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Facts

  • The Bank of New York Mellon Trust Company, as Grantor Trustee of the Protium Master Grantor Trust (the Bank), and Gina Schmidt were involved in a mortgage foreclosure case. The parties stipulated to a judgment of foreclosure, which left only the enforcement of that judgment through a judicial sale of the property. The district court dismissed the judicial sale portion of the foreclosure action without prejudice due to the Bank's post-judgment inactivity. The Bank failed to timely challenge the court's denial of its motion to reinstate the action, leading to the current appeal (paras 1-5).

Procedural History

  • District Court, September 12, 2012: Complaint dismissed for lack of prosecution.
  • District Court, January 29, 2013: Complaint reinstated on Bank’s motion.
  • District Court, October 4, 2013: Complaint again dismissed for lack of prosecution.
  • District Court, October 23, 2013: Complaint reinstated at Bank’s request.
  • District Court, December 2, 2013: Entered stipulated foreclosure judgment.
  • District Court, October 28, 2014: Case dismissed without prejudice for a third time under Rule 1-041(E)(2).
  • District Court, August 20, 2015: Denied Bank’s motion for reinstatement due to untimeliness.
  • District Court, September 8, 2017: Denied Bank’s Rule 1-060(B) motion (paras 3-6).

Parties' Submissions

  • Plaintiff (Bank): Argued that the district court’s initial dismissal for lack of prosecution was erroneous as the inaction was on the part of the district court, not the Bank. Contended that the district court should have granted its motion to reinstate the case under Rule 1-041(E)(2), asserting that its failure to move to reinstate the case within thirty days was due to neglect by its former counsel, whose law firm had dissolved (paras 8-10).
  • Defendant (Schmidt): [Not applicable or not found]

Legal Issues

  • Whether the district court erred in dismissing the judicial sale portion of the foreclosure action without prejudice for lack of prosecution.
  • Whether the district court erred in denying the Bank's motion to reinstate the case under Rule 1-041(E)(2) due to untimeliness.
  • Whether the Bank's failure to timely challenge the court's denial of its motion to reinstate the action under Rule 1-041(E)(2) precludes relief under Rule 1-060(B) (paras 1, 5-6, 9-13).

Disposition

  • The district court's denial of the Bank's motion for relief from the order dismissing the judicial sale portion of the foreclosure proceeding without prejudice was affirmed (para 14).

Reasons

  • The Court of Appeals affirmed the district court's decision, not on the basis that the dismissal was substantively correct, but because the Bank failed to timely challenge the court's denial of its motion to reinstate the action under Rule 1-041(E)(2). The Bank's arguments on appeal that were not raised below were not considered. The court assumed without deciding that the district court erred in dismissing the case and in denying the Bank's motion to reinstate. However, the Bank's failure to appeal either decision and its subsequent filing of a Rule 1-060(B) motion based on claims of judicial error, which must be filed within the thirty days allotted for filing an appeal, precluded the use of Rule 1-060(B) to save the party from its failure to appeal. The court concluded that all of the errors alleged in the Bank’s Rule 1-060(B) motion could have been corrected upon direct appeal of the order denying reinstatement of the case, and addressing those claimed errors now would allow the Bank to substitute the Rule 1-060(B) motion for the appeal it should have pursued (paras 7-14).
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