Gallant v. Deutsche Bank National Trust Co.
766 F. Supp. 2d 714
W.D. Va.2011Background
- Gallant, proceeding pro se, sued Deutsche Bank National Trust Company over a foreclosure on her Charlottesville, Virginia property.
- Plaintiff purchased the property on March 3, 2006, signing a promissory note and a deed of trust that initially secures to Option One Mortgage Corporation.
- The promissory note was later assigned to Deutsche Bank; foreclosure proceedings began in March 2008 and a trustee's sale occurred on April 15, 2008.
- After the sale, Gallant remained in residence and Deutsche Bank pursued an unlawful detainer action; Gallant then filed a quiet title action on February 9, 2010 seeking injunctive and declaratory relief.
- The complaint asserts multiple theories (improper notice, lack of original note, improper proof of assignment, vapor/unlawful money/ultra vires, and RICO) and the court denied default and heard the defendant’s Rule 12(b)(6) motion.
- The court granted Deutsche Bank’s motion to dismiss for failure to state a claim, without a request for leave to amend.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether declaratory relief is appropriate. | Gallant seeks declaration of foreclosure validity and related rights. | Declaratory relief is inappropriate where the sale already occurred and claims have matured. | Not appropriate; declaratory relief denied. |
| Whether Gallant can quiet title given alleged superior title. | Gallant asserts superior title against Deutsche Bank and seeks relief to quiet title. | Quiet title requires plaintiff to plead and prove superior title; none shown. | Dismissed; no plausible superior title shown. |
| Whether notice of sale was adequate under Virginia law. | Notice was improper or not timely; 14-day notice requirement violated. | Notice complied with statute; even if not perfect, foreclosure sale remains valid. | Dismissed; notice sufficient and sale valid. |
| Whether the court should require production of the original note to foreclose. | Deutsche Bank cannot foreclose without the original note; lacks standing. | Virginia law allows non-judicial foreclosure without original note if properly noticed; assignment permissible. | Dismissed; show-me-the-note theory rejected; lack of original note does not invalidate sale; no standing requirement to be proven in court. |
| Whether RICO claim survives. | RICO violation alleged via vapor money/ultra vires theories. | The complaint lacks the required facts of an enterprise, pattern, and injury. | Dismissed; insufficient factual basis for RICO claim. |
Key Cases Cited
- Maine v. Adams, 277 Va. 230 (Va. 2009) (quiet title requires plaintiff to show superior title)
- Daugherty v. Diment, 238 Va. 520 (Va. 1989) (note assignment and transferability without consent; broad assignability)