DOHERTY v. WELLS FARGO HOME MORTGAGE

CourtDistrict Court, D. New Jersey
DecidedDecember 12, 2024
Docket2:24-cv-00362
StatusUnknown

This text of DOHERTY v. WELLS FARGO HOME MORTGAGE (DOHERTY v. WELLS FARGO HOME MORTGAGE) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DOHERTY v. WELLS FARGO HOME MORTGAGE, (D.N.J. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

DAWN DOHERTY F/K/A DAWN

FURLONG, Civil Action No. 24-00362 (JXN) (CLW)

Plaintiff,

v. OPINION

WELLS FARGO HOME MORTGAGE, and/or WELLS FARGO BANK, WELLS FARGO FINANCIAL SERVICES COMPANY, WELLS FARGO AND COMPANY and/or “JOHN DOE” or “JAME DOE” (their names being fictitious and unknown to Plaintiff) and/or “XYZ CORP” (its name being fictitious and unknown to Plaintiff),

Defendants.

NEALS, District Judge:

This matter comes before the Court on the motion of Defendant Wells Fargo Bank, N.A., incorrectly identified separately as Wells Fargo Home and/or Wells Fargo Bank, Wells Fargo Financial Services Company, and Wells Fargo and Company (collectively, “Wells Fargo”), to dismiss Plaintiff Dawn Doherty f/k/a Dawn Furlong’s (“Plaintiff”) Complaint (ECF No. 1-1) (“Complaint” or “Compl.”) pursuant to Federal Rules of Civil Procedure 12(b)(1), (3), and (6)1 (ECF No. 19), and Plaintiff’s cross-motion for leave to file an amended complaint (ECF No. 37). The Court has carefully considered the parties’ submissions and decides this matter without oral argument under Federal Rule of Civil Procedure 78(b) and Local Civil Rule 78.1(b). For the reasons set forth below, Wells Fargo’s motion to dismiss is GRANTED (ECF No. 19) and the

1 Because the Court dismisses the Complaint under Federal Rules of Civil Procedure 12(b)(1) and (3), it does not address the 12(b)(6) arguments. Complaint (ECF No. 1-1) is DISMISSED without prejudice to Plaintiff to pursue her claims in the United States District Court for the Southern District of Ohio. Plaintiff’s motion for leave to amend the Complaint is DENIED as moot (ECF No. 37). I. BACKGROUND AND PROCEDURAL HISTORY2

A. The Mortgage On December 8, 2005, Plaintiff and James Furlong (“Furlong”) executed a fixed rate note in the amount of $263,500.00 (the “Mortgage”) with Mortgage Electronic Registration Systems, Inc., as nominee for NJ Lenders Corp. (Certification of Greyson K. Van Dyke (“Van Dyke Cert.”), Ex. 1 at ¶¶ 1-2, ECF No. 19-3).3 On December 27, 2005, the Mortgage was properly recorded and secured against real property located at 42 South Demarest Avenue, Bergenfield, New Jersey 07621. (Id. at ¶¶ 2-3). The Mortgage was assigned to Wells Fargo on July 21, 2011, and recorded on July 27, 2011. (Id. at ¶ 4). In 2011, Plaintiff was divorcing Furlong and applied for a loan modification to Wells Fargo due to her inability to make the monthly loan payments after her divorce. (Compl. ¶ 3). Wells

Fargo denied the loan modification. (Id. at ¶ 4). Plaintiff subsequently “c[a]me to learn that her application for a loan modification was wrongfully denied and that her application for modification of her mortgage(s) and/or entry into a modification trial payment plan by [Wells Fargo] should have been granted.” (Id. at ¶ 5).

2 The following factual allegations are taken from the Complaint that are accepted as true. Sheridan v. NGK Metals Corp., 609 F.3d 239, 262 n.27 (3d Cir. 2010). 3 When reviewing a motion to dismiss, the Court may consider any “document integral to or explicitly relied upon in the complaint.” In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997) (internal quotation marks omitted). Furthermore, in deciding a motion to dismiss for lack of subject matter jurisdiction, the Court is not restricted to the facts pled in the complaint, “but may review any evidence” to resolve disputes regarding its jurisdiction. See C. Jack Friedman, Ph.D. & Assocs., P.C. v. Pa. Blue Shield, 836 F. Supp. 263, 266 (E.D. Pa. 1993), aff’d, 30 F.3d 1486 (3d Cir. 1994). On September 14, 2012, Wells Fargo initiated a residential foreclosure action in the Superior Court of New Jersey. (Van Dyke Cert, Ex. 1, ECF No. 19-3). On January 23, 2015, the state court entered a Final Judgment in the foreclosure action. (Van Dyke Cert., Ex. 2, ECF No. 19-3).

Thereafter, in an April 8, 2016 letter, Wells Fargo offered Plaintiff and Furlong a streamlined modification, conditioned on Plaintiff and Furlong “making three trial payments and then continuing to make those payments on time.” (Supplemental Certification of Greyson K. Van Dyke (“Van Dyke Supp. Cert.”), Ex. 1, ECF No. 39-1 at 4). The letter was addressed to Plaintiff and Furlong at 42 South Demarest Avenue, Bergenfield, New Jersey 07621. (Id.) B. The Ryder Class Action On August 2, 2019, Ethan Ryder and others, on behalf of themselves and all others similarly situated, filed a complaint against Wells Fargo in the United States District Court for the Southern District of Ohio (Case No. 19-638) (“Ryder Class Action”). (Van Dyke Cert., Ex. 3, ECF No. 19- 3 at 27). In the Ryder Class Action, the “[p]laintiffs assert[ed] that Wells Fargo erroneously denied

loan modifications to 3,000 homeowners due to a calculation ‘error’ within the software it used to process loan modifications.” (Van Dyke Cert., Ex. 4, ECF No. 19-3 at 48).4 Thereafter, the parties reached a settlement in the Ryder Class Action. (See generally Van Dyke Cert., Ex. 3, ECF No. 19-3). The United States District Court for the Southern District of Ohio appointed JND Legal Administration (“JND”) as the Settlement Administrator for the Ryder Class Action. (See Supplemental Declaration of Ryan Bahry (“Bahry Decl.”), ECF No. 19-4 at ¶ 2). JND received spreadsheets from Wells Fargo containing names and mailing addresses, among

4 For sake of clarity, when citing the parties’ briefs and supporting documents, the Court cites to the page number listed in the ECF header. If there is no page number listed in the ECF header, the Court cites to the page number listed in the respective document. other things, and social security numbers of the majority of individuals identified as settlement class members. (Id. at ¶ 4). Plaintiff and Furlong were identified as class members. (Id.) In accordance with the settlement, on October 15, 2021, JND mailed out the court- approved Class Notice to all settlement class members. (Id. at ¶ 5). A copy of the Class Notice

was sent to Plaintiff and Furlong at 42 South Demarest Avenue, Bergenfield, New Jersey 07621. (Id.) The Class Notice stated: “If Wells Fargo sent you a letter stating that it mistakenly denied you a trial loan modification and you did not lose your home to foreclosure by Wells Fargo, you could get a payment from a class action settlement.” (Bahry Decl., Ex. A, ECF No. 19-4 at 7). The Class Notice also outlined the following legal rights and options regarding the settlement:

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT: DO NOTHING Get a payment. Give up rights. OBJECT Write to the Court about why you don’t like the settlement. The deadline for submitting a written objection is November 29, 2021. GO TO A Ask to speak in Court about the fairness of the settlement. The Final HEARING Fairness Hearing is scheduled for January 25, 2022. EXCLUDE Get no payment. This is the only option that allows you to ever be a part YOURSELF of another lawsuit against Wells Fargo about the legal claims in this case. The deadline to exclude yourself is November 29, 2021. (Id.) The Class Notice also addressed who constituted a member of the Ryder Class Action, which stated in pertinent part: WHO IS IN THE SETTLEMENT To see if you will get money from this settlement, you first have to determine whether you are a Class Member.

5.

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