Dean Blair and Paula Blair v. EMC Mortgage, LLC

Summary

The Indiana Supreme Court held that no additional judicial reasonableness limitation applies when a lender sues to enforce a closed installment contract, such as a mortgage or promissory note. It concluded that applicable statutes of limitations may accrue upon missed installments, optional acceleration, or the note's maturity date. Because EMC Mortgage expressly sought only the partial relief awarded by the trial court, the court affirmed that judgment.

Holdings

1. No. Indiana courts should not impose an additional judicially created rule of reasonableness limiting a lender's ability to sue on a closed installment contract, such as a mortgage or promissory note, when applicable statutes of limitations already govern the claim.
2. Under Indiana Code sections 34-11-2-9 and 26-1-3.1-118(a), a cause of action for payment on a promissory note with an optional acceleration clause may accrue on multiple dates: when an installment is missed, when the lender exercises optional acceleration, or when the note reaches its maturity date.
3. EMC could have recovered the full amount owed because it sued within six years of the note's 2008 maturity date, but the Supreme Court affirmed the trial court's partial award because EMC expressly disclaimed full relief and requested affirmance of the trial court's order.

Questions Presented

1. Whether Indiana law requires a lender with an optional acceleration clause in a closed installment contract to exercise that option within a judicially imposed reasonable time after the borrower's first default.
2. Whether the applicable Indiana statutes of limitations permit multiple accrual dates for an action on a promissory note with an optional acceleration clause, including the note's maturity date.
3. Whether EMC should receive relief beyond the trial court's partial award when EMC expressly disclaimed an argument for full relief and asked the Supreme Court to affirm the trial court's order.

Disposition

affirmed