Donaldson v. BAC Home Loans Servicing, L.P.
813 F. Supp. 2d 885
M.D. Tenn.2011Background
- Plaintiff Robert Donaldson, pro se, filed suit against BAC Home Loans Servicing, L.P. (Countrywide successor) and John Does 1-100 in Davidson County Chancery; removed to federal court.
- On December 20, 2007, Donaldson obtained a $138,000 loan from Just Mortgage, Inc., secured by a Deed of Trust on 1213 Tremont Ave, Nashville.
- Donaldson signed the Note and Deed of Trust; loan default provision triggered if monthly payments were not made when due.
- An Allonge transferred and assigned the loan to Countrywide, with Countrywide to service the loan; Donaldson made payments Feb 2008–Feb 2009; stopped after Feb 6, 2009.
- On September 1, 2010, Defendant produced the loan file including copies of the Note and Allonge; Plaintiff disputed originals and sought the Truth in Lending Statement.
- Magistrate Judge Brown issued a Report and Recommendation on May 17, 2011, recommending summary judgment for Defendant; Plaintiff objected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of contract viability | Donaldson seeks breach for failure to provide loan. | Defendant clarifies status as holder/assignee entitled to collect payments. | Granted summary judgment for Defendant. |
| Unjust enrichment viability | Donaldson paid $10,596; unjustly enriched by Defendant retaining payments. | Exists a contract; payments were for a loan; no unjust enrichment. | Granted summary judgment for Defendant. |
| Fraud claim sufficiency | Defendant misrepresented loan terms to induce payment. | No actionable misrepresentation proven; signed notes and occupancy weigh against fraud. | Granted summary judgment for Defendant. |
| Subject-matter jurisdiction and amount in controversy | Not plainly diverse and amount uncertain; claims were state-law based. | Complete diversity and amount in controversy exceed $75,000 due to debt of $138,000 and possible punitive damages. | Court retains jurisdiction; diversity and amount in controversy satisfied. |
| Effect of original Note production on enforceability | Non-production of original Note undermines Defendant's enforceability and ownership. | Presentment waived; transfer/assignment rights survive; original not required to enforce. | Not a genuine dispute; enforceability affirmed via transfer. |
Key Cases Cited
- Life Care Centers of America, Inc. v. Charles Town Assoc., L.P., 79 F.3d 496 (6th Cir. 1996) (elements of summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. Supreme Court 1986) (burden-shifting standard for summary judgment)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. Supreme Court 1986) (genuine dispute requires admissible evidence from both sides)
- Hayes v. Equitable Energy Res. Co., 266 F.3d 560 (6th Cir. 2001) (amount in controversy may be inferred from pleadings)
- Scott v. Harris, 550 U.S. 372 (U.S. Supreme Court 2007) (credibility and weighing of evidence on summary judgment)
- Baird v. NHP Mill Creek Apartments, 94 Fed. Appx. 328 (6th Cir. 2004) (mere possibility of dispute insufficient for defeat of summary judgment)