Wiggins v. Argent Mortgage Co.
945 F. Supp. 2d 817
E.D. Mich.2013Background
- Plaintiff obtained a $418,000 loan from Argent Mortgage Co. on March 28, 2005, secured by a mortgage on the property at 54810 Walnut Drive, New Hudson, Michigan; the loan was evidenced by a note and secured by a mortgage, serviced by Bank of America, N.A.
- On August 24, 2010 Argent assigned the mortgage to Deutsche Bank; the assignment was signed by Trent Thompson and notarized by Walter W. Thompson; Thompson had signing authority per Argent corporate resolutions.
- Plaintiff defaulted prior to the assignment; Deutsche Bank foreclosed, the sheriff's sale occurred on October 25, 2011, but was later set aside after an ex parte TRO; Plaintiff has not paid the mortgage since December 24, 2008.
- Plaintiff filed suit in October 2011 alleging lack of Thompson's authority and seeking to challenge the assignment; Defendants removed the case to federal court; stipulations set aside the sheriff's deed.
- Court granted defendants' motions to dismiss, holding Plaintiff lacked standing to challenge the assignment and, even if standing existed, failed to plead fraud, conspiracy, or injunctive relief with adequate particularity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge the assignment | Livonia framework supports standing for double liability risk | Plaintiff is a non-party to the assignment and lacks standing to challenge it | Plaintiff lacks standing; grant dismissal |
| Sufficiency of fraud and conspiracy claims under 9(b) | Allegations show misrepresentation related to Thompson's authority | Failure to plead time, place, content, and individuals; claims insufficient | Fraud and conspiracy claims fail for lack of particularity; dismiss |
| Injunctive relief viability | Equitable remedy based on underlying fraud/civil conspiracy | Claims moot or unsupported where underlying claims fail | Injunctive relief cannot stand; dismiss; moot given stipulations and lack of underlying injury |
Key Cases Cited
- Livonia Properties Holdings, LLC v. 12840-12976 Farmington Road Holdings, LLC, 399 Fed.Appx. 97 (6th Cir.2010) (standing to challenge assignment; defenses to void/ineffective assignment; risk of double liability to obligor)
- Conlin v. Mortgage Electronic Registration Systems, Inc., 714 F.3d 355 (6th Cir.2013) (third-party challenge to assignment requires prejudice/double liability showing)
- Smith v. Litton Loan Servicing, LP, 517 Fed.Appx. 395 (6th Cir.2013) (unpublished; Livonia framework noted for standing)
- Yuille v. American Home Mortg. Servicing, Inc., 483 Fed.Appx. 132 (6th Cir.2012) (defects in assignment; later conduct may ratify; lack of standing to challenge)
- Keyes v. Deutsche Bank Nat. Trust Co., 921 F.Supp.2d 749 (E.D. Mich.2013) (distinguishes Livonia; potential for double liability may exist; standing may be valid in some cases)