesituationswhere
8sometimeswegrantthoseand--when--whenit
9loo sli eaprettystraightforwardsituation.
10Thismaynotbe,though.Maybeitwouldhavebeen
11betterifithadanamended--complaintamendedat
12thatpoint.
13MR.ELIA:Yes,sir.The--
14MR.SINGER:Iagree.
15MR.ELIA:IhopeI'mnotinterrupting.
16THECOURT:No.You'reallright.Goahead.
17MR.ELIA:ThecomplaintwasfiledinNovember
18of2009inthenameofBan
United.AndinMarchof
192010--soaboutahundred--lessthan120days
20later,therewasa--actually,itwassubmittedin
21Februaryof2010.Soabout90dayslater,there
22wasamotionforasubstitutionofpartyplaintiff
23and,thereafter,anorderwhichgrantedthat--
24thatmotion.Andattachedtothemotion--I'm
25loo
ingatthe--themotionforasubstitutionof
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1partyplaintiff.
2Subsequenttothecomplaintbeingfiled,
3Ban
UnitedsoldthenoteandmortgagetoARC
4PoolI.Thereisacopyoftheassignmentof
5warrantyattachedasanexhibit.Andthat--that
6assignment,whichwasattached,wastheassignment
7thatIreferencedearlierwhichisalsoattachedto
8ourreplytoaffirmativedefenses.It'sthe
9assignmentofmortgagesignedbyBillWilliams,
10VicePresidentofBan
United,assigneeoftheFDIC
11andthereceiverforBan UnitedFSB.Anditshows
12assignmentcalledBan
UnitedtoARCPoolI,LLC.
13Thatwasabasisforthegrantingofthe
14substitutingplaintiff.
15THECOURT:Andmypredecessorjudgeinthis
16case,JudgeWright,signedtheordergrantingthat.
17Let'ssee.Well,itreallyjustboilsdowntoa
18questionofwhether--amotionforsummary
19judgment--whetherthere'sanygenuineissueof
20materialfactaboutwhetherthiscurrentplaintiff
21becametheownerandholderofthenoteand
22mortgagebyvirtueofanassignmentor--or
23otherwise.Inthiscase,they'resayingit'sby
24virtueofthisassignmentand,therefore,would
25havetherightto--toforeclosethe--the
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1mortgage.
2Ithin
abetterpracticeprobablywould--in
3retrospectwouldhavebeentohavethemfilean
4amendedcomplaintallegingandexplaininghowthey
5becametheholderofthenoteandmortgagesothe
6defendantcouldraiseanydefensesorresponseto
7that--thatwouldbeneeded.Butthosecanstill
8bedealtwithnowas--as--ifthere--ifthere
9aredefensestothat.ButIdon't--Idon't now
10thatthat'sreallyanissuewhenyougetrightdown
11toitbecausetheydo--thereis,apparently,an
12assignmentofthatandsuithasbeenfiledwith
13an--withinthereplytotheaffirmativedefense
14asapleading.It'sbeenfiledasexhibittothat
15pleading.AndalsoIthin it--wasitpartofan
16affidavittoo?Wasitreferredtoinanaffidavit
17aswell?Let'ssee.
18MR.ELIA:Theaffidavitsof--of
19indebtedness,whichmyclienthassubmitted,
20they've--they'veallallegedthattheallegation
21andcomplaintaretrueandthatARCPoolIowns
22the--theloan.
23THECOURT:O
ay.Well,that--sothat--
24thatestablishesasevidence,you
now,as
25testimonyin--inthecourtfileandtherecord.
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1SoIdon't
nowiftherereallyisanissuehereat
2thispointaboutthefactthattheplaintiffowns
3andholdsthenoteandmortgageandisentitledto
4see
foreclosureofit.
5ThentheonlyotherquestionIstillgotis
6aboutthisagreement.You
now,iftheparties
7reachedsome
indofanagreementto--toresolve
8thisthatwould--perhapsthenwe'retal
ingabout
9awholedifferentcauseofactionfor--ifthere's
10beenabreachofthe--ofthesettlementagreement
11versus,you now,acauseofactiononthenoteand
12mortgageitself.Inotherwords,themortgagemay
13havebeenreplacedbythisagreement.
14MR.SINGER:Ithin
the--
15MR.ELIA:YourHonor,the--withoutgoing
16intotoomuchdetail,thiswasaforbearance
17agreementso--
18THECOURT:Sothatjustmeansyouwouldhold
19offonpursuingtheforeclosure.
20MR.ELIA:Yes,sir.Itwasnota--itwas
21notamodificationoranovationofthetermsof
22theloan.
23THECOURT:O
ay.
24MR.ELIA:Andit'smy--it'smyclient's
25positionthatwe'reproceedingwiththeforeclosure
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1atthistime.
2THECOURT:Soyourclientta
espositionthat
3whatevertermsof--whatevertermsofthat
4agreementthatwouldcallforforbearanceareno
5longerapplicableandthatyoudon't--nolonger
6havetoforbear.
7MR.ELIA:Yes,sir.The--thedefaulton
8theloanhasnotbeencured.
9THECOURT:O ay.Isthataddressedinthe--
10thatamended--intheaffidavitoramended
11affidavitofindebtednesssomewhere?
12MR.ELIA:Idon'tthin
itisspecifically
13mentioned,YourHonor,butitwillsayinthere
14thatthe--itwillspecificallysaythattheloan
15isindefault,sir.
16THECOURT:O
ay.
17MR.SINGER:YourHonor,nowthatI've--
18THECOURT:There'sbeennofilingofan
19agreementor--oraffidavitreferringtosome
20otheragreementbythedefense,hasthere?
21MR.SINGER:There'stheadmissionswhich
22statethattheagreementreachedatmediationis
23differentthantheset--differentthanthe
24forbearanceagreement.So,technically,Iguess,
25therewas--there'sbeentwoagreementsreached.
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1Oneinmediation,whichthere'snoevidencefor
2otherthanplaintiff'sadmissions,andthenthe
3forbearanceagreementaswell.
4THECOURT:Sobecauseofalac
ofaresponse
5totherequestforadmission,you'resayingit's
6deemedadmittedthattherewassomeotheragreement
7otherthanaforbearanceagreement?
8MR.SINGER:I'msayingthat--yeah,thatthe
9plaintiffhasadmitted--numberfive,theyadmit
10thatasettlementwasreachedinmediation.And,
11numbersix,theyadmitthatthesettlements--the
12termsprovidedintheforbearanceagreementare
13differentthanthetermsagreedtointhemediation
14settlementagreement.Numberseven,theyadmit
15thatthemediationagreementwasthefulland
16completesettlementagreement.And,numbereight,
17theyadmitthattheyrefusetocomplywiththe
18settlementagreement.
19THECOURT:Buthowisthecourtto
nowwhat
20thatsettlementagreementsays?Whetheritsays
21thatthey--theycannolonger--ifit'san
22agreementthatsaysthis--thissatisfiestheloan
23orsatisfiesthenoteandmortgageandbecomesa
24newagreementli
eanovation,howamIto
now
25that?Idon'thave--nothing'sbeenfiled,you
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1
now,showingwhat--indicatingwhat--whatthe
2termsofthatagreementare.Nobody'sexplainedit
3indetailinanaffidavitorfiledacopyofit.
4SoallIhaveisjustsome--sometechnical
5admissionbytheplaintiffthatthereisa
6settlementagreementthat'sdifferentfroma
7forbearanceagreement.Butthatsettlement
8agreementmayjustsayyou'regoingtoma
e
9paymentsofXamount,andifyoudon't,we'regoing
10toproceedwiththeforeclosure.Imean,Idon't
11 nowwhatitsaid.
12MR.SINGER:I--you
now,there--I--I
13don't nowwhatitsayseither.There'sno
14evidenceinthecourtfile.ButIthin
thatdoes
15raiseanotherissueoffact.
16THECOURT:Doesyourclienthaveacopyof
17thisagreement?
18MR.BARTELS:Idon'thaveacopyofitwith
19me,no.
20THECOURT:Doesanybodyhaveacopyofit,I
21wonder?
22Mr.Elia,areyou--doyouhave--areyou
23familiarwithaseparateagreementbesidesthis
24forbearanceagreementyou'vealreadyreferredto?
25MR.ELIA:No,sir.TheonlyagreementthatI
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1seeistheforbearanceagreement.
2THECOURT:Andwasthereamediationinthis
3case?
4MR.ELIA:I'llta
ealoo
bac
,sir.
5MR.BARTELS:Yes,therewasamediation.
6THECOURT:Mr.Bartels--Bartelsissaying
7therewasamediation.Andyou'resayingthat's
8whentheagreementoccurredduringthis--
9MR.BARTELS:Therewasanagreementin
10mediation.Thatagreementchangedaftermediation
11againbyARC.
12THECOURT:Wasthisanagreementwherethe
13mediatorjustwrite--wroteoutsome indof
14handwrittenagreement?
15MR.BARTELS:Theyputittogetherandthenit
16wasn't--ARCPooldidn'tacceptthemediationat
17thatpoint--afterapointofitbeingagreedin
18themediation.Andthenthegoalpostarrived
19after--afterthatdate.
20THECOURT:Soyou'resayingtheychangedthe
21agreement--
22MR.BARTELS:Yeah.
23THECOURT:--basically,afterwards?
24MR.BARTELS:Afterthemediationappointment,
25yeah.
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1THECOURT:Haditbeenputinwritingand
2signedatsomepoint?
3MR.BARTELS:Somethingwassignedduringthe
4mediation,butthenitwaschangedagainafter.
5THECOURT:Youdidn'tgetacopyofthe--
6MR.BARTELS:Wegotsomecopies.Butthere
7wasafewdifferentcopiesthatwereflyingabout.
8THECOURT:Well,I
nowthemediationsused
9tobe--havebeenchronicallyaproblemwhere
10somebodyrepresentingtheban
willbeatthe
11mediationandmaybetheir--ortheattorneythat's
12theredoesn't--isnottunedintowhatother
13personsattheban areagreeingtoontheside
14withthe--withthe--withthe--withthe
15defendant.Butitwouldbeniceifsomebodyhadan
16actualdocumenttopresent.
17MR.ELIA:There--there'samediationreport
18whichwasfiledonDecember1stof2010.
19THECOURT:Allright.
20MR.ELIA:So,yes,therewasamediation.
21Themediationreportindicatesthattherewasan
22agreement.
23THECOURT:O
ay.Iseethatnow.AnnKiser
24wasrepresentingtheplaintiff.Plaintiff's
25attorneywasJohnStu
ey.Mr.Bartelsand
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1Mrs.Bartelswerethere.Defendants'attorney
2DennisChen.
3MR.ELIA:Yes.
4THECOURT:Itsayssignedsettlement
5agreementwasreachedduringthismediationanda
6copywillnotbefiledwiththecourt.Andthe
7mediatorsignedthatreport.
8O
ay.Well,Mr.Elia,isit--isityour
9positionthatthat'sthe--Elia.I'msorry.AmI
10mispronouncingyourname?Isthatthe--areyou
11sayingthat'stheforbearanceagreementyou'vebeen
12referringto,oristheresomething--
13MR.ELIA:Yes,itis,sir.
14THECOURT:Mr.Bartelsissayingthatthat
15forbearanceagreementisnotthesameagreement
16thatwasreachedatthemediation.
17MR.SINGER:That'swhatdefendantis--
18MR.ELIA:Well,there--therearespecific
19terms--
20THECOURT:Andmister--justincaseyou
21didn'thearthat,Mr.Elia,Mr.Singerissaying
22thatthat'swhat'sreferredtointherequestfor
23admissionsthatwasnotdenied.Butthat'sa
24separateagreement.But,hereagain,wedon't
now
25whatitis.It'sjustreferred--it'sreferredto
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1assomeseparateagreement.Wedon't
nowwhatthe
2termsofthatseparateagreementare,whichIta
e
3itwouldbesomethingthatwaswrittendownatthe
4timeofthemediationconference.
5MR.ELIA:Yes,therearesome--thereare
6somenotesandtermswrittendownhere.
7THECOURT:O
ay.
8MR.ELIA:Idon'tbelievethattheseare
9filed.
10THECOURT:It's,apparently,not.AndI
11gatherthey'renotsignedby--executedbyanybody
12butIdon't
now.
13Well--
14MR.ELIA:Whatseemstobeindicatedherewas
15thatthe--sortofanagreementortheyhopedto
16getintotheforbearanceagreement,YourHonor.
17THECOURT:That'swhatyou'resayingthe
18notesinthemediationseemtoindicate?
19MR.ELIA:Yes,sir.
20THECOURT:Well,ofcourse,noneofthat'sof
21record,so.
22Well,letmejustsay--
23MR.ELIA:Therehasn'tbeenany--
24THECOURT:--atthispoint--
25MR.ELIA:Therehasn'tbeenanysettlementor
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1forbearancewhichhassecuredthisloan.That's
2whymyofficeisproceedingwiththeforeclosure.
3THECOURT:Well,Ithin
--letmejust
4say--
5MR.ELIA:Sometimes,though,therehasbeen
6moreeffortsasshownbythe--well,it'snotof
7record,buttherewasa--therewasthesubsequent
8agreement,forbearanceagreement,signedsome
9monthsafter.
10THECOURT:O
ay.Well,letmejustsaywhat
11Ithin atthispoint.Ithin that--Ithin --
12Idon'tthin
thereisagenuineissueofmaterial
13factaboutwhetherARCPool,theplaintiffhere,
14can--hasauthorityandstandingtoforeclosethis
15noteandmortgage.Ithin itdoes.Atleastas
16faraswhetheritcanbe--whetherit'saproper
17plaintiff,inotherwords,atthisjunctureofthe
18case.Ithin
that'sbeenestablishedbythe
19affidavitsinthefile.
20Now,astowhether--notwithstandingthe--
21thefailuretoanswerthe--inresponsetorequest
22foradmissions.ButIthin
thehangupforme
23thatI--that'sgoingtopreventmefromentering
24asummaryjudgmenttodayisthepossiblesettlement
25thatisnotofrecord.Andthecourthasnowayof
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1
nowing--it'sbeenac
nowledgedbyalac
of--
2ofadenialtotherequestforadmissionsthat
3thereissometypeofsettlementagreementout
4there,whichIthin
createsanissue--agenuine
5issueofmaterialfactrightnowthat--thatmight
6ultimatelyprevent--you
now,that--that
7prevents--Ishouldnotsayultimately,butat
8thispointpreventsmefromenteringasummary
9judgment.
10Now,thatmaybeallcleareduplateron
11throughfilingsofsubsequentaffidavitsorother
12filingsintherecord.Maybeasummaryjudgment
13maybeappropriatelateron.Ifnot,wecanalways
14haveatrialandtrytohavetheplaintiffproveup
15thiscaseatthat--atthatjuncture.
16MR.ELIA:JudgeSelph--
17THECOURT:Yes,sir.Whatdoyouwantto
18say?
19MR.ELIA:I'mloo
ingatthelaterdoc
et
20entries.
21THECOURT:O
ay.
22MR.ELIA:Itappearsthatmyoffice--
23appearsthatmyofficefiled,inOctoberof2011,a
24motiontoenforce--it'slistedasforeclosure
25agreement.AndalsoonOctober12,plaintiff's
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1affidavitinsupportofmotiontoenforcethe
2forbearanceagreement.
3THECOURT:Soyou'resayingthatputsitin
4therecordthere?
5MR.ELIA:Yes,sir.I'mpullingthoseup
6now.
7MR.SINGER:Iwouldli
etopointoutthat
8saidmotionthatplaintiff'scounselisreferring
9tohas--hasnotbeennoticedbytheplaintifffor
10todayorforanyothertime.Andaccording--I
11don'tbelieve--
12THECOURT:Sothecourthasn'truledonit
13yet.
14MR.SINGER:Thecourthasnotruledonthe--
15theforbearance--
16MR.ELIA:YourHonor,there'sactuallyacopy
17oftheforbearanceagreementattachedasanexhibit
18tothatmotion.
19THECOURT:O
ay.
20MR.ELIA:Ijustnoticed--
21THECOURT:O
ay.Iappreciateyoubringing
22thatupbecauseIhadnotnoticedthatyeteither.
23Let'ssee.
24Whenwasthatfiled?
25MR.ELIA:Thedateoffilingofthemotion
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1andtheaffidavitareOctober12thof2011.
2THECOURT:O
ay.
3MR.ELIA:AndIagreethat--withopposing
4counsel--thatthemotiontoenforceitisnotset
5forhearingtoday.Butifitcanclarifytheother
6endsthecourtbroughtupwhichthecourtfelt
7mightpreventsummaryjudgment,Ihopeitdoes.
8THECOURT:O
ay.Well,letmeloo
.Letme
9loo atthat.Itisa--itisa--thereisan
10affidavitherethataccompaniedthatmotion.
11Plaintiff'saffidavitinsupportofmotionto
12enforceforbearanceagreement.AnnKiser,whohad
13beenthe,Iguess,thecorporaterepresentativeof
14theplaintiffatthemediation,isthepersonthat
15signedthisaffidavit.Let'sseewhatitsays.
16Ofcourse,shestatesshehasactualand
17personal
nowledgeofthefactsthatshe's
18referringtohere.Thatdefendantexecuteda
19forbearanceagreementonoraboutApril7,2011,
20whereindefendantsagreedtoma
eincreasedmonthly
21paymentstoplaintiffintheamountof$4,000until
22May1,2012.Acopyofsaidagreementisattached
23asExhibitAtothis--totheaffidavit.
24Itgoesontorefertothefactthat
25defendantshavefailedtoma
ethepaymentsduefor
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1themonthsofJuly,August,andSeptemberof2011.
2Anditgoesontosaypursuanttothetermination
3conditionsoftheagreement,theagreementis
4automaticallyterminatedifthedefendantsbecome
530dayslateonanypayment.Whichifthat'strue,
6thenitdoesn'treallyrequireacourtactionto
7terminatethatagreement.Itterminatesonits--
8underitsownterms.
9MR.ELIA:Yes,sir.
10THECOURT:Itgoesoninthe--thelast
11paragraphheretosaytheagreementalsoentitles
12plaintifftoadeedinlieuforthesubject
13propertyandrequiresthedeedinlieutobe
14executedanddeliveredtoplaintiffwithin30days
15ofanybreachoftheagreement.
16So,Iguess,ifyouweresee
ingtoenforce
17thatagreement,asyourmotionsuggestedthere,you
18wouldbeas
ingthecourttoorderthemtoenter--
19toexecuteadeedinlieu.
20MR.ELIA:Yes,sir.
21MR.SINGER:But,again,thatmotionisnot
22before--
23THECOURT:Andthat--
24MR.SINGER:--thecourttoday.
25THECOURT:Thatmotion'snotbeforethe
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1court.I'mnotgoingtograntthat.I'mgoingto
2denythatmotiontoday.But--butwe're--
3instead,theplaintiffhasnot--hasnotsetthat
4forhearingtopursuethat.They--plaintiffis
5simplynowjustwantingtogoaheadandgeta
6foreclosurejudgment.
7MR.ELIA:Yes,sir.
8THECOURT:Andsotheplaintiffs,bythis
9affidavit,issayingthat--thatagreementthat
10wasreachedatthemediationthatwas--hasbeen
11breachedbythedefendantsand,therefore,is
12terminatedunderitsownterms.
13MR.SINGER:Myclienthasadditionallyfiled
14anaffidavitin--to--tocounterplaintiff's
15affidavit,statingthattheagreementwasnever
16breachedbutratherterminatedpursuanttothe
17conditionentitledTerminationConditions,
18paragraphfive--
19THECOURT:Whenwasthat--I'msorryto
20interrupt.ButwhenwasthataffidavitfiledsoI
21canfindithere?
22MR.SINGER:Itwasratherrecently.
23THECOURT:Hererecently.
24MR.SINGER:Wewerejustrecentlyretainedby
25the--thedefendant.
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1THECOURT:ButIdon'tseeitinhere.
2MR.SINGER:Itwasfiledanditwas--acopy
3wasfaxedandservedupontheplaintiff.
4THECOURT:Doyouhaveacopyofitwithyou?
5MR.SINGER:Ido.
6THECOURT:There'salittlebit--there'sa
7lagtimeinthecler
's--onthe--onthecler
's
8loggingthesethingsintothecourtfile.SoI--
9thelastentryIseeonthecourtfilelisthereis
10January24.Andthat's,obviously--
11MR.SINGER:There'sthe--
12THECOURT:--beenseveralwee
ssincethen.
13MR.SINGER:--two-pageaffidavitof
14defendantGaryBartels.
15THECOURT:O ay.Thisaffidavit--
16MR.ELIA:Idon'thaveit,YourHonor.
17THECOURT:O
ay.
18MR.SINGER:Ihave--
19THECOURT:Itappearstohavebeensignedon
20February14th.
21MR.SINGER:Ihave--
22THECOURT:Justover--wasit--twodays
23ago.Andwasitfiledinthecourtfileatleast
24twoday--you
now,requisitetimepriortothe
25motionbeingheardtoday?
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1MR.SINGER:I--I--Idon't
now,Your
2Honor.
3THECOURT:Thisisacopy?
4MR.SINGER:Thatisacopy.
5THECOURT:Doyou
nowwhenyoufiledit?
6MR.SINGER:Ibelieveitwasservedonthe
7dateindicated.Idon't
now.
8THECOURT:Hasitbeenfiledinthecourt
9fileismyquestion?
10MR.SINGER:I'dhavetochec
withthecler
.
11THECOURT:Youdon'thaveacopyofyour
12noticeoffiling,anythingli
ethat?
13MR.SINGER:No,YourHonor.Ijusthavethe
14copy--actually,Ithin
Imight.
15THECOURT:I'mjustgoingtoloo atthis
16affidavithere.
17O
ay.He'ssayingthatuponreadingand
18signingtheforbearanceagreement,heagreedto
19thesetermsprovidedhisfinancialcondition
20continuestosupportamonthlypaymentof$4,000.
21Idon'tthin
theagreementsaysyouget--
22youpaythe$4,000aslongasyoucanaffordit,
23didit?Itjustsaidyoupay$4,000.
24MR.SINGER:Theagreementstates,under
25terminationconditions,paragraphtwo,the--well,
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1it--theterminationconditionsstarts,this
2forbearanceagreementisautomaticallyterminated
3underanyofthefollowingcircumstances:
4Circumstancenumbertwostatesthefactsor
5circumstancesrelatingtoborrowers--
6MR.ELIA:Whichsectionisthis?I'msorry.
7I'm--I'mloo
ingatit.
8MR.SINGER:Terminationconditions.There's
9nonumberedparagraphsoftheforbearance
10agreement.Itjuststates--
11MR.ELIA:There'spagenumbers.Whatpage
12number?
13MR.SINGER:Pagefourofseven.Sorry.On
14pagefourofseven,terminationconditions,the
15forbearanceagreementisautomaticallyterminated
16when,undersubparagraphtwo,wherethefactsor
17circumstancesrelatingtoborrowersfinancial
18conditionwhichcausedARCPoolI,comma,LLC,to
19enterintothisagreementaresubstantially
20changed.
21Mrs--Mr.Bartels'employer--unfortunately,
22lastyear,Mr.Bartels'employerwentinto
23liquidation.And,asdetailedintheaffidavit,
24thiscausedMr.Bartelstolosehis--hisposition
25withthatemployerandtohaveasubstantialdrop
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1inincomeasdetailedintheaffidavitthus
2supportingthepropositionthat,you
now,there
3wasasubstantialchangein--inMr.Bartels'
4financialconditionwhichoperatedtoterminatethe
5forbearanceagreementandsaid--saidevents
6occurredpriortoany--anybreach.
7THECOURT:Well,thatterminatesthe
8forbearanceagreementthen.Doesthatmeanhe's--
9he'sbac tosquareonewherehe's--wherehe's
10facingthisforeclosurethen?
11MR.SINGER:There'sstilltheac nowledgment
12thatthere'saseparatesettlementagreement
13reachedatmediation.
14MR.ELIA:Itsaysrightin--inthe
15paragraphfollowingthat,uponanyofthe
16circumstancessetforthaboveorborrowersbreach
17ofentitytermoftheoriginalnoteandmortgage
18ARCPool(indiscernible)resumeforeclosurewithout
19furthernotice.Andthat'swhatwe're--we'dli
e
20todo,YourHonor.
21MR.SINGER:But,again,plaintiffhas--the
22motiontoenforcetheagreementandenforcethose
23provisionsisnotbeforethecourt.
24THECOURT:Well,Idon't
nowthattheyhave
25togetenforcementofthe--oftheagreementif
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1theagreementterminatesunderitsowntermsandit
2saystheycangoforwardwith--withforeclosure.
3That's,infact,whatthey'redoingheretoday.
4And--andtheymoveforsummaryjudgment
5foreclosure.Sothenthey'resaying--inessence,
6that'sreallywhattheyare--hadnoticedfor
7todayis--isthe--istocarryonwhat--to
8enforcethatagreementis--inotherwords,
9enforcingtheagreementandsee ingaforeclosure
10judgmentareoneinthesame.
11Let'ssee.Andsincethatisofrecord--and
12I--I--Imisspo
eearlierwhenIwasthin
ing
13thatwasnot--thatthetermsoftheagreement
14werenotintherecord.And--andIhavetoalso,
15Ithin ,retreatfromwhatIsaidbeforetoothat
16thatwouldhavepleadedgenuineissueofmaterial
17factbecauseIthin
that'sbeeneliminatedby
18the--theactual--theaffidavitofthe--of
19Ms.Kiserandthe--herreferencetotheagreement
20andtheagreementbeingfiledinthecourtfileat
21thesametimethat--whenitwas--accompanied
22thatmotionandheraffidavitas--whatis
23referencedinheraffidavit.Ididn'tactuallysee
24itattachedtotheaffidavitshereferstoasan
25exhibit.Itisfiledatthesametimewiththat
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1motion.AndIdon'tthin
thereisagenuineissue
2ofmaterialfactatthispointastothe
3plaintiff'sstandingtosee
foreclosure.And
4there'snogenuineissueofmaterialfactbeing
5raisedastotheamountsowed.
6MR.SINGER:Actually,YourHonor,Iwould
7li
etoraise--weneveraddressedtheamended
8affidavitofindebtednesswhichyouprovidedme,
9andI--asthecourt's--Iwouldli etoaddress
10thatatthistime.
11THECOURT:O ay.Yeah,youjustgotacopy
12ofthathandedtoyouamomentago.Sowhatdoyou
13wanttosayaboutthat?
14MR.SINGER:Theaffidavitis--isquite
15erroneousonitsface.Itstatesthatthe
16plaintiffintheabove-styledactionis
nownas
17AssetsResolutionCorporationPensionPlan.That
18isclearlynotthecase.There'sbeen,atnopoint
19inthisentirecourtproceedingwithinthepast
20two-plusyears,anyindicationthatthereisan
21AssetsResolutionCorporatePensionPlan.The
22affidavit--theaffiantsthemself--
23THECOURT:Iassumethat'swhatARCstands
24for,butthat'snot--
25MR.SINGER:Butthat's--
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1THECOURT:--thesamename,yeah.
2MR.SINGER:Yeah.That'snotevidencebefore
3thecourttoday.
4Theaffiantsignsasamanagingmemberof
5AssetsResolutionCorporationPensionPlanisnoin
6way--there'snoevidencethathe'saffiliated
7withtheplaintifforthatAssetsResolution
8CorporationPensionPlanisinanywayaffiliated
9withtheplaintiffinthiscase.Ithin that--
10thatraisessignificantissuesastothisaffidavit
11andtowhetheritcanbeusedinsupportofthe
12judgmentsoughtbytheplaintiffwhenthis
13affidavitisinnowaycompletedbytheplaintiff
14oranyentitywithanysortof
nownorestablished
15relationshiptotheplaintiff.
16THECOURT:O
ay.We're--it'sli
eagame
17ofping-pong.We
eepgoingbac
andforthhere.
18Sowhat--that's--that'ssomethingIhadn'teven
19paidattentionto.Imean,Ipulledupacopyof
20theaffidavit.Ihaven'treadityet.
21Mr.Singer'snowhadachancetodothat.
22What--whatdoyousaytothat,Mr.Elia?
23MR.ELIA:I'mnotsurewhythatnameis
24listedintheaffidavit,YourHonor.
25THECOURT:Well,theaffiantneedstobeable
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1toexplainhow--you
now,howhehas
nowledgeof
2thefactshe's--he'sstatinginhisaffidavit.
3Andhe'ssayinghe's--he'ssaying--he'ssaying
4itonbehalfofAssetsResolutionCorporation
5PensionPlan.
6MR.ELIA:Yes,sir.Idon't
nowwhythat
7nameisthere.
8MR.SINGER:ARCPoolI,LLC,theplaintiff,
9isonlymentionedinthecasestyleatthetopof
10the--thepage.It'snotmentionedanywhere
11withintheaffidavit.AndIdon't nowthatthe
12recordsattachedtotheaffidavitortheaffidavit
13itselfcan--canstand.Andsothereare--there
14issignificant--anythingwhichthisaffidavit
15wouldsupportastoplaintiff's,Ibelieve,is
16invalid.Butsignificantlyisthisaffidavitis
17theonlyevidenceof--ofindebtedness.
18MR.ELIA:I'm--
19MR.SINGER:Ibelieveitdefinitelyfailsas
20tothatandwouldraisegeneralissuesoffactand
21lawastotheissuesofindebtednessanddamagesto
22beissued.
23THECOURT:O
ay.Well--
24MR.ELIA:Idon't--
25THECOURT:--astothatamendedaffidavit,
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1thatmaybethecase.Ithin
Mr.Eliawantedto
2refer--wastryingtorefertotheearlier
3affidavit,butheprobablydidn'thearthatyou
4werestilltal
ing.
5MR.ELIA:Yes,sir.Idon'tthin
Mr.Singer
6isactuallycontestingtheamountdue.Ithin
7thathe'ssayingthatpossiblytheremaybean
8errorinmyclientsaysitisowedto.
9THECOURT:Well,but--
10MR.ELIA:I'm--I'mloo
ing--Idon'tthin
11thathisclienthasofferedanythingshowingthat
12paymentsweremadeorthattheamountslisteddue
13aresomehowincorrect.Iwasjustloo ingbac at
14prioraffidavitsfiledinthiscase.
15THECOURT:Well,he's,basically,playing
16defense,whichishisjob.You
now,ifa--ifa
17movingpartyonamotionforsummaryjudgmentwants
18to--hastoestablish,you
now,anundisputed
19facttosupportthemotionthenithasbasediton
20anaffidavit.Iftheaffidavitis--doesn'thave
21the--theprerequisitesinittoestablishthe--
22orthepredicatesestablishedto--forthat
23affianttobeabletosweartothosefacts--
24MR.ELIA:Yes,sir.
25THECOURT:--then--then--evenifhe's
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1not--hasn'traisedanyissuesaboutthenumbers,
2it'sstillincumbentupontheplaintiff,asa
3movingparty,toestablishthe--thetruthof
4thosenumbers.Now--
5MR.ELIA:Yes,sir.
6THECOURT:--Iassume--Iassumetheywere
7mentionedinthepreviousaffidavitaswell.I'm
8curiouswhat--howthatone'swor
ingtoonowthat
9we're--
10MR.SINGER:Theissue--
11MR.ELIA:Weactuallyhavethe--the
12plaintiffname,ARCPoolI,LLC,MarylandLimited
13LiabilityCompany.Soit's--it'smythoughtthat
14thisisprobablyjustanerror--
15THECOURT:Probablyis.
16MR.ELIA:--thatanotherentityislisted.
17MR.SINGER:It'sun
nownwhetherit'serror.
18MR.ELIA:Andsoatthispoint,ratherthan
19havingasummaryjudgmentdenied,I'dli
eto
20requestacontinuancetogetanamendedaffidavit
21tostatethecorrectentitytowhomthatamountis
22due.
23MR.SINGER:It'snotjustthe--theissueof
24theentity.Weareindeeddisputingtheamounts
25owed.ThepreviousaffidavitwasfiledinJanuary,
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12011.Sincethen,severalthousandsofdollars
2havebeenpaidonthisloanas--asestablishedin
3defendants'affidavitandasconcededin--in
4severalofplaintiff'sfilingsthatfundswerepaid
5pursuanttotheforbearanceagreement.AndIdon't
6
nowthatthere'sany,you
now,established
7recordsasto--you
now,Idon't
nowwhatthese
8recordsarebecausethey'renot--Imean,they--
9you now,obviously,arecordhasbeensubmitted,
10butit'sneverbeenestablishedwhatthisrecord
11is,whoserecorditis,whetherit'stherecordof
12AssetsResolutionCorporatePensionPlanas
13indicatedintheaffidavit.Andso--
14THECOURT:Well,here'sthedeal.I--I
15thin we'verun--runthegamutonthisatthis--
16MR.SINGER:Allright.
17THECOURT:--point.SowhatI'mgoingtodo
18isI'mgoingtodenythemotionforsummary
19judgment.ThereasonsIwasstatingearlier,I
20thin
Ihavetoretreatfrom,asImentioned
21before.I'mgoingtostillsaythatARCPool
22appearstobethecorrectplaintiffandisentitled
23tosee
foreclosure,asImentionedbefore.
24Ithin
thefilingoftheaffidavitof--of
25Ms.Kiserinsupportofthemotiontoenforcethe
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1forbearanceagreementeliminatesanissueoffact
2aboutwhetherthatagreementpreventsa
3foreclosure.Infact,itseemsto--itdoesjust
4theopposite.Itsupportsplaintiff'sposition
5that--thatthe--theagreement'sbeenterminated
6byitsownterm--underitsownterms.Eventhe
7defendants'affidavitac
nowledgeshedidn'tma
e
8thepaymentspursuanttothatagreement.And,
9therefore,Ithin underthatagreementthere's
10no--theagreementinno--innowaypreventsthe
11plaintifffromsee ingforeclosure.Infact,it--
12itauthorizesthemtogoforwardwithforeclosure,
13whichthey'reattemptingtodo.Theonlyissuenow
14seemstobethe--the--theindebtednessandthe
15problemswiththeamendedaffidavitofindebtedness
16thatwe'vealreadytal
edabout.
17MR.ELIA:Yes,sir.
18THECOURT:Andthepreviousaffidavit,
19althoughitwouldestablishsomeamounts,
20there's--thereare--thereseemstobeanissue
21offactatthispointraisedbythedefendantin
22hisaffidavitconcerningpaymentshe'smadeand
23whatthatindebtednessactuallywouldbeatthis
24point.
25SoI'mgoingtodenythemotionforsummary
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1judgmentwithoutprejudicesothateitherpartycan
2pursueasummaryjudgmentlaterby--byfilinga
3newmotion--
4MR.ELIA:Yes,sir.
5THECOURT:--if--if--ifthefactsand--
6andtherecordsupportthat.So,ofcourse,the
7newaffidavitsmay--mayfollowwhateveris
8necessarytodothat;orthepartiescansetitfor
9trialiftheypreferthatitgothatroute.
10So,Mr.Singer,ifyou'llpreparetheorder
11denyingthemotionforsummaryjudgment.It
12doesn'tneedtogointoalotofdetailbecausewe
13havearecordhereofeverythingwe'vetal ed
14about.Butjustsimplysayingit'sdeniedwithout
15prejudice.AndI'llenteritwhenyousenditto
16me.
17MR.SINGER:O
ay.YourHonor,Iwillprepare
18anorderstatingthatthemotionisdeniedwithout
19prejudice.
20THECOURT:Maybey'allcanwor
outsome
21otherresolutioninthemeantime.Ifyoucan,
22fine.Ifnot,we'llprobablybeseeingy'allagain
23atanotherhearinglater.
24MR.SINGER:Than
you,YourHonor.
25(Thehearingconcludedat10:14a.m.)
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REPORTER'SCERTIFICATE
STATEOFFLORIDA
COUNTYOFPOLK
I,MELODYOTHIENO,CourtReporter,certifythatI
wasauthorizedtoanddidstenographicallyreportthe
hearingintheabove-styledcause,Pages1through55,
inclusive,andthatthetranscriptisatrueand
completerecordofmystenographicnotes.
IfurthercertifythatIamnotarelative,
employee,attorney,orcounselofanyoftheparties,
noramIarelativeoremployeeofanyoftheparties'
attorneyorcounselconnectedwiththisaction,noramI
financiallyinterestedintheaction.
Datedthis2nddayofMarch,2012.
______________________________MELODYOTHIENO,COURTREPORTER
Theoriginalofthistranscriptwasorderedbyand
furnishedtoMichaelF.Singer.
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