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Posted by: Tanja Trezise on Nov 20, 2013

Court: TN Court of Appeals

Attorneys 1:

Archie Sanders, III, Memphis, Tennessee, for the appellants, Freda Boyce and Marvell Boyce.

Attorneys 2:

Cannon F. Allen and J. Bennett Fox, Jr., Memphis, Tennessee, for the appellee, LPP Mortgage LTD.

Judge(s): STAFFORD

This case involves the application of the doctrine of res judicata. The parties previously engaged in litigation in the General Sessions Court regarding possession of a foreclosed property. The homeowners attempted to assert that the mortgage company did not have proper title to the property prior to initiating foreclosure proceedings. The parties and the trial court all apparently concluded that the General Sessions Court lacked jurisdiction to inquire into the merits of the title based on Tennessee Code Annotated Section 29-18-119. Accordingly, the General Sessions Court entered judgment in favor of the mortgage company. The homeowners subsequently filed an action in the Chancery Court, alleging that the mortgage company committed fraud in foreclosing the property because it had not acquired proper title to the property. The Appellee, having hired a new attorney, asserted that the issue should have been alleged as a defense to the General Sessions Court action, and was, therefore, barred by the doctrine of res judicata. The Chancery Court agreed and dismissed the homeowners’ action on the basis of res judicata. We affirm and remand.