Consolidated appeals stemmed from an action filed by The Citizens Bank ("Citizens Bank") against Steve Matherly ("Steve"); Sue E. Matherly a/k/a Sue Ellen Stratten, Steve's former spouse ("Sue"); and Penn Waters, LLC ("Penn Waters"). The initial complaint sought: (1) to quiet title to certain real property in Steve; (2) an accounting from Penn Waters as to the balance allegedly owed on a mortgage securing a home-equity line of credit on the same real property; (3) damages from Steve for breach of contract and fraud based on his failure to pay on his personal guaranty of a corporate debt; and (4) a judicial foreclosure of the mortgage securing the indebtedness owed Citizens Bank by Steve. In the course of the proceedings, Steve's current spouse, Jenny Matherly ("Jenny"), intervened as a defendant, claiming a homestead interest in the real property at issue. Eventually, the circuit court entered two orders granting summary judgment in favor of Citizens Bank. The first order awarded the real property in question to Citizens Bank and granted it immediate possession thereof, requiring Steve and Jenny to vacate the property, awarded Jenny $5,000 based on a homestead claim, and required Steve to pay the deficiency balance owed by him to Citizens Bank following foreclosure on the subject real property. The second order concluded that the mortgage held by Penn Waters was void because it had been previously satisfied. Both Jenny and Penn Waters appealed the circuit court's judgments, and Citizens Bank cross-appealed the circuit court's judgment awarding $5,000 to Jenny. Steve did not appeal the judgment against him, and Sue was not a party to the appeals. Finding no reversible error, the Alabama Supreme Court affirmed the circuit court's judgments. View "Penn Waters, LLC v. The Citizens Bank" on Justia Law
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