USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 1 of 7
UNPUBLISHED
UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT
No. 22-1823
ANNETTE L. WILLIAMS, Successor Trustee of the Harry R. Williams Revocable Trust,
Plaintiff - Appellant,
v.
EDWARD S. COHN, Substitute Trustee of the law firm of Cohn, Goldberg & Deutsch, LLC; COHN, GOLDBERG & DEUTSCH, LLC; ORLANS, P.C.; FEDERAL NATIONAL MORTGAGE ASSOCIATION; BANK OF AMERICA, N.A.; REVERSE MORTGAGE SOLUTIONS; RENEE J. LAFAYETTE, Esq.; LAFAYETTE LAW OFFICE; APPRAISER DIANE VEST; REVERSE MORTGAGE ANSWERS, LLC,
Defendants - Appellees,
and
SEATTLE MORTGAGE COMPANY; MARCIA L. FUDGE, Secretary, HUD; DOES 1 THROUGH 100 INCLUSIVE; ACADEMY MORTGAGE, LLC, d/b/a Reverse Mortgage Answers; APPRAISER JOSPEH DIPIETRO; APPRAISER SCOTT CUTHBERT,
Defendants.
Appeal from the United States District Court for the District of Maryland, at Greenbelt. Paul W. Grimm, Senior District Judge. (8:21-cv-00730-PWG)
Submitted: October 27, 2023 Decided: November 16, 2023
Before AGEE and QUATTLEBAUM, Circuit Judges, and MOTZ, Senior Circuit Judge. USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 2 of 7
Affirmed by unpublished per curiam opinion.
ON BRIEF: Wanda J. Dixon, THE DIXON LAW FIRM, LLC, Largo, Maryland, for Appellant. Alvin I. Frederick, ECCLESTON & WOLF, P.C, Hanover, Maryland; Harry Levy, SHUMAKER WILLIAMS, P.C., Towson, Maryland; Andrew J. Narod, BRADLEY ARANT BOULT CUMMINGS LLP, Washington, D.C.; Alyssa Szymczyk, ORLANS, P.C., Leesburg, Virginia; Melissa O. Martinez, MCGUIREWOODS LLP, Baltimore, Maryland, for Appellees.
Unpublished opinions are not binding precedent in this circuit.
2 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 3 of 7
PER CURIAM:
Annette L. Williams appeals the district court’s order dismissing her third amended
complaint as barred by res judicata. Williams asserted a myriad of claims arising out of
the foreclosure of her late father’s property after a reverse mortgage was not repaid.
Finding no reversible error, we affirm.
We review de novo a district court’s order granting a motion to dismiss under Fed.
R. Civ. P. 12(b)(6), “accept[ing] the factual allegations of the complaint as true and
constru[ing] them in the light most favorable to the nonmoving party.” Rockville Cars,
LLC v. City of Rockville, 891 F.3d 141, 145 (4th Cir. 2018). To survive a motion to dismiss,
“a complaint must contain sufficient factual matter, accepted as true, to state a claim to
relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal
quotation marks omitted). In other words, “a plaintiff must provide sufficient detail to
show that [s]he has a more-than-conceivable chance of success on the merits.” Upstate
Forever v. Kinder Morgan Energy Partners, L.P., 887 F.3d 637, 645 (4th Cir. 2018)
(cleaned up), vacated on other grounds, 140 S. Ct. 2736 (2020).
Under the doctrine of res judicata, also known as claim preclusion, “[a] final
judgment on the merits of an action precludes the parties or their privies from relitigating
issues that were or could have been raised in that action.” Federated Dep’t Stores, Inc. v.
Moitie, 452 U.S. 394, 398 (1981).
Generally, the preclusive effect of a judgment rendered in state court is determined by the law of the state in which the judgment was rendered. Under Maryland law, the elements of res judicata are: (1) that the parties in the present litigation are the same or in privity with the parties in the earlier dispute; (2) that the claim presented in the current action is identical to the
3 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 4 of 7
one determined in the prior adjudication; and (3) that there has been a final judgment on the merits.
Laurel Sand & Gravel, Inc. v. Wilson, 519 F.3d 156, 162 (4th Cir. 2008).
Williams first contends that several of her claims are not subject to res judicata under
Maryland law, pointing to Md. Code Ann., Cts. & Jud. Proc. § 6-408 (LexisNexis 2020),
but she cites no case law in support of this contention. The Maryland courts have codified
a rule, similar to Fed. R. Civ. P. 60, to implement this statute, which allows courts to modify
judgments in certain limited circumstances. Md. R. 2-535. As we have explained in a
similar context, if a plaintiff believes a foreclosure judgment was procured by fraud, her
“remedy is to seek revision pursuant to Maryland Rule 2-535, not to bring a collateral
attack.” Jones v. HSBC Bank USA, N.A., 444 F. App’x 640, 645 n.4 (4th Cir. 2011) (No.
11-1197).
Turning to privity, Williams argues that the appraiser defendants, the court auditor,
and Bank of America were not in privity with any party in the previous foreclosure
litigation. Under Maryland law, “privity generally involves a person so identified in
interest with another that the person represents the same legal right.” Bank of N.Y. Mellon
v. Georg, 175 A.3d 720, 744 (Md. 2017) (cleaned up).
[F]or the purpose of the application of the rule of res judicata, the term “parties” includes all persons who have a direct interest in the subject matter of the suit, and have a right to control the proceedings, make defense, examine the witnesses, and appeal if an appeal lies. So, where persons, although not formal parties of record, have a direct interest in the suit, and in the advancement of their interest take open and substantial control of its prosecution, or they are so far represented by another that their interests receive actual and efficient protection, any judgment recovered therein is conclusive upon them to the same extent as if they had been formal parties.
4 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 5 of 7
Id. at 744-45.
Here, Bank of America’s interests were adequately represented by the substitute
trustee and his law firm because they needed to establish the chain of title and thus defend
the allegedly invalid assignments to foreclose on the property. See Anderson v. Burson, 35
A.3d 452, 460 (Md. 2011). The appraisers’ interests were also represented by the substitute
trustee because their allegedly deficient appraisals were used during underwriting of the
initial mortgage and in the foreclosure proceedings. See Warner v. German, 642 A.2d 239,
245 (Md. Ct. Spec. App. 1994). And although the auditor was a neutral party in the
foreclosure proceeding, “the requirement that one who invokes res judicata and/or
collateral estoppel be a party or in privity to a party has been relaxed and would not bar
estoppel by judgment . . . if all the other elements of those doctrines were proven.” Green
v. Ford Motor Credit Co., 828 A.2d 821
Free access — add to your briefcase to read the full text and ask questions with AI
USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 1 of 7
UNPUBLISHED
UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT
No. 22-1823
ANNETTE L. WILLIAMS, Successor Trustee of the Harry R. Williams Revocable Trust,
Plaintiff - Appellant,
v.
EDWARD S. COHN, Substitute Trustee of the law firm of Cohn, Goldberg & Deutsch, LLC; COHN, GOLDBERG & DEUTSCH, LLC; ORLANS, P.C.; FEDERAL NATIONAL MORTGAGE ASSOCIATION; BANK OF AMERICA, N.A.; REVERSE MORTGAGE SOLUTIONS; RENEE J. LAFAYETTE, Esq.; LAFAYETTE LAW OFFICE; APPRAISER DIANE VEST; REVERSE MORTGAGE ANSWERS, LLC,
Defendants - Appellees,
and
SEATTLE MORTGAGE COMPANY; MARCIA L. FUDGE, Secretary, HUD; DOES 1 THROUGH 100 INCLUSIVE; ACADEMY MORTGAGE, LLC, d/b/a Reverse Mortgage Answers; APPRAISER JOSPEH DIPIETRO; APPRAISER SCOTT CUTHBERT,
Defendants.
Appeal from the United States District Court for the District of Maryland, at Greenbelt. Paul W. Grimm, Senior District Judge. (8:21-cv-00730-PWG)
Submitted: October 27, 2023 Decided: November 16, 2023
Before AGEE and QUATTLEBAUM, Circuit Judges, and MOTZ, Senior Circuit Judge. USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 2 of 7
Affirmed by unpublished per curiam opinion.
ON BRIEF: Wanda J. Dixon, THE DIXON LAW FIRM, LLC, Largo, Maryland, for Appellant. Alvin I. Frederick, ECCLESTON & WOLF, P.C, Hanover, Maryland; Harry Levy, SHUMAKER WILLIAMS, P.C., Towson, Maryland; Andrew J. Narod, BRADLEY ARANT BOULT CUMMINGS LLP, Washington, D.C.; Alyssa Szymczyk, ORLANS, P.C., Leesburg, Virginia; Melissa O. Martinez, MCGUIREWOODS LLP, Baltimore, Maryland, for Appellees.
Unpublished opinions are not binding precedent in this circuit.
2 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 3 of 7
PER CURIAM:
Annette L. Williams appeals the district court’s order dismissing her third amended
complaint as barred by res judicata. Williams asserted a myriad of claims arising out of
the foreclosure of her late father’s property after a reverse mortgage was not repaid.
Finding no reversible error, we affirm.
We review de novo a district court’s order granting a motion to dismiss under Fed.
R. Civ. P. 12(b)(6), “accept[ing] the factual allegations of the complaint as true and
constru[ing] them in the light most favorable to the nonmoving party.” Rockville Cars,
LLC v. City of Rockville, 891 F.3d 141, 145 (4th Cir. 2018). To survive a motion to dismiss,
“a complaint must contain sufficient factual matter, accepted as true, to state a claim to
relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal
quotation marks omitted). In other words, “a plaintiff must provide sufficient detail to
show that [s]he has a more-than-conceivable chance of success on the merits.” Upstate
Forever v. Kinder Morgan Energy Partners, L.P., 887 F.3d 637, 645 (4th Cir. 2018)
(cleaned up), vacated on other grounds, 140 S. Ct. 2736 (2020).
Under the doctrine of res judicata, also known as claim preclusion, “[a] final
judgment on the merits of an action precludes the parties or their privies from relitigating
issues that were or could have been raised in that action.” Federated Dep’t Stores, Inc. v.
Moitie, 452 U.S. 394, 398 (1981).
Generally, the preclusive effect of a judgment rendered in state court is determined by the law of the state in which the judgment was rendered. Under Maryland law, the elements of res judicata are: (1) that the parties in the present litigation are the same or in privity with the parties in the earlier dispute; (2) that the claim presented in the current action is identical to the
3 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 4 of 7
one determined in the prior adjudication; and (3) that there has been a final judgment on the merits.
Laurel Sand & Gravel, Inc. v. Wilson, 519 F.3d 156, 162 (4th Cir. 2008).
Williams first contends that several of her claims are not subject to res judicata under
Maryland law, pointing to Md. Code Ann., Cts. & Jud. Proc. § 6-408 (LexisNexis 2020),
but she cites no case law in support of this contention. The Maryland courts have codified
a rule, similar to Fed. R. Civ. P. 60, to implement this statute, which allows courts to modify
judgments in certain limited circumstances. Md. R. 2-535. As we have explained in a
similar context, if a plaintiff believes a foreclosure judgment was procured by fraud, her
“remedy is to seek revision pursuant to Maryland Rule 2-535, not to bring a collateral
attack.” Jones v. HSBC Bank USA, N.A., 444 F. App’x 640, 645 n.4 (4th Cir. 2011) (No.
11-1197).
Turning to privity, Williams argues that the appraiser defendants, the court auditor,
and Bank of America were not in privity with any party in the previous foreclosure
litigation. Under Maryland law, “privity generally involves a person so identified in
interest with another that the person represents the same legal right.” Bank of N.Y. Mellon
v. Georg, 175 A.3d 720, 744 (Md. 2017) (cleaned up).
[F]or the purpose of the application of the rule of res judicata, the term “parties” includes all persons who have a direct interest in the subject matter of the suit, and have a right to control the proceedings, make defense, examine the witnesses, and appeal if an appeal lies. So, where persons, although not formal parties of record, have a direct interest in the suit, and in the advancement of their interest take open and substantial control of its prosecution, or they are so far represented by another that their interests receive actual and efficient protection, any judgment recovered therein is conclusive upon them to the same extent as if they had been formal parties.
4 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 5 of 7
Id. at 744-45.
Here, Bank of America’s interests were adequately represented by the substitute
trustee and his law firm because they needed to establish the chain of title and thus defend
the allegedly invalid assignments to foreclose on the property. See Anderson v. Burson, 35
A.3d 452, 460 (Md. 2011). The appraisers’ interests were also represented by the substitute
trustee because their allegedly deficient appraisals were used during underwriting of the
initial mortgage and in the foreclosure proceedings. See Warner v. German, 642 A.2d 239,
245 (Md. Ct. Spec. App. 1994). And although the auditor was a neutral party in the
foreclosure proceeding, “the requirement that one who invokes res judicata and/or
collateral estoppel be a party or in privity to a party has been relaxed and would not bar
estoppel by judgment . . . if all the other elements of those doctrines were proven.” Green
v. Ford Motor Credit Co., 828 A.2d 821, 838 (Md. Ct. Spec. App. 2003).
Williams next contends that the second element of res judicata is not met because
the state courts did not rule on the merits of her claims, Maryland has permissive
counterclaim rules, and she proceeded pro se in the prior foreclosure action. In Maryland,
the second element of res judicata requires “that the claim presented in the current action
is identical to the one determined in the prior adjudication.” Anne Arundel Cnty. Bd. of
Educ. v. Norville, 887 A.2d 1029, 1037 (Md. 2005). Williams appropriately notes that
because not all of the issues she raised in the foreclosure action are identical to the ones in
her federal complaint, “the second court must determine whether the matter currently
before it was fairly included within the claim or action that was before the earlier court and
could have been resolved in that court.” Id. at 1038 (internal quotation marks omitted).
5 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 6 of 7
Maryland courts apply the transactional approach in this circumstance, and “if the two
claims or theories are based upon the same set of facts and one would expect them to be
tried together ordinarily, then a party must bring them simultaneously.” Id.
Williams raised many of the same issues she asserted in her federal complaint in the
foreclosure action. But to the extent that she did not, she may not hide behind Maryland’s
permissive counterclaim rules. “[N]othing in the Maryland Rules of Procedure prohibits a
mortgagor who voluntarily appears in a mortgage foreclosure proceeding from filing a
counterclaim.” Fairfax Sav., F.S.B. v. Kris Jen Ltd. P’ship, 655 A.2d 1265, 1275 (Md.
1995). Thus, Williams could have raised all of her claims in the foreclosure action. And
we have rejected a litigant’s attempt to evade the preclusive effect of a foreclosure
judgment by attacking the underlying mortgage because “to allow [it] . . . would, in effect,
nullify the original foreclosure judgment. Avoiding such a consequence is a central
concern of the claim preclusion doctrine.” Jones, 444 F. App’x at 645 n.3. Although
Williams proceeded pro se in the state foreclosure action, “it is not necessary to ask if the
plaintiff knew of h[er] present claim at the time of the former judgment, for it is the
existence of the present claim, not party awareness of it, that controls.” Harnett v. Billman,
800 F.2d 1308, 1313 (4th Cir. 1986).
Finally, Williams asserts that there was never a final judgment in the foreclosure
action. But this argument misapprehends Maryland law. In a foreclosure action, “if the
mortgagor voluntarily appears, . . . the proceeding [may] include judgments in the form of
rulings on exceptions to the sale and to the auditor’s report . . . that have in personam
collateral estoppel effect.” Fairfax Sav., 655 A.2d at 1272. “In other words, the mortgagor
6 USCA4 Appeal: 22-1823 Doc: 58 Filed: 11/16/2023 Pg: 7 of 7
is entitled to litigate h[er] objections only once: [s]he may defend against the original
foreclosure action directly, or [s]he may bring a separate, offensive suit within three years
of the sale; [s]he may not do both.” Jones, 444 F. App’x at 645. Thus, the district court
correctly determined that Williams’ claims were precluded.
We therefore affirm the district court’s order. We dispense with oral argument
because the facts and legal contentions are adequately presented in the materials before this
court and argument would not aid the decisional process.
AFFIRMED