Kapla v. Federal National Mortgage Ass'n (In re Kapla)
485 B.R. 136
Bankr. E.D. Mich.2012Background
- Debtor filed this adversary to set aside a foreclosure sale of his Michigan home and seek other relief; Defendants moved to dismiss; court grants motion.
- Debtor’s Chapter 13 filing listed no interest in the Property after a 2010 foreclosure; mortgage rights were held by Bank of America and later transferred to Fannie Mae.
- Fannie Mae sought relief from the stay to enforce rights in the Property; Michigan nonjudicial foreclosure preceded the foreclosure and redemption periods.
- State court later issued a possession judgment in favor of Fannie Mae on October 24, 2011; Debtor converted his case to Chapter 7 after the stay relief order.
- FHFA was appointed conservator of Fannie Mae on September 6, 2008, and intervened in this adversary proceeding in 2012.
- Court excludes most exhibits from the Rule 12(b)(6) analysis and treats the motion as a 12(b)(6) dismissal unless Exhibit I is considered for authority
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Counts I–II are barred by Rooker-Feldman | Debtor argues ongoing state proceedings do not preclude federal relief | Defendants contend state judgment forecloses review in federal court | Counts I–II barred by Rooker-Feldman |
| Whether Fannie Mae is a government actor for constitutional claims | Debtor argues FHFA conservatorship makes Fannie Mae a government actor | Lebrón test shows no government actor status pre-conservatorship; conservatorship not permanent | Fannie Mae not a government actor; claims dismissed under Lebrón |
| Whether Northrip controls the foreclosure-related claims | Debtor relies on Northrip to bar private-actor liability | Northrip not controlling post-LeBrón; no government nexus | Northrip not controlling under Lebrón; counts dismissed |
| Whether Counts III–IV survive as independent claims against Fannie Mae | Debtor seeks monetary relief for alleged constitutional violations | Claims barred if no government actor; no standalone injury | Counts III–IV dismissed for lack of government-actor liability under Lebrón |
Key Cases Cited
- Exxon Mobil Corp. v. Saudi Basic Industries Corp., 544 U.S. 280 (U.S. 2005) (limits Rooker-Feldman scope to state-court losers seeking review of state judgments)
- Johnson v. De Grandy, 512 U.S. 997 (U.S. 1994) (describes Rooker-Feldman abstention doctrine scope)
- Rooker v. Fidelity Trust Co., 263 U.S. 413 (U.S. 1923) (origin of Rooker-Feldman doctrine)
- Feldman v. state's court judgment", 460 U.S. 462 (U.S. 1983) (core of Rooker-Feldman framework)
- Lebron v. National Railroad Passenger Corp., 513 U.S. 374 (U.S. 1995) (three-part test to determine government actor status for constitutional claims)