Opinion ID: 1253349
Heading Depth: 2
Heading Rank: 4

Heading: Disposition of Motions in this Case

Text: ¶ 100. In its first amended complaint, National Operating raised 11 claims. The circuit court dismissed all these claims, finding that: All of [National Operating's] claims in the present action, Unlawful Disposition of Collateral, Anticipatory Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Unjust Enrichment, Intentional Interference With Contractual Relationship, Civil Conspiracy, and Accounting, if successfully litigated, would nullify the default judgment previously entered by depriving [MONY] of its property right in the Wrap Note and Mortgage. Therefore [National Operating]'s claims are barred by the doctrine of claim preclusion. [20] ¶ 101. A moving party is entitled to summary judgment when no genuine issue of material fact exists and it is entitled to judgment as a matter of law. Nierengarten v. Lutheran Soc. Servs., 219 Wis. 2d 686, 695, 580 N.W.2d 320 (1998). We have determined that National Operating possesses certain rights in and to the Wrap Note and Mortgage that were not litigated in the declaratory judgment action nor declared in the resulting judgment. We therefore conclude that National Operating's claims are not barred by claim preclusion. They should not have been dismissed on that basis. We hereby remand this case to the circuit court with instructions to reinstate National Operating's claims. [21] ¶ 102. In its motion for partial summary judgment, National Operating sought only a declaration that it is entitled to the surplus equity in the security (Wrap Note) it assigned to Mutual Life Insurance Company of New York (MONY) as collateral for National Operating's obligation to MONY. The circuit court denied the motion. It is undisputed that National Operating assigned the Wrap Note to MONY as security for its obligation on the Underlying Note. We conclude that the assignment of the Wrap Note and Mortgage was a secured transaction governed by Chapter 409. Under Chapter 409, a debtor in default in a secured transaction has a non-waivable and non-variable right to surplus equity in the collateral, as provided in the statutes. There are therefore no remaining issues of material fact or questions of law relative to National Operating's motion. Accordingly, we remand to the circuit court with instructions to grant National Operating's motion for partial summary judgment, declaring that National Operating is entitled to surplus equity after disposition of the Wrap Note by MONY.