United States District Court, C.D. Illinois, Peoria Division
FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR VALLEY BANK, Plaintiff,
FRANCIS J. COYLE JR and DAWN D. COYLE, Defendants.
DARROW, UNITED STATES DISTRICT JUDGE.
the Court are a Motion for Summary Judgment, ECF No. 10, and
a Motion to Supplement the Motion for Summary Judgment, ECF
No. 25, filed by Plaintiff Federal Deposit Insurance
Corporation as Receiver (“FDIC-R”) against
Defendants Francis J. Coyle Jr. and Dawn D. Coyle (“the
Coyles”) to recover for non-payment of loan obligations
on two mortgages originally executed by Valley Bank. For the
following reasons, the motion is GRANTED in part and DENIED
and 2007, the Coyles took out mortgages from Valley Bank on
their property in Rock Island, IL. Each of the Coyles signed
a promissory note, executed jointly and severally in the
amount of $773, 857.18. The 2007 Mortgage executed by the
Coyles is dated January 10, 2007 and was recorded with the
Recorder of Rock Island County, IL on January 19, 2007 as
Document No. 2007-01366. The Notes were modified on January
26, 2009, January 16, 2011, and February 11, 2013
(collectively, “the obligations”). Final payment
of the obligations was due February 11, 2016. The obligations
are secured by mortgages. The mortgages signed by the Coyles
are a first lien on real estate owned by Dawn D. Coyle, which
real estate is described in both mortgages as:
Lot No. 3 in French Oaks Subdivision, an Addition to the City
of Rock Island, Illinois, situated in County of Rock Island,
State of Illinois. (Commonly known as 4302 42nd Ave. Ct.,
Rock Island, IL 61201)
current owner of the real estate is Dawn D. Coyle, and the
Coyles were, when the mortgages were executed, married to
each other, and remain married. It is undisputed that the
Coyles defaulted on the mortgage and promissory note because
a. Failed to pay the payments due on the promissory note from
March 11, 2013 and each of the subsequent installments that
were due on the Note and Mortgage thereafter from and after
August 11, 2013 and in 2014, 2015 and 2016;
b. Failed to pay the interest and principal on the Note and
Mortgages when due;
c. Failed to pay the final balloon payment when it was due on
February 11, 2016. FDIC also alleges that the Coyles
“[f]ailed to pay late fees that are due on the Note and
Mortgages, ” Pl.'s Statement of Undisputed Facts
¶ 10, in the amount of $10, 044.79, but the Coyles
dispute that they owe these late fees. Def.'s Resistance
to Mot. Summ. J ¶ 1, ECF No. 22.
Bank, the mortgagee, brought a state court foreclosure action
against the Coyles in August 2013. Not. Removal Ex. A-1 2-3,
ECF No. 1-1. FDIC-R was subsequently appointed receiver for
Valley Bank, and removed the suit to federal court. Not.
Removal ¶ 2, ECF No. 1. FDIC-R owns and holds the
mortgages. Pursuant to the terms of the Note and Mortgage,
the FDIC-R is entitled to collect its attorney fees and costs
of collection that have been incurred on this matter and that
are continuing to be incurred and which as of June 1, 2016
are in the amount of $23, 472.97, which sum is secured by the
Mortgages. The Coyles do not suggest that they are not
responsible for the attorney fees, but only that the sum has
not been itemized and has not been shown to be reasonable.
Def.'s Resistance ¶ 3.
FDIC provided notice of the receivership to the Coyles by
publication and by mail; the mailed notice, dated July 17,
2014, stated that any claims against Valley Bank assets must
have been filed with the FDIC before September 24, 2014. Mot.
Dismiss Ex. A, ECF No. 3-1. According to an affidavit from an
FDIC employee, the Coyles did not file an administrative
claim with the FDIC before that deadline. Mot. Dismiss Ex. B
¶ 5, ECF No. 3-2.
unpaid principal balance owed on the obligations, the Notes
and Mortgages at the time the motion for summary judgment was
filed was $752, 360.92. The accrued unpaid interest as of
July 1, 2016 was $129, 245.60, secured by mortgages. The
interest continues to accrue on the unpaid principal balance
at 6% per annum. The disputed late fees had accrued to $10,
044.79 by August 19, 2013. The total unpaid principal,
interest, and late fees due jointly and severally by the
Coyles on the mortgage and note, as of July 1, 2016
(excluding attorney fees, expenses, and court costs) is $891,
651.31, secured by the mortgages.
has moved for summary judgment against the Coyles and for
entry of an order that the amounts owing be paid to the FDIC
and that a decree be entered regarding the terms ...