News & Insights

MRLP secures critical victory at Foreclosure Trial

Oct 6, 2023

To our valued clients:

On September 28, 2023, the court of the 19th Judicial Circuit in Illinois entered a ruling and judgment in favor of Plaintiff following a two-day trial. This is a significant victory for our client and firm as it resolved a case that was heavily litigated for many years and presented issues of first impression related to standing. We are pleased to report the positive news.

In opposition to the plaintiff’s motion for summary judgment, the defendants presented an affidavit signed by the individual who placed two endorsements on the promissory note in which she testified to facts indicating that she lacked authority to place the first endorsement as an attorney in fact for the loan originator and calling into question whether she authorized her endorsement to be placed on the note. As a result, the court found there was an issue of fact as to the effectiveness of the endorsement and plaintiff’s standing to enforce the note. At trial, MRLP was able to elicit testimony from the note endorser which undercut her prior statements about her alleged lack of authority to endorse and established that there were certain practices and policies in place which would have prevented unauthorized endorsements as the attorney in fact for the loan origination. This testimony, along with the testimony of plaintiff’s witness and corroborating evidence was found to be very persuasive by the trial court who ultimately found that Plaintiff met its burden of proof and had standing to foreclose.

Should you have any questions or need assistance on a contested matter please do not hesitate to contact the undersigned.

Marcos Posada
Managing Partner – Midwest Litigation marcos.posada@mccalla.com

Phil Schroeder
Partner – Illinois Litigation phil.schroeder@mccalla.com