Gaston County Foreclosure Rule 60 Motion.pdf

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Pursuant to Rule 60(b)(4) of the North Carolina Rules of Civil Procedure and moves to set aside that voluntary dismissal filed herein as void

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    NOW COMES, ___________________ (Movant), in the above

    captioned matter pursuant to Rule 60(b)(4) of the North

    Carolina Rules of Civil Procedure and moves to set aside that

    voluntary dismissal filed herein on ___ __, 0000 as void, and

    in support thereof states:

    1. On _______ __, 0000, Grady Ingle, Substitute

    Trustee (hereinafter Trustee), initiated the above captioned

    foreclosure by filing a Notice of Hearing with the Gaston

    County Clerk.

    2. A hearing before the Clerk was held on ___ __, 0000.

    That same day, the Clerk entered an order allowing the Trustee

    to proceed to foreclosure sale. The clerks order was a final

    judgment in that it left nothing to be judicially determined.

    STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION COUNTY OF GASTON BEFORE THE CLERK 08 SP ___

    In the matter of the foreclosure of a Deed of Trust executed by _____ _. ______ and _____ _. ______ in the original amount of $000,000.00 dated __________ 00, 0000 and recorded in Book ____ at Page ____ in the Gaston County Public Registry, North Carolina

    Substitute Trustee: Grady Ingle or Elizabeth Ells

    MOTION TO SET ASIDE A PROCEEDING AS VOID N.C.G.S. 1A-1, Rule 60(b)(4)

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    Indeed, the Clerk characterized her order as such in

    concluding that the trustee is hereby authorized to proceed

    with foreclosure of the deed of trust in the manner prescribed

    by law. A true copy of that order is attached hereto as

    Exhibit A and incorporated by reference.

    3. After the clerk entered a final judgment on the

    Trustees petition for foreclosure, the Trustee filed a

    voluntary dismissal on ___ __, 0000. Discussed infra, the

    purported voluntary dismissal is of no legal efficacy, a

    nullity. A true copy of that dismissal is attached hereto as

    Exhibit B and incorporated by reference.

    4. The General Assembly has provided specific

    procedures for conducting a power of sale foreclosure. Among

    those are provisions governing foreclosures after the clerk

    has entered its decision. If a party aggrieved by an order or

    judgment entered by the clerk may, within 10 days of entry of

    the order or judgment, appeal to the appropriate court for a

    trial or hearing de novo. N.C. Gen. Stat. 1-301.1.1

    Further, the clerks order is a final judgment and remains in

    effect until it is . . . replaced by an order or judgment of a

    judge. Id. A notice of appeal de novo neither stays nor

    1 Here, Movant had until ___ __, 0000 to file an appeal; however, that right was cut off by the Trustees voluntary dismissal filed on ___ __, 0000.

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    renders the clerks order moot. There is absolutely no

    provision granting the trustee the authority to voluntarily

    dismiss this action after the clerk had entered her decision.

    5. In all actuality, the Trustee seeks to set aside the

    Clerks order by the use or attempted use of a voluntary

    dismissal for which he has no authority. The usual method for

    seeking relief is by filing a motion under Rule 60(b) of the

    North Carolina Rules of Civil Procedure. Nonetheless, other

    means may be sufficient. Nomenclature is unimportant, moving

    papers that are mislabeled in other ways may be treated as

    motions under Rule 60(b) when relief would be proper under

    that rule. 7 J. Moore & J. Lucas, Moore's Federal Practice

    60.18[8], at 60-139 (2d ed. 1983). Although Rule 60 says that

    the court is to act on motion, it does not deprive the court

    of the power to act in the interest of justice in an unusual

    case where its attention has been directed to the necessity

    for relief by means other than a motion. Taylor v. Triangle

    Porsche-Audi, Inc., 27 N.C. App. 711, 717, 220 S.E.2d 806, 811

    (1975), cert. denied, 289 N.C. 619, 223 S.E.2d 396 (1976). In

    the event this Court properly characterizes the Trustees

    voluntary dismissal as a motion to set aside the clerks

    order, Movant opposes any and all relief sought.

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    6. Undeniably, a voluntary dismissal is proper only

    when made prior to the entry of final judgment. Wood v. Wood,

    37 N.C. App. 570, 574-75, 246 S.E.2d 549, 552 (1978), revd on

    other grounds, 297 N.C. 1, 252 S.E.2d 799 (1979). After final

    judgment, any correction, modification, amendment, or setting

    aside of the judgment can be done only by the court. Id. at

    575, 246 S.E.2d at 552. In the case at bar, the Trustees

    notice of voluntary dismissal came after the clerk entered

    final judgment on the Trustees petition for foreclosure. The

    Trustees purported voluntary dismissal was, therefore, of no

    legal efficacy. Id. Void, a nullity, invalid from the outset.

    7. Discussed supra, extensive research has failed to

    disclose any rule, statute, or case which grants a trustee or

    mortgagee the right to take a voluntary dismissal, whether

    with or without prejudice, after the clerk has reached a final

    decision. For very good reason. It would render the clerks

    role in Chapter 45 proceedings ministerial and its decisions

    meaningless. It is not permissible to allow a party to

    successfully attack a final judgment by the use or attempted

    use of a voluntary dismissal. As discussed, any correction,

    modification, amendment, or setting aside of a judgment can be

    done only by the court. Id.

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    8. Our Court has explicitly recognized the right to

    invoke Rule 60 in a foreclosure action. In re Foreclosure of

    Lien by Ridgeloch Homeowners Ass'n, 182 N.C. App. 464, 469,

    642 S.E.2d 532, 536 (2007) (affirming the Clerks order

    setting aside a foreclosure judgment pursuant to Rule 60). In

    Bradley v. Bradley, the Court specifically approved of the use

    of a Rule 60(b)(4) motion to challenge whether a party had the

    authority to voluntarily dismiss an action without prejudice.

    Bradley v. Bradley, 206 N.C. App. 249, 252, 254, 697 S.E.2d

    422, 426 (2010).

    9. In Bradley, the Court wrote: A voluntary dismissal

    can be considered a proceeding allowing relief under Rule

    60(b). Id; (quoting Carter v. Clowers, 102 N.C. App. 247,

    252-53, 401 S.E.2d 662, 665 (1991). Rule 60(b)(4) allows for

    relief from a judgment, order, or proceeding when it is void.

    Id. In the context of Rule 60(b)(4), a judgment, order, or

    proceeding is void only when the issuing court has no

    jurisdiction over the parties or subject matter in question or

    has no authority to render the judgment entered. Id; (quoting

    Chandak v. Electronic Interconnect Corp., 144 N.C. App. 258,

    262, 550 S.E.2d 25, 28 (2001)) (emphasis added).

    10. In order for the trial court to properly vacate the

    Trustees voluntary dismissal pursuant to Rule 60(b)(4), the

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    Trustee cannot have had the authority to voluntary dismiss

    his. . . . .claim[s] for relief. Id. Because the Trustee

    lacked the authority to dismiss this action after the clerk

    had entered her decision, this Court is empowered to vacate

    that dismissal as void pursuant to Rule 60(b)(4) of the North

    Carolina Rules of Civil Procedure.

    11. The purpose of Rule 60(b) is to strike a proper

    balance between the conflicting principles of finality and

    relief from unjust judgments, orders or proceedings. Carter at

    254, 401 S.E.2d at 666. Procedural actions that prevent

    litigants from having the opportunity to dispose of their case

    on the merits are not favored. Id.

    12. Although Rule 60(b) contains the requirement that

    all motions made pursuant thereto be made within a reasonable

    time, and for reasons (1), (2) and (3) not more than one year

    after the judgment, order, or proceeding was entered or taken.

    The requirement is not enforceable with respect to motions

    made pursuant to Rule 60(b)(4), because a void judgment, order

    or proceeding is a legal nullity which may be attacked at any

    time. Allred v. Tucci, 85 N.C. App. 138, 141, 354 S.E.2d 291,

    294 (1987).

    WHEREFORE, Movant moves the Court as follows:

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    1. For an Order, as contemplated under Rule 60 of the

    North Carolina Rules of Civil Procedure, to declare that

    voluntary dismissal filed on ___ __, 0000 to be void;

    2. For an Order, alternatively, denying the Trustees

    motion to set aside the Clerks order;

    3. For an Order, permitting Movant to proceed with her

    appeal of the Clerks order entered on ___ __, 0000;

    4. For an Order, awarding Movant reasonable attorney

    fees and cost related to this matter; and

    5. For such other and further relief as the Court may

    seem just and proper.

    Respectfully submitted this the 8th day of July, 2013.

    _________________________________