Koyle v. Sand Canyon Corp.

Case Type:
Case Status:
No. 16-4035 (10th Circuit, Mar 31,2017) Published
10th Circuit affirmed the ruling of the district court (D. Utah) granting summary judgment in favor of defendants in debtor diversity suit challenging defendants' attempt to foreclose on deed of trust. Debtor-plaintiff-appellant failed to properly raise arguments at trial court and thus was precluded from arguing them on appeal. Debtor's references to statute of limitations in passing at trial court hearing was insufficient to preserve issue. Debtor never raised issue of certain payments being time barred. Defendants never had opportunity to oppose arguments at trial court.
Procedural context:
District court granted summary judgment in favor of defendants on removed diversity suit. Debtor plaintiff appealed to 10th Circuit.
Pro se debtor, opposing creditor's foreclosure efforts, remained in possession of real property for approximately 14 years without payment. In 2003, debtor executed note secured by deed of trust encumbering Utah real property. Shortly thereafter, lender assigned note and deed of trust, and assignee subsequently assigned the same to Wells Fargo Bank. Wells Fargo properly recorded the assignment. Debtor defaulted on note. Wells Fargo recorded a substitution of trustee, and successor trustee filed notice of election to sell. Debtor filed chapter 13 bankruptcy. Wells Fargo and debtor entered into stipulated payment plan in bankruptcy, preserving automatic stay if debtor complied with terms. Debtor defaulted under payment plan; bankruptcy court dismissed bankruptcy. Debtor filed a second chapter 13 case; Wells Fargo entered into a second payment plan with debtor. Debtor defaulted again. Bankruptcy court dismissed second chapter 13 case. Debtor commenced suit in Utah state court alleging various causes of action against Wells Fargo and original lender, and recorded lis pendens. Matter remained pending for seven years, until parties entered into stipulation to dismiss suit with prejudice. Prior to dismissing action, debtor commenced a second action in Utah state court alleging similar claims as the first suit against the same defendants. Wells Fargo removed the second suit to federal court and then moved to dismiss for failure to state a claim. Federal court granted the motion and dismissed the complaint. Debtor appealed and the 10th Circuit affirmed. Wells Fargo recorded a "Corrective Assignment of Deed of Trust" in 2014, correcting that the beneficiary of the deed of trust was Wells Fargo in its capacity as trustee for the original lender (Option One). Wells Fargo filed a notice of default and election to sell. Debtor recorded a "Notice of Fraudulent Notice of Default," then commenced suit against Wells Fargo and the original lender alleging that the statute of limitations barred enforcement of the note, among other claims. Wells Fargo removed the complaint to federal district court. Defendants moved to dismiss for failure to state a claim; debtor moved for summary judgment. Court converted defendants' motion to motion for summary judgment and granted motion; court denied debtor's motion.
Kelly, Briscoe, Lucero

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