Marsh v. JPMorgan Chase Bank, N.A.
888 F. Supp. 2d 805
W.D. Tex.2012Background
- Foreclosure of residential property in Bexar County, Texas is at issue after defendants moved to dismiss.
- Plaintiffs Marsh filed suit alleging defective assignment of the Deed of Trust and fraudulent lien, among other claims.
- MERS Assignment to BOA (signed by Christina Trowbridge) is challenged; BOA, JPMorgan, and MERS are defendants through service roles.
- Plaintiffs allege MERS lacked authority to assign and that the assignment violated corporate bylaws and created fraud.
- Suit was removed to federal court on diversity grounds after a state temporary restraining order restrained foreclosure.
- Court grants defendants’ 12(b)(6) motion, dismissing all claims with prejudice and closing the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge assignment | Marshs argue BOA’s interest is void due to unauthorized signatory | Plaintiffs lack standing as non-parties to the assignment | lacks standing; dismissal affirmed. |
| Fraudulent lien under Texas law | Assignment by MERS created a fraudulent lien under §51.901/§12.002 | Assignment transfers debt interest, not a lien; no fraud pleadings | claims under 12.002/51.903 dismissed. |
| Common law fraud claim | Defendants committed fraud by improper signatory authority | No material misrepresentation relied upon by plaintiffs | claim dismissed for failure to plead facts showing reliance. |
| Attempted wrongful foreclosure and breach of contract | Foreclosure was attempted; seeks damages and declaratory relief | No foreclosure sale occurred; no contract breach pleaded | claim dismissed; no wrongful foreclosure recognized; contract claim dismissed. |
| Injunctive and declaratory relief requests | Requests relief beyond damages | Lack of viable substantive claims | denied; relief requests dismissed. |
Key Cases Cited
- Spositi v. Fed. Nat’l Mortg. Ass’n, 2011 WL 5977319 (E.D. Tex. 2011) (assignment as nominee lender; MERS authority case cited (WL))
- Willeford v. Wells Fargo Bank, N.A., No. 3:12-CV-0448-B (N.D. Tex. 2012) (mortgagor lacks standing to challenge assignment)
- In re Campbell, 2012 WL 1811616 (Tex. App.—Austin 2012) (section 51.903 applies to liens, not assignments)
- Kingman Holdings, LLC v. CitiMortgage, Inc., 2011 WL 1883829 (E.D. Tex. 2011) (discussion of Section 12.022 survivability on lien-related claims)
- Garcia v. Bank of New York Mellon, 2012 WL 692099 (N.D. Tex. 2012) (Section 12.002 claim dismissed on similar grounds (WL))
- Metcalf v. Deutsche Bank Nat’l Trust Co., 2012 WL 2399369 (N.D. Tex. 2012) (standing issue for challengers to assignments (WL))
- Sauceda v. GMAC Mortg. Corp., 268 S.W.3d 135 (Tex.App.-Corpus Christi 2008) (elements of wrongful foreclosure claim)
- Pajooh v. Harmon, 82 F.App’x 898 (5th Cir. 2003) (denial of injunctive relief when no claim stated)
- Val-Com Acquisitions Trust v. Chase Home Fin., LLC, 434 F. App’x 395 (5th Cir. 2011) (declaratory relief improper where no viable claim)