Long v. Wells Fargo Bank, N.A.
670 F. App'x 670
10th Cir.2016Background
- In 2007 Darwin and Jackie Long executed a $270,000 promissory note secured by a recorded deed of trust on their Utah home; defendants had roles related to the loan.
- The Longs defaulted in September 2009; eTitle, acting as successor trustee, sent default notices and pursued nonjudicial foreclosure from 2010–2014.
- In 2014 Long sued in Utah state court to stop foreclosure, asserting multiple claims including quiet title and FDCPA violations; defendants removed based on federal-question jurisdiction from the FDCPA claim.
- Long amended to assert quiet title, misrepresentation, statute-of-frauds and mortgage-fraud claims, breaches of fiduciary duty, and sought a declaratory judgment invalidating loan/foreclosure documents and eTitle’s authority to foreclose.
- The district court dismissed all claims with prejudice under Fed. R. Civ. P. 12(b)(6); Long’s Rule 59(e) motion was denied. He appealed only the dismissal of his Declaratory Judgment Act (DJA) claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the DJA claim survived after dismissal of underlying substantive claims | Long argued his amended complaint plausibly alleged defects in loan/assignment documents and sought a declaration that defendants lack authority to foreclose | Defendants argued Long failed to plead plausible facts invalidating documents; with substantive claims dismissed, declaratory relief is unavailable | Court held declaratory relief unavailable because no judicially remediable rights remain after dismissal of all substantive claims; DJA claim properly dismissed |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (standard for pleading plausibility)
- Khalik v. United Air Lines, 671 F.3d 1188 (10th Cir.) (labels/conclusions insufficient to survive dismissal)
- SEC v. Shields, 744 F.3d 633 (10th Cir.) (de novo review of Rule 12(b)(6) dismissal)
- GF Gaming Corp. v. City of Black Hawk, Colo., 405 F.3d 876 (10th Cir.) (appellate affirmance may rest on any record-supported ground)
- Schilling v. Rogers, 363 U.S. 666 (DJA relief presupposes a judicially remediable right)