Brunson v. Williams

CourtDistrict Court, W.D. Texas
DecidedFebruary 24, 2022
Docket5:21-cv-00846
StatusUnknown

This text of Brunson v. Williams (Brunson v. Williams) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brunson v. Williams, (W.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

DEJUAN L. BRUNSON, KABRINA G. § BRUNSON, § Plaintiffs § SA-21-CV-00846-XR § -vs- § § BRUCE J. WILLIAMS, CATHY M. § DONDZILLA, RAJINDER SINGH, § NEWREZ LLC, § Defendants §

ORDER On this date, the Court considered the motion to dismiss (ECF No. 13) filed by Defendants Bruce Williams, Cathy Dondzilla, and Rajinder Singh (collectively, the “Individual Defendants”) and the motion for summary judgment (ECF No. 18) filed by Defendant NewRez LLC dba Shellpoint Mortgage Servicing (“Shellpoint”). No response has been filed to either motion, and the time in which to do so has expired. After careful consideration, the Court GRANTS both motions. BACKGROUND Proceeding pro se, Plaintiffs DeJuan and Kabrina Brunson filed this suit on September 2, 2021, challenging the validity of a refinancing loan in the amount of $336,875 issued by Amerisave Mortgage Corporation in January 2020, secured by their home in New Braunfels, Texas. See ECF No. 1. On March 1, 2020, the servicing of the loan was transferred to Shellpoint. ECF No. 18-1 at 30. The Brunsons allege that they made the first payment due on the loan in March 2020 and each payment thereafter until they “challenged the validity of the alleged debt in August of 2020.” ECF No. 1 at 4. The Brunsons allege that Shellpoint failed to prove the validity of the loan and violated several provisions of the federal Fair Debt Collection Practices Act (“FDCPA”), 15 USC § 1692 et seq. Id. Specifically, the Brunsons assert that they sent an “affidavit of loan denial” to Shellpoint on August 28, 2020, purporting to request a verification of the debt pursuant to the

FDCPA. See ECF No. 1 at 4; ECF No. 18-1 at 130, 133–66. The letter consists of a series of “proofs of claim” which the Brunsons state “stand[] as truth” “if not rebutted” “point for point” in writing within seven working days. ECF No. 18 at 133–34. The purpose of the proofs of claim appears to be to obtain Shellpoint’s agreement that the Brunsons provided the money which was lent to them, so there is no loan to repay. Id. The Brunsons followed up the August 28 letter with letters dated September 24, October 2, and October 9, 2020. Id. at 137–39. These letters purport to notify Shellpoint its failure to respond to their August 28 letter confesses a judgment that the loan balance is $0.00, the property is free and clear of any liens and Shellpoint waives all claims, right, immunities and defenses. Id. The Brunsons then sent Shellpoint “invoices” demanding payment of $150,000,000. Id. at 152, 155–56.

Shellpoint did not respond to the Brunsons’ letters in the fashion they demanded, but did mail them a “validation of debt” letter on October 2, 2020. Id. at 78–126. Shellpoint’s validation letter provided the Brunsons with a copy of the note, the deed of trust, the servicing transfer letter, the last three billing statements, and the payment history, as well as information regarding the status of the loan and the identity of the original and current creditor. See id. In addition to suing Shellpoint, the Brunsons also named Shellpoint’s chief executive officer, Mr. Williams, its chief financial officer, Ms. Dondzilla, and its chief risk officer, Mr. Singh as defendants. ECF No. 1 ¶¶ 2–5. Plaintiffs allege that those officers have “a statutory oath to support the Constitution and the Banking Statutes of the United States,” specifically, “the notice of registration of that oath [] listed at Section 9 & 55 of the National Banking Act of 1864 (Public Law 38, Ch. 106, 13 Stat. 99-118.)” Id. ¶ 10. They allege that these officers “allowed for direct violations of their oath,” including by “extending a mortgage agreement for beyond the prescribed statutory limit,” “failing to answer several freedom of information requests,” “failing

to answer to challenges to the debt,” and “transferring a loan after actions and notices of fraud had been made against the transaction in violation of Public Volume 17, 42nd Congress Stat. 13- 15 shown as code at 42 USC § 1983 for Actions under Color of Authority or Fraudulent and or illegal transactions.” Id. ¶ 10. The Brunsons also allege these officers failed to respond to plaintiff’s affidavits and “failed to pay the sum of the amount due in reference to certified mail number 7020 1810 0000 3681 4847,” id. at ¶¶ 12–13, which appears to be an invoice for $150,000,000.00. ECF No. 18-1 at 156. With respect to Mr. Williams only, the Brunsons claim that he “defaulted on his opportunity to cure more than once” and “by his acquiescence and tacit agreement . . . is now in breach of contract for failure to discharge the allege [sic] balance of [Plaintiffs’ account],” and “is in violation of 17 USC 501 copyright infringement.” Id. ¶ 13.

Plaintiffs’ original service upon the Individual Defendants by certified mail was defective in two respects. First, the affidavit of service and return receipts indicated that Plaintiff Dejuan Brunson sent process by certified mail. See ECF No. 5. However, Texas law does not permit service of process by a person who is a party or interested in the outcome of a suit. TEX. R. CIV. P. 103. Second, the same signature (“JA”) appeared on all of the return receipts. See ECF No. 5 at 6–9. When a citation is served by certified mail, however, the return receipt must include the signature of the addressee. TEX. R. CIV. P. 107(c). Accordingly, on November 5, 2021, the Court ordered Plaintiffs to file proof of service within 30 days indicating that they had properly served the Individual Defendants. ECF No. 8. On December 13, 2021, the Individual Defendants filed a motion to dismiss for lack of service under Rule 12(b)(5) and for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure. ECF No. 13. Specifically, the officers, citizens of Pennsylvania, asserted that Plaintiffs have failed to allege that they have sufficient contacts with Texas to justify the Court’s exercise of either general or specific personal jurisdiction. See id. Thereafter, Shellpoint moved for summary judgment, arguing, inter alia, that is not subject to liability under the FDCPA because it is not a debt collector, is not subject to liability under the National Banking Act (“NBA”) because it is

not a national bank, and is not subject to liability under 42 U.S.C. § 1983 because it is not a state actor. See ECF No. 18. Finally, to the extent Plaintiff DeJuan Brunson seeks to assert a claim for copyright infringement against Shellpoint in addition to Mr. Williams, Shellpoint asserts that the claim fails because it is not based on a valid copyright—Mr. Brunson’s own name. Id. On February 1, 2022, while both motions were still pending, Plaintiffs filed a second affidavit of service indicating that on December 15, 2021, a notary placed the service documents in an envelope and sealed it. ECF No. 20 at 7. Then, on January 6, 2022, the documents were sent by some unidentified person to the Individual Defendants via registered mail. They were received on January 14, 2022, but again, the same signature (“JA”) appeared on all of the return receipts. See ECF No. 20 at 2. Plaintiffs have not responded to either the motion to dismiss or the motion for summary judgment and the time in which to do so has expired. The Court held a status conference and hearing on the motions on February 24, 2022.

DISCUSSION The Court notes that Plaintiffs are proceeding pro se in this case. When reviewing a pro se plaintiff’s complaint, the Court must construe the allegations liberally, holding the pro se to less stringent pleading standards than those applicable to lawyers. Erickson v.

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