BRENT HUBBARD a/k/a BRENT P. HUBBARD AND AMY HUBBARD a/k/a AMY C. HUBBARD
COURT FROM WHICH APPEALED: DESOTO COUNTY CIRCUIT COURT. DATE OF JUDGMENT: 05/14/2013. TRIAL JUDGE: HON. GERALD W. CHATHAM, SR.
FOR APPELLANT: BRENT HUBBARD (Pro se).
FOR APPELLANT: AMY HUBBARD (Pro se).
FOR APPELLEE: KAYTIE MICHELLE PICKETT, GARY P. SNYDER.
BEFORE RANDOLPH, P.J., LAMAR AND KITCHENS, JJ. WALLER, C.J., DICKINSON AND RANDOLPH, P.JJ., LAMAR, CHANDLER, KING AND COLEMAN, JJ., CONCUR. PIERCE, J., NOT PARTICIPATING.
NATURE OF THE CASE: CIVIL - CONTRACT
¶1. This is an appeal from the DeSoto County Circuit Court's grant of judgment on the pleadings in favor of BancorpSouth Bank. In 2010, the residence of Brent and Amy Hubbard secured a note and deed of trust held by Trustmark National Bank. Additionally, the Hubbards obtained a second loan, which was secured by a note and second deed of trust held by BancorpSouth on the same residence. In 2011, Trustmark foreclosed on the first deed of trust and sold the property. More than a year later, BancorpSouth sued the Hubbards in the DeSoto County Circuit Court for money due under the second note. The Hubbards admitted they were in default, but asserted as an affirmative defense that BancorpSouth's claim was time barred under the one-year statute of limitations prescribed in Mississippi Code Section 15-1-23. After a hearing on the motion, the circuit court found Section 15-1-23 inapplicable and ruled instead that Mississippi Code Section 15-1-49 provides the proper limitations period (three years). The circuit court entered judgment in favor of BancorpSouth. On appeal, the Hubbards argue that the circuit court committed reversible error in granting BancorpSouth's judgment on the pleadings because the action was barred by the one-year statute of limitations prescribed by Section 15-1-23.
¶2. We affirm the circuit court's grant of judgment on the pleadings. However, the three-year statute of limitations provided under Section 15-1-49 is inapplicable in this case. The circuit court reached the right result, but for the wrong reason. The proper limitations period for suits on promissory notes for nonforeclosing lenders is Mississippi Code Section 75-3-118, which provides a six-year statute of limitations, rather than the three-year statute of limitations set forth in Section 15-1-49.
FACTS AND PROCEDURAL HISTORY
¶3. On an unknown date, the Hubbards obtained a home loan from Trustmark. The Hubbards secured the note with a deed of trust on their residence. The Hubbards defaulted in the payment of their loan, and on April 7, 2011, Trustmark foreclosed on the property. On May 19, 2011, Trustmark sold the property.
¶4. On October 6, 2010, before foreclosure, the Hubbards had obtained a second loan from BancorpSouth secured by a second deed of trust on the residence. The note was in the amount of $39,641.79, with an interest rate of 5.00% per annum. The note was payable in sixty payments, due on the 26th of each month beginning October 26, 2010, with the final payment of remaining principal and interest due on September 26, 2015. The Hubbards defaulted on their obligations under this note by failing to make scheduled payments when due.
¶5. On February 5, 2013, BancorpSouth sued the Hubbards in DeSoto County Circuit Court for $42,110.09 due under the note, plus attorneys' fees, costs, and interest. The action was brought ...