Cindy Henderson and John Henderson v. Copper Ridge Homes, LLC, Richard Coney, Individually and First Bank, a Mississippi Banking Corporation

Summary

The Mississippi Supreme Court reviewed a dispute arising from the construction and financing of the Hendersons’ home, including claims for breach of contract and torts, judicial foreclosure, and wrongful foreclosure. The Court affirmed the judicial foreclosure but reversed summary judgment for Copper Ridge Homes and First Bank, holding that the Hendersons’ construction-related claims did not transfer with title to the property upon foreclosure. The case was remanded for further proceedings, including consideration of amendment to add a wrongful-foreclosure claim.

Holdings

1. First Bank was entitled to summary judgment and judicial foreclosure because the Hendersons undisputedly breached the promissory note and deed of trust by failing to make the required payments, and no genuine issue of material fact defeated foreclosure.
2. The Hendersons' causes of action for alleged faulty construction did not travel with title to the real property upon foreclosure. The deed of trust conveyed the property and identified real-property interests, but did not convey the Hendersons' personal causes of action or choses in action.
3. Because the post-foreclosure summary judgment was erroneous and the wrongful-foreclosure claim had become ripe after foreclosure, the trial court should allow the Hendersons to amend their complaint to add wrongful foreclosure.

Questions Presented

1. Whether First Bank was entitled to judicial foreclosure based on the Hendersons' undisputed failure to make payments required by the promissory note and deed of trust.
2. Whether the Hendersons' construction-related causes of action traveled with title to the property upon foreclosure, thereby eliminating their right or standing to pursue damages.
3. Whether the circuit court abused its discretion by denying the Hendersons' motion for leave to amend their complaint to add a wrongful-foreclosure claim.

Disposition

reversed_and_remanded