Grillo v. JP Morgan Chase & Co.
1:13-cv-03233
D. Colo.Sep 8, 2014Background
- Bankruptcy confirmed Grillo’s Chapter 13 plan, listing the encumbered property at 1336 Madison St., Denver.
- Chase foreclosed on the encumbered property; the plan’s confirmation is treated as final for res judicata purposes.
- District court previously adopted part of the magistrate’s recommendation and referred monetary claims to the Chapter 13 trustee.
- Injunctive-relief claims remained; court requested supplemental briefing and sought pro bono counsel, later addressing these issues.
- Grillo alleged erroneous credit reporting; court found FCRA relief not pled and state-law claims preempted, with res judicata controlling.
- Court concluded Grillo’s injunctive claims are dismissed with prejudice and deferred ruling on dismissal motion pending trustee’s direction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are foreclosure and related relief barred by res judicata? | Grillo contends issues shouldn't be barred. | Chase argues confirmed plan and foreclosure are res judicata. | Foreclosure and related relief are res judicata. |
| Is Grillo’s credit-report relief available under FCRA or preempted by it? | Claims arise under FCRA corrections. | FCRA preempts state-law claims; relief not pled as FCRA claim. | Not available; preempted or not pled as FCRA. |
| Do post-filing actions create new claims outside the bankruptcy estate? | Post-filing actions may exist as new claims. | No new independent post-filing claims; accrual pre-second filing. | No post-filing independent claims; barred by accrual timing. |
| Is Smith v. Rockett controlling on estate-claims in Chapter 13? | Rockett allows estate-claims despite Chapter 13. | Rockett does not overcome res judicata for foreclosure. | Inapplicable; does not defeat res judicata. |
| Should Grillo modify the confirmed Chapter 13 plan to add claims? | Chapter 13 guarantees right to modify the plan to add claims. | Modification is a bankruptcy-court matter; not automatic. | Modification is for the bankruptcy court. |
Key Cases Cited
- In re Woolsey, 696 F.3d 1266 (10th Cir. 2012) (plan confirmation is close to final judgment in bankruptcy)
- Interwest Bus. Equip., Inc. v. U.S. Tr. (In re Interwest Bus. Equip., Inc.), 23 F.3d 311 (10th Cir. 1994) (finality of bankruptcy orders; res judicata applies)
- In re Talbot, 124 F.3d 1201 (10th Cir. 1997) (confirmed Chapter 13 plan is binding; res judicata)
- Celli v. First National Bank (In re Layo), 460 F.3d 289 (2d Cir. 2006) (application of res judicata to lien in Chapter 13)
- Collins v. BAC Home Loans Servicing LP, 912 F. Supp. 2d 997 (D. Colo. 2012) (FCRA preemption of state-law claims)