B.N. Muller III v. Linda S. Seeds and Chris Seeds

Summary

The Supreme Court of Alabama reviewed a summary judgment concerning a mortgage lien, foreclosure, and ejectment action involving a subdivided tract of land. The court held that the evidence did not establish that the corporation's president had authority to release the mortgage lien and that the mortgage's express authorization to sell property in lots, parcels, or en masse precluded summary judgment based solely on the en masse foreclosure sale. The court reversed the summary judgment in favor of the Seedses and remanded for further proceedings.

Holdings

1. The evidence relied upon by the Seedses did not establish that Shirley had actual or apparent authority to release Muller's individually held mortgage lien on Lot 3, and it therefore did not support summary judgment against Muller.
2. The en masse foreclosure sale could not be set aside on summary judgment merely because Lots 3 and 6 were sold together where the mortgage specifically authorized Muller to sell the property in lots, parcels, or en masse. Setting aside the sale required a showing that the parties' bargaining power or sophistication materially differed, or that Muller acted in bad faith, fraudulently, or otherwise abused the contractual discretion granted by the mortgage.
3. The denial of Muller's summary-judgment motion was not before the Supreme Court because it was an interlocutory order and lacked certification under Rule 5, Alabama Rules of Appellate Procedure.

Questions Presented

1. Whether the evidence created a genuine issue of material fact regarding whether Berry Shirley had authority to release Muller's mortgage lien on Lot 3.
2. Whether the trial court properly set aside the foreclosure sale because Muller sold Lots 3 and 6 en masse.
3. Whether the denial of Muller's own summary-judgment motion was properly before the Supreme Court on appeal.

Disposition

reversed_and_remanded