Date: 11-18-2012

Case Style: Debbie McGinnis v. Patricia McGuire and Layne Johnson

Case Number: CJ-2011-2831

Judge: Rebecca B. Nightingale

Court: District Court, Tulsa County, Oklahoma

Plaintiff's Attorney: Brian Huddleston

Defendant's Attorney: Patricia McGuire

Description: Debbie McGinnis sued Patricia McGuire and Layne Johnson on interference with contract and unjust enrichment theories.

Outcome: NOW on this 26 day of September, 2012, this matter comes before me, the undersigned Judge of the District Court, pursuant to the Petition of Plaintiff DEBBIE D. MCGINNIS (“McGinnis” or “Plaintiff”). Plaintiff appears by and through her attorney, Brian R. Huddleston, and the Defendant, PATRICIA MCGUIRE, appeared personally pro Se.

WHEREUPON, the parties so appearing as set forth above, Plaintiff introduced its evidence, including the Promissory Notes, and Mortgages, herein sued upon, and rested; and the Court having reviewed such evidence, and being fully advised in the premises, FINDS generally in favor of Plaintiff and against the Defendant named above; FINDS that the allegations in Plaintiff's Petition are true and that Judgment should be entered, and further FINDS as follows The Defendant, PATRICIA MCGUIRE (“McGuire”) enters into this Agreed Journal Entry of Judgment of her own free will and accord, and there is no just reason to delay fin3udgteit.as to Plaintiffs claims herein.

which was recorded in the Offices of the Tulsa County Clerk on the 2d day of November, 2005, conveying to McGuire the following real property (“Property”), to-wit:

Lot 12, Block 2, Burning Tree East, a subdivision to the City of Tulsa, Tulsa County, State of Oklahoma, according to the Recorded Plat thereof (Commonly known as 6233 S. 89°’ East Avenue, Tulsa, OK)

6. On or about the 2ndI day of November, 2005, McGuire for good and valuable consideration, made, executed and delivered certain wraparound Promissory Notes promising and agreeing to pay both Plaintiff’s existing note and mortgage to Wells Fargo Bank, NA, and the wraparound Promissory Notes, payable on demand; or if no demand is made, the entire principal balance plus accrued interest shall be due and payable at maturity on May 2, 2006, and November 1, 2035, respectively.

7. On or about the 2nd day of November, 2005, to secure performance of the wraparound Promissory Notes and Plaintiff’s existing note and mortgage to Wells Fargo Bank, and all of the indebtedness evidenced thereby, McGuire, being then and there the owner of the fee simple title of record of the real property hereinafter described, made executed and delivered a real estate Mortgage, encumbering the following real property (“Property”), to-wit:

Lot 12, Block 2, Burning Tree East, a subdivision to the City of Tulsa, Tulsa County, State of Oklahoma, according to the Recorded Plat thereof (Commonly known as 6233 S. 89°’ East Avenue, Tulsa, OK)

(“Mortgage”). The Mortgage was duly executed and acknowledged, and recorded in the Office of the County Clerk of Tulsa County, State of Oklahoma, on November 3, 2005, as Document #2005131512 which constitutes a lien upon the Property. The mortgage tax due on the Mortgage, as provided by the laws of the State of Oklahoma, was paid, as evidenced by the endorsement thereon.

8. At the time of the closing of the sale of the subject property to Defendant McGuire, Plaintiff was unaware that McGuire would not be obtaining new and independent substitute purchase money financing, and that there would be no sales proceeds to pay off Plaintiff’s existing indebtedness at the closing of the sale. Plaintiff became aware of McGuire’s wraparound note and mortgage transaction after the closing of the sale, and after it was too late to call off and cancel the closing.

9. The forgoing wraparound note and mortgage contracts require McGuire to make all loan payments as and when the same become due, including all payments on Plaintiff’s existing note and mortgage.

10. McGuire has failed and refused to make the required payments on the Promissory Notes, causing defaults under the existing note and mortgage to Plaintiff’s lender, and McGuire is therefore in default. Plaintiff has demanded payment of the same but McGuire has failed, refused and neglected to pay such amounts due.

11. Plaintiff and McGuire were under a mutual mistake of fact as to the correct nature and structure of the subject real estate transaction.

12. Plaintiff would not have conveyed the subject property to Defendant McGuire if the actual nature and structure of the subject real estate transaction had been known and disclosed.

13. Plaintiff did not receive her bargained for payment of $127,010.00 at the closing of the sale of the Property, and justice and equity require that the subject real estate transaction and all related conveyances and instruments of indebtedness be rescinded.

14. Plaintiff and Defendant McGuire have entered into an agreement whereby Plaintiff accepted a Deed for the following real property (“Property”), to-wit: Lot 12, Block 2, Burning Tree East, a subdivision to the City of Tulsa, Tulsa County, State of Oklahoma, according to the Recorded Plat thereof (Commonly known as 6233 S. East Avenue, Tulsa, OK).

15. Plaintiff agreed to accept the forgoing Deed in full satisfaction of all damages and claims asserted by Plaintiff against McGuire.

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED by the Court that McGuire entered into this Agreed Journal Entry of Judgment of her own free will and accord, and there is no just reason to delay final judgment as to Plaintiffs claims herein. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by the Court that the Plaintiff is granted judgment in rem only against the following real property (“Property”), to-wit:

Lot 12, Block 2, Burning Tree East, a subdivision to the City of Tulsa, Tulsa County, State of Oklahoma, according to the Recorded Plat thereof (Commonly known as 6233 S. 89th East Avenue, Tulsa, OK).

IT IS FURTHER ORDERED, ADJUDGED AND DECREED by the Court that the General Warranty Deed, recorded in the Offices of the Tulsa County Clerk on the 2nd day of November, 2005, as Document # 2005131511; the Mortgage, dated November 2, 2005, recorded in the Office of the County Clerk of Tulsa County, State of Oklahoma, on November 3, 2005, as Document #2005131512; and the wraparound Promissory Notes, dated November 2, 2005, were all entered into under a mutual mistake of fact, and would not have been executed if the correct facts had been known to the Parties, and should be, and hereby are, rescinded, cancelled, and held to be null and void. IT IS FURTHER ORDERED, ADJUDGED AND DECREED by the Court that the parties shall each bear their own attorney’s fees and costs.

Plaintiff's Experts:

Defendant's Experts:

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