Fernandes v. Deutsche Bank National Trust Co.

157 F. Supp. 3d 383, 2015 WL 9272878, 2015 U.S. Dist. LEXIS 169143
CourtDistrict Court, D. New Jersey
DecidedDecember 18, 2015
DocketCivil Action No. 15-6928 (JBS/KMW)
StatusPublished
Cited by27 cases

This text of 157 F. Supp. 3d 383 (Fernandes v. Deutsche Bank National Trust Co.) 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
Fernandes v. Deutsche Bank National Trust Co., 157 F. Supp. 3d 383, 2015 WL 9272878, 2015 U.S. Dist. LEXIS 169143 (D.N.J. 2015).

Opinion

MEMORANDUM OPINION

SIMANDLE, Chief, Judge

This action concerns a dispute over the online auction (and ultimate purchase) of real property in North Wildwood, New [385]*385Jersey, and arises out of Plaintiff Beatrice Fernandes’ (hereinafter, “Plaintiff’) contention that Defendant Deutsche Bank National Trust Company (hereinafter, “Deutsche Bank”) awarded the winning bid to a third-party, despite Plaintiffs significantly higher offer. (See generally Compl. at ¶¶ 6-16.) Based upon her belief that this action touches and affects title to the beach property, Plaintiff filed and recorded a notice of lis pendens in the Superior Court of New Jersey, together with a three-Count Complaint for consumer fraud, common law fraud, and promissory estoppel. (See generally id.)

Following removal to this federal Court, Defendants now move to strike the lis pendens and to transfer this New Jersey-centric litigation to the Northern District of Georgia. [See Docket Items 9 & 10.] Defendants claim, in particular, that the lis pendens must be striken, because Plaintiff cannot demonstrate the necessary underlying property interest (see Defs.’ lis pen: dens Br. at 6-10), and that this action must be transferred on account of the forum selection clause contained within the Terms and Conditions of the online auction site. (See Defs.’ Transfer Br. at 4-11.) Plaintiff, by contrast, takes the position that she claims ah interest in the disputed property that requires continuation of the lis pendens (see Pl.’s lis pendens Opp’n at 4-6), and that the forum selection clause has no application to this litigation. (See Pl.’s Transfer Opp’n at 3-5.)

The relatively straightforward issues presented by the pending motions are whether Plaintiff’s Complaint contains causes of action that affect title to the disputed property; whether a valid and enforceable forum selection clause governs the parties’ relationship; and whether, in light of a forum selection clause or not, the applicable considerations under 28 U.S.C. § 1404(a) favor the transfer of this action to the.Northern District of Georgia.

For the reasons that follow, Defendants’ motion to strike , the Us pendens will be granted, and their motion to transfer will be denied. The Court finds as follows:

1. Factual and Procedural Background.1 On June 13, 2015, Deutsche Bank listed a property in North Wildwood, New Jersey (hereinafter, the “property”) for auction on an online real estate marketplace, HUBZU, through REALHome Services and Solutions, Inc. (hereinafter, “REALHome”). (See Compl. at ¶¶ 5-7.) Following the listing, Plaintiffs New Jersey real estate agent, David Shapiro, contacted HUBZU to express interest in the property, and “began talks” with REAL-Home agent David Sweeney. (Id. at ¶¶ 8-9.) During these “talks,’’ Mr. Shapiro relayed to Mr. Sweeney that Plaintiff had “deposited” funds “into an escrow account” in connection with her $300,000 offer for the property. (Id. at ¶¶ 12.) Mr. Sweeney allegedly .responded that “a bid [of] around 93% of [the] asking price of $347,000 would be acceptable,” and Plaintiff, in turn, “made another offer of $322,000” prior to the end of the bidding period on August 13, 2015. (Id. at HIT 12-14.) Nevertheless, on August 13, 2015, Mr. Shapiro received an email from HUBZU stating that, at the end of bidding, the property had sold to a third-party for “the Highest Bid” of $281,000. (Id. at ¶16.)

2. Based upon her belief that she had an agreement to purchase the property at the “highest price,” Plaintiff brought this action against Defendants, asserting .claims for consumer fraud, common law fraud, and promissory estoppel.2 (Id. at ¶¶ 17-33.) [386]*386Although dressed in different terms, each claim seeks identical relief, “[sjpecific [pjerformance and damages against Defendants in the form of’ an order requiring Deutsche Bank to sell the property to Plaintiff. (Id.) Plaintiff then filed and recorded a notice of lis pendens, and after removal,3 the pending motions followed.4

3. Standard Governing Defendants’ Motions to Strike Plaintiffs notice of lis pendens. At common law, the filing of a lawsuit alone provided constructive notice to any subsequent purchaser or lienholder of a pending contest concerning title to the property. See Manzo v. Shawmut Bank, N.A., 291 N.J.Super. 194, 677 A.2d 224, 227 (N.J.Super.Ct.App.Div.1996). New Jersey’s lis pendens statute, N.J.S.A. §§ 2A:15-6 to 15-17, “altered this rule by requiring that a notice of lis pendens be filed and recorded for subsequent interest takers to have constructive notice of the pendency of a lawsuit and to take subordinate to the rights the plaintiff derives in the outcome of the litigation.” Id. (citations omitted). In other words, the lis pendens itself now provides “constructive notice” that interested parties take the property subject to the outcome of the litigation. Id. (citations omitted); see also N.J.S.A. §§ 2A:15-7. The statutory basis for the grant of a notice of lis pendens, in turn, states that,

In every action, instituted in any court of this State having civil jurisdiction or in the United States District Court for the District of New Jersey, the object of which is to enforce a lien upon real estate or to affect the title to real estate or a lien or encumbrance thereon, plaintiff or his attorney shall, after the filing of the complaint, file in the office of the county clerk or register of deeds and mortgages, as the case may be, of the county in which the affected real estate is situate, a written notice of the pen-dency of the action, which shall set forth the title and the general object thereof, with a description of the affected real estate. No notice of lis pendens shall be filed under this article in an action to recover a judgment for money or damages only.

N.J.S.A. 2A:15-6 (emphases added). In considering whether the object of an action “ ‘affects title to real property,’ ” courts “look only to the underlying complaint.” Pharmacia Corp. v. Motor Carrier Servs. Corp., No. 04-3724, 2006 WL 2792793, at *3 (D.N.J. Sept. 26, 2006) (citations omitted and emphasis in original). Courts then determine whether the allegations of the complaint demonstrate “a probability that [a] final judgment will be entered in favor of the plaintiff sufficient to justify the continuation of the lis pendens.”5 Gage v. Wells Fargo Bank, N.A. AS, No. 12-777, 2013 WL 3443295, at *6 (D.N.J. July 9, 2013) (citation and internal quotation marks omitted), aff'd, 555 Fed.Appx. 148 [387]*387(3d Cir.2014). Stated differently, courts “ Sveigh the strengths of [the] plaintiff’s] case against the detriment imposed on [the] defendant by reason of the filing of the notice of lis pendens.’ ” Stephen N. Frankel Real Estate, Inc. v. Merrett, No. A-1547-09T2, 2011 WL 1085531, at *4 (N.J.Super.Ct.App.Div. Mar. 25, 2011) (citation omitted).

4. As explained above, the crux of this action concerns Plaintiffs contention that Deutsche Bank improperly named -a third-party the highest bidder for the property, despite her higher-dollar-value offer. (See generally Compl.

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157 F. Supp. 3d 383, 2015 WL 9272878, 2015 U.S. Dist. LEXIS 169143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fernandes-v-deutsche-bank-national-trust-co-njd-2015.