ILNews

Couple should have jury trial on legal claims

Back to TopE-mailPrintBookmark and Share

A couple whose home is being foreclosed on is entitled to a jury trial on their legal claims against the mortgage holder and loan servicer, the Indiana Court of Appeals ruled today.

In Mary Beth and Perry Lucas v. U.S. Bank, N.A., et al., No. 28A01-0910-CV-482, Mary Beth and Perry Lucas filed an interlocutory appeal after their request for a jury trial on several counterclaims and third-party claims raised against U.S Bank and Litton Loan Servicing was denied. The Lucases had problems almost immediately after closing their mortgage. They claimed the loan rate and monthly payments were incorrect and there were disputes about the purchase of hazard insurance and escrow amount problems.

The Lucases filed for Chapter 7 bankruptcy protection a little over a year after entering into the loan. The bankruptcy was discharged after four months, but there were issues about fees between the Lucases and Litton. The couple even sought assistance from Indiana Legal Services.

U.S. Bank filed a complaint to foreclose on the mortgage in early 2009; the Lucases alleged that Argent, the company they originally had the loan through, violated the Real Estate Settlement and Procedures Act, that U.S. Bank committed conversion and deception under the Civil Damages Statute, and that U.S. Bank breached its contractual obligations and its duty of good faith and fair dealing. They also sued Litton for breach of contract, breach of duty of good faith and fair dealing, and claimed Litton violated the Fair Debt Collection Practices Act, and RESPA. The couple also claims they are entitled to damages because Litton committed conversion.

Using Songer v. Civitas Bank, 771 N.E.2d 61, 63 (Ind. 2002), the appellate court analyzed the instant case and found the Lucases to be entitled to a jury trial on their legal claims. While a foreclosure action is essentially equitable and it’s well settled that equitable claims are tried to a court instead of a jury, the fact that a cause contains a foreclosure action doesn’t necessarily draw the entire cause into equity, wrote Chief Judge John Baker.

The claims against the bank and loan servicer are grounded in federal and state statutory law, and state common law, all of which are legal causes of action. The majority of relief requested by the Lucases is money damages, a legal remedy, wrote the chief judge. In addition, the nature of many of their claims is different from the bank’s request to foreclose as they are grounded in consumer protection statutes.

“In light of the nature of the claims, the rights and interests involved, and the majority of the relief requested, we cannot say that the essential features of this cause are equitable,” he wrote.

The cause was remanded with instructions to grant the Lucases’ motion for a jury trial on their legal claims.
 

ADVERTISEMENT

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  2. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  3. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  4. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  5. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

ADVERTISEMENT