WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee for the POOLING AND SERVICING AGREEMENT Dated as of July 1, 2006 SECURITIZED ASSET BACKED RECEIVABLES LLC TRUST 2006-FR3 MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-FR3, Plaintiff and Appellee,
JAMES G. REHM and LORI A. REHM, Defendants and Appellants.
Submitted on Briefs: March 22, 2017
FROM: District Court of the Eighteenth Judicial District, In
and For the County of Gallatin, Cause No. DV-12-17B Honorable
Mike Salvagni, Presiding Judge
Appellants: James G. Rehm (Self-Represented), Lori A. Rehm
(Self-Represented), Loveland, Colorado
Appellee: Michelle M. Sullivan, Adrian A. Miller, Holland
& Hart LLP, Billings, Montana
McGrath Chief Justice
Pursuant to Section I, Paragraph 3(c), Montana Supreme Court
Internal Operating Rules, this case is decided by memorandum
opinion and shall not be cited and does not serve as
precedent. Its case title, cause number, and disposition
shall be included in this Court's quarterly list of
noncitable cases published in the Pacific Reporter and
James G. Rehm and Lori A. Rehm (Rehm) appeal from a June 28,
2016 District Court order granting Appellees' summary
judgment motion. We affirm.
Rehm purchased a home on January 10, 2006, obtaining a
mortgage from Fremont Investment and Loan (Fremont). Rehm
executed a note and Deed of Trust. Lenders Service Title
Agency, Inc. was substituted as successor trustee under the
Deed of Trust in June 2009. In July 2010, the Deed of Trust
was assigned to plaintiff Wells Fargo Bank, National
Association, as Trustee for the Pooling and Servicing
Agreement Dates as of July 1, 2006 Securitized Asset Backed
Receivables LLC Trust 2006-FR3 Mortgage Pass-Through
Certificates, Series 2006-FR3 (Wells Fargo) as trustee.
Rehm defaulted on the loan in March 2009. Rehm sent a notice
of intent to rescind the Note and Deed of Trust on October 2,
2009, to Fremont alleging Truth in Lending Act (TILA)
violations. 15 U.S.C. § 1635; Reg. Z, 12 C.F.R. §
226. Fremont did not respond to the notice.
Rehm filed a lawsuit in December 2010 alleging improper
foreclosure, fraud, unjust enrichment, and other
violations. In September 2011, Rehm filed a notice of
Lis Pendens and recorded documents asserting
ownership of the property at the Gallatin County Clerk's
Due to Rehm's default on the loan, a non-judicial
trustee's sale was filed and recorded on August 9, 2011,
with the Gallatin County Clerk's office. The property
sale was set for November 7, 2011. At the sale, the property
was sold to appellee Wells Fargo.
In February 2012, Wells Fargo filed an eviction action
against the Rehms. Rehm failed to appear at the hearing and a
default judgment was entered. In January 2012, Wells Fargo
filed the current quiet title action and a quiet title action
seeking to expunge the two notices of Lis Pendens
filed by Rehm. Wells Fargo moved for summary judgment on
December 29, 2015. Rehm filed a cross-motion for summary
judgment on February 29, 2016, claiming rescission under
TILA. On June 15, 2016, the District Court denied Rehm's
motion and granted summary judgment in favor of Wells Fargo.
The Montana Supreme Court reviews the granting of a motion
for summary judgment de novo, using the same standards
applied by the district court under M. R. Civ. P. 56.
Pilgeram v. GreenPoint Mortg. Funding, Inc., 2013 MT
354, ¶ 9, 373 Mont. 1, 313 P.3d 839; In re Estate of
Harmon, 2011 MT 84A, ¶ 14, 360 Mont. 150. Summary
judgment is appropriate if the pleadings, depositions,
answers to interrogatories, and admissions on file, together
with the affidavits, if any, show that there is no genuine
issue as to any material fact and that the moving party is
entitled to a judgment as a matter of law. M. R. Civ. P.
56(c)(3); Roe v. City of Missoula, 2009 MT 417,
¶ 14, 354 Mont. 1, 221 P.3d 1200. Whether a court has
jurisdiction is a legal conclusion, which this Court reviews
de novo. Pinnow v. Montana State Fund, 2007 MT 332,
¶ 13, 340 Mont. 217, 172 P.3d 1273.
Rehm argues the District Court did not have subject matter
jurisdiction. Montana's district courts have original
jurisdiction in all civil matters and cases at law and
equity. Mont. Const. Art. VII, § 4; § 3-5-302, MCA;
Comm'r of Political Practices for Mont. v.
Bannan, 2015 MT 220, ¶ 9, 380 Mont. 194, 354 P.3d
601. Montana courts have jurisdiction over quiet title
actions regarding real estate located in Montana. Section
70-28-101, MCA; Getter v. Beckman, 236 Mont. 377,
380, 769 P.2d 714, 716 (1989). State courts have concurrent
jurisdiction with federal courts to hear TILA claims. 15
U.S.C. § 1640(e); R ...