Bank of New York Mellon v. Smith

Whitney and Pamela Smith entered into a residential mortgage contract with Saxon Mortgage Services (“Saxon”), which was secured with a promissory note on the Smiths’ home in Grant Parish. The Smiths later failed to make their installment payments beginning June 1, 2004. Two months later, Mr. Smith died in an automobile accident. On November 4, 2004, J.P. Morgan Chase Bank (“Chase”), as trustee for Saxon, filed suit for executory process against the Smiths, seeking to deliver a notice of seizure to Ms. Smith. Ms. Smith, fearing that she would be evicted from her home over the holidays, moved her children out of the house and sought an injunction to stop the seizure by executory process. In support, she argued the foreclosure documents were not in authentic form pursuant to the requirements set forth in La. Code Civ. P. art. 2635(A)(2) because they were executed in front of only one witness. Ms. Smith also filed a reconventional and third party demands against Chase, alleging wrongful seizure, conversion, and federal due process violations pursuant to 42 U.S.C. 1983. Ultimately, the Banks were found to have improperly seized the Smith home. The Supreme Court granted certiorari to determine whether private attorneys for the lender were entitled to judgment as a matter of law on the ground their actions did not violate 42 U.S.C. 1983. The Supreme Court found that the district court properly granted summary judgment, and the court of appeal erred in reversing that judgment. View "Bank of New York Mellon v. Smith" on Justia Law