680 F.3d 1264
10th Cir.2012Background
- McDonald obtained a $198,000 loan secured by a deed of trust on Colorado real property and paid from 2003 to 2009, including during IndyMac’s FDIC receivership.
- FDIC sold IndyMac to a holding company that operated it as OneWest Bank, which became the loan servicer and notified McDonald of the sale.
- McDonald stopped paying after OneWest demanded original Note and failed to provide instrument or authority, while OneWest provided a copy of the Note and deed of trust.
- OneWest foreclosed and secured a Rule 120 order after producing the original Note, deed of trust, and a pooling and servicing agreement; McDonald sought reconsideration, which was denied.
- Sale occurred on March 4, 2010; OneWest purchased the property and later assigned its interest to FHLMC; McDonald filed state-court action challenging Note entitlement and sale, leading to a default judgment quieting title against FHLMC.
- McDonald then filed a federal suit on July 22, 2010 against OneWest asserting RICO, pattern of racketeering, FDCPA, fraud, and Colorado Consumer Protection Act claims; the district court dismissed for failure to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the appeal was timely despite the motion for reconsideration tolling | McDonald tolling granted; Rule 59/60 applicable | No tolling due to lack of explicit Rule 59/60 citation | Tolling permitted; appeal timely |
| Whether Rooker-Feldman barred the federal action given ongoing Colorado Rule 120 proceedings | Foreclosure effects are barred by Rooker-Feldman | Rooker-Feldman not controlling at this stage | Not dispositive; other grounds resolve case |
| Whether McDonald's claims were plausibly pleaded under Rule 12(b)(6) | State interest in Note ownership invalidates foreclosure | Holder of an evidence of debt may enforce the note; no holder-in-due-course requirement | Claims plausibly pleaded; dismissed on other grounds |
| Whether a holder of an evidence of debt can foreclose without owning the Note | Only owner/holder-in-due-course may foreclose | Holder of evidence of debt may enforce and foreclose | Foreclosure valid under Colorado law; no holder-in-due-course requirement |
Key Cases Cited
- Bixler v. Foster, 596 F.3d 751 (10th Cir. 2010) (plausibility standard governs Rule 12(b)(6) dismissals)
- In re Miller, 666 F.3d 1255 (10th Cir. 2012) (Rooker-Feldman limited; proceedings ongoing may be resolved on other grounds)
- Ysais v. Richardson, 603 F.3d 1175 (10th Cir. 2010) (applies narrowing rule on post-judgment appeals)