Easley v. BAC Home Loans Servicing LP
4:10-cv-03734
S.D. Tex.Nov 30, 2011Background
- Easley, plaintiff, sued in the Southern District of Texas over a foreclosure on his home.
- Easley fell behind on mortgage payments after losing his job in 2010.
- Easley sought HAMP loan modification, which was initially denied, then reapplied in May 2010.
- BANA was the lender; FNMA purchased the property at foreclosure; Cormier was the substitute trustee.
- Easley alleges federal and state-law claims including negligent misrepresentation and fraud, and seeks declaratory relief.
- The court granted summary judgment for all defendants, concluding no genuine issue of material fact and no private right of action under HAMP.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligent misrepresentation viability | Easley alleges misrepresentations by BANA about authority and actions | BANA did not misrepresent nor cause pecuniary harm | No genuine issue; BANA entitled to summary judgment |
| Fraud viability | Easley contends material misrepresentation by BANA | Insufficient evidence of knowing falsehood and intent | No genuine issue; BANA entitled to summary judgment |
| HAMP private right of action | HAMP creates relief for borrowers | No private right of action under HAMP | No private right; FNMA and BANA entitled to summary judgment on HAMP claims |
| Declaratory relief viability | Request for declaration of rights | No justiciable controversy | No justiciable controversy; declaratory relief denied (summary judgment in favor of Defendants) |
Key Cases Cited
- Scott v. Harris, 550 U.S. 372 (U.S. 2007) (courts should not adopt conclusory or blatantly contradictory versions of facts on summary judgment)
- Little v. Liquid Air Corp., 37 F.3d 1069 (5th Cir. 1997) (summary judgment standard; unresolved facts reduce to genuine issue)
- BCY Water Supply Corp. v. Residential Inv., Inc., 170 S.W.3d 596 (Tex.-App.-Tyler 2005) (promises to do future acts are not actionable absent existing facts)