930 F. Supp. 2d 692
W.D. Tex.2013Background
- Foreclosure case removed from Texas state court based on diversity; Jaimes executed a 2006 note/deed of trust with Origin Funding (Belvidere Networking Enterprises) with MERS as beneficiary.
- Origin Funding dissolved/charter forfeited; MERS later assigned the deed to Aurora Bank FSB in 2012.
- Aurora appointed substitute trustee and issued notices of sale; property sold at foreclosure on July 3, 2012.
- Jaimes filed suit challenging the assignment from MERS to Aurora and the foreclosure authority; claims span contract, Texas Property Code, TDCA, DTPA, collection of payments, CPRC 12.002, and quiet title.
- Court granted motion to dismiss under Rule 12(b)(6) as Jaimes failed to state any viable claim; Jaimes given 20 days to amend.
- The court noted lack of response to the motion as unopposed and discussed potential fraudulently joined parties for diversity purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge assignment and foreclosure | Jaimes challenges assignment defects; seeks to void foreclosure | Assignment from MERS to Aurora valid; Jaimes has no standing | Dismissed; Jaimes lacks standing to challenge the assignment |
| Validity of the Texas Property Code claim | Aurora violated Chapter 51 requirements | Deed named MERS, foreclosures authorized; no code violation shown | Dismissed; foreclosure authorized under statute |
| Texas Debt Collection Practices Act claim | Aurora unlawfully threatened/collected debt | Claims vague; no specific threats or misrepresentations pleaded | Dismissed; TDCA claim insufficiently pleaded |
| Texas Deceptive Trade Practices Act standing | Jaimes is consumer under DTPA | Mortgage loan not a commodity; lack of standing | Dismissed; no standing and no valid DTPA claim |
| Quiet title action | Jaimes seeks to recover title against Fannie Mae | Foreclosure served; Jaimes has no strong title claim | Dismissed; Jaimes failed to plead rights to title |
Key Cases Cited
- Marsh v. JPMorgan Chase Bank, N.A., 888 F.Supp.2d 805 (W.D.Tex.2012) (mortgage assignments not within Civil Practice & Remedies Code 12.002 scope)
- Riverside Nat’l Bank v. Lewis, 603 S.W.2d 169 (Tex.1980) (standing to sue under the DTPA requires consumer status)
- Leatherman v. Tarrant Cnty. Narcotics Intelligence & Coordination Unit, 507 U.S. 163 (U.S. 1993) (standard for 12(b)(6) pleading emphasize plausibility)
- Tuchman v. DSC Commc’ns Corp., 14 F.3d 1061 (5th Cir.1994) (requirement to plead specific facts, not conclusory assertions)
- Fricks v. Hancock, 45 S.W.3d 322 (Tex.App.-Corpus Christi 2001) (appropriate standard for quiet-title claims and title defenses)
- Porretto v. Patterson, 251 S.W.3d 701 (Tex.App.-Houston [1st Dist.] 2007) (quiet-title action requires plaintiff to show superior title)