No. 20-1278

Johlen Johnson, et ux. v. JP Morgan Chase Bank, N.A.

Lower Court: Arizona
Docketed: 2021-03-15
Status: Denied
Type: Paid
Response Waived
Tags: constitutional-violation deed-of-trust due-process foreclosure non-judicial-foreclosure property-rights severability statutory-interpretation takings
Key Terms:
DueProcess
Latest Conference: 2021-04-23
Question Presented (AI Summary)

Does the prevailing Opinions of the Arizona Deed of Trust Scheme produce a constitutional violation, and therefore provide this Court with good cause for removal of one or more of its provisions under severability?

Question Presented (OCR Extract)

QUESTION PRESENTED | | Currently Arizona uses a scheme of statutes to effectuate forced conveyances of residential singlefamily property via a non-judicial foreclosure. It is known as the Deed of Trust Scheme. Generally, the property is taken from its owner, as here, by way of using the county recorder’s office where the property is located. The process includes a total of three , documents typically all recorded by the lenders : substituted trustee in a 90-day period after which . time the trustee sells the property at a trustee sale granting the property to the highest bidder at that sale. One particular concern here is that same trustee later initiated the forcible detainer action against the homeowners. Arizona Revised Statutes (A.RS.) § 121177 (A) states a trustee’s,deed is presumed to comply with Arizona law and under A.RS. 83-11(c) . the homeowner waives all defenses to that sale once it has occurred. Consequently, any subsequent homeowner claims are mute. See A.R.S. § 12-1177(A) and A.R.S. § 33-811(C) where borrower “waives ail ise B= RAM | defenses and objections to the sale not raised in an action that results in the issuance of a Court order granting relief..” Under these combined statutes Petitioner “waived” his claims asserted under A.R.S. § 39-161 which prohibiting any person or entity from recording false instruments that give rise to fraudulent, baseless claims of interest in real property. However, Petitioners clearly did not “waive” these claims and therefore have been deprived of their property without due process of law . under the fifth amendment. In some instances a constitutional injury arises as a | result of two or more statutory provisions operating together. See, Seila Law LLC v. Consumer Financial ; . Protection Bureau, March, 2020 citing, Free Enterprise Fund, supra, at 509 (stating that the convergence of “a number of statutory provisions” produce a constitutional violation). The provision requiring : “good-cause removal is only one of [the] statutory provisions that, working together, produce a constitutional violation.” Arizona provides no path for a homeowner to assert challenges to the trustee sale after it has occurred and the Deed of Trust Scheme is an arrangement of , . Statutes leading to non-judicial forced conveyances without due process and_ is _ therefore unconstitutional. Thus, the question presented here, ~ Does the prevailing Opinions of the Arizona Deed of Trust Scheme produce a constitutional violation, and therefore provide this Court with good cause for removal of one or more of its : provisions under severability? ; . The answer is of national importance in these . unprecedented times of our country’s financial uncertainty. Many homeowner’s across the county , . currently await these scheduled trustee sales and also rely on the protections afforded from the Consumer Financial Protection Bureau (“CFPB”) and the Judiciary for oversight. Co (ii)

Docket Entries

2021-04-26
Petition DENIED.
2021-04-07
DISTRIBUTED for Conference of 4/23/2021.
2021-03-31
Waiver of right of respondent JP Morgan Chase Bank, N.A. to respond filed.
2021-02-22
Petition for a writ of certiorari filed. (Response due April 14, 2021)

Attorneys

Johlen Johnson, et ux.
Johlen Johnson — Petitioner
Johlen Johnson — Petitioner
JP Morgan Chase Bank, N.A.
Matthew HoxsieGreenberg Trauring, LLP, Respondent
Matthew HoxsieGreenberg Trauring, LLP, Respondent