296 So.3d 767
Miss. Ct. App.2020Background
- In 2001 the Griffins took a mortgage secured by a deed of trust; after a 2006 loan-modification dispute they stopped paying and foreclosure proceedings began.
- The Griffins previously sued (Griffin I in federal court dismissed for failure to prosecute; Griffin II in state chancery court dismissed on res judicata) and both dismissals were affirmed on appeal.
- In April 2018 CitiMortgage appointed a substitute trustee and published a foreclosure-sale notice; the Griffins filed a third suit eight days before the sale and later amended to add their homeowners’ association (Grandview).
- The federal court remanded because Grandview destroyed diversity; the Griffins alleged foreclosure interfered with pending HOA litigation/mediation and asserted breach of the deed of trust, unspecified statutory/tort claims, and emotional distress.
- The chancery court dismissed the amended complaint with prejudice for failure to state a claim and on res judicata grounds; the Griffins’ motion to amend again was denied for procedural and substantive reasons.
- The Court of Appeals affirmed dismissal on the ground the amended complaint failed to state a claim and upheld denial of leave to amend as amendment would be futile; the court warned against frivolous future filings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the amended complaint states a breach of deed-of-trust claim | Griffin: Contract phrase requiring discharge of liens prevents foreclosure while a good-faith contest over liens is pending | CitiMortgage: Contract provision does not bar foreclosure here; Griffins defaulted and nothing in deed prevented foreclosure | Dismissed — complaint fails to plead a contractual basis to bar foreclosure |
| Whether pursuing foreclosure or communicating with HOA gave rise to torts or statutory violations | Griffin: Foreclosure notice and communications with Grandview interfered with pending mediation and violated unspecified laws, causing emotional distress | CitiMortgage: No statute or contract prohibits foreclosure or such communications based on an unrelated HOA mediation | Dismissed — allegations are conclusory and cite no legal duty or law supporting tort or statutory claim |
| Whether chancery court abused discretion by denying leave to file a second amended complaint | Griffin: Proposed second amended complaint adds legal citations and identified torts, so leave should be granted | CitiMortgage: Proposed amendments do not change the core facts and would remain futile; plaintiffs failed to properly notice motions for hearing | Denied — leave properly refused because proposed amendment would be futile and procedural defects existed |
| Whether res judicata barred the claims | Griffin: Not addressed substantively in opinion (argued previously) | CitiMortgage: Prior dismissals preclude relitigation of same claims | Not reached on appeal — court affirmed on Rule 12(b)(6) grounds so res judicata discussion was unnecessary, though trial court also relied on it |
Key Cases Cited
- State v. Bayer Corp., 32 So. 3d 496 (Miss. 2010) (standard of review and legal sufficiency under Rule 12(b)(6))
- Moore ex rel. City of Aberdeen v. Byars, 757 So. 2d 243 (Miss. 2000) (well-pleaded allegations must be taken as true on a 12(b)(6) motion)
- Rose v. Tullos, 994 So. 2d 734 (Miss. 2008) (conclusory legal assertions insufficient to survive dismissal)
- Littlefield v. Littlefield, 282 So. 3d 820 (Miss. Ct. App. 2019) (amendment may be denied where proposed amendment is futile)
- Hartford Cas. Ins. Co. v. Halliburton Co., 826 So. 2d 1206 (Miss. 2001) (futility as a valid reason to deny leave to amend)
- Griffin v. ABN AMRO Mortgage Group Inc., 232 So. 3d 189 (Miss. Ct. App. 2017) (prior appeal affirming dismissal on res judicata grounds)
- Parker v. Miss. Game & Fish Comm’n, 555 So. 2d 725 (Miss. 1989) (party must convey subject matter of proposed amendment to trial judge)
- Gettis v. Frison, 99 So. 3d 1186 (Miss. Ct. App. 2012) (failure to notice a hearing on objections may constitute waiver)