Bruce v. National City Mortgage

Summary

The Montana Supreme Court affirmed summary judgment for National City Mortgage in a dispute arising from a construction-to-permanent home loan. The court held that the borrowers’ untimely interest payment meant they were not entitled to the lower permanent-loan interest rate, and that the lender acted within its contractual rights in increasing the rate and pursuing foreclosure. The court designated the decision as a noncitable memorandum opinion.

Holdings

1. Summary judgment was proper because the undisputed failure to make required construction-loan interest payments timely meant that the Bruces could not qualify for the lower interest rate, and the remaining factual disputes were not material to their claims.
2. National acted within its contractual rights to raise the interest rate to 11.75% and, when the Bruces failed to make required payments, to institute foreclosure proceedings.

Questions Presented

1. Whether the District Court properly granted summary judgment on the Bruces' breach-of-contract and related claims despite factual disputes concerning completion of construction and the timing of the final construction-loan draw.
2. Whether National acted within its contractual rights in increasing the interest rate and instituting foreclosure proceedings after the Bruces failed to make required payments timely.

Disposition

affirmed