[U] Citicorp Trust Bank, Fsb v. Vaughan

An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Procedure. On 4 August 2003, plaintiff Citicorp Trust Bank, FSB (""Citicorp"") filed a foreclosure action against the defendants. Citicorp had acquired a note and deed of trust from defendants Mark and Linda R. Vaughan. Defendants Randy Lee and Sandra Marie Hammitt had entered into a contract with the Vaughans to purchase the property set forth in the deed of trust. Citicorp sought a declaratory judgment stating that it had an enforceable first deed of trust lien on the property and was entitled to foreclose, judicial sale, and monetary relief. On 31 October 2003, Randy Lee Hammitt and Sandra Marie Hammitt (""defendants Hammitt"") moved for summary judgment. Appellants argued that: (1) Citicorp could not maintain the action because it was an unregistered foreign corporation; (2) that the action was barred by res judicata; (3) Citicorp was not a holder in due course with legal title; and (4) there were ethical violations in Kellam & Pettit, P.A., acting as both advocate and a trustee. On 20 January 2004, the motion was denied.