Maynard v. Household Finance Corp. III

Darryl Maynard (plaintiff) took out a mortgage with Household Finance Corporation III (HFC) (defendant). The mortgage was secured by Maynard’s Florida home. HFC represented that it would use the mortgage proceeds to refinance and fully satisfy Maynard’s existing mortgages with Advanta Mortgage Corporation (Advanta) and American General Home Equity, Inc. (American General). HFC failed to fully satisfy Maynard’s mortgages with Advanta and American General. Maynard was forced to make payments on three mortgage loans while he unsuccessfully attempted to resolve the failed refinance with HFC. Several years later, HFC sued to foreclose on Maynard’s home, alleging Maynard had defaulted on his mortgage payments. Maynard counterclaimed for fraud-in-the-inducement and breach-of-contract, arguing he was entitled to damages because HFC had failed to fulfill its promise to refinance and fully satisfy Maynard’s mortgages with Advanta and American General. HFC moved for summary-judgment on both the foreclosure action and on Maynard’s counterclaim, arguing (1) the relevant statute-of-limitations for actions arising from a written mortgage contract had expired; and (2) Maynard could only raise a time-barred counterclaim if the counterclaim specifically sought recoupment, which Maynard’s did not. The trial court granted HFC summary-judgment and awarded HFC monetary damages, fees, and costs. Maynard appealed, arguing his compulsory counterclaim was not time-barred.