Unintended Effects Inadequate Consumer Benefit

8/20/2019 Unintended Effects Inadequate Consumer Benefit

1/21

1

U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT: A NALYZING F EDERAL H OME LOAN M ORTGAGE

C ORP . V . S CHWARTZWALD

Jennifer Dollard*

I. I NTRODUCTION

Although mor th!" #$% &!r' h!% (!'') '$"* th +ur't o# th hou'$"g +u++l !") th 'u+(r$m mortg!g *r$'$'$" th U"$t) St!t', m!"& 't!t', $"*lu)$"g Oh$o, !r 't$ll #l$"g th '*o")!r& ##*t' !t th$r (!-. Th m!$"'*o")!r& ##*t $' r!($) #or*lo'ur' !") th& 'ho "o '$g"' o# 'lo$"g )o". Stu)$' )o" !' r*"t !' th th$r)/u!rtr $" 010 't$ll *!tgor$2 Oh$o #or*lo'ur' !' 3*r$'$' l%l,4 $m(ro%$"g o"l& 'l$ghtl& #rom 011. 5 Mor th!" 6.7 (r*"t o# !ll Oh$o mortg!g' !r $thr !*t$%l& $" #or*lo'ur or (!'t )u $" th$r (!&m"t' +& !t l!'t 8 )!&'9!'l$ght $"*r!' '$"* 010.7 B*!u' Oh$o $' ! u)$*$!l #or*lo'ur 't!t, ; th$' *r$'$' h!' h!) ! )r!m!t$* $m(!*t o" th

*ourt' th lo!" $' '*ur) +& ! mortg!g, !") th #or*lo'$"g (!rt& $' or r(r'"t' th mortg!g, !") 5 'r%$* o# (ro*'' h!' +" m!) o" th homo"r. (d . !t 1. Mo't u)$*$!l #or*lo'ur' !r "ot *o"t't) !") r'ult $" )#!ult u)gm"t' !g!$"'t th homo"r. (d . !t 11.

7 Here we begin a sympathy ride for the Courts! The author writes as if We’re clogging Dockets. We’re raising

issues, we’re using a large amount of resources. t seems the author "ust will not address the issue that if the

foreclosures were properly and legally done in the first place there would ha#e been none of the abo#e issues. t is

not $we% who created the problems, it is the illegal actions of the &laintiff 'ank’s, those same 'anks that $we the

people% are bailing out still, to this #ery minute, to the tune of trillions of dollars that are entirely to blame for this

$created housing bubble% that has imploded on the #ery people that in#ented it. We the people are the innocents

the perpetrators of the crimes are the (ender’s and the Courts ha#e bent o#er backward todemonstrate theircommitment to the (ending Community #s. the a#erage homeowner. Collusion is sickenly apparent in e#ery

foreclosure courtroom throughout the )tate indeed throughout the *ation.

8 Whine, whine, whine if the Court’s would ha#e been doing their "obs and inspecting the documents that ha#e

been shown to the Court’s been pro#ed to the Court’s o#er and o#er and o#er again to be fraudulent documents

created in their entirely solely to represent something that could ne#er possibly ha#e legally e+isted in the first

place, our Court’s not only wouldn’t ha#e allowed these thousands of illegal foreclosures, our Courts would ha#e

http://www.policymattersohio.org/wp-http://fhfaoig.gov/Content/Files/SAR%20Home%20Foreclosure%20Process_0.pdfhttp://fhfaoig.gov/Content/Files/SAR%20Home%20Foreclosure%20Process_0.pdfhttp://www.policymattersohio.org/wp-


2/21

015H U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT 0

Su(rm Court o# Oh$o #or #$"!l )trm$"!t$o", ! l!rg !mou"t o# u)$*$!l r'our*' !r ut$l$2).

O" 'u*h $''u $"%ol%) th $"*r!') (r!*t$* o# 'll$"g !") '*ur$t$2$"g mortg!g' 8 !") th ##*t' o# th (r!*t$*o" +r$"g$"g #or*lo'ur !*t$o"'. Th trm mortg!g, !' $t $' *ommo"l& u') to)!&, r#r' to to '(!r!t )o*um"t':

th (rom$''or& "ot !") th '*ur$t& $"'trum"t, h$*h $' -"o" $t'l# !' th mortg!g )o*um"t.5

S*ur$t$2!t$o" $' ! (ro*'' hr ! #$"!"*$!l $"'t$tut$o" !''m+l' (ool' o# $"*om?(ro)u*$"g !''t', 'u*h !'lo!"', !") th" 'll' !" $"tr't $" th *!'h #lo' !' '*ur$t$' to $"%'tor'. 7 F!""$ M! !") Fr))$ M!*Th E"tr(r$'' !r 'om o# th mo't (rom$""t (!rt$*$(!"t' $" th (ur*h!' !") '!l o# mortg!g'.; Thu',r!thr th!" or- )$r*tl& $th homo"r', th& (ur*h!' mortg!g' #rom th or$g$"!l l")r'.


3/21

015H U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT >

to !*/u$r o"r'h$( to + "t$tl) to #or*lo'.10 Th$' %"tu!ll& *!u') ! '(l$t $" th Oh$o )$'tr$*t *ourt' o# !((!l', h$*h %"tu!ll& !' resolved by the Supreme Court of Ohio in 2ederal Home (oan ortgage

Corp. #. )chwart1wald.

10

Th$' C!'"ot *o"'$)r' hthr th Su(rm Court o# Oh$o 'houl) h!% (ro%$)) ! mor thoroughr'olut$o" to th$' )$'tr$*t '(l$t9hthr #or*lo'$"g (l!$"t$##' ") to h!% !)/u!t 't!")$"g (r$or to th*omm"*m"t o# ! #or*lo'ur (ro*)$"g. @!rt II $ll )$'*u'' th *o"#l$*t$"g 't!")!r)' #or 't!")$"g!)o(t) +& %!r$ou' Oh$o )$'tr$*t *ourt'. @!rt III outl$"' th t$+r!-r *!', Federal Ho'e Loan Mor#aeCor2. !. S%/&ar#3&ald.@!rt IK (r'"t' th "g!t$% 1> $m(l$*!t$o"' o# th !m+$gu$t$' $" thS%/&ar#3&ald )*$'$o", !") ho th& !r $"*o"'$'t"t $th th (ur(o' +h$") th Su(rm Court o# Oh$o')*$'$o". @!rt IK !l'o o##r' r*omm")!t$o"' to rm)& th u"#or'" ##*t'. F$"!ll&, th$' C!'"ot*o"*lu)' th!t #urthr !*t$o" ")' to + t!-" $th r'(*t to th S%/&ar#3&ald !m+$gu$t$' to #ul#$ll th (ur(o' +h$") th l!")m!r- )*$'$o" !") to (r%"t #urthr J!*r+!t) h!rm.

II. BACGROUND

A. T/e 4Old5 R)le6S#andin Can 7e C)red

U"t$l 06, 't!")$"g *h!ll"g' to #or*lo'ur !*t$o"' $" Oh$o r !"!l&2) u")r th r!l (!rt& $"$"tr't #r!mor- (romulg!t) $" Jone" !. S)"#er.11 I" S)"#er0 ! (lur!l$t& o# th Su(rm Court o# Oh$o hl)th!t ! l!*- o# 't!")$"g )$) "ot /u!t to ! l!*- o# ur$')$*t$o"9!' lo"g !' $t !' *ur) (r$or to *h!ll"g or u)gm"t.10 15 Th$r r!t$o"!l rl$) o" !" $"tr(rt!t$o" o# Rul 1


4/21

5 U NIKERSITY OF CINCINNATI LA R EKIE KOL. 60

ho' +!'$* (rm$' $' th!t 3H%r& !*t$o" 'h!ll + (ro'*ut) $" th "!m o# th r!l (!rt& $" $"tr't.4 1> 17

o%r, th rul #urthr 't!t' th!t 3"Ho !*t$o" 'h!ll + )$'m$'') o" th grou") th!t $t $' "ot (ro'*ut) $"

th "!m o# th r!l (!rt& $" $"tr't u"t$l ! r!'o"!+l t$m h!' +" !llo) !#tr o+*t$o" #or ra#ifi%a#ion,8 o# *omm"*m"t o# th !*t$o" . . . .415 Th (ur(o' o# th$' rul $' to (rot*t th )#")!"t#rom mult$(l u)gm"t' o" th '!m o+l$g!t$o".17

Oh$o *ourt' h!% )'*r$+) th r!l (!rt& $" $"tr't !' 3o" ho $' )$r*tl& +"#$tt) or $"ur) +& thout*om o# th *!'.41; Mor '(*$#$*!ll&, th (lur!l$t& $" S)"#er $"tr(rt) th$' l!"gu!g to !llo #or ! (!rt& to *ur th$r l!*- o# 't!")$"g, J(r''l& 't!t$"g:

Although ! *ourt m!& h!% 'u+*t m!ttr ur$')$*t$o" o%r !" !*t$o", $# ! *l!$m $' !''rt) +& o" ho $' "ot

th r!l (!rt& $" $"tr't, th" th (!rt& l!*-' 't!")$"g to (ro'*ut th !*t$o". Th l!*- o# 't!")$"g m!& +*ur) +& 'u+'t$tut$"g th (ro(r (!rt& 'o th!t ! *ourt othr$' h!%$"g 'u+*t m!ttr ur$')$*t$o" m!& (ro*)

to !)u)$*!t th m!ttr. U"l$- l!*- o# 'u+*t m!ttr ur$')$*t$o", othr !##$rm!t$% )#"'' *!" + 1<

15 t must also be noted that when these trust’s come into the courts with their 7ssignments of these mortgages

supposedly transferred to them by the proper entity to do so but in fact they are being shown of their face to ha#ebeen transferred by an entity < steps pre#ious in the chain of title/, but in fact not, and also shown as dated 72T54

the $closing date of the trust they are representing which is specifically against the Trust’s own ndenture 7*D

pertinent 4) Code 3 the *6. 5.&.T.( pertinent laws the &laintiff’s )T(( are not the 4eal &arty n nterest

7*D C7* *5=54 '5 '6 TH5 C0*T47CT847( T54) 02 TH5 T48)T 7*D '6 (7W. 7nd there need be

no $(egal Decisions% $pro#ing% this fact as it is clearly spelled out in the trust’s own ndenture. This is nothing

more than Contract (aw >?> and our Court’s, so far, ha#en’t yet seemed able to grasp these simple concepts. This

takes no &erry ason. 2or anyone who’s e#er had to chase down a wire from one point to the ne+t, or do plumbing

work in a house, from one de#ice to the ne+t, or written computer code.. first this then that or $if then%.. or

followed simple instructions to assemble anything can figure this out easily enough.

16 'lack’s @th ratification, n. Ac/ >. 7doption or enactment, esp. where the act is the last in a series of necessarysteps or consents BThe 4atification of the con#entions of nine )tates, shall be sufficient for the 5stablishment of

this Constitution between the )tates so ratifying the )ame. n this sense, ratification runs the gamut of a formal

appro#al of a constitutional amendment to rank9and9file appro#al of a labor unionEs collecti#e9bargaining

agreement with management. )ee 7D0&T0* A/. Cf. )7*CT0* >/. /.I J. Contracts. 7 personEs binding adoption of an act already completed but either

not done in a way that originally produced a legal obligation or done by a third party ha#ing at the time no

authority to act as the personEs agent Ban adultEs ratification of a contract signed during childhood is necessary to

make the contract enforceable. FCasesG Contracts C:@KLJ9>KL.I

M4atification may take place by e+press words indicating an intention to confirm the contract. These words may consist of a new e+press

promise, or such words as E do ratify and confirm.E 7 mere acknowledgment that the contract was in fact made and that it has not been

performed is not sufficient as a ratification. it is sometimes said that a ratification is ineffecti#e unless made with knowledge of the possession of

a legal power to disaffirm, but the cases holding the contrary seem to ha#e the better reason.M

William 4. 7nson, &rinciples ofthe (aw ofContract >K@9N?7rthur (. Corbin ed., Jd 7m. ed. >@>@/.

17


5/21


!$%). L!*- o# 't!")$"g *h!ll"g' th *!(!*$t& o# ! (!rt& to +r$"g !"

!*t$o", "ot th 'u+*t m!ttr ur$')$*t$o" o# th *ourt.

Oh$o *ourt' l!tr rl$) o" th$' l!"gu!g to !llo ! #or*lo'$"g (l!$"t$## l!*-$"g !" !''$g"m"t o# thmortg!g (r$or to *omm"*$"g th !*t$o" to *ur th$' 't!")$"g )#*t +& o+t!$"$"g !''$g"m"t o# thmortg!g or (rom$''or& "ot (r$or to u)gm"t.

7. T/e Fir"# and Ei/#/ Di"#ri%#" Ma9e #/e 7i Mo!e0 Fail #o S&a$

O#/er Di"#ri%#"

S)"#ef" $"tr(rt!t$o" o# Rul 1


6/21

; U NIKERSITY OF CINCINNATI LA R EKIE KOL. 60

F!rgo *omm"*) ! #or*lo'ur !*t$o" thr -' +#or o##$*$!ll& o+t!$"$"g th mortg!g. 00 Follo$"gth F$r't D$'tr$*t' !"!l&'$', th E$ghth D$'tr$*t hl) th!t ll' F!rgo B!"- !' "ot th r!l (!rt& $" $"tr't

!t th t$m $t *omm"*) th 'u$t.

0>

Th$' l!*- o# 't!")$"g, !") *o")$t$o"!l l!*- o# ur$')$*t$o", *!u') thE$ghth D$'tr$*t to )$'m$'' th !*t$o" $thout (ru)$*.05

Othr )$'tr$*t', ho%r, r "ot !' !gr to !+!")o" )*!)' ol) (r*)"t. For J!m(l, th F$#thD$'tr$*t Court o# A((!l' too- ! *o"tr!'t$"g %$ $" .S. 7an9Na#;lA"" ;n !. 7a$le"".1

Thu', $" th F$r't !") E$ghth D$'tr$*t', ! #or*lo'$"g (l!$"t$## !' r/u$r) to h!% 't!")$"g (r$or to*omm"*m"t o# th !*t$o" or r$'- )$'m$''!l. I" *o"tr!'t, th F$#th !") N$"th D$'tr$*t' r#u') to mo)$#&th 't!")!r), !") *o"t$"u) to !llo ! #or*lo'$"g (l!$"t$## to *ur 't!")$"g )#*t' (r$or to u)gm"t. Th$'*o"#l$*t !' *rt$#$) to th Su(rm Court o# Oh$o !rou") th '!m t$m ! "$!, Oh$o *ou(l,Du!" !") ul$ S*h!rt2!l), 'u+m$tt) ! )$'*rt$o"!r& !((!l o" th '!m $''u. Th Su(rm Court o#

22 No. 81;1 Oh$o Ct. A((. No%. 1>, 08.

26 (d. !t =0.

27 (d. !t =;?6< Oh$o Ct. A((. M!r. >, 0.

30 (d. !t =7.

31 (d . !t =


7/21

015H U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT <

Oh$o !**(t) th *o"#l$*t !") !((!l togthr $" Federal Ho'e Loan Mor#ae Cor2. !.S%/&ar#3&ald .>0

Ill. TE TIE BREAER : F EDERAL H OME LOAN M ORTGAGE C ORP . V .

S CHWARTZWALD

A. Fa%#)al 7a%9ro)nd and T/e Se%ond Di"#ri%#;" De%i"ion

I" No%m+r 0;, Du!" !") ul$ S*h!rt2!l) (ur*h!') ! hom $th ! mortg!g lo!" #rom Lg!*&Mortg!g $" th !mou"t o# 071, 07.>6 Th& J*ut) ! (rom$''or& "ot !") ! mortg!g gr!"t$"g Lg!*& !'*ur$t& $"tr't $" th (ro(rt&.>8 Lg!*& thr!#tr ")or') th (rom$''or& "ot (!&!+l to ll' F!rgoB!"- !") !l'o !''$g") $t th mortg!g.5

To &!r' l!tr, Du!" S*h!rt2!l) lo't h$' o+ $" "$!, Oh$o !") th S*h!rt2!l)' mo%) to

I")$!"!.51 For #our mo"th', th #!m$l& *o"t$"u) m!-$"g mortg!g (!&m"t' !' th& !ttm(t) to 'll thhou' $" "$!, +ut th& "t $"to )#!ult o" !"u!r& 1, 08. 50 I" M!r*h 08, ll' F!rgo !") thS*h!rt2!l)' !gr) to l$'t th (ro(rt& #or ! 'hort '!l $" !" !ttm(t to (r%"t th #or*lo'ur !*t$o".5 I"A(r$l 08, th S*h!rt2!l)' "tr) $"to ! *o"tr!*t to 'll th hom #or 078,8 $th ! *lo'$"g 't #or u" 6, 08.55

h$l th$"g' r loo-$"g u( #or th S*h!rt2!l)', th$r (r$o) o# rl$# !' *ut 'hort o" A(r$l 17,08, h" Fr))$ M!* *omm"*) ! #or*lo'ur !*t$o" !g!$"'t thm $" th Gr" Cou"t& Court o# Commo" @l!'.57 Att!*h) to th *om(l!$"t !' ! *o(& o# th mortg!g $)"t$#&$"g th S*h!rt2!l)' !'th )+tor' !") Lg!*& Mortg!g !' th l")r, +ut $t )$) "ot !tt!*h ! *o(& o# th "ot. 5 I"'t!), Fr))$M!* "ot) $" th *om(l!$"t th!t 3! *o(& o# th "otH $' *urr"tl& u"!%!$l!+l.45<

U(o" 'r%$* o# th *om(l!$"t, ! (!"$*-) ul$ S*h!rt2!l) *o"t!*t) th ll' F!rgo !''o*$!t' $"%ol%)$" th 'hort '!l (ro*''. ul$ thr!#tr t't$#$) $" *ourt th!t )ur$"g th!t *o"%r'!t$o", 'h !' tol) th!t $t !'

3't!")!r) (ro*)ur4 !") 3)o"t orr& !+out $t4 +*!u' th& r !*t$%l& $"%ol%) $" ! 'hort '!l.>>

328


8/21


Co"'/u"tl&, th S*h!rt2!l)' )$) "ot #$l !" !"'r to Fr))$ M!*' *om(l!$"t.>5

O" A(r$l 05, 08, Fr))$ M!* #$l) ! *o(& o# th "ot '$g") +& th S*h!rt2!l)' $" #!%or o# Lg!*&Mortg!g.7 O" th #$"!l (!g, thr !' ! +l!"- ")or'm"t +& ll' F!rgo. 7 Somt$m thr!#tr, ll' F!rgo

o##$*$!ll& J*ut) th !''$g"m"t o# th "ot !") mortg!g to Fr))$ M!*. >7 Fr))$ M!* #$l) th$' !''$g"m"t $thth *ourt, $)"t$#&$"g $t'l# !' th o##$*$!l hol)r o# +oth th mortg!g !") th "ot9"!rl& to mo"th' !#tr th*omm"*m"t o# th #or*lo'ur l!'u$t.>;

Although ll' F!rgo h!) -"o$"gl& !''$g") $t' $"tr't $" th "ot !") mortg!g to Fr))$ M!*, $t'$mult!"ou'l& *o"t$"u) "got$!t$"g ! 'hort '!l o# th (ro(rt& $th th S*h!rt2!l)'. E%"tu!ll&, )l!&' $" th (ro*'' *!u') th (ot"t$!l +u&r to r'*$") h$' o##r.> Th S*h!rt2!l)' !((!l). O" !((!l, th S*o") D$'tr$*t Court o# A((!l', lo&!l to th$r

S)"#er (r*)"t, !##$rm) th tr$!l *ourt, hol)$"g th!t 't!")$"g !' "ot ! ur$')$*t$o"!l r/u$rm"t.55

7. T/e S)2re'e Co)r# of O/io De%i"ion- T/e Co)r# Side" &i#/ #/e Fir"#

34 (d .

(d .

(d .

35 (d .

36 (d. At th$' t$m, !lthough Fr))$ M!* mo%) #or Summ!r& u)gm"t, $t !' )"$) )u to th !+'"* o# th

!''$g"m"t #rom Lg!*& Mortg!g to ll' F!rgo $" th r*or). (d.

37 (d. Th *ourt "%r '!&' hthr th' )l!&' 'tmm) #rom th !*t$%$t& o# !''$g"$"g th mortg!g or #!$lur to +

!+l to 't!+l$'h ! *h!$" o# t$tl, +ut *o"'$)r$"g th 'hort '!l !' 'u((o') to ") o" u" 8 !") th !''$g"m"t #romll' F!rgo to Fr))$ M!* o**urr) u" 1


9/21


and Ei/#/ Di"#ri%#"

Th 'ol $''u (r'"t) to th *ourt !' hthr ! l!*- o# 't!")$"g !t th *omm"*m"t o# ! #or*lo'ur !*t$o"

m!& + *ur) +& o+t!$"$"g !" !''$g"m"t o# th "ot !") mortg!g (r$or to th "tr& o# u)gm"t. Th Su(rm Courto# Oh$o u"!"$mou'l& !gr) th !"'r !' "o.

I" r*t$"g Fr))$ M!*' !rgum"t th!t 't!")$"g $' "ot ! ur$')$*t$o"!l r/u$rm"t, th *ourt 't!t) #$rml&: 3$Ht $'

!" lm"t!r& *o"*(t o# th l! th!t ! (!rt& l!*-' 't!")$"g #o in!o9e #/e >)ri"di%#ion o# th *ourt u"l'' h h!', $"!" $")$%$)u!l or r(r'"t!t$% *!(!*$t&, 'om r!l $"tr't $" th 'u+*t m!ttr o# th !*t$o".4 57 Th u"!"$mou'

o($"$o" !))$t$o"!ll& )$'m$'') Fr))$ M!*' rl$!"* o" S)"#er0 hol)$"g th!t +*!u' $t !' ! (lur!l$t& o($"$o", $t $'"ot *o"'$)r) +$")$"g (r*)"t.5; A#tr r%$$"g othr ur$')$*t$o"' t!- o" th $''u, th *ourt ult$m!tl& #ou")th!t ! l$t$g!"t *!""ot, (ur'u!"t to Rul 1


10/21


#or*lo') hom', +!"-' !") th$r $"%'tor', !' ll !' th #or*lo')?o" homo"r' h!% J(r$"*) h!r)'h$(.Although th' ##*t' r u"$"t")), th& !r %r& r!l !") $" ") o# ! 'olut$o". Th$' @!rt o# th C!'"ot )t!$l'th' "g!t$% $m(l$*!t$o"', !") (ro(o'' (o''$+l 'olut$o"' th!t '$mult!"ou'l& r$"#or* th tru (ur(o' o# th

S%/&ar#3&ald )*$'$o".

1. Th Court'

A' ! r'ult o# th S%/&ar#3&ald )*$'$o", /u't$o"' !+out (!'t #or*lo'ur' "o o**u(& )o*-t '(!* !lr!)&*logg) $th " !") (")$"g #or*lo'ur !*t$o"'. Th' )l!&' *!ll $"to /u't$o" th ##$*$"*& o# th *ourt#or*lo'ur (ro*''. Illu'tr!t$"g th$' "g!t$% *o"'/u"*, th )$'tr$*t *ourt' h!% $"tr(rt) !") !((l$)

S%/&ar#3&ald h!(h!2!r)l&, !") th' $"*o"'$'t"*$' h!% r'ult) $" &t !"othr *rt$#$*!t$o" to th 'u(rm Courto# oh$o +!') o" ! *!' l'' th!" #our mo"th' ol).;6

Th *o"#l$*t r'ult) #rom o" o# th m!or !m+$gu$t$' $" th S%/&ar#3&ald o($"$o": hthr th 't!")!r)!((l$' $" th *o"tJt o# ! C$%$l Rul ;B Mot$o" #or Rl$# #rom u)gm"t Rul ;+. I" othr or)', *ourt' r#or*) to /u't$o" hthr th #!$lur to r!$' th$' )#"' $" !**or)!"* $th th t$m r/u$rm"t' o# Rul ;Br'ult) $" ! !$%r o# th )#"' thr!#tr. To !"'r th$' /u't$o", *ourt' #$r't h!) to )trm$" hthr th

S%/&ar#3&ald )*$'$o" /u!t) ! l!*- o# 't!")$"g to ! l!*- o# ")1>e%# 'a##er ur$')$*t$o" (!rt$*ul!rl& or 'om othr t&( o# ur$')$*t$o".

Th trm 3ur$')$*t$o"4 ''"t$!ll& !((l$' $" thr )$##r"t *o"tJt': 1 'u+*t m!ttr ur$')$*t$o", h$*h $' thmo't '$g"$#$*!"t, !' $t !''rt' th (or o# th *ourt to !)u)$*!t th m!ttr "t$rl&, 0 (r'o"!l ur$')$*t$o", !") > ur$')$*t$o" o%r ! (!rt$*ul!r *!', h$*h $' )'*r$+) !' 3th *ourt' !uthor$t& to )trm$" ! '(*$#$* *!' $th$" th!t*l!'' o# *!'' th!t $' $th$" $t' 'u+*t m!ttr ur$')$*t$o".4 ;8 Thr $' "o t$m +!r u")r th #$r't thor&, !' ! u)gm"t$' *o"'$)r) %o$) h"%r th l!*- o# 'u+*t m!ttr ur$')$*t$o" $' (ro%".


11/21


m!ttr ur$')$*t$o" $th "o t$m +!r o" r!$'$"g th )#"'. Thu', th m!ttr !' r%r') !") rm!")) #or !((l$*!t$o"

o# S%/&ar#3&ald ! &!r !#tr th 'hr$## ' '!l o# th (ro(rt&. ; Co"'/u"tl&, th u)gm"t !' #ou") to + %o$).

Co"%r'l&, th T"th D$'tr$*t Court o# A((!l' J(l$*$tl& rul) th!t S%/&ar#3&ald *!""ot + !((l$) $" th*o"tJt o# Rul ;B. A h$'tor$*!lr!)$"g o# th U"$#orm Commr*$!l Co) U.C.C. !") *orr'(o")$"g Oh$o l! 'ugg't' th!t th (r'o" "t$tl) to"#or* th "ot $' !l'o "t$tl) to "#or* th mortg!g th!t '*ur' th (rom$''or& "ot. 71 Th$' 'ugg't' th!t to't!+l$'h !)/u!t 't!")$"g, ! #or*lo'$"g (l!$"t$## ") o"l& 'ho h !' !''$g") th "ot (r$or to *omm"*$"g th!*t$o". I" #!*t, th @rm!""t E)$tor$!l Bo!r) @EB o# th U.C.C r*"tl& !##$rm) th !**(t) (ro(o'$t$o" th!t 3th

50 No. 10CA07?M, 010 Oh$o A((. LEIS 56> Oh$o Ct. A((. D*. >, 010.

(d. !t =6.

(d.

@NC B!"-, N!tl A''" %. Bott', No. 10A@?07;, 010 Oh$o A((. LEIS 5.

(d. !t =1


12/21


'*ur$t& #ollo' th )+t4 $" r'(o"' to th r*"t $"tr't th!t th mortg!g #or*lo'ur *r$'$' h!' g"r!t):70

h!t $# ! "ot '*ur) +& ! mortg!g $' 'ol) or th "ot $' u') !' *oll!tr!l to '*ur !" o+l$g!t$o", +ut th

(!rt$' )o "ot #orm!ll& !''$g" th mortg!g th!t '*ur' (!&m"t o# th "ot, 'u*h !' J*ut$o" o# ! r*or)!+l!''$g"m"t o# th mortg!g UCC 8?0> g J(l$*$tl& (ro%$)' th!t, $" 'u*h *!'', #/e a""in'en# of #/ein#ere"# of #/e "eller or o#/er ran#or of a "e%)ri#$ in#ere"# in #/e no#e a)#o'a#i%all$ #ran"fer" a%orre"2ondin in#ere"# in #/e 'or#ae #o #/e a""inee.

Co"'$)r$"g th!t Oh$o h!' !)o(t) th U.C.C., th$' l!"gu!g $")$*!t' th!t th *urr"t )$'tr$*t '(l$t $' u""*''!r&.o%r, th *o"t$"u) )$'!grm"t !mo"g Oh$o )$'tr$*t *ourt' r'ult' #rom ! l!*- o# *l!r$t& $" th Su(rm Court o#

Oh$o' o($"$o".7> A' ! r'ult, lo*!l$t& *o"t$"u' to h!% ! m!r-) $m(!*t o" th r'olut$o" o# r'$)"t$!l#or*lo'ur !*t$o"' $" Oh$o, !") rm!$"' (ro+lm!t$*. Du (ro*'' *o"*r"' $"*r!' h" lo*!l$t& $')$'(o'$t$% o# lg!l r$ght'.75 L$t$g!"t' 'houl) + !+l to #or' th r'ult o# ! l!'u$t, !") th!t r$ght $')$'tur+) !' ! r'ult o# $"*o"'$'t"t rul$"g'. Furthr, th' $"*o"'$'t"*$' *oul) (romot )$'tr$*t 'ho(($"gh" (o''$+l #or #or*lo'$"g (l!$"t$##', r'ult$"g $" '%r *o"'umr $"/u$t&. Th$' $' th o((o'$t o# h!tS%/&ar#3&ald !' !ttm(t$"g to !**om(l$'h.

Furthr, (!rt$*ul!rl& +& #!$l$"g to l$m$t th rtro!*t$%$t& o# th 't!")!r), th !+$l$t& o# *ommo" (l!'*ourt' to or- through thou'!")' o# (")$"g !") #utur #or*lo'ur' $' +$"g thr!t") +& h!%$"g to go +!*- !") r%$'$t ol) o"'. It h!' +" 't$m!t) th!t "!rl& 7 o# #or*lo'ur' $" th 188' !") 0'r "ot (ro(rl& !''$g"), !") thu', !#tr S%/&ar#3&ald0 *oul) "o + )trm$") %o$).77 Th$' $' "ot'$m(l& '(*ul!t$o"9hour' !#tr th S%/&ar#3&ald )*$'$o", thr r l!'u$t' #$l) !ll o%r th 't!t o# Oh$o *h!ll"g$"g ol) #or*lo'ur' !llg$"g ! l!*- o# 't!")$"g.7;

I" 'um, $" !" !ttm(t to (l!* ! l$m$t o" th *ourt' ur$')$*t$o" !") th $")u'tr&?$) #or*lo'ur (r!*t$*' o# mortg!g?'*ur$t& (ur*h!'$"g +!"-', th *ourt !rgu!+l& !gr) to r%$'$t &!r' o# l$t$g!t$o" $" !t$m hr l$t$g!t$o" $' o"l& gro$"g. A' ! r'ult, th t$m !") mo"& '("t o" th' !*t$o"', !' ll !' )u (ro*'' *o"*r"' #or th homo"r' !") l")r' h!%, !") $ll *o"t$"u to, $"*r!'.

52Br$# o# A((ll F)r!l om Lo!" Mortg!g Cor(or!t$o" !t 17, F). om Lo!" Mortg. Cor(. %. S*h!rt2!l),

8#)r!l?hom?lo!"?mortg!g?*or(?%?'*h!rt2!l)?th?u"#or*lo'ur>>7.

56S*ott A. $"g V Trr& . @o'&, r., Tr)e Cri'e and S#andin in Fore%lo")re A%#ion"- Ho& #/e Real Life F)i#i!e S#or$ Lead" #o=ear" of Li#ia#ion0 in STANDING TO FORECLOSE: A MASSACUSETTS CASE STUDY AND MULTI?URISDICTION SURKEY 01>, a!aila1le a# htt(:.!mr$*!"+!r.orggrou('l$t$g!t$o"%"t'*l(rogr!mm!tr$!l'01>'!*#r$)!&.html.

http://www.graydonhead.com/docs/default-source/litigation-alert/may-02-2013%E2%80%94ohio-supreme-court-takes-a-pass%E2%80%94and-that%E2%80%99s-good-news.pdf?sfvrsn=4http://www.graydonhead.com/docs/default-source/litigation-alert/may-02-2013%E2%80%94ohio-supreme-court-takes-a-pass%E2%80%94and-that%E2%80%99s-good-news.pdf?sfvrsn=4http://www.graydonhead.com/docs/default-source/litigation-alert/may-02-2013%E2%80%94ohio-supreme-court-takes-a-pass%E2%80%94and-that%E2%80%99s-good-news.pdf?sfvrsn=4http://inclosing.net/2013/federal-home-loan-mortgage-corp-v-http://inclosing.net/2013/federal-home-loan-mortgage-corp-v-http://www.americanbar.org/groups/litigation/events_cle/program_materials/2013_sac_friday.htmlhttp://www.americanbar.org/groups/litigation/events_cle/program_materials/2013_sac_friday.htmlhttp://www.graydonhead.com/docs/default-source/litigation-alert/may-02-2013%E2%80%94ohio-supreme-court-takes-a-pass%E2%80%94and-that%E2%80%99s-good-news.pdf?sfvrsn=4http://www.graydonhead.com/docs/default-source/litigation-alert/may-02-2013%E2%80%94ohio-supreme-court-takes-a-pass%E2%80%94and-that%E2%80%99s-good-news.pdf?sfvrsn=4http://inclosing.net/2013/federal-home-loan-mortgage-corp-v-http://www.americanbar.org/groups/litigation/events_cle/program_materials/2013_sac_friday.html


13/21

015H U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT 1>

2. I""o*"t Th$r) @!rt& @ur*h!'r'

$ro"$*!ll& "ough, th u"$"t")) grou( mo't "g!t$%l& !##*t) +& th S%/&ar#3&ald )*$'$o" $'*o"'umr'. hr ! #or*lo'ur u)gm"t $' l!tr #ou") to + %o$), !rgu!+l& th 'u+'/u"t '!l' o# th (ro(rt& !r !' ll. Th (ur*h!'r !t '!l )$) "ot t!- goo) t$tl !") *!""ot *o"%& goo) t$tl to ! #utur (ur*h!'r. Thr#or, *l!r$#$*!t$o" o# h!t t&( o# ur$')$*t$o" !' l!*-$"g $" S%/&ar#3&ald $' (rt$""t toth$' )trm$"!t$o" !' ll. I# ! l!*- o# 't!")$"g /u!t' to ! l!*- o# 'u+*t m!ttr ur$')$*t$o", th"hu")r)' o# thou'!")' o# 'u+'/u"t (ur*h!'r' o# #or*lo') hom' $ll 'oo" #$") out th& h!% #!ult&t$tl to th$r hom. Th *o"'/u"*' o# #!ult& t$tl *!" + )%!'t!t$"g.

Th Oh$o R%$') Co) !((!r' to h!% ! (rot*t$o" #or $""o*"t th$r) (!rt& (ur*h!'r', +ut th (ro%$'$o" $' '$l"t !' to %o$) u)gm"t'. T$tl III 0>07.> o# th Oh$o R%$') Co) 't!t' th!t:

Th t$tl to (ro(rt&, h$*h t$tl $' th 'u+*t o# ! #$"!l u)gm"t or or)r 'ought to + !a%a#ed0 'odified0 or "e#

a"ide +& !"& t&( o# (ro*)$"g or !tt!*- !") h$*h t$tl h!', +&, $" *o"'/u"* o#, or $" rl$!"* u(o" th #$"!l

u)gm"t or or)r, (!'') to ! (ur*h!'r $" goo) #!$th, 'h!ll "ot + !##*t) +& th (ro*)$"g or !tt!*-P "or

'h!ll th t$tl to (ro(rt& th!t $' 'ol) +#or u)gm"t u")r !" !tt!*hm"t + !##*t) +& th (ro*)$"g or

!tt!*-. 3@ur*h!'r $" goo) #!$th,4 !' u') $" th$' '*t$o", $"*lu)' ! (ur*h!'r !t ! )ul& *o"#$rm) u)$*$!l '!l.

Othr Oh$o R%$') Co) (ro%$'$o"' #urthr 'ol$)$#& th +o"! #$) (ur*h!'r (rot*t$o"'. For J!m(l,R.C. 0>08.57 '(*$#$' th!t $# ! 'hr$## ' '!l $' r%r'), th (ur*h!'r' t$tl $' "ot )#!t), +ut th u)gm"t *r)$tor mu't m!- r't$tut$o".7< U"#ortu"!tl&, Oh$o *!' l! 'ugg't' th!t th' (rot*t$o"' )o"ot !((l& to %o$) u)gm"t'.76 I" Lin%oln Ta!ern0 (n%. !. Snader0 th *ourt hl) th!t 3!H (ro*)$"g to%!*!t ! u)gm"t o" th grou") th!t $t $' %o$) #or !"t o# ur$')$*t$o" $' "ot 'u+*t to th (ro%$'$o"' o# S*t$o" 0>07.1 e# "e.0 R%$') Co), h$*h !((l& to th %!*!t$o" or mo)$#$*!t$o" o# o"l& tho' u)gm"t'h$*h !r mrl& %o$)!+l !") tho' h$*h !r "ot %o$) a1 ini#io.478Th t$tl $"'ur!"* $")u'tr& 'h!r' th$'"!rro u")r't!")$"g o# R.C. 0>07.>' '*o(. Du to th l!*- o# *l!r$#$*!t$o" $" th S%/&ar#3&ald o($"$o"!' to hthr th u)gm"t $' %o$) or %o$)!+l, th $")u'tr& h!' t!-" ! '!# (o'$t$o" !") !''um) th#ormr. Th$' (o'$t$o" h!' r'ult) $" +ur)"'om (ro*''' o# o+t!$"$"g "*''!r& t$tl $"'ur!"* #or r*"t

(ur*h!'r' o# #or*lo'ur'. U")rr$tr' h!% +gu" to r/u$r J*(t$o"' o" t$tl $"'ur!"* (ol$*$' toh!t $' -"o" $" th $")u'tr& !' th 4S%/&ar#3&ald @ro+lm.4 Th' J*(t$o"' m!- *l!r th!t t$tl$"'ur!"* !g"*$' $ll "ot *o%r *l!$m' rl!t) to !ttm(t' to 't !'$) #or*lo'ur u)gm"t' or 'u+'/u"t '!l' +!') o" l!*- o# 't!")$"g !rgum"t'. ; For " homo"r', (!rt$*ul!rl& tho' ho "tthrough th )r!"?out (ro*'' o# (ur*h!'$"g ! #or*lo'ur, th$' lur-$"g l$!+$l$t& *!" + $"t$m$)!t$"g.

O" (o''$+$l$t& #or 'u*h " homo"r' m!& + ! /u$t t$tl !*t$o", +ut M!''!*hu'tt' *!'l!

57OIO R EK. CODE A NN. 0>07.> LJ$'NJ$' 01> m(h!'$' !))).

(d . 0>08.57. A))$t$o"!ll&, 0>08.5; !llo' ! 'hr$## '!l (ur*h!'r to + 'u+rog!t) to th r$ght o# ! u)gm"t

*r)$tor !g!$"'t ! )+tor $# th t$tl $' $"%!l$) +& r!'o" o# )#*t $" th (ro*)$"g'. o%r, "ot !l!&' $' th (ur*h!'r o# ! #or*lo') hom th (ur*h!'r #rom ! 'hr$## '!l. A' m"t$o") (r%$ou'l&, #$"!"*$!l $"'t$tut$o"'*ommo"l& (ur*h!' th (ro(rt& #rom th 'hr$## '!l $" !" !ttm(t to m$t$g!t th lo'' $"*urr) +& lo +$)' o" th

(ro(rt&. Th& th" !ttm(t to m!r-t !") 'll th hom thm'l%' $" ! tr!)$t$o"!l m!""r. Thr#or, $t $'/u't$o"!+l hthr th' (rot*t$o"' !((l& to 'u+'/u"t (ur*h!'' or u't th 'hr$## '!l (ur*h!'r'. (d. 0>08.5;.

58Ru''ll, ")2ra "ot ;8.

59See id. /uot$"g L$"*ol" T!%r", I"*. %. S"!)r, 1>> N.E.0) ;; Oh$o 187;.

More on S%/&ar#3&ald- O/io S)2re'e Co)r# Re!er"e" Ano#/er Fore%lo")re0 SOURCE OF TITLE BLOG !". 01, 01>,

htt(:.'our*o#t$tl.*om+log"o).!'(Ju"$/W8


14/21


15/21


!''$g"m"t o# th mortg!g $ll "o *o't thm ! l!rg !mou"t o# t$m !") mo"&. E!*h t$m !" othr$' %!l$)#or*lo'ur !*t$o" $' )$'m$'') !") #or*) $"to r#$l$"g, th !ttor"&' #', #$l$"g #', !") hour' '("t o" th!t !*t$o"$"*r!' )r!m!t$*!ll&. I" 'om Oh$o )$'tr$*t', th #$l$"g # #or ! #or*lo'ur !*t$o" $' Jtr!or)$"!r$l& h$ghP 5


16/21

1; U NIKERSITY OF CINCINNATI LA R EKIE KOL. 60

S$m$l!rl&, ))' $" l$u !l'o r/u$r ! homo"r to 'urr")r t$tl !") (o''''$o" o# th (ro(rt&. Th$' (ro*'' $'! %olu"t!r& !grm"t +t" th (!rt$' to J*h!"g th )) to th hom #or ! )$'*h!rg o# th (!rt$!l or #ull!mou"t o# th out't!")$"g )+t.


17/21

015H U NINTENDED EFFECTS AND I NADEQUATE CONSUMER BENEFIT 1<

To rm)& th h!rm#ul, u"$"t")) ##*t' o# th S%/&ar#3&ald )*$'$o" h$l !l'o u(hol)$"g $t' (ur(o', th!m+$guou' 't!")!r) *!", !") 'houl), + !ltr). Th 't!")!r) *!" + (o'$t$%l& mo)$#$) +& '%r!l '$m(l 't('r/u$r$"g !*t$o" +& +oth th u)$*$!r& !") th lg$'l!tur. F$r't, th Oh$o u)$*$!r& 'houl) !m") th (l!)$"g

r/u$rm"t' #or #or*lo'ur !*t$o"' to (ro%$) #or mor u"$#orm$t&. Furthr, th Su(rm Court o# Oh$o 'houl) t!-th o((ortu"$t& to *l!r$#& th S%/&ar#3&ald hol)$"g !' (ro'(*t$% o"l& $" r'ol%$"g th @)#%/a7o##" *o"#l$*t. F$"!ll&, thOh$o Lg$'l!tur 'houl) J(l$*$tl& )l$"!t h!t th #or*lo'$"g (l!$"t$## ")' to (ro% !t th *omm"*m"t o# !#or*lo'ur !*t$o"P th!t $', ho $' "t$tl) to "#or* th mortg!g. A))$t$o"!ll&, $t 'houl) *r!t ! " lg!l "t$t& th!t$' (rot*t) #rom ! *lou)) t$tl !' ! r'ult o# th trm) S%/&ar#3&ald (ro+lm.

1. Am") th @l!)$"g St!")!r)'

F$r't, th Oh$o u)$*$!r&, through $t' Comm$''$o" o" Rul' o# @r!*t$* !") @ro*)ur Th Comm$''$o", 'houl)!m") Oh$o C$%$l Rul >: Comm"*m"t o# A*t$o"P K"u to $"*lu) '(*$#$* (ro*)ur' #or *omm"*$"g !

#or*lo'ur !*t$o". 'houl) + !m")) to r/u$r#or*lo'ur (l!$"t$##' to !tt!*h !)/u!t (roo# o# 't!")$"g to th$r *om(l!$"t h" *omm"*$"g !#or*lo'ur !*t$o".

Although 'om m!& !rgu th$' *h!"g $" (ro*)ur $ll + ! +ur)" to th *ourt, $" 01>, ThComm$''$o" 'u**''#ull& $m(lm"t) #our !m")m"t' to th Oh$o Rul' o# C$%$l @ro*)ur, !") thrh!' &t to + !"& )&'#u"*t$o" !' ! r'ult o# th *h!"g'. I")), othr u)$*$!l #or*lo'ur 't!t' 'u*h !'M!$", N Yor-, !") Krmo"t !lr!)& h!% 't!tutor& !uthor$t& r/u$r$"g (roo# o# o"r'h$( to + !tt!*h)to th *om(l!$"t.61 Mor $m(ort!"tl&, th !m")) (l!)$"g 't!")!r) oul) (r'r% th (ur(o' o# th

79I" 18;6, th *$t$2"' o# Oh$o (ro(o') !m")m"t' to Art$*l IK o# th Oh$o Co"'t$tut$o" gr!"t$"g th

Su(rm Court rul?m!-$"g !uthor$t& #or th u)$*$!l +r!"*h o# th Oh$o Go%r"m"t. Th$' !m")m"t $' r#rr) to!' o" o# th Mo)r" Court' Am")m"t'. To *!rr& out th$' " rol, th Su(rm Court o# Oh$o *r!t) thComm$''$o" o" th rul' o# @r!*t$* !") @ro*)ur Comm$''$o". Th Comm$''$o" *o"'$'t' o# "$"t" mm+r',$"*lu)$"g u)g' "om$"!t) +& u)g' !''o*$!t$o"' !") mm+r' o# th (r!*t$*$"g +!r !' !((o$"t) +& th Su(rmCourt. Th Comm$''$o" !""u!ll& r%$' !") r*omm")' !m")m"t' to th Rul' o# C$%$l @ro*)ur, Rul' o# Cr$m$"!l @ro*)ur, Rul' o# A((ll!t @ro*)ur, Rul' o# u%"$l @ro*)ur, !") Rul' o# E%$)"*. $" th #!ll o# !*h &!r, thComm$''$o" 'u+m$t' $t' 'ugg't$o"' to th Su(rm Court, !") r*omm") $t t!- ##*t ul& 1 o# th #ollo$"g &!r.Th Su(rm Court th" (u+l$'h' th r*omm")) !m")m"t' #or @u+l$* Comm"t +#or )*$)$"g o" hthr to$m(lm"t thm th #ollo$"g &!r. Th @u+l$* Comm"t' !r r%$) +& th Comm$''$o", !") $t m!& $th)r!,!m"), or r'u+m$t th r*omm")) !m")m"t' $# $t '' #$t. I# th Su(rm Court )*$)' to 'u+m$t th!m")m"t' #or $m(lm"t!t$o", $t mu't h!% thm 'u+m$tt) to th G"r!l A''m+l& +& !"u!r& 17. Thr $' th" !'*o") @u+l$* Comm"t (h!', !") th Comm$''$o" !g!$" h!' th r$ght to $th)r!, !m"), or r'u+m$t th rul. See

A'end'en#" #o #/e O/io R)le" of A22ella#e Pro%ed)re0 #/e O/io R)le" of Ci!il Pro%ed)re0 #/e O/io R)le" of Cri'inal Pro%ed)re0 and #/e O/io

R)le" of J)!enile Pro%ed)re0 SU@. CT. OF OIO 010 hr$"!#tr A'end'en#"H, a!aila1le a#

htt(':.'u(rm*ourt.oh$o.go%@IO"'010(r!*t$*@ro*)ur010.()# .80OIO CIK. R. >A.

A'end'en#"0 ")2ra "ot 118.

81 7ill ,88- Sa!in DC Ho'e" fro' Fore%lo")re Clarifi%a#ion A'end'en# A%# of +,0 COMM. ON @UB. SERKS. AND CONSUMER AFFAIRS

COUNCIL OF D.C. u" 06, 010 t't$mo"& o# ""$#r Ng!$ L!%!ll, Lg!l A$) So*$t& o# D.C., a!aila1le a#htt(:.lg!l!$))*.org$''u')o*um"t'0100Lg!l0A$)0T't$mo"&0o"0For*lo' ur0M)$!t$o"0L!.()#.

https://www.supremecourt.ohio.gov/PIO/news/2012/practiceProcedure2012.pdfhttp://www.legalaiddc.org/issues/documents/2012%20Legal%20Aid%20Testimony%20on%20Forecloshttps://www.supremecourt.ohio.gov/PIO/news/2012/practiceProcedure2012.pdfhttp://www.legalaiddc.org/issues/documents/2012%20Legal%20Aid%20Testimony%20on%20Foreclos


18/21


S%/&ar#3&ald )*$'$o", h$l !l'o r'ol%$"g m!"& o# th u"$"t")) ##*t' o# th )*$'$o".A" !m")) (l!)$"g 't!")!r) oul) "'ur th !**ou"t!+$l$t& o# #or*lo'$"g (l!$"t$##' !") (ro%$) #or

! g"r!ll& !((l$*!+l 't!")!r) $th "o !m+$gu$t&. '$m(l& (ut, #$"!"*$!l $"'t$tut$o"' oul) "ot + !+l to*omm"* ! #or*lo'ur l!'u$t $thout th (ro(rl& !tt!*h) (!(ror-. Th$' 'u((ort' th Su(rm Courto# Oh$o' '$g"$#$*!"t o((o'$t$o" to g$%$"g #$"!"*$!l $"'t$tut$o"' ! +r!- $" rg!r)' to (!(ror-, h"*u'tomr' oul) "ot gt th!t luJur& #rom th $"'t$tut$o"' thm'l%'. 60 A))$t$o"!ll&, o%r*ro)) *ourt)o*-t' oul) !l'o +"#$t #rom th$' (rl$m$"!r& *h*- +& th *lr- o# *ourt' !t #$l$"g, +*!u' ! #or*lo'ur*om(l!$"t oul) "ot + !''$g") to ! )o*-t u"t$l $t (o'''') th rul?+!') (rr/u$'$t'. F$"!ll&, $t oul) (r%"t +oth (!rt$' #rom '(")$"g th t$m, u)$*$!l r'our*', !") mo"& +g$""$"g )$'*o%r& o"l& to #$")th!t ! (l!$"t$## )o' "ot h!% 't!")$"g to #or*lo'. Th$' rm)& $' '(*$!ll& $m(ort!"t !' +oth (!rt$' to !#or*lo'ur !*t$o" !r u"$/ul& hurt$"g #or *!'h9th (l!$"t$## $' +$"g )#!ult) o" !") "ot r*$%$"g $t' (ro*t) !**ou"t' r*$%!+l', !") th )#")!"t $' 'truggl$"g #$"!"*$!ll& to th (o$"t th!t th& *!" "olo"gr !##or) th$r hom. $" 'um, $t oul) (ro%$) #or u"$#orm, ##$*$"t, !") /u$t!+l #or*lo'url$t$g!t$o".

2. Cl!r$#& Rtro!*t$%$t&

Th Su(rm Court o# Oh$o 'houl) *l!r$#& th!t ! l!*- o# 't!")$"g /u!t' to ! l!*- o# g"r!l ur$')$*t$o"o%r th!t (!rt$*ul!r *!', !") )o' "ot $m(l$*!t 'u+*t m!ttr ur$')$*t$o", $" r'ol%$"g th @)#%/a7o##"*o"#l$*t. B& l$m$t$"g th 't!")!r) !rt$*ul!t) $" S%/&ar#3&ald to (ro'(*t$% #or*lo'ur' o"l&, m!"& o# thu"$"t")) ##*t' th!t 'ur#!*) 'o /u$*-l& !#tr th )*$'$o" oul) + r'ol%).

$th r'(*t to th ##$*$"*& !") )u (ro*'' *o"*r"' o# #or*lo'ur l$t$g!t$o", *ourt )o*-t' $ll "ot + *logg) $"*''!"tl& $th &!r' o# ol) #or*lo'ur' )m!")$"g )$'m$''!l, $thout !"& )$'(ut o" th!*tu!l )#!ult. Co"'/u"tl&, mortg!g' $ll "ot + #or*) $"to *omm"*$"g mult$(l !*t$o"' $" !" ##ortto #or*lo' o" o" hom. Th$' $ll +"#$t th *ourt', +!"-', !") mortg!g?+!*-) ("'$o" (l!" $"%'tor'!l$-, !' )l!&' !") *o't' $"%ol%) $" th #or*lo'ur (ro*'' $ll *rt!$"l& )*r!', m$t$g!t$"g th r'ult$"glo''' $" %!lu o# mortg!g?+!*-) '*ur$t$'. Furthrmor, !") m!&+ mo't $m(ort!"tl&, r*"t th$r) (!rt&#or*lo'ur (ur*h!'r' $ll "ot l$% $" #!r o# #$")$"g out th!t th& )o "ot !*tu!ll& 3o"4 th$r hom. Th&$ll "ot J(r$"* )$##$*ult& o+t!$"$"g t$tl $"'ur!"* or *o"%&$"g th$r (ro(rt& $" th #utur. B&l$m$"!t$"g th' "g!t$% ##*t' o# S%/&ar#3&ald0 th )*$'$o" $' mor $" l$" $th )$'*$(l$"$"g #$"!"*$!l$"'t$tut$o"' ho !*t $" +!) #!$th $" th #utur, $"'t!) o# $" l$" $th $")u'tr& 't!")!r)' !' +#or. Furthr,th 'o*$!l '$g"$#$*!"* o# th )*$'$o" $ll "o lo"gr + *lou)) +& th h!rm )o" to *o"'umr', hom tho($"$o" !' $"t")) to (rot*t.

+ut !r "o !'-$"g th Court to rl!J $t' 't!")!r)'. Sh !'-) h& th Court 'houl) #$") ! mor rl!J) rul #or

Fr))$ M!* th!" Fr))$ M!* oul) othr$' g$% to $t' *u'tomr'4 Bttm!", ")2ra "ot ;


19/21


Th Oh$o Lg$'l!tur ")' to *l!r$#& th r/u$rm"t' !" "t$t& mu't '!t$'#& to "#or* ! mortg!g lo!".T!-$"g )$r*t$o" #rom th U.C.C. @EB, th lg$'l!tur 'houl) ")or' th lo"g 't!")$"g $)! th!t 3'*ur$t&

#ollo' th )+t4 $" ! *omm"t to R.C. 1>>.>1.

10

Th$' oul) !$) $" th $m(lm"t!t$o" o# th (l!)$"g rul*h!"g, !' $t oul) $"'tru*t th *lr- o# *ourt' th!t !" !''$g") (rom$''or& "ot !lo" $' 'u##$*$"t #or 't!")$"g $" ! #or*lo'ur !*t$o". Furthr, th$' *l!r$#$*!t$o" oul) /u$*-l& r'ol% th )$'tr$*t )$'!grm"t!+out h!t J!*tl& th #or*lo'$"g (l!$"t$## $' r/u$r) to (o'''' (r$or to *omm"*$"g !" !*t$o". A' !*o"'/u"*, th$' $''u oul) "ot ut$l$2 th u)$*$!l *o't', t$m, !") r'our*' m!-$"g $t' !& u( to thSu(rm Court o# Oh$o to + )*$)).

Th $)! th!t 3! mortg!g $' ! mr $"*$)"t o# th )+t %$)"*) +& th "ot4 $' ! lo"g 't!")$"g (r$"*$(l $" Oh$o ur$'(ru)"*.107 Th "got$!t$o" !") tr!"'#r o# ! (rom$''or& "ot o(r!t' !' !"/u$t!+l !''$g"m"t o# th mortg!g, %" $# th mortg!g $' "$thr !''$g") "or )l$%r).10;

A))$t$o"!ll&, th Su(rm Court o# Oh$o h!' %$)"*) $t' 'u((ort o# th (r$"*$(l +#or, $" @erno/an !. Man"".10


20/21


21/21


th #or*lo'$"g tru't' ho *rt$#$) !t th *o't o# th$r L$*"' to (r!*t$* L! th!t tho' )o*um"t' rlg$t$m!t, th *o't o# th *lo'ur o# !ll o# th )o*um"t m$ll' th$"- DOC, L")r @ro*''$"g Sr%$*',

Bl!*- "$ght $th mult$(l lo*!t$o"' N!t$o"$), th *r$m$"!l *h!rg', th '!"*t$o"' !") th )!m!g'th!t *oul) + !!r)) to tho' homo"r' ho h!% h!) th$r l$%' *om(ltl& !ltr) #or th r't o# th$rl$%' $m!g$" !ll o# tho' *o't' to th B!"-' $# th L! !' trul& u(hl), th #orgr$' !*-"ol)g)!") homo"r' m!) hol !g!$". S*h!rt2!l) !' ! g$#t to th B!"-'. A") l$- ! '(o$l) *h$l), 't$llth& h$".

Th !uthor oul) h!% u' #l 'orr& #or th m!''$% *om(l$*!t$o"' !") (ro*)ur' th B!"-' h!% h!) to")ur. Th !uthor oul) h!% u' #l 'orr& #or th *ourt' ho h!% h!) to $")ur !") $"*r!') !")m!&+ %" ! mor $"*r!') *!'lo!).

h!t th !uthor #!$l' to r!l$2 $' th!t "$thr th B!"-' "or th Court' !r hum!" +$"g'. Th& h!% "o#l$"g', th& h!% 3! o+4 !") +& '$)'t(($"g th$r 3o+'4 th& h!% +oth *o"tr$+ut) to th gr!t'ttr!"'#r o# !lth $" th h$'tor& o# m!"-$") !") th m$'r& o# m$ll$o"' o# th$r "$gh+or'.

Thr $' "ot o" m(lo& o# th Court th!t *!""ot u't /u$t th$r o+. Thr $' "ot o" m(lo& o# !"&B!"- ho *!""ot u't /u$t th$r o+. Th& !r !ll #r to l!% th$r (o'$t$o"' !") #!* th '!m #or*' th!t%r& othr Amr$*!" #!*' %r&)!& $" #$")$"g m(lo&m"t. Fl$"g 'orr& #or $thr th B!"-' or thCourt' $' lu)$*rou' o" $t' #!*. Th& h!% "o #l$"g' to hurtX

St!t$"g th!t !ll o# tho' homo"r' ho h!% +" $llg!ll& #or*lo') o" ho m!& 'houl)X gtth$r hom' +!*- !r u't go$"g to lo' thm !g!$" $' $m(r$!l$'t$* th$"-$"g, $t $' (ru)$*$!l, $t $' !"m+!rr!''m"t o# '(*ul!t$% !t +'t !") '(!-' to th !uthor' +l$# o# '(!r!t$o" o# *l!''' +$"g !'t!")!r), g$%" r!l$t& h" $t $' "ot.

Unintended Effects Inadequate Consumer Benefit

Documents

Transcript of Unintended Effects Inadequate Consumer Benefit