Christine Caldwell-Blow v. Wells Fargo Bank, N.A.
687 F. App'x 380
| 5th Cir. | 2017Background
- In 2006 Caldwell-Blow executed a promissory note and deed of trust for her Dallas home; Wells Fargo serviced the loan.
- Caldwell-Blow defaulted in 2007; Wells Fargo accelerated the loan several times (Nov 2007, May 2008, Dec 2008).
- After December 2008 acceleration Caldwell-Blow obtained a TRO and negotiated with Wells Fargo; parties entered a Rule 11 agreement and she made some payments into the court registry.
- On October 8, 2009 Wells Fargo sent a Rescission Letter stating it rescinded prior notices of acceleration and that Caldwell-Blow could continue paying under the note’s terms.
- Wells Fargo later filed state-court actions and foreclosure-related notices in 2012 and filed a proof of claim in bankruptcy in Oct 2013; Caldwell-Blow sued, asserting Texas Civ. Prac. & Rem. Code § 16.035(a) barred enforcement due to untimeliness.
- Bankruptcy and district courts held Wells Fargo abandoned prior accelerations (so the statute of limitations did not bar its claims); this appeal affirmed that result.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §16.035(a) barred Wells Fargo’s foreclosure/proof of claim | Caldwell-Blow: Prior acceleration remained in effect so statute of limitations expired | Wells Fargo: Rescission Letter and parties’ conduct abandoned prior accelerations, resetting accrual | Court: Rescission Letter abandoned prior accelerations; claims timely (affirmed) |
Key Cases Cited
- In re IFS Fin. Corp., 669 F.3d 255 (5th Cir. 2012) (standard of review for district court review of bankruptcy decisions)
- In re Barner, 597 F.3d 651 (5th Cir. 2010) (same procedural-review principle cited)
- In re Sadkin, 36 F.3d 473 (5th Cir. 1994) (standard for reversal for clear error)
- Holy Cross Church of God in Christ v. Wolf, 44 S.W.3d 562 (Tex. 2001) (accrual occurs when lender exercises acceleration)
- Boren v. U.S. Nat’l Bank Ass’n, 807 F.3d 99 (5th Cir. 2015) (lender abandons acceleration by requesting less-than-full payment; abandonment restores original maturity)
- Meachum v. Bank of New York Mellon Tr. Co., N.A., [citation="636 F. App'x 210"] (5th Cir. 2016) (abandonment can be found without mortgagor payments)
- Leonard v. Ocwen Loan Servicing, [citation="616 F. App'x 677"] (5th Cir. 2015) (related precedent on acceleration/abandonment)
- Mercado v. Lynch, 823 F.3d 276 (5th Cir. 2016) (panel cannot overrule prior panel decisions)
- Jacobs v. Nat’l Drug Intelligence Ctr., 548 F.3d 375 (5th Cir. 2008) (rule of orderliness authority)