arc pool v bartels mo

8/2/2019 ARC Pool v Bartels Mo

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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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25

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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26

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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27

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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28

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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29

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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30

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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31

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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32

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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33

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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34

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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35

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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36

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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37

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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38

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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39

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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40

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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41

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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42

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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43

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?


44/57

44

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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45

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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46

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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52

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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54

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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