Bank of New York Mellon v. R. Onaga, Inc.

An appeal of an order confirming sale is moot when the appellant does not post a supersedeas bond to obtain a stay of the proceedings prior to the sale of the property to a bona fide purchaser. In this case R. Onaga, Inc. (Onaga) and The Bank of New York Mellon FKA the Bank of New York (BONY) each initiated foreclosure proceedings against property once owned by Robert and Marlyn Marquez. Both entities claimed to have a first priority lien. The circuit court concluded that BONY had a first priority lien and granted summary judgment in favor of BONY. Onaga moved to stay BONY’s foreclosure proceeding, and the circuit court ordered Onaga to post a supersedeas bond in order to stay the proceedings. Onaga did not post a bond. In the meantime, Lyle and Linda Ferrara were the highest bidder at the foreclosure sale, and the circuit court confirmed the sale. The intermediate court of appeals (ICA) vacated the circuit court’s grant of summary judgment. The Supreme Court reversed the ICA’s judgment and affirmed the circuit court’s judgment, holding that because Onaga failed to post a supersedeas bond as required by the circuit court, its appeal of the foreclosure proceeding was moot in light of the Ferraras’ certificate of title. View "Bank of New York Mellon v. R. Onaga, Inc." on Justia Law