CHARLESTON — The West Virginia Supreme Court of Appeals dismissed a case for lack of standing after reversing the decision made by the circuit court.
"Upon consideration of the parties' briefs and oral argument, the appendix record, and the relevant authorities, we find that Mr. Pavone lacks standing to challenge the assignment of the deed of trust to NPML Mortgage," the March 7 majority opinion states. "Accordingly, for the reasons set forth below, we reverse the circuit’s court’s decision and remand this case for entry of an order dismissing this action for lack of standing."
Clete Pavone appealed an Oct. 27, 2020, final order of Monongalia Circuit Court that granted summary judgment in favor of NPML Mortgage Acquisitions.
Pavone filed suit against NPML Mortgage in April 2019 after he received a foreclosure notice advising him that his real property located in Granville was going to be sold.
Pavone alleged that NPML Mortgage had no lawful right to foreclose on his property because it lacked a valid assignment of the deed of trust on the property. The circuit court found, however, that the after-acquired title doctrine cured any irregularity in the assignment of the deed of trust.
In the appeal, Pavone argued that the circuit court erred in its application of the after-acquired title doctrine.
Pavone obtained the property by general warranty deed in 2018 and, unknown to him, the previous owner had obtained a loan secured by the property nearly 20 years prior and the property was still encumbered by the deed of trust.
After receiving the foreclosure notice, Pavone filed suit against NPML and was granted a temporary injunction of the foreclosure sale. Pavone argued that NPML did not have a valid assignment of the deed of trust, as the deed of trust remained with EFC Mortgage as it never assigned its interest after it was obtained in 2000.
The circuit court denied Pavone's motion for summary judgment and found that the after-acquired title doctrine cured the irregularity in the chain of title and that the assignment of the deed of trust to NPML was valid. Pavone then appealed to the Supreme Court.
"Having considered the foregoing authorities, we now hold that a litigant who is not a party to a mortgage assignment or a party intended to benefit from the assignment lacks standing to challenge the assignment," the opinion states. "Applying our holding to this case, we find that Mr. Pavone does not have standing to challenge the validity of the assignment of the deed of trust to NPML Mortgage."
The court found that the facts as presented show that Pavone was not a party to the assignment of the deed of trust nor was he intended to benefit from the assignment.
"Accordingly, Mr. Pavone’s civil action must be dismissed because he does not have standing to pursue his claim," the opinion states.
Chief Justice John Hutchison authored the majority opinion. Justice Alan Moats did not participate in the opinion.
West Virginia Supreme Court of Appeals case number: 20-0970
