Justia Oklahoma Supreme Court Opinion Summaries

Articles Posted in May, 2012
by
This case concerned a summary judgment granted by the district court in favor of the Plaintiff-Appellee RAHI Real Estate Holdings, LLC, against the Defendants-Appellants Vincent and Leslie Adams. The original plaintiff, Residential Funding Real Estate Holdings, LLC, filed a petition to foreclose in 2009, claiming Appellants defaulted on their note. Residential attached a copy of the subject note and mortgage to the petition. The note has a special indorsement from Gateway which states "Pay to The Order Of: Option One Mortgage Without Recourse." Also attached to the note was a blank indorsement by Option One Mortgage Corporation. The district court granted a motion to substitute RAHI as plaintiff in place of Residential in this foreclosure action and ordered that the caption be modified to reflect RAHI as plaintiff. One day after the order granting substitution, Residential as plaintiff filed its first amended petition. Defendants filed their answer admitting that a note and mortgage were executed but denied that the note and mortgage attached to the petition are the ones they signed. Further, they denied default and demanded strict proof. Appellants also attacked plaintiff's standing and the subject matter jurisdiction of the court. Appellee filed a motion for summary judgment alleging there is no controversy as to any material facts and attached an affidavit. Upon review, the Supreme Court found that there was no transcript of a June 29, 2010 hearing in the record, so the Court could not determine what evidence was presented, including any concerning whether or not the substitution of parties gave Option One Mortgage and Option One Mortgage Corporation the right to enforce the note. It did appear from the filed record that there was at least one issue of material fact and summary judgment was inappropriate. Accordingly, the Court reversed the grant of summary judgment and remanded the case for further proceedings. View "Residential Funding Real Estate Holdings, LLC v. Adams" on Justia Law

by
In 2010, the Oklahoma Legislature amended the Oklahoma Tax Code to require municipalities to contract with the State of Oklahoma through the Oklahoma Tax Commission to assess, collect and enforce municipal taxes. Prior to the amendment becoming effective, the City of Tulsa contracted with a private company to collect municipal taxes. On August 19, 2010, Tulsa filed a petition for declaratory judgment in the District Court of Oklahoma County to challenge the statute's constitutionality. The trial court found the statute unconstitutional. The State appealed and the Supreme Court granted certiorari. Upon review, the Court held that the amendments requiring the Commission to collect municipal sales and use taxes do not unconstitutionally impair Tulsa's obligation of contracts or infringe its inherent powers granted by the Constitution or the City's charter. View "City of Tulsa v. Oklahoma" on Justia Law

by
Claimant Kelly Mowdy filed a workers' compensation claim after a spider bit him. Claimant worked as a floor hand for Petitioner Nomac Drilling, LLC when he noticed two red bumps on his knee. He reported the bumps to his supervisor, who seemed unconcerned about the injury. Over the course of a few days, the bumps grew swollen, infected, turned dark red and purple, and would later be diagnosed as an abscessed spider bite in which methicillin-resistant staphylococcus aureus (MRSA) cultures were found. Claimant underwent surgery to remove dead and infected tissue. Nomac denied Claimant's injury was the result of his employment. The case was tried, and testimony revealed that Claimant's living arrangements while working for Nomac were in a heavily wooded area that "was not real clean, not real kept up." A big hole underneath his bed lead all the way to the outdoors. The Workers' Compensation Court found Claimant's testimony was credible and persuasive. The court concluded that the incident was the predominant cause of Claimant's right leg injury, and awarded Claimant TTD benefits. Nomac appealed to the three-judge panel. The panel sustained the award. The Court of Civil Appeals, however, vacated the award and ordered the claim dismissed. Upon review, the Supreme Court reversed the appellate court: "an appellate court must sustain the Workers' Compensation Court's decision where there is any competent evidence supporting the decision. Claimant's expert medical report [was] not defective, and there [was] sufficient evidence to support the trial court's finding that the Claimant sustained an accidental injury arising out of and in the course of his employment." View "Nomac Drilling, LLC v. Mowdy" on Justia Law

by
The Oklahoma Tax Commission assessed corporate income taxes against Vermont Corporation Scioto Insurance Company for 2001 through 2005, based on payments Scioto received from the use of Scioto's intellectual property by Wendy's restaurants in Oklahoma. In response, Scioto protested these assessments on the ground that it did not contract with the Wendy's restaurants in Oklahoma for use of the property in question and did not conduct any business whatsoever in Oklahoma. The Tax Commission denied Scioto's protest and the Court of Civil Appeals affirmed. The Supreme Court previously granted certiorari. Upon review, the Court vacated the Court of Civil Appeals opinion, reversed the Tax Commission's denial of Scioto's protest and remanded the case with instructions to sustain Scioto's protest. View "In re Income Tax Protest of Scioto Ins. Co." on Justia Law

by
Defendants-Appellants John and Lisa Alexander appealed the grant of summary judgment in favor of U.S. Bank National Association as trustee for for Credit Suisse First Boston HEAT 2005-4. Defendants executed a note to MILA, Inc., DBA Mortgage Investment Lending Associates, Inc. and a mortgage to Mortgage Electronic Registration Systems, Inc. (MERS), as nominee for MILA and its successors and assigns. Wells Fargo Bank, N.A. filed a foreclosure petition on in 2009, alleging Appellants defaulted on the note. The petition further states Wells Fargo was the present holder of the note and mortgage, and Wells Fargo took the note and mortgage for good and valuable consideration from the original lender. A copy of the note and part of the mortgage was attached to the original petition. The note attached to the original petition contained no indorsements. An Order Granting Motion for Substitution of Plaintiff and Modification of Caption was filed. Appellee, U.S. Bank National Association, as trustee, for Credit Suisse First Boston HEAT 2005-4 was substituted in place of Wells Fargo. The motion stated Wells Fargo had subsequently assigned all of its rights in the mortgage to Appellee. Appellee also filed its First Amended Petition which re-alleged all of the allegations of Wells Fargo's petition and identified additional defendants as parties who may have an interest in the property. Appellee attached to the amended petition, a copy of the same unindorsed note and mortgage originally executed by Appellant John W. Alexander, III, in 2005. Appellants never answered the petition and a judgment was entered against then in April 2010. A day later, Appellants' counsel made an entry of appearance and the judgment was vacated. Appellee filed a motion for summary judgment. Appellee claimed in its motion for summary judgment that it was the holder of the note and mortgage, and that Appellants had been in constant default since the July 1, 2009, installment payment was due. Appellants filed an objection to Appellee's motion for summary judgment and later filed a supplement to the objection. Appellants challenged certain comments in Wells Fargo's motion to substitute which stated Wells Fargo subsequently assigned its rights under the mortgage to Appellee after the filing of the original petition. Appellants assert the note provided by Appellee does not have an indorsement and they claim such indorsement is necessary under the Uniform Commercial Code. Upon review, the Supreme Court concluded that Appellee did not have the proper supporting ducomentation in hand when it filed its foreclosure suit. Accordingly, the Court reversed the trial court's grant of summary judgment and remanded the case for further proceedings. View "U.S. Bank, NA v. Alexander" on Justia Law

by
Appellants Cindy and Theron Tacker appealed the grant of summary judgment in favor of NTex Realty, LP. In 2007, Appellants executed a promissory note payable to Home Funds Direct, Inc. Appellants executed a mortgage and delivered it to Mortgage Electronic Registration Systems, Inc. (MERS) as nominee for Home Funds. Appellants defaulted on the note in 2010, and NTex initiated foreclosure proceedings against them several months later. In their answer, Appellants denied that Appellee owned any interest in the Note and Mortgage, and challenged the authenticity of the documents included in the petition. Appellants then demanded production of the original Note and Mortgage. Appellee moved for summary judgment. In an attached affidavit, Appellee asserted that it currently held both the Note and Mortgage at issue, and again produced a copy of both the unindorsed Note and Mortgage. In response, Appellants argued that Appellee's motion for summary judgment was improper because the Note had never been negotiated. Appellants also asserted that because the copy of the Note was purportedly a "full, true, and correct copy of said Note," the original must also not be indorsed. Based on these reasons, Appellants concluded Appellee could not be the holder of the Note and, therefore, was not the proper party to bring a foreclosure proceeding. Appellee thereafter moved the district court by supplement to its motion, to view the original Note and Mortgage at the hearing for summary judgment. The supplemented motion incorporated an undated allonge, which transferred the Note from Lender to Appellee. The allonge was not included in the original petition for foreclosure. The motion also included a document entitled "Assignment of Mortgage," which transferred the "described mortgage together with the certain note(s) described therein," to Appellee from MERS. The Assignment was acknowledged on November 19, 2009, and recorded by the County Clerk of Rogers County, Oklahoma, on June 8, 2011. The district court granted Appellee's Motion for Summary Judgment and entered an order for the sale of the real property located in Rogers County, Oklahoma. The Appellants now appeal the trial court's order granting summary judgment, arguing NTex Realty, LP, failed to demonstrate standing. After review, the Supreme Court reversed and remanded the case, finding that NTex indeed failed to show "if and when NTex became a person entitled to enforce the note." View "NTex Realty, LP v. Tacker" on Justia Law