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COA rules against bank in lien dispute

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Wells Fargo Bank could not convince the Indiana Court of Appeals to reverse default judgment entered against it in favor of two companies trying to foreclose on mechanic’s liens. The court also had a warning for litigants when filing amended complaints.

John E. Smith Builders Inc. and Isley’s Plumbing Inc. performed work on the home of Heather Stone after it sustained damage in a fire. Her home was mortgaged through Washington Mutual. The mortgage was later acquired by JP Morgan Chase Bank in 2008.

Smith Builders filed a complaint to foreclose on its mechanic’s lien on the homeowner’s property; Isley filed a cross-claim seeking to foreclose on its claimed mechanic’s lien. Smith Builders later entered bankruptcy and Edward Echert was substituted as a party in interest.

The trial court granted default judgments in October 2012 in favor of Dechert and Isley and against Washington Mutual and determined Isley’s mechanic’s lien held priority over Dechert’s. In April 2013, the mortgage was transferred to Wells Fargo, which sought to have the judgment set aside under Trial Rule 60(B)(4).

In Wells Fargo Bank, N.A. v. Edward P. Dechert, Trustee of the Bankruptcy Estate of John E. Smith and Isley's Plumbing, Inc., 34A02-1311-PL-980, the Court of Appeals affirmed the judgment, rejecting the bank’s claim that Dechert’s decision to file a second amended complaint and Isley’s response to that complaint resulted in the automatic vacation of the default judgments entered against the bank. None of the amended pleadings undermined any basis upon which the default judgments against the bank were issued.

The judges also rejected Wells Fargo’s claims that certain pleadings were not properly served upon the bank and that default judgments should be set aside because Indiana courts disfavor default judgments and windfalls.
 
“However, we note that Dechert’s decision to file the first amended complaint was inappropriate,’’ Judge L. Mark Bailey wrote. “Here, where service had been accomplished, the appropriate procedure for Dechert to follow was to establish that service of process (in whatever form) had been completed upon Washington Mutual, and then to move for default judgment under Trial Rule 55—without filing a complaint alleging additional facts not necessary to proof of the merits of the case. Because the allegations in the first amended complaint do not differ on the elements of the causes of action, there was fair notice of Dechert’s claims upon which the trial court could enter a default judgment, and there was a nine-month delay between that judgment and Wells Fargo’s appearance in the case.

“Parties who pursue a similar procedure may not find themselves in a similar position, however, particularly with respect to changes in substantive allegations entitling a party to relief. Litigants are, therefore, warned accordingly.”
 

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  3. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

  4. Good points, although this man did have a dog in the legal fight as that it was his mother on trial ... and he a dependent. As for parking spaces, handicap spots for pregnant women sure makes sense to me ... er, I mean pregnant men or women. (Please, I meant to include pregnant men the first time, not Room 101 again, please not Room 101 again. I love BB)

  5. I have no doubt that the ADA and related laws provide that many disabilities must be addressed. The question, however, is "by whom?" Many people get dealt bad cards by life. Some are deaf. Some are blind. Some are crippled. Why is it the business of the state to "collectivize" these problems and to force those who are NOT so afflicted to pay for those who are? The fact that this litigant was a mere spectator and not a party is chilling. What happens when somebody who speaks only East Bazurkistanish wants a translator so that he can "understand" the proceedings in a case in which he has NO interest? Do I and all other taxpayers have to cough up? It would seem so. ADA should be amended to provide a simple rule: "Your handicap, YOUR problem". This would apply particularly to handicapped parking spaces, where it seems that if the "handicap" is an ingrown toenail, the government comes rushing in to assist the poor downtrodden victim. I would grant wounded vets (IED victims come to mind in particular) a pass on this.. but others? Nope.

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