Tinsley v. Onewest Bank, FSB
2014 U.S. Dist. LEXIS 33362
S.D.W. Va2014Background
- Plaintiff filed suit in 2013 in Putnam County, WV; case removed to federal court in 2013; Plaintiff alleges reverse mortgage with Defendants’ predecessors; Plaintiff claims force-placed flood insurance and a $30 servicing fee; disputes over HUD/HUD-regulated insurance amounts and Deeds of Trust; multiple WVCCPA, contract, fraud, IIED, and negligence theories; court addresses preemption under HOLA and analyzes contractual ambiguity between Deeds and HUD rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| HOLA preemption of contract vs disclosure claims | Breach and related claims are not preempted | HOLA preempts state-law claims arising from lending practices | Some contract claims not preempted; others preempted (servicing-fee disclosure) |
| Fraud/intentional misrepresentation claims and preemption | Fraud claims survive as not preempted or merely contract-based | Fraud claims largely preempted or duplicative of contract | Fraud claims tied to contract dismissed; some non-preempted fraud claims allowed to survive insofar as independent of contract; however most dismissed for lack of reliance/duplicative theories |
| WVCCPA claims viability and preemption | WVCCPA claims cover misleading statements and foreclosures | Several WVCCPA claims preempted or duplicative; some survive | Counts addressing misleading/false statements survive; several WVCCPA claims dismissed as preempted or duplicative; certain claims regressed to non-preempted issues |
| IIED and negligent misrepresentation claims | IIED supported by deceptive and force-placed insurance conduct | Many IIED/NT claims are contract-based or not extreme/outrageous | All IIED claims dismissed for failure to state claim; some negligent misrepresentation claims dismissed; remaining may survive only if not duplicative of contract |
| Failure to state claims and contract-origins | Non-preempted claims plausibly pled | Contract terms govern; some claims fail for lack of plausible theory | Remaining non-preempted contract-based claim plausibly pleaded; other claims dismissed for failure to state claims |
Key Cases Cited
- McCauley v. Home Loan Inv. Bank, F.S.B., 710 F.3d 551 (4th Cir. 2013) (preemption framework under § 560.2; fraud not preempted; contract claims may be non-preempted)
- Bowens v. Allied Warehousing Servs., Inc., 729 S.E.2d 852 (WV 2012) (gist of the action; contract vs tort distinction in WV)
- Gaddy Eng’g Co. v. Bowles Rice McDavid Graff & Love, LLP, 231 W.Va. 577, 746 S.E.2d 568 (WV 2013) (fraud/gist-of-the-action; contract claims cannot be recast as torts)
- Travis v. Alcon Labs., Inc., 202 W.Va. 369, 504 S.E.2d 419 (WV 1998) (IIED standards and outrageous conduct)