Wilburn v. Pentagon Federal Credit Union and PenFed Credit Union
3:25-cv-00116
N.D. Tex.Jun 9, 2025Background
- Crystal Wilburn filed suit against Pentagon Federal Credit Union (PenFed), related to a mortgage loan and attempted foreclosure of her property in Coppell, Texas.
- Wilburn claimed PenFed failed to provide her with required notices of default, acceleration, and foreclosure sale under Texas Property Code § 51.002.
- She sought injunctive relief to prevent foreclosure, filing an application for a temporary restraining order and injunction in state court.
- The case was removed to federal district court by PenFed on the basis of diversity jurisdiction.
- PenFed moved to dismiss Wilburn’s claims for failure to state a claim under Rule 12(b)(6); Wilburn filed no response.
- At the time of the lawsuit, Wilburn had not lost possession of her property, and no foreclosure had occurred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Private right of action under § 51.002 | PenFed violated § 51.002 by not providing required notices | § 51.002 does not create a private cause of action | No private right of action exists; claims dismissed |
| Wrongful foreclosure | Failure to provide notices constituted wrongful foreclosure | No foreclosure occurred; plaintiff retains possession | No viable claim without loss of possession or foreclosure |
| Injunctive relief | Sought to enjoin foreclosure based on alleged statutory violations | No underlying valid claim supports relief | Injunctive relief cannot proceed without a valid underlying claim |
| Opportunity to amend | (Not directly raised) | Amendment would be futile; legal deficiencies cannot be cured | Dismissal with prejudice; amendment denied |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (established plausibility standard for Rule 12(b)(6) motion to dismiss)
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (clarified plausibility standard for pleadings)
- Holy Cross Church of God in Christ v. Wolf, 44 S.W.3d 562 (Tex. 2001) (Section 51.002 provides procedures, not a private right of action)
- Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013) (elements for wrongful foreclosure claim)
- Peterson v. Black, 980 S.W.2d 818 (Tex. Ct. App. 1998) (recovery for wrongful foreclosure requires loss of possession)