Appellants R & G, LLC, George D. Copelan, Sr., Gilman Hackel, and Robert Yarbrough appealed a $1.3 million circuit court judgment entered against them and in favor of RCH IV-WB, LLC ("RCH"). In July 2005, Wolf Bay Partners, L.L.C., executed a promissory note with Wachovia Bank in the original principal amount of $2.5 million. That note was secured by a mortgage on two parcels of property in Baldwin County and guaranteed by each of the appellants, as well as by Defendants GDG Properties, LLC, David W. Mobley, and George D. Gordon. By written agreement of the parties, the amount of the indebtedness was subsequently increased to $2.9 million. Wachovia Bank thereafter assigned its interest in the note and mortgage to RCH Mortgage Fund IV, LLC. Wolf Bay Partners subsequently defaulted on its payment obligations under the terms of the promissory note, and RCH Mortgage Fund IV accordingly commenced foreclosure proceedings on the property secured by the mortgage. In early 2009, RCH, a newly created affiliate of RCH Mortgage Fund IV, purchased the property at a foreclosure sale for $2 million and RCH Mortgage Fund IV thereafter assigned RCH all of its rights under the loan. In June 2009, RCH sued the defendants, seeking to recover $1.1 million allegedly still due on the promissory note, plus interest after the proceeds of the foreclosure sale were applied to the debt. A bench trial was held, at which the defendants challenged the evidence put forth by RCH indicating that the foreclosed-upon mortgage had been properly assigned to RCH Mortgage Fund IV by Wachovia Bank. The defendants also argued that it was improper for RCH Mortgage Fund IV to sell the foreclosed property as a single unit instead of as two separate parcels and that RCH Mortgage Fund IV accepted an allegedly unconscionably low purchase price at the foreclosure sale. The trial court ultimately excluded the evidence put forth by RCH indicating that the mortgage had been assigned to RCH Mortgage Fund IV and set aside the foreclosure and sale because, for all that appeared, the wrong party had conducted the foreclosure and sale. The trial court made no ruling on the defendants' other arguments because it found that RCH Mortgage Fund IV was the wrong party to conduct the foreclosure and sale. RCH appealed the trial court's judgment to the Supreme Court, which held that RCH's evidence of mortgage assignment should have been considered by the trial court. On remand, RCH in light of the Supreme Court's reversal, all that was left for the trial court but to enter a final judgment in RCH's favor. RCH's brief was served on all defendants; however none filed a response. The trial court entered judgment in favor of RCH. Defendants Hackel and Yabrough moved the trial court to alter, amend or vacate its judgment in favor of RCH. Unsuccessful, they appealed. Upon review, the Supreme Court concurred with the trial court's new judgment in favor of RCH, and affirmed.
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