Carter-Washington v. Wilmington Trust, National Association

District Court, N.D. Alabama·Decided June 24, 2025·No. 2:23-cv-00236·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION ANGELA CARTER-WASHINGTON, ) ) Plaintiff, ) ) v. ) Case No. 2:23-cv-00236-SGC ) WILMINGTON TRUST, NATIONAL ) ASSOCIATION, et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER1

Angela Carter-Washington commenced this case in the Circuit Court of Jefferson County, Alabama, against Wilmington Trust, National Association, solely as trustee of MFRA Trust 2014-2 (“Wilmington”), and Fay Servicing, LLC (collectively, “the defendants”) after the defendants foreclosed on her home and disposed of its contents. (Doc. 1-1).2 The defendants removed the case to this federal district court on February 24, 2023. (Doc. 1). The court entered a memorandum opinion and order on March 14, 2025, granting summary judgment in the defendants’ favor on Carter-Washington’s breach of contract claim, her claim brought under Ala. Code § 6-6-280, and her claim for violations of a court-imposed bankruptcy stay brought under 11 U.S.C. § 362(k) and denying summary judgment

1 The parties have consented to the exercise of dispositive jurisdiction by a magistrate judge pursuant to 28 U.S.C. § 636(c). (Doc. 3).

2 Citations to the record refer to the document and page numbers assigned by the court’s CM/ECF in the defendants’ favor on Carter-Washington’s claim they invaded her privacy by removing personal belongings from the foreclosed property. (Doc. 42). The case is now before the court on the parties’ motions for reconsideration of the memorandum opinion and order. (Docs. 46, 47).3 Carter-Washington asks the court to reinstate

her claim for violations of a court-imposed bankruptcy stay, while the defendants ask the court to eliminate the invasion of privacy claim. (Docs. 46, 47). For the reasons stated below, the court will deny both motions and, in the exercise of its

discretion under 28 U.S.C. § 1367, will remand the sole remaining claim – a state law claim – to the Jefferson County Circuit Court. I. Standard of Review

The memorandum opinion and order at issue was an interlocutory order because it resolved fewer than all claims asserted in this case. A court may reconsider an interlocutory order at any time before entry of a final judgment. FED. R. CIV. P. 54(b). A district court should evaluate a motion to reconsider an

interlocutory order “under the standards inherent in Rule 54(b) – plenary authority to reconsider, revise, alter, or amend a non-final order before the entry of final judgment.” Hornady v. Outokumpu Stainless, USA, LLC, 118 F.4th 1367, 1379-80 (11th Cir. 2024) (internal quotation marks omitted).4 “Though district courts enjoy

3 The parties have briefed the motions fully. (Docs. 49, 50, 51, 52).

4 Before the Eleventh Circuit defined the standard governing Rule 54(b) motions to reconsider in Hornady, district courts applied the standards governing motions for reconsideration made under Rule 59(e) or 60(b). Hornady, 118 F.4th at 1379. In Hornady, the Eleventh Circuit held the plenary power to reconsider non-final rulings, they need not employ plenary review when doing so. Id. at 1380. “Indeed, in most instances district courts should hesitate before revisiting their earlier interlocutory orders; important interests of finality, stability, and predictability underly that justifiable caution.” Id.

II. Discussion

A. Carter-Washington’s Motion for Reconsideration

The court determined a stay did not come into effect relative to Carter- Washington’s third bankruptcy case until the bankruptcy court entered a written order granting Carter-Washington’s motion seeking imposition of a stay on November 3, 2022, at approximately 3:00 P.M. Carter-Washington offered three pieces of evidence she argued showed the defendants violated the court-imposed stay. The first was her declaration she found two people removing personal belongings from the foreclosed property on October 28, 2022. The second was an e-mail the defendants’ real estate agent sent to Carter-Washington’s attorney at

12:18 P.M. on November 3, 2022, stating the defendants had directed that the “trash out” be completed. The third was an inspection of the foreclosed property conducted on behalf of the defendants on December 5, 2022. The court concluded the statement in Carter-Washington’s declaration did not show a violation of the court-imposed

bankruptcy stay because the stay was not yet in effect on October 28, 2022. The

standards governing Rule 59(e) and Rule 60(b) motions for reconsideration do not apply before entry of a final judgment, only after. Id. court concluded the expression of intent contained in the November 3, 2022 e-mail, which was made more than two hours before imposition of the stay, was not significantly probative of a violation of the stay. Finally, the court concluded the December 5, 2022 inspection did not violate the stay because there was no evidence

the inspection was conducted to harass Carter-Washington or coerce her to pay a debt. (Doc. 42 at 15-17). Carter-Washington asserts two claims of error regarding the court’s

conclusions. First, she contends the court erred in concluding there was insufficient evidence to create a jury question as to whether the defendants removed personal belongings from the foreclosed property during the court-imposed bankruptcy stay. Second, she argues the court erred in concluding the inspection of the property

conducted on December 5, 2022, did not violate the court-imposed stay. (Doc. 46). Carter-Washington’s first claim of error relies in turn on the argument the court erred in its determination of the time on November 3, 2022, when the

bankruptcy stay went into effect – Carter-Washington argues the stay went into effect at 10:11:48 A.M. when the bankruptcy court orally ruled from the bench on her motion seeking imposition of the stay – and overlooked evidence of record showing the defendants carried out the intent expressed by their real estate agent in

the e-mail to Carter-Washington’s attorney. (Doc. 46 at 1-4).5 The court assumes

5 The court observes that in addition to identifying evidence she claims the court overlooked, Carter-Washington submitted with her motion for reconsideration declarations authored by herself and several members of her family, each stating he or she did not remove personal belongings without deciding that the bankruptcy stay went into effect at 10:11:48 A.M. and that the defendants may be deemed to have known of the stay at that time.6 The statement made in the 12:18 P.M. e-mail remains no more than an expression of intent that is not significantly probative of a violation of the court-imposed bankruptcy stay

insofar as planning to do something is not the same as doing something.7 The evidence Carter-Washington argues the court overlooked is likewise lacking in probative value.

The evidence Carter-Washington asserts the court overlooked is asset inspection reports created on November 3, 2022, and December 5, 2022, respectively. (Docs. 23-5, 23-6). Carter-Washington notes the November 3, 2022 report includes the comment “partial trash out and initial yard work complete, will

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