Kelley
Kelley v. JPMorgan Chase Bank NA (In re Kelley)
Opinion
Lead Opinion
Montali, J.
MEMORANDUM DECISION ON MOTIONS FOR SUMMARY JUDGMENT
I. INTRODUCTION
Debtor James Madison Kelley (“Debt- or”) commenced the underlying chapter 11 case more than seven years ago after defaulting on two loans from Washington Mutual Bank (“WaMu”); the loans were secured by his residence in Saratoga, California (the “Property”). In this adversary proceeding he is attempting to defeat claims and security interests arising from the two WaMu loans. Debtor has not made any payments on the loans since he filed his chapter 11 petition on September *3 19, 2008, and defendant JP Morgan Chase Bank, N.A. (“Chase”), the assignee of the relevant WaMu notes and security interests, has paid all taxes and insurance on the Property.
In January 2009, Debtor filed a plan of reorganization in which he proposed to sell the Property and hold the proceeds pending resolution of a state court lawsuit between him and WaMu (and, subsequently, the Federal Deposit Insurance Corporation (“FDIC”), as receiver of the failed WaMu). The state court dismissed that action with prejudice on July 19, 2010.
Debtor commenced this adversary proceeding on July 15, 2010, two days after oral argument in the state court…