Hawkins v. Wells Fargo Bank NA

CourtDistrict Court, N.D. Texas
DecidedMay 21, 2025
Docket3:25-cv-00201
StatusUnknown

This text of Hawkins v. Wells Fargo Bank NA (Hawkins v. Wells Fargo Bank NA) 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
Hawkins v. Wells Fargo Bank NA, (N.D. Tex. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION CHARLIE D. HAWKINS, § § Plaintiff-Counterdefendant, § § VS. § § WELLS FARGO BANK, N.A., § Civil Action No. 3:25-CV-0201-D § Defendant-Counterplaintiff- § Third-Party Plaintiff, § § VS. § § CINDY JO HAWKINS, § § Third-Party Defendant. § MEMORANDUM OPINION AND ORDER In this removed action arising from the attempted foreclosure of pro se plaintiff- counterdefendant Charlie D. Hawkins’ (“Hawkins’”) residential property, the court addresses four motions: (1) the April 2, 2025 motion of defendant-counterplaintiff-third-party plaintiff Wells Fargo Bank, N.A. (“Wells Fargo”) to strike Hawkins’ answer; (2) Wells Fargo’s April 9, 2025 second motion to dismiss; (3) Wells Fargo’s April 21, 2025 motion for continuance; and (4) Hawkins’ May 16, 2025 second motion to dismiss under Rule 12(b)(6).1 For the reasons explained, the court denies as moot Wells Fargo’s April 2, 2025 motion to strike 1Two other motions are pending and remain to be decided: (1) Hawkins’ motion for summary judgment, and (2) Wells Fargo’s motion for leave to file amended counterclaim and third-party complaint. These motions will be decided in due course after they become ripe. Hawkins’ answer; grants Wells Fargo’s April 9, 2025 second motion to dismiss; grants Wells Fargo’s April 21, 2025 motion for continuance; and denies Hawkins’ May 16, 2025 second motion to dismiss under Rule 12(b)(6).

I In March 1993 Hawkins and his then-wife, third-party defendant Cindy Jo Hawkins (“Cindy Jo”), purchased real property located in Rowlett, Texas (the “Property”).2 On February 10, 2006 Hawkins and Cindy Jo refinanced the Property, obtaining a home equity

loan (“Loan”) in the amount of $181,532.00. In connection with the Loan, Hawkins and Cindy Jo executed a Texas Home Equity Note (“Note”) and Texas Equity Deed of Trust (“Deed of Trust”) in favor of World Savings Bank, FSB (“World Savings”). Wells Fargo is the successor-in-interest to the Loan by virtue of a name change and merger.3 In 2017, after Hawkins allegedly failed to make agreed-upon Loan payments, Wells

Fargo sought to foreclose on the Property. In an attempt to resist foreclosure, Hawkins sued Wells Fargo in state court (“2017 Lawsuit”), alleging that the foreclosure was precluded by

2In deciding Wells Fargo’s Fed. R. Civ. P. 12(b)(6) motion, the court construes the amended complaint in the light most favorable to Hawkins, accepts as true all well-pleaded factual allegations, and draws all reasonable inferences in Hawkins’ favor. See, e.g., Lovick v. Ritemoney Ltd., 378 F.3d 433, 437 (5th Cir. 2004). “The court’s review [of a Rule 12(b)(6) motion] is limited to the complaint, any documents attached to the complaint, and any documents attached to the motion to dismiss that are central to the claim and referenced by the complaint.” Lone Star Fund V (U.S.), L.P. v. Barclays Bank PLC, 594 F.3d 383, 387 (5th Cir. 2010). 3Wells Fargo maintains that, in December 2007, World Savings Bank changed its name to Wachovia Mortgage, FSB (“Wachovia”) and that in November 2009, Wachovia merged into Wells Fargo. - 2 - the statute of limitations. The state court, on January 23, 2019, entered a final judgment that allowed the foreclosure to proceed. On April 28, 2022 Hawkins filed another lawsuit in state court (“2022 Lawsuit”), this

time alleging, inter alia, that the Loan violated the Texas Constitution and should be declared invalid. By order dated December 20, 2023, the state court granted summary judgment on Hawkins’ claims and dismissed the 2022 Lawsuit with prejudice. Hawkins did not appeal the state-court summary judgment. The instant lawsuit (“2024 Lawsuit”) followed. In his amended complaint,4 which is

the operative pleading, Hawkins seeks to prevent Wells Fargo’s non-judicial foreclosure sale of the Property, alleging, inter alia, that the Deed of Trust is void and that Wells Fargo does not have authority to collect on the Note. The court now decides four pending motions on the briefs, without oral argument.

II The court begins by addressing Wells Fargo’s second motion to dismiss. Wells Fargo moves to dismiss Hawkins’ claims alleged in the 2024 Lawsuit on the basis of res judicata. A “The doctrine of res judicata, or claim preclusion, forecloses relitigation of claims that

were or could have been raised in a prior action.” Davis v. Dall. Area Rapid Transit, 383 F.3d 309, 312-13 (5th Cir. 2004) (citing Allen v. McCurry, 449 U.S. 90, 94 (1980)). To

4Hawkins labeled his amended complaint an “amended petition.” - 3 - determine the preclusive effect of a state-court judgment, a federal court sitting in diversity looks to the law of the state that rendered the judgment. See Hussain v. Bos. Old Colony Ins. Co., 311 F.3d 623, 635 (5th Cir. 2002) (citing Migra v. Warren City Sch. Dist. Bd. of Educ.,

465 U.S. 75, 81 (1984)); see also Migra, 465 U.S. at 81 (“A federal court must give to a state-court judgment the same preclusive effect as would be given that judgment under the law of the State in which the judgment was rendered.”). Under Texas law, “a subsequent suit is barred if it arises out of the same subject matter as the prior suit, and that subject matter

could have been litigated in the prior suit.” Citizens Ins. Co. of Am. v. Daccach, 217 S.W.3d 430, 449 (Tex. 2007) (citing Barr v. Resol. Tr. Corp., 837 S.W.2d 627, 631 (Tex. 1992)). To establish that a claim is barred by res judicata, the party asserting the doctrine must prove three elements: “(1) a prior final judgment on the merits by a court of competent jurisdiction; (2) identity of parties or those in privity with them; and (3) a second action based on the same

claims as were raised or could have been raised in the first action.” Rosetta Res. Operating, LP v. Martin, 645 S.W.3d 212, 225 (Tex. 2022) (quoting Amstadt v. U.S. Brass Corp., 919 S.W.2d 644, 652 (Tex. 1996)). B Wells Fargo contends that all of the required elements of its res judicata affirmative

defense are established: the state-court summary judgment order dismissing the 2022 Lawsuit with prejudice constituted a final judgment on the merits entered by a court of competent jurisdiction, the 2022 and 2024 Lawsuits involve identical parties, and the 2022 and 2024 Lawsuits involve the same nucleus of operative facts as well as similar claims for relief. - 4 - Regarding the third element, Wells Fargo contends that the 2022 and 2024 Lawsuits both center on the Loan; involve alleged defects in the closing of the Loan in 2006; and seek a declaration that the Loan documentation and mortgage lien are void, forfeiture of principal

and interest on the Loan, and to preclude the remedy of foreclosure on the Loan. In addition, Wells Fargo maintains that all of the operative facts asserted in the 2024 Lawsuit necessarily arose before the final judgment in the 2022 Lawsuit.

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Lone Star Fund v (U.S.), L.P. v. Barclays Bank PLC
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Allen v. McCurry
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James Clark v. Amoco Production Co., Etc.
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Barr v. Resolution Trust Corp. Ex Rel. Sunbelt Federal Savings
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Amstadt v. United States Brass Corp.
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Bluebook (online)
Hawkins v. Wells Fargo Bank NA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawkins-v-wells-fargo-bank-na-txnd-2025.