Allman v. Allman

ORS 205.460 is “not available against a person lawfully conducting business as [a]n institution, a national bank, an out-of-state bank or an extranational institution . . . a savings bank, a federal savings bank or a subsidiary of an entity described in this paragraph[.]” ORS 205.460(7)(a).

Joan Allman and her husband purchased a home in 2000. Joan’s husband granted a trust deed on the home to Washington Mutual Bank (“WaMu”) that WaMu assigned to Deutsche Bank National Trust Company (“DBNTC”). DBNTC eventually foreclosed on the deed. In 2018, Joan filed a petition to strike the trust deed under ORS 205.460 and alleged that the deed was invalid because her husband granted the deed through forgery. The trial court concluded that it did have authority to grant Joan’s petition and struck DBNTC’s encumbrance. On appeal, DBNTC argued that the trial court erred by concluding that it had authority to strike the trust deed, whereas Joan argued that the trial court did have authority to do so. ORS  205.460 is  “not  available  against  a  person  lawfully  conducting  business as [a]n institution, a national bank, an out-of-state  bank  or  an  extranational  institution . . . a savings bank, a federal savings bank or a subsidiary of an entity described in this paragraph[.]” ORS 205.460(7)(a). The Court found that DBNTC was a bank for purposes of ORS 205.460, therefore, the trial court did not have authority to strike DBNTC’s encumbrance under that statute. Reversed.