Dallas County v. MERSCORP, Inc.

2 F. Supp. 3d 938, 2014 U.S. Dist. LEXIS 27200, 2014 WL 840016
CourtDistrict Court, N.D. Texas
DecidedMarch 4, 2014
DocketCivil Action No. 3:11-cv-02733-O
StatusPublished
Cited by26 cases

This text of 2 F. Supp. 3d 938 (Dallas County v. MERSCORP, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dallas County v. MERSCORP, Inc., 2 F. Supp. 3d 938, 2014 U.S. Dist. LEXIS 27200, 2014 WL 840016 (N.D. Tex. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

REED O’CONNOR, District Judge.

Before the Court are the parties’ cross-motions for summary judgment filed November 12, 2013, on Plaintiffs’ request that this Court issue a declaratory judgment interpreting Section 192.007 of the Texas Local Government Code, the only remaining claim in this lawsuit. See Plaintiffs Harris and Brazoria Counties’ Motion for Summary Judgment (ECF No. 294); Plaintiff Dallas County’s Motion for Summary Judgment (ECF No. 301); and Defendants’ Motion for Summary Judgment (ECF No. 298). Also before the Court are various evidentiary objections and motions to strike filed by Plaintiff Dallas County, as well as its motion for leave to file a reply in further support of its summary judgment motion. See Plaintiff Dallas County’s Objections to and Motion to Strike Defendants’ Expert Designations and Reports (ECF No. 292); Plaintiff Dallas County’s Objections to and Motion to Strike Exhibits in Support of Defendants’ Motion for Summary Judgment (ECF No. 315); and Plaintiff Dallas County’s Motion for Leave to File Reply to Defendants’ Response to Dallas County’s Motion for Summary Judgment (ECF No. 323). Finally, before the Court is Plaintiff Dallas County’s motion for reconsideration of the Court’s November 4, 2013 decision granting summary judgment in Defendants’ favor on Dallas County’s claims for fraudulent misrepresentation, unjust enrichment, and civil conspiracy. See Plaintiff Dallas [940]*940County’s Motion to Reconsider and Vacate [November 4, 2018] Summary Judgment Decision (ECF No. 309).

Having considered the motions, responses, record, evidence, and applicable law, and for the reasons set forth below, the Court: grants Defendants’ Motion for Summary Judgment (ECF No. 298); denies Plaintiff Dallas County’s Motion for Summary Judgment (ECF No. 301); denies Plaintiffs Harris and Brazoria Counties’ Motion for Summary Judgment (ECF No. 294); overrules and denies as moot Plaintiff Dallas County’s Objections to and Motion to Strike Defendants’ Expert Designations and Reports (ECF No. 292); overrules and denies as moot Plaintiff Dallas County’s Objections to and Motion to Strike Exhibits in Support of Defendants’ Motion for Summary Judgment (ECF No. 315); denies as moot Plaintiff Dallas County’s Motion for Leave to File Reply to Defendants’ Response to Dallas County’s Motion for Summary Judgment (ECF No. 323); and denies Plaintiff Dallas County’s Motion to Reconsider and Vacate [November 4, 2013] Summary Judgment Decision (ECF No. 309).

I. Factual and Procedural Background

This action, pending since October 2011, has been winnowed down from the original thirteen claims to the one claim that remains unresolved: Plaintiffs’ request for a declaratory judgment that, based on Texas Local Government Code § 192.007(a), “the following actions of Defendants constitute a violation of Texas law”:

releasing, transferring, assigning, or taking other action relating to an instrument that is filed, registered, or recorded in the office of the county clerk without filing, registering, or recording another instrument relating to the action in the same manner as the original instrument was required to be filed, registered, or recorded.

ECF No. 215, Fourth Am. Compl. ¶ 119(a)(iii). Previous opinions of the Court detail the facts of this case, and the Court therefore only sets forth a summary of background facts and procedural history pertinent to resolving the current motions.

Plaintiff Dallas County, Texas, (“Dallas County”) filed this lawsuit on September 20, 2011, in Texas state court against MERSCORP, Inc. (“MERSCORP”), Mortgage Electronic Registration Systems, Inc. (“MERS”), and Bank of America, N.A. (“BOA”) (sometimes collectively, “Defendants”). The gravamen of Dallas County’s complaint is that Defendants conspired to create a private electronic mortgage registration system for tracking ownership interests and servicing rights associated with residential mortgage loans. According to Dallas County, this system usurps the county clerk’s role under the statutorily created recording systems in a manner inconsistent with Texas law, thereby depriving Dallas County of recording fees and corrupting its real property records. ECF No. 1, Notice of Removal at Exs. B-l and B-2 (Pl.’s Orig. Pet. & Pl.’s First Am. Orig. Pet.).

On October 14, 2012, Defendants removed the case to this Court asserting subject matter jurisdiction under 28 U.S.C. § 1332. Id., Notice of Removal ¶ 4. After removal, Dallas County filed a Class Action Complaint (ECF No. 10), and on March 6, 2012, Dallas County filed a First Amended Class Action Complaint (ECF No. 27), adding Plaintiffs Harris County, Texas, (“Harris County”) and Brazoria County, Texas, (“Brazoria County”), and asserting claims for: unjust enrichment; negligent, grossly negligent, and fraudulent misrepresentation; negligent and grossly negligent undertaking; negligence per se and gross negligence per se; and [941]*941conspiracy, as well as state statutory claims for violations of Texas Civil Practice and Remedies Code § 12.002 and Texas Local Government Code § 192.007, and seeking monetary damages, declaratory and injunctive relief, and exemplary damages. See ECF No. 27, Pis.’ First Am. Class Action Compl. ¶¶ 157-58, 159-60, 161.

On March 9, 2012, Defendants jointly moved to dismiss Plaintiffs’ claims. ECF No. 30, Def. Mot. to Dis. On May 8, 2012, Plaintiffs filed a Second Amended Class Action Complaint (ECF No. 53). On May 23, 2012, following a hearing, the Court granted Defendants’ motion to dismiss in substantial part, dismissing eight of the thirteen counts. Specifically, the Court dismissed causes of action for violations of Texas Civil Practice and Remedies Code § 12.002, and for damages under Texas Government Code § 192.007, as well as negligent and grossly negligent misrepresentation, negligence per se and gross negligence per se, and negligent undertaking and grossly negligent undertaking. ECF No. 66, MTD Hr’g Tr. 76:8-15, 81:4-9. The Court denied Defendants’ motion to dismiss Plaintiffs’ fraudulent misrepresentation and unjust enrichment claim, as well as Plaintiffs’ request for declaratory and injunctive relief associated with these claims. Id. at 81:10-19.

On July 13, 2012, Plaintiffs filed their Third Amended Class Action Complaint, deleting those causes of action dismissed by the Court and adding further specificity for the remaining claims. ECF No. 75, Pis.’ Third Am. Class Action Compl. After unsuccessfully moving for class certification, on December 17, 2012, Plaintiffs filed their Fourth Amended Complaint, re-asserting the remaining claims of fraudulent misrepresentation, unjust enrichment, and civil conspiracy, and seeking declaratory and injunctive relief. ECF No. 215, Pis.’ Fourth Am. Compl. Defendants filed amended answers and asserted affirmative defenses, including laches, waiver, and set-off. ECF No. 238, MERS Ans.; ECF No. 242, BOA Ans. On November 13, 2012, after discovery concluded, the parties filed motions for summary judgment.

While the summary judgment motions were pending, the parties engaged in mediation with the Honorable Jeff Kaplan, which resulted in a settlement of all claims other than the Counties’ declaratory judgment claim asking the Court to declare, among other things, that Section 192.007 of the Texas Local Government Code requires that interim documents relating to an initially-filed instrument be recorded.

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2 F. Supp. 3d 938, 2014 U.S. Dist. LEXIS 27200, 2014 WL 840016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dallas-county-v-merscorp-inc-txnd-2014.