U.S. Bank National Association v. Desrosiers, 2:17-cv-07338

U.S. Bank National Association filed a federal foreclosure action (Dec. 18, 2017) as trustee for RMAC Trust, Series 2016-CTT, against Samuel Desrosiers concerning property in Amityville, NY.
The underlying Note and Mortgage were executed in 2006; the Mortgage was assigned several times and U.S. Bank claims physical possession of the Note and mortgage assignments.
MERS filed a state-court foreclosure in 2008 (alleging default began Apr. 1, 2008); that action was dismissed in 2011 for lack of personal jurisdiction.
Defendant contends the federal suit is time-barred (acceleration in 2008) and that the Court lacks diversity jurisdiction because U.S. Bank sues as trustee and the citizenship of the trust beneficiaries (or the trust) was not alleged.
Judge Brown previously dismissed the original complaint without prejudice for failing adequately to allege citizenship; plaintiff filed successive amended complaints.
This Court finds the record ambiguous on whether diversity should be determined by U.S. Bank’s "main office" (national-bank rule) or by the citizenship of the trust’s beneficiaries (Americold/Navarro line). The Court therefore temporarily denies both summary judgment motions and orders limited supplemental briefing on subject-matter jurisdiction; failure to satisfy jurisdictional proof will result in dismissal.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether federal diversity jurisdiction exists given that U.S. Bank sues as trustee	U.S. Bank is a national bank and a citizen of the state where its main office (per articles) is located; plaintiff also asserts trustee has real/substantial control over trust assets so trustee’s citizenship controls	Trustee is nominal; diversity depends on the citizenship of the trust’s beneficiaries/shareholders, which plaintiff has not alleged or proved	Court found the record unclear whether U.S. Bank is the real party in interest; ordered limited supplemental briefing to show (a) trustee’s real and substantial control over trust assets or (b) beneficiaries’ citizenship; temporarily denied motions pending that briefing
Whether the foreclosure is time-barred due to acceleration in 2008	Implicitly disputes acceleration effect or contends foreclosure is timely based on its pleaded default date (Feb. 1, 2012) and assignments	Acceleration occurred when MERS filed the 2008 state foreclosure, starting the six-year limitations period and rendering the current action untimely	Court recognized a substantial statute-of-limitations issue but did not decide it; deferred resolution and denied summary judgment pending jurisdictional briefing

Americold Realty Trust v. Conagra Foods, Inc., 577 U.S. 378 (2016) (business-trust citizenship determined by shareholders/beneficiaries unless trustee is the real party in interest)
Navarro Sav. Ass’n v. Lee, 446 U.S. 458 (1980) (courts disregard nominal parties and rest jurisdiction on real parties in interest)
OneWest Bank, N.A. v. Melina, 827 F.3d 214 (2d Cir. 2016) (national bank is citizen of the state where its main office, per articles, is located)
Carter v. Healthport Tech., LLC, 822 F.3d 47 (2d Cir. 2016) (pleading must allege members’ citizenship for unincorporated entities)
Lyndonville Sav. Bank & Trust Co. v. Lussier, 211 F.3d 697 (2d Cir. 2000) (federal courts have an independent obligation to ensure subject-matter jurisdiction exists)
Arbaugh v. Y & H Corp., 546 U.S. 500 (2006) (court must determine existence of subject-matter jurisdiction even if not raised by parties)
Leveraged Leasing Admin. Corp. v. PacificCorp Capital, Inc., 87 F.3d 44 (2d Cir. 1996) (diversity must be distinctly and positively averred)
Wis. Dep’t of Corr. v. Schacht, 524 U.S. 381 (1998) (complete diversity requirement explained)