James Wong v. Bann-Cor Mortgage
2015 U.S. App. LEXIS 10244
| 8th Cir. | 2015Background
- Borrowers allege MSMLA violations by Bann-Cor and various assignees/recipients of their second mortgages.
- District court dismissed for lack of standing against non-servicing defendants and for statute-of-limitations defenses.
- Case history spans ~15 years with multiple amendments, removals, and dismissals by the district court.
- Missouri appellate history: Schwartz (Mo. Ct. App. 2006) held six-year limitations; Rashaw (8th Cir. 2012) held three-year limitations.
- Court ultimately applies three-year statute of limitations and affirms dismissal of MSMLA claims as time-barred.
- Wilmington Trust Company standing issues are resolved in favor of dismissal; several other claims and defendants are not reached.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether named borrowers have standing to sue non-servicing defendants. | Borrowers argue class certification and juristic link doctrines confer standing. | Defendants contend lack of causal connection and no injury by non-servicing defendants. | Three-year standing not found; lack of injury against non-servicing defendants upheld. |
| What statute of limitations applies to MSMLA claims. | Schwartz six-year rule applies; Rashaw should control as Missouri law. | Rashaw three-year rule controls; Schwartz not best Missouri law. | Three-year statute of limitations applies to MSMLA claims. |
| When do MSMLA claims accrue for limitations purposes. | Accrual upon assignees’ collection actions, not loan origination. | Accrual at loan origination. | Accrual at loan origination; latest 2000 loans fall outside limitations. |
| Can HOEPA derivative liability toll or extend limitations. | HOEPA derivative liability could preserve claims against assignees. | Derivative liability does not toll statute of limitations. | HOEPA derivative liability does not extend the limitations period. |
Key Cases Cited
- Rashaw v. United Consumers Credit Union, 685 F.3d 739 (8th Cir. 2012) (holds three-year limitations for MSMLA claims; contemplates legislative history and Missouri caselaw)
- Washington v. Countrywide Home Loans, Inc., 747 F.3d 955 (8th Cir. 2014) (reassesses Schwartz; confirms Rashaw controlling trend)
- Schwartz v. Bann-Cor Mortg., 197 S.W.3d 168 (Mo. Ct. App. 2006) ( Missouri Court of Appeals on six-year limitations for MSMLA claims)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (establishes standing framework (injury, causation, redressability))
- Payton v. Cnty. of Kane, 308 F.3d 673 (7th Cir. 2002) (discusses class standing distinctions)
- West v. American Tel. & Tel. Co., 311 U.S. 223 (1940) (establishes standing as jurisdictional gatekeeper)