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Kentucky ruling prevents Indiana court from addressing claim

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Because the principles of full faith and credit required a Clark Circuit court to consider the judgments of a Kentucky court involving the default of promissory notes on property in Kentucky and Indiana, there was no error by the Indiana court in granting a bank the right to foreclose.

Robert and Beverly Setree obtained three promissory notes from River City Bank, which were secured by mortgages on real estate they owned in Jeffersonville, Ind., and Louisville, Ky. The Setrees failed to pay Indiana real estate taxes on a property, bringing them in default of the terms of a 2007 note. By not paying the taxes on the property, it triggered River City’s right to accelerate all debts due and owed under the other notes and foreclose on all the mortgages it held on the Setrees’ various properties.

Two actions were started in Clark Circuit Court and two in Jefferson Circuit Court in Kentucky. The Kentucky court entered a final judgment and ordered the sale of two Kentucky properties.

At issue in this case is the Clark Circuit Court grant of River City’s motion for summary judgment to foreclose on an Indiana property entered after the Kentucky court ruled. The Indiana court ruled that res judicata prevented the relitigation of the Setrees’ default on the 2007 note and mortgage.

The Court of Appeals agreed that the Kentucky judgments had acquired subject matter jurisdiction and personal jurisdiction over the parties before it, so it must afford full faith and credit to those opinions.

In the instant case, res judicata is more properly defined as issue preclusion, Judge Patricia Riley wrote in Robert R. Setree, II, and Beverly L. Setree v. River City Bank, 10A01-1311-MF-485.  

“The same issues—the Setrees’ failure to pay Indiana property tax pursuant to their 2007 Note and their right to cure—between the same parties—the Setrees and River City—governed the Kentucky cases and this appeal. River City’s right to foreclose on all three notes was triggered as a result of the Setrees’ failure to pay their Indiana taxes on the Cardinal Lane Property,” she wrote.

“Because of cross-default provisions in the three notes executed between the Setrees and River City, the Setrees’ default under the 2007 Note constituted a default under the previously executed two notes as well. Therefore, the Kentucky courts’ decisions to grant River City the right to foreclose on the Setrees’ Kentucky properties necessarily included a determination of default under the 2007 Note—the issue before the trial court,” she continued.

“Although the Kentucky cases concerned different mortgages and different property than the instant cause, they litigated the same issues between the same parties: the Setrees’ failure to pay the Indiana taxes on the Cardinal Lane Property and the Setrees’ right to cure its failure under the 2007 Note. Therefore, granting the Kentucky judgments full faith and credit, we are precluded from addressing the Setrees’ claim.”

 

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  • Did ky rule on IN contract?
    Did Indiana legislature expect a KY court to remove the contractal requiremnt of INdiana MOrtgages to contain notice and right to cure? INside the KY cases is the pleading saying KY requires no Notice of default. The KY court made no determination of the Indiana Notice and right to cure.
  • What did the KY court decide
    RCB testified it sent no notice and no right to cure in either state. Ky lawyers wrote briefs for the KY commissioner about the Indiana Mortgage. The KY court determined the quietus money to be unsecured debt. Both KY courts refused to pay the quietus money out of the proceeds of the land sale. RCB never testified that all conditions precendent were met. The court ignored the payments accepted by RCB after the foreclosure was filed. RCB business records showed no payments late. I can tell you RCB intend to add the quietus to the back of the loan. Proved by email and blue ink signature. This is not simple foreclosure, the bank has unclean hands. The Judge accepted that a letter written by the Setree's more than 10 days after the foreclosure was filed was Notice from RCB, and rejected the Setree claim that their knowledge and their hand can not be Notice. From what you read here res judicata is being used because the normal facts in a foreclosure will not let the bank win. I am represented. We would like to hear your detailed comments. Bob Setree

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  1. Yes diversity is so very important. With justice Rucker off ... the court is too white. Still too male. No Hispanic justice. No LGBT justice. And there are other checkboxes missing as well. This will not do. I say hold the seat until a physically handicapped Black Lesbian of Hispanic heritage and eastern religious creed with bipolar issues can be located. Perhaps an international search, with a preference for third world candidates, is indicated. A non English speaker would surely increase our diversity quotient!!!

  2. First, I want to thank Justice Rucker for his many years of public service, not just at the appellate court level for over 25 years, but also when he served the people of Lake County as a Deputy Prosecutor, City Attorney for Gary, IN, and in private practice in a smaller, highly diverse community with a history of serious economic challenges, ethnic tensions, and recently publicized but apparently long-standing environmental health risks to some of its poorest residents. Congratulations for having the dedication & courage to practice law in areas many in our state might have considered too dangerous or too poor at different points in time. It was also courageous to step into a prominent and highly visible position of public service & respect in the early 1990's, remaining in a position that left you open to state-wide public scrutiny (without any glitches) for over 25 years. Yes, Hoosiers of all backgrounds can take pride in your many years of public service. But people of color who watched your ascent to the highest levels of state government no doubt felt even more as you transcended some real & perhaps some perceived social, economic, academic and professional barriers. You were living proof that, with hard work, dedication & a spirit of public service, a person who shared their same skin tone or came from the same county they grew up in could achieve great success. At the same time, perhaps unknowingly, you helped fellow members of the judiciary, court staff, litigants and the public better understand that differences that are only skin-deep neither define nor limit a person's character, abilities or prospects in life. You also helped others appreciate that people of different races & backgrounds can live and work together peacefully & productively for the greater good of all. Those are truths that didn't have to be written down in court opinions. Anyone paying attention could see that truth lived out every day you devoted to public service. I believe you have been a "trailblazer" in Indiana's legal community and its judiciary. I also embrace your belief that society's needs can be better served when people in positions of governmental power reflect the many complexions of the population that they serve. Whether through greater understanding across the existing racial spectrum or through the removal of some real and some perceived color-based, hope-crushing barriers to life opportunities & success, movement toward a more reflective representation of the population being governed will lead to greater and uninterrupted respect for laws designed to protect all peoples' rights to life, liberty & the pursuit of happiness. Thanks again for a job well-done & for the inevitable positive impact your service has had - and will continue to have - on countless Hoosiers of all backgrounds & colors.

  3. Diversity is important, but with some limitations. For instance, diversity of experience is a great thing that can be very helpful in certain jobs or roles. Diversity of skin color is never important, ever, under any circumstance. To think that skin color changes one single thing about a person is patently racist and offensive. Likewise, diversity of values is useless. Some values are better than others. In the case of a supreme court justice, I actually think diversity is unimportant. The justices are not to impose their own beliefs on rulings, but need to apply the law to the facts in an objective manner.

  4. Have been seeing this wonderful physician for a few years and was one of his patients who told him about what we were being told at CVS. Multiple ones. This was a witch hunt and they shold be ashamed of how patients were treated. Most of all, CVS should be ashamed for what they put this physician through. So thankful he fought back. His office is no "pill mill'. He does drug testing multiple times a year and sees patients a minimum of four times a year.

  5. Brian W, I fear I have not been sufficiently entertaining to bring you back. Here is a real laugh track that just might do it. When one is grabbed by the scruff of his worldview and made to choose between his Confession and his profession ... it is a not a hard choice, given the Confession affects eternity. But then comes the hardship in this world. Imagine how often I hear taunts like yours ... "what, you could not even pass character and fitness after they let you sit and pass their bar exam ... dude, there must really be something wrong with you!" Even one of the Bishop's foremost courtiers said that, when explaining why the RCC refused to stand with me. You want entertaining? How about watching your personal economy crash while you have a wife and five kids to clothe and feed. And you can't because you cannot work, because those demanding you cast off your Confession to be allowed into "their" profession have all the control. And you know that they are wrong, dead wrong, and that even the professional code itself allows your Faithful stand, to wit: "A lawyer may refuse to comply with an obligation imposed by law upon a good faith belief that no valid obligation exists. The provisions of Rule 1.2(d) concerning a good faith challenge to the validity, scope, meaning or application of the law apply to challenges of legal regulation of the practice of law." YET YOU ARE A NONPERSON before the BLE, and will not be heard on your rights or their duties to the law -- you are under tyranny, not law. And so they win in this world, you lose, and you lose even your belief in the rule of law, and demoralization joins poverty, and very troubling thoughts impeaching self worth rush in to fill the void where your career once lived. Thoughts you did not think possible. You find yourself a failure ... in your profession, in your support of your family, in the mirror. And there is little to keep hope alive, because tyranny rules so firmly and none, not the church, not the NGO's, none truly give a damn. Not even a new court, who pay such lip service to justice and ancient role models. You want entertainment? Well if you are on the side of the courtiers running the system that has crushed me, as I suspect you are, then Orwell must be a real riot: "There will be no curiosity, no enjoyment of the process of life. All competing pleasures will be destroyed. But always — do not forget this, Winston — always there will be the intoxication of power, constantly increasing and constantly growing subtler. Always, at every moment, there will be the thrill of victory, the sensation of trampling on an enemy who is helpless. If you want a picture of the future, imagine a boot stamping on a human face — forever." I never thought they would win, I always thought that at the end of the day the rule of law would prevail. Yes, the rule of man's law. Instead power prevailed, so many rules broken by the system to break me. It took years, but, finally, the end that Dr Bowman predicted is upon me, the end that she advised the BLE to take to break me. Ironically, that is the one thing in her far left of center report that the BLE (after stamping, in red ink, on Jan 22) is uninterested in, as that the BLE and ADA office that used the federal statute as a sword now refuses to even dialogue on her dire prediction as to my fate. "C'est la vie" Entertaining enough for you, status quo defender?

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