Missouri Court of Appeals, Western District / Dec 6, 2022
Deutsche Bank National Trust Company, as Indenture Trustee for American Home Mortgage Investment Trust 2006-3 vs. Guillermo Luna, et al.
Guillermo and Lourdes Luna, along with Las Cumbres, Inc., appealed a judgment reforming a deed and deed of trust to correct a legal description, change the grantor and borrower to Las Cumbres, Inc., and declare a valid first priority lien on the property. The Lunas had obtained a refinance loan by representing themselves as title owners, despite the property being titled to their dissolved corporation. The appellate court affirmed the trial court's judgment, finding sufficient evidence for reformation based on a mutual mistake and the Lunas' actions as alter egos. The court also upheld the application of judicial estoppel against the Lunas due to their inconsistent positions in prior bankruptcy proceedings.