Articles Posted in Banking

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Abbey Springs Condominium Association, Inc. and Abbey Springs, Inc. (collectively, Abbey Springs) have a policy forbidding both current and subsequent unit owners from utilizing recreational facilities until unpaid condominium assessments are paid in full. Following a foreclosure action and sheriff’s sale of the property to Walworth State Bank, the Bank paid the former owner’s outstanding assessment under protest. The Bank filed suit against Abbey Springs, asserting that the policy violates Wisconsin law by impermissibly reviving a lien on the condominium units that was eliminated by the foreclosure action. The court of appeals reversed. The Supreme Court reversed, holding that the condominium policy effectively revived the lien against the property that the foreclosure judgment entered against Abbey Springs and the former unit owners had extinguished, and therefore, the policy violates well-established foreclosure law and the foreclosure judgment entered in the underlying foreclosure action. Remanded. View "Walworth State Bank v. Abbey Springs Condo. Ass’n" on Justia Law

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After Shirley Carson defaulted on loan payments, Bank sought a judgment of foreclosure and sale of the mortgaged premises. The circuit court entered judgment in favor of Bank of New York Mellon (“the Bank”). More than sixteen months after the judgment of foreclosure was entered, the Bank had not sold the property. Carson filed a motion to amend the judgment to include a finding that the property was abandoned and an order that the Bank bring the property to sale within five weeks from the date of entry of the amended judgment. The circuit court denied the motion, concluding that it lacked the authority to order the Bank to sell the property at a specific time under Wis. Stat. 846.102. The court of appeals reversed, concluding that the court may use its contempt authority to order a sale under these circumstances. The Supreme Court affirmed, holding (1) when the circuit court determines that a property is abandoned, section 846.102 authorizes the court to order a mortgagee to bring the property to sale after the redemption period; and (2) because the circuit court in this case did not reach the issue of whether the property had been abandoned, the case must be remanded. View "Bank of New York v. Carson" on Justia Law

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Defendants executed guaranty contracts in order to secure financing to run their business operations. Bank subsequently commenced foreclosure proceedings on the business. Afterwards, Bank commenced an action against Defendants seeking payment under the guaranty contracts. Defendants, in response, alleged several counterclaims and affirmative defenses. Bank filed a motion for summary judgment, arguing that Defendants' counterclaims and affirmative defenses were derivative of the corporation, and therefore Defendants lacked standing to raise them. Bank also asserted that Defendants' affirmative defenses were barred because they were subject to claim preclusion. The circuit court ultimately granted summary judgment to Bank. The court of appeals affirmed, concluding that Defendants' counterclaims and affirmative defenses were derivative and that they lacked standing to raise them in this action. The Supreme Court affirmed, holding (1) Bank was entitled to summary judgment dismissing all of Defendants' counterclaims, as each of the counterclaims was derivative; (2) Defendants' affirmative defenses did not defeat Bank's demand under the guaranties for payment; and (3) the circuit court correctly granted summary judgment to Bank because Defendants failed to raise any genuine issue of material fact showing payment was not due. View "Park Bank v. Westburg" on Justia Law