Latest Case: Bank of New York Mellon Trust Co. v. Sulejmanagic (Real Estate & Property Law)

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Bank of New York Mellon Trust Co. v. Sulejmanagic

Docket: S067155

Opinion Date: February 11, 2021

Judge: Nelson

Areas of Law: Real Estate & Property Law

Plaintiff Bank of New York Mellon Trust Company (bank) held a deed of trust to the a condominium unit, while defendant Tanglewood Hills Condominium Association (Tanglewood) had a lien for condominium assessments that had not been paid by the owner. Although the bank’s lien would ordinarily take priority, Tanglewood contended that its lien gained priority under ORS 100.450(7), because the bank “ha[d] not initiated” a foreclosure action during a 90-day notice period prescribed by that statute. The trial court rejected Tanglewood’s argument and granted summary judgment for the bank. The Court of Appeals affirmed. The Oregon Supreme Court agreed with Tanglewood that a condominium association’s notice under ORS 100.450(7)(a) triggered an obligation on a first lienholder to act within 90 days, or the condominium association’s lien will take priority. In this case, the bank did not act before the 90 days expired. Nor could the bank rely on its previously filed foreclosure action, as that action had been dismissed by general judgment prior to the notice, and it remained dismissed throughout the entire 90-day period. Once the 90 days elapsed without the case being reopened or a new foreclosure action being filed, Tanglewood was granted priority over the bank’s interest by operation of ORS 100.450(7). The decision of the Court of Appeals was reversed. The judgment of the circuit court was reversed, and the case was remanded to the circuit court for further proceedings.