ILNews

Kentucky ruling prevents Indiana court from addressing claim

Back to TopCommentsE-mailPrintBookmark and Share

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.”

 

ADVERTISEMENT

  • 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

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

ADVERTISEMENT