Dubois v. Washington Mutual Bank

CourtDistrict Court, District of Columbia
DecidedSeptember 3, 2010
DocketCivil Action No. 2009-2176
StatusPublished

This text of Dubois v. Washington Mutual Bank (Dubois v. Washington Mutual Bank) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dubois v. Washington Mutual Bank, (D.D.C. 2010).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

NICHOLAS J. DUBOIS, ) ) Plaintiff, ) ) v. ) Civil Case No. 09-2176 (RJL) ) WASHINGTON MUTUAL BANK, in ) receivership, et al., ) ) Defendants. ) ~ MEMORANDUM OPINION (September ~, 2010) [#7, #12, #20, #22, #24]

Plaintiff, Nicholas 1. Dubois ("Dubois"), a licensed attorney acting pro se, brings

this action alleging, inter alia, breach of contract, fraud, and civil conspiracy against

Washington Mutual Bank ("WaMu"), in receivership; JP Morgan Chase Bank, N.A. ("JP

Morgan"); Chase Home Finance, LLC ("Chase Home Finance"); Federal National

Mortgage Association ("Fannie Mae"); Federal Deposit Insurance Corporation, in its

corporate capacity ("FDIC-Corporate") and in its capacity as receiver for WaMu ("FDIC-

Receiver"); Finestein & Malloy, L.L.C ("FMLLC"); and Tait O. Norton ("Norton" and,

together with JP Morgan, Chase Home Finance, Fannie Mae, FDIC-Corporate, FDIC-

Receiver, and FMLLC, the "defendants,,).l Currently pending are Motions to Dismiss

filed on behalf of each defendant. For the following reasons, the defendants' motions are

GRANTED.

Dubois voluntarily dismissed his claims against the Federal Housing Finance Agency on March 15,2010. See Notice of Dismissal, Mar. 15,2010 [#17]. BACKGROUND

This case arises out ofa dispute over a mortgage loan. On or about June 25,2001,

Dubois executed a note and mortgage in favor of non-party HomeSide Lending, Inc.,

which was subsequently acquired by WaMu in October 2002. Compl. ~ 18. In November

2002, Fannie Mae, as successor in interest to WaMu, filed an action in the Superior Court

of New Jersey to foreclose on the mortgage. Id. ~~ 20-21. WaMu remained the servicing

agent for the mortgage loan. Id. ~~ 19,21, 105. Dubois removed the foreclosure action

to the U.S. District Court for the District of New Jersey ("Removed Action") and asserted

counterclaims against Fannie Mae and third-party claims against WaMu and non-party

Shapiro & Diaz LLP, who served as Fannie Mae's original law firm in the state action.

Id. ~ 22. The Removed Action was settled by virtue of a Stipulation of Settlement and

Order, entered August 9,2004 (the "Settlement Order"). Id. ~ 33. In addition, pursuant

to the Settlement Order, WaMu and Dubois entered into a loan modification agreement

on March 21, 2005, which was modified by letter dated June 10, 2005 ("Loan

Modification Agreement"). Id. ~~ 60, 64.

According to the plaintiff, WaMu failed to comply with the terms of the Settlement

Order as early as September 2004. Id. ~ 37. He also asserts violations of the Settlement

Order by Fannie Mae at some unspecified date, id. ~ 38, along with an effort by FMLLC,

Fannie Mae's counsel, to fraudulently force Dubois into default, id. ~~ 41-46. Dubois

served WaMu with a notice of default and violation of the Settlement Order on December

2 3,2004. Id. ~ 49. Plaintiff further alleges that Norton, Vice President and Counsel at

WaMu, sent a letter in October 2005 attempting to deceive Dubois into ratifYing

fraudulent notices. Id. ~~ 77-81. In addition, Plaintiff alleges that FMLLC mishandled

payments that he made pursuant to the Settlement Order and Loan Modification

Agreement, engaged in fraudulent behavior, and breached its fiduciary duty. Id. ~~ 48-53,

82-88. Communications between Dubois and FMLLC ended in January 2006. Id. ~ 91.

On September 25,2008, by order of the Office of Thrift Supervision, WaMu was

closed and FDIC-Receiver was appointed receiver ofWaMu. Id. ~~ 105-06. According

to the plaintiff, FDIC-Receiver sold substantially all ofWaMu's assets to JP Morgan

under a Purchase and Assumption Agreement. Id. ~ 106. On April 9, 2009, Dubois filed

a proof of claim pursuant to 12 U.S.C. § 1821(d) with FDIC-Receiver. Id. ~~ 108-09.

FDIC-Receiver denied his claim on September 18, 2009. Id. ~ 110. Dubois then filed

this lawsuit on November 17,2009, naming WaMu, JP Morgan, Chase Home Finance,

Fannie Mae, FDIC-Corporate, FDIC-Receiver, the Federal Housing Finance Agency,

FMLLC, and Norton, along with XYZ Corporations 1-10, John Does 1-10 and Jane Does

1-10, as defendants. All in all, he is asserting twenty-two claims for relief.

ANALYSIS

I. Standard of Review

Defendants move to dismiss the respective claims filed against them pursuant to

Fed. R. Civ. P. 12(b)(l) and (6). Because subject-matter jurisdiction focuses on a court's

3 power to hear the plaintiffs claim, a Rule 12(b)(1) motion to dismiss imposes on a court

an affirmative obligation to ensure that it is acting within the scope of its jurisdictional

authority. Grand Lodge of Fraternal Order of Police v. Ashcroft, 185 F. Supp. 2d 9, 13

(D.D.C.2001). For this reason, the Court may give a plaintiffs factual allegations closer

scrutiny in resolving a Rule 12(b)(1) motion for lack of subject matter jurisdiction than a

12(b)(6) motion for failure to state a claim. Id. at 13-14. At the same time, the Court is

also mindful of its duty to read Dubois's allegations liberally, as he is a pro se litigant.

See Haines v. Kerner, 404 U.S. 519, 520 (1972); Richardson v. United States, 193 F.3d

545, 548 (D.C. Cir. 1999). To survive a Rule 12(b)(6) motion to dismiss for failure to

state a claim upon which relief can be granted, a plaintiffs "[fJactual allegations must be

enough to raise a right to relief above the speculative level, on the assumption that all the

allegations in the complaint are true (even if doubtful in fact)." Bell Atl. Corp. v.

Twombly, 550 U.S. 544, 555 (2007) (citations omitted); see also Ashcroft v. Iqbal, 129

S. Ct. 1937, 1950 (2009) (stating that if a court has determined that a plaintiff has asserted

"well-pleaded factual allegations," the court "should assume their veracity and then

determine whether they plausibly give rise to an entitlement to relief').

In this case, however, not even a liberal interpretation of plaintiff s pleadings can

salvage a single one of his claims from being dismissed. How so? Let's look at the

claims as to each defendant individually.

4 II. JP Morgan

JP Morgan is named as a defendant for fourteen common law claims: equitable

fraud (Count One), negligent misrepresentation (Count Two), legal fraud (Count Three),

fraud in the inducement (Count Four), conversion (Count Five), tortious interference with

prospective economic advantage (Count Six), civil conspiracy (Count Seven), negligence

(Count Nine), breach of contract (Count Twelve), breach of implied covenant of good

faith and fair dealing (Count Thirteen), constructive fraud in contract (Count Fourteen),

unjust enrichment (Count Fifteen), promissory estoppel (Count Sixteen), and his claim for

declaratory relief (Count Twenty-Two). JP Morgan is also named as a defendant for two

claims pursuant to New Jersey law: consumer fraud in violation of N.J. Stat. Ann.

§§ 56:8-1 to -48 (Count Eight) and violation of the New Jersey Fair Credit Reporting Act

("NJFCRA"), N.J. Stat. Ann. § 56:11-28 (Count Nineteen). Finally, JP Morgan is named

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