Purnie Peterson v. CitiMortgage, Inc.
704 F.3d 548
8th Cir.2013Background
- Approximately thirty-five mortgagors appeal district court dismissal of twenty-one Minnesota state-law claims against FHLMC and other defendants (Usset, Wedel, and Wedel Home Services).
- District court had original jurisdiction over the FHLMC claims under 12 U.S.C. § 1452(f) and exercised supplemental jurisdiction over the remaining claims.
- District court granted a Rule 12(b)(6) dismissal for failure to state a claim; mortgagors appeal the dismissal.
- Court applies de novo review and follows recent Eighth Circuit precedents to reject most mortgagor claims rapidly.
- Mortgagors contend the district court erred in dismissing claims against the Usset firm and that the complaint stated a Minnesota quiet-title claim under Minn. Stat. § 559.01; the court finds otherwise.
- Court concludes the quiet-title claim fails because mortgagors did not plead possession or vacant land and alleged conduct showing eviction-era facts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether quiet-title claims against financial institutions survived pleading. | Mortgagors contend they stated quiet-title facts under § 559.01. | Defendants argue no possession or vacant property pleaded; claims fail. | Dismissed; no possession or vacant-property pleading. |
| Whether claims against the Usset law firm were properly dismissed. | Usset firm engaged in actions causing injury; claims survive. | Law firm immune or not implicated; standard dismissal applies. | Affirmed dismissal of claims against Usset. |
| Whether the complaint plausibly stated a slander-of-title claim. | Complaint alleged defaming acts by defendants seeking title defeat. | Minnesota case law bars such an unwarranted slander claim under these facts. | Dismissed; no viable slander-of-title claim. |
Key Cases Cited
- Butler v. Bank of America, 690 F.3d 959 (8th Cir. 2012) (recent Minnesota mortgage cases; supports de novo review and quick rejection of claims)
- Murphy v. Aurora Loan Servs., LLC, 699 F.3d 1027 (8th Cir. 2012) (reaffirms rejection of certain quiet-title/slander-like theories)
- Cox v. Mortgage Elec. Reg. Sys., Inc., 685 F.3d 663 (8th Cir. 2012) (de novo review of Rule 12(b)(6) dismissals in similar mortgage cases)
- Conklin v. Hinds, 16 Minn. 457 (1871) (predecessor quiet-title pleading standard: possession or vacant land required)
- Murphy v. Hinds, 15 Minn. 182 (1870) (demonstrates demurrable quiet-title claims lacking possession)