Derek Loudermilk, et al. v. Rushmore & Mr. Cooper, et al.

CourtDistrict Court, E.D. Missouri
DecidedNovember 25, 2025
Docket4:24-cv-01360
StatusUnknown

This text of Derek Loudermilk, et al. v. Rushmore & Mr. Cooper, et al. (Derek Loudermilk, et al. v. Rushmore & Mr. Cooper, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derek Loudermilk, et al. v. Rushmore & Mr. Cooper, et al., (E.D. Mo. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

DEREK LOUDERMILK, et al., ) ) Plaintiffs, ) ) vs. ) No. 4:24-cv-01360-MTS ) RUSHMORE & MR. COOPER, et al., ) ) Defendants. )

MEMORANDUM AND ORDER This matter is before the Court on Defendants’ Motions to Dismiss. Docs. [5], [13]. The issues are fully briefed. For the reasons that follow, the Court will grant the Motions and dismiss Plaintiffs’ Complaint. In lieu of dismissing this action, however, the Court will give Plaintiffs an opportunity to file an amended complaint to reassert their claims consistent with this Memorandum and Order, obtain counsel for House of Loudermilk Trust, and properly serve Defendants. Failure to do so will result in dismissal, as appropriate. I. Background Plaintiffs Derek Loudermilk and House of Loudermilk Trust, proceeding pro se, filed this wrongful-foreclosure action in state court against Defendants Nationstar Mortgage LLC d/b/a Mr. Cooper or d/b/a Rushmore Servicing (“Nationstar”), Lakeview Loan Servicing, LLC (“Lakeview”), PrimeLending, CSM Foreclosure Trustee Corporation (“CSM”), and up to 100 fictional parties. Doc. [3]. Plaintiffs challenge the foreclosure of their residence located at 3631 Hartford Street, in St. Louis (the “Property”). Id. at 2–4. They bring claims of wrongful foreclosure (Count I),1 fraud in the concealment (Count II), fraud in the inducement (Count III), intentional infliction of emotional distress (Count IV), slander of title (Count V), quiet title (Count VI), declaratory relief (Count VII), and violations of the Truth in Lending Act

(“TILA”) (Count VIII). Id. at 4–11. Defendants Nationstar and Lakeview filed a timely notice of removal, invoking diversity and federal question jurisdiction. Doc. [1]. Defendants Nationstar, Lakeview, and PrimeLending filed Motions to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). Docs. [5], [13]. They argue that the Complaint contains no meaningful allegations with respect to them, that Count I does not state a valid cause of action under Missouri law, that Counts II and III fail to satisfy the particularity requirement of Federal Rule of Civil Procedure 9(b), that Defendants’ alleged misconduct does

not rise to the level of outrageousness required to state a claim for intentional infliction of emotional distress, that the allegations in Count V are conclusory, that Count VI fails to set forth facts showing that Plaintiff have superior title to the Property, that Plaintiffs have not shown that they are entitled to declaratory relief, and that Plaintiffs lack standing to bring a TILA claim because they do not allege that they are borrowers under a loan. Doc. [6]. Plaintiffs oppose the Motions to Dismiss, arguing that they adequately alleged all of their claims. Docs. [17], [19]. In the event that the Court finds deficiencies in the Complaint,

however, Plaintiffs request leave to amend to include additional facts and evidence, but they

1 Plaintiffs have styled Count I as a claim for “lack of standing to foreclose.” Doc. [3] at 4. In light of Plaintiffs’ pro se status, the Court liberally construes Count I as asserting a claim for wrongful foreclosure. See Jackson v. Nixon, 747 F.3d 537, 544 (8th Cir. 2014) (explaining that liberally construing a pro se complaint means that “if the essence of an allegation is discernible, even though it is not pleaded with legal nicety, then the district court should construe the complaint in a way that permits the layperson’s claim to be considered within the proper legal framework” (quoting Stone v. Harry, 364 F.3d 912, 914 (8th Cir. 2004))). have not submitted a proposed amended pleading as required by the Eastern District of Missouri’s Local Rule 4.07. Doc. [17] at 2. II. Legal Standard

To survive a motion to dismiss for failure to state a claim, “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) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim has “facial plausibility” when the plaintiff pleads factual content that allows the court to draw the “reasonable inference” that the defendant is liable for the misconduct alleged. Id. A complaint that offers “labels and conclusions” or “a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555.

When analyzing a motion to dismiss, “a court must accept the allegations contained in the complaint as true and make all reasonable inferences in favor of the nonmoving party.” Martin v. Iowa, 752 F.3d 725, 727 (8th Cir. 2014). But courts “need not accept as true a plaintiff’s conclusory allegations or legal conclusions drawn from the facts.” Glick v. W. Power Sports, Inc., 944 F.3d 714, 717 (8th Cir. 2019). III. Discussion A. Deficiencies in the Complaint

Other than alleging Defendants’ citizenships, the Complaint contains no factual allegations regarding any named Defendant, does not specify which claims apply to which Defendants, and fails to provide any details regarding the nature of the loan or the foreclosure. Thus, the Complaint lacks sufficient factual allegations to allow the Court “to draw the reasonable inference that [Defendants are] liable for the misconduct alleged,” Iqbal, 556 U.S. at 663, and it fails to give Defendants fair notice of the nature and basis of any of the claims Plaintiffs might be asserting against them, see Topchian v. JPMorgan Chase Bank, N.A., 760 F.3d 843, 848 (8th Cir. 2014) (stating that the “essential function of a complaint . . . is to give the opposing party fair notice of the nature and basis or grounds for a claim” (quoting Hopkins

v. Saunders, 199 F.3d 968, 973 (8th Cir. 1999))); Frey v. City of Herculaneum, 44 F.3d 667, 672 (8th Cir. 1995) (concluding that the “complaint f[ell] short of meeting even the liberal standard for notice pleading, since it [wa]s entirely conclusory, giving no idea what acts the individual defendants [we]re accused of that could result in liability”). Additionally, Plaintiff House of Loudermilk Trust is subject to being dismissed from the case because it may not proceed without representation, and as a nonlawyer, Plaintiff Loudermilk is not permitted to represent the trust. See Knoefler v. United Bank of Bismarck, 20 F.3d 347, 348 (8th Cir. 1994)

(“A nonlawyer, such as these purported ‘trustee(s) pro se’ has no right to represent another entity, i.e., a trust, in a court of the United States.” (citing C.E. Pope Equity Trust v. United States, 818 F.2d 696, 697–98 (9th Cir. 1987))). In light of Plaintiffs’ pro se status, the Court will grant them leave to file an amended complaint and additional time to retain an attorney for Plaintiff House of Loudermilk Trust. See Munz v. Parr, 758 F.2d 1254, 1259–60 (8th Cir. 1985) (explaining that a court should give a pro se plaintiff a statement of the complaint’s deficiencies and a chance to amend the complaint); Rush v. State of Ark. DWS, 876 F.3d 1123,

1125–26 (8th Cir. 2017) (per curiam) (“[N]ormally pro se plaintiffs . . . are granted leave to amend their pleadings). The Court will discuss the deficiencies specific to each claim in turn. 1.

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Derek Loudermilk, et al. v. Rushmore & Mr. Cooper, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/derek-loudermilk-et-al-v-rushmore-mr-cooper-et-al-moed-2025.