387 S.W.3d 559
Tenn. Ct. App.2012Background
- Diggs, pro se, filed a February 1, 2011 complaint titled Fraud against Lasalle Bank, Bank of America, EMC, and JP Morgan; Diggs alleged EMC foreclosed during bankruptcy and misrepresented facts.
- EMC foreclosed on Diggs’ home while bankruptcy was pending; Substitute Trustee’s deed later questioned as void; Diggs’ bankruptcy was dismissed on February 5, 2009.
- Foreclosure caused a sale to Lasalle for $109,650 with a remaining balance of $38,718.78; Diggs claimed the sale was void ab initio.
- Diggs sued seeking billions in damages; defendants moved to dismiss for failure to state a claim and lack of particularity; amended complaints followed.
- Chancery Court dismissed the complaint without prejudice for failure to plead fraud with particularity; on appeal, standard is de novo review of dismissal and allegations as true.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Fraud pleading sufficiency under Rule 9.02 | Diggs contends fraud was pled with particularity. | Appellees argue allegations are unclear and conclusory and lack particularity. | Diggs failed to plead fraud with particularity. |
| Adequacy of Rule 8.01 pleading for non-fraud claims | Diggs asserts at least some relief demands; pleadings should support relief. | Pleading fails under Rule 8.01; no actionable relief stated. | No claim stated under Rule 8.01. |
| Propriety of dismissal without prejudice | Dismissal should allow cure or amendment. | Dismissal appropriate for failure to plead with required specificity. | Dismissal without prejudice affirmed. |
Key Cases Cited
- Metro. Gov't of Nashville & Davidson County v. McKinney, 852 S.W.2d 233 (Tenn. Ct. App. 1992) (fraud pleading elements apply in aiding standards for dismissal)
- First Nat'l Bank v. Brooks Farms, 821 S.W.2d 925 (Tenn. 1991) (elements of fraud require detailed pleading)
- Lopez v. Taylor, 195 S.W.3d 627 (Tenn. Ct. App. 2005) (law of fraud pleading; reliance and damages stated clearly)
- Humphries v. West End Terrace, Inc., 795 S.W.2d 128 (Tenn. Ct. App. 1990) (trial court may dismiss failure to plead fraud with particularity)
- Owens v. Truckstops of America, 915 S.W.2d 420 (Tenn. 1996) (Rule 9.02 particularity requirements for fraud claims)
- Doty v. Federal Land Bank, 89 S.W.2d 337 (Tenn. 1935) (precedes modern pleading standards; stayate cases)