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Kentucky Court Rejects Statute of Limitations Defense in Foreclosure Action

The Honorable Natalie White out of the 56th Circuit recently refused to enter a judgment on the pleadings as requested by the defendant-borrowers in a foreclosure action filed in Livingston County, Kentucky. JPMorgan Chase Bank, National Assoc. v. Mary Quertermous, etc., Livingston Circuit Court Case No. 23-CI-00042. The borrowers asserted in their motion for judgment that they were entitled to release of the mortgage and dismissal of all claims since JPMorgan’s foreclosure action was barred by the 15-year statute of limitations codified at Ky. Rev. Stat. Ann. § 413.010.

The borrowers argued that the statute of limitations barred the foreclosure of their mortgage since the payment default was June 1, 2007, and JPMorgan filed its foreclosure action on May 23, 2023, more than 15 years from the date of the borrowers’ original payment default. The bank countered that procedurally the motion for judgment was premature. The pleadings were not formally closed as required by Kentucky’s Civil Rule 12.03 because the borrowers failed to file a timely answer to the complaint.

JPMorgan also argued substantively that the borrowers failed to sustain their burden of proof on their statute of limitations defense. JPMorgan demonstrated that the borrowers failed to demonstrate from the pleadings that the 15-year statute of limitations started running on June 1, 2007, rather than a later date.

Judge White agreed with the bank on both grounds and entered an order denying the borrowers’ motion for judgment on the pleadings. This was a correct interpretation of the law and provides an opportunity for the matter to be resolved on the merits.

Ky. Rev. Stat. Ann. § 12.03 reads in pertinent part: “After the pleadings are closed but within such time as not to delay the trial, any party may move for judgment on the pleadings …”

About Author: Jeffrey Helms

Jeffrey Helms is the Managing Attorney for the Ohio office of Diaz Anselmo & Associates, P.A. Since 2006, Helms has practiced in the area of creditors’ rights, focusing on mortgage foreclosure, eviction, and real estate/title litigation matters. He is a graduate of Xavier University (B.S. in Criminal Justice, 1998), and University of Dayton School of Law (J.D., 2002). Helms is licensed to practice law in the State of Ohio, and The United States District Court for the Southern District of Ohio. Jeff is also a member of the Ohio State Bar Association and the Cincinnati Bar Association. He may be reached by phone at (630) 577-7802 or email [email protected].

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