Blair Gisi featured in the USFN February 2018 e-Update

Kansas:  Court of Appeals Reaffirms Need to Prove Standing at "First Legal Filing"

Kallevig Decision (April 2017)
In April 2017 the Kansas Supreme Court made a significant and dramatic ruling that the plaintiff in a foreclosure action must prove its standing at the filing of any petition to foreclose mortgage (also referred to as a “first legal filing”). See FV-I, Inc. v. Kallevig, 306 Kan. 204 (2017).

In summation, Kallevig found: (1) under the Uniform Commercial Code, as “the holder of the instrument,” a plaintiff must show that the note was made payable to the plaintiff or was endorsed in blank and that the plaintiff was in possession of the note; and (2) “either in the pleadings, upon motion for summary judgment, or at trial [the plaintiff must demonstrate] that it was in possession of the note with enforcement rights at the time it filed the foreclosure action,” and that a lack of standing cannot be cured by a post-petition assignment granting enforcement rights in the note.


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