Wilburn v. Pentagon Federal Credit Union and PenFed Credit Union
3:25-cv-00116
| N.D. Tex. | Jun 24, 2025Background
- Plaintiff Crystal Wilburn filed suit against Pentagon Federal Credit Union (PenFed) regarding alleged violations tied to foreclosure proceedings on her property in Coppell, Texas.
- Wilburn claimed PenFed violated Section 51.002 of the Texas Property Code, committed wrongful foreclosure, and she sought injunctive relief to prevent foreclosure.
- PenFed filed a motion to dismiss under Rule 12(b)(6), arguing Wilburn's complaint failed to state any viable legal claims.
- The assigned magistrate recommended dismissal, finding Wilburn did not allege sufficient facts or invoke legally actionable rights under the cited statutory provisions.
- Wilburn did not file objections or request leave to amend her complaint, despite the opportunity to do so after the magistrate’s report.
- The district court accepted the magistrate’s report and dismissed all claims with prejudice on June 24, 2025.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Section 51.002 Violation | PenFed violated procedural requirements | No private right of action; procedural only | No actionable violation; dismissed |
| Wrongful Foreclosure | Sought injunction to prevent foreclosure | No foreclosure occurred; no dispossession | No foreclosure or loss alleged; dismissed |
| Injunctive Relief | Requested to stop foreclosure | No underlying cause of action | Not standalone; other claims fail; dismissed |
| Leave to Amend | None; did not seek amendment | Plaintiff pleaded best case | No leave to amend granted |
Key Cases Cited
- Saravia v. Benson, 433 S.W.3d 658 (Tex. App.—Houston [1st Dist.] 2014) (Section 51.002 provides procedural, not substantive, rights)
- U.S. ex rel. Willard v. Humana Health Plan of Texas Inc., 336 F.3d 375 (5th Cir. 2003) (party must request leave to amend to preserve the issue)