Hughes v. PHH Mortgage Corporation

CourtDistrict Court, D. South Carolina
DecidedOctober 7, 2025
Docket4:24-cv-00985
StatusUnknown

This text of Hughes v. PHH Mortgage Corporation (Hughes v. PHH Mortgage Corporation) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hughes v. PHH Mortgage Corporation, (D.S.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA FLORENCE DIVISION Michael Dante Hughes and Angela Ann) Case No.: 4:24-cv-00985-JD Hughes, ) ) Plaintiffs, ) ) vs. ) MEMORANDUM ORDER AND ) OPINION GRANTING SUMMARY PHH Mortgage Corporation a/k/a PHH ) JUDGMENT Mortgage Services, ) ) Defendants. ) ____________________________________ ) Plaintiffs Michael Dante Hughes and Angela Ann Hughes (collectively, “Plaintiffs”) sued Defendants PHH Mortgage Corporation a/k/a PHH Mortgage Services (“PHH Mortgage” or “PHH”) and Equifax Information Services, LLC (“Equifax”),1 asserting claims under the Fair Credit Reporting Act (“FCRA”), for breach of contract (the settlement agreement, note, mortgage), slander of credit, and violation of the South Carolina Unfair Trade Practices Act (“SCUTPA”). (DE 1.) PHH Mortgage moved for summary judgment on all claims asserted against it. (DE 36.) Plaintiffs filed a response in opposition. (DE 50.) PHH Mortgage thereafter filed a reply. (DE 54.) For the reasons below, the Court grants PHH Mortgage’s motions for summary judgment (DE 36). 1 Plaintiffs and Equifax filed a joint stipulation of dismissal with prejudice as to Plaintiffs’ claims against Equifax. (DE 79.) Accordingly, Equifax is dismissed from this case. I. BACKGROUND A. Factual Background Plaintiffs obtained a mortgage loan serviced by PHH. Following disputes about

the servicing of their account, including the application of payments and the assessment of fees, Plaintiffs and PHH settled on August 23, 2021, which resolved claims raised in a prior bankruptcy adversary proceeding. (DE 50 at 1–2; DE 36-3.) The agreement addressed the waiver of certain fees, obligations regarding credit reporting, and the proper application of future payments. (Id.) Plaintiffs allege that PHH breached the settlement agreement by assessing a $250 bankruptcy-related attorney’s fee, misapplying payments, and issuing

inaccurate monthly statements post-settlement. (DE 50 at 2; DE 36-5 at 5–6.) Plaintiffs also contend that PHH paid for an unauthorized hazard insurance policy and inaccurately treated their account as delinquent. (DE 1 ¶¶ 17–18.) According to Plaintiffs, PHH’s conduct caused financial harm, reputational damage, and adverse credit impacts. (Id. ¶¶ 19–20; DE 50 at 2–3.) Plaintiffs also allege that PHH inaccurately reported information to credit

reporting agencies and failed to correct those inaccuracies following the 2021 settlement. They assert that the resulting derogatory credit information contributed to the denial of an Economic Injury Disaster Loan (EIDL) and unfavorable auto loan terms. (DE 1 ¶ 20; DE 50 at 2–3.) However, PHH maintains that it did not furnish post-settlement credit information regarding Plaintiffs and that no dispute was ever communicated to it by a consumer reporting agency under the FCRA. (DE 36-2 at 6, Verdooren Decl. ¶¶ 17–20.) And PHH contends that Plaintiffs failed to disclose documentation substantiating their claimed damages in discovery. For example, although Plaintiffs testified to credit denials and physical symptoms—such as migraines and acid reflux

allegedly experienced by Angela Hughes—PHH asserts that these categories of damages were not properly disclosed in written discovery responses. (DE 36-1 at 6– 8; DE 36-8 at 4–5.) B. Procedural Background Plaintiffs filed this action on February 27, 2024, asserting seven causes of action: (1) violation of the FCRA (Counts I, II) against Equifax and (Count III) against

PHH, (2) breach of the August 2021 settlement agreement (Count VI) against PHH, (3) breach of the note and mortgage (Count VII) against PHH, (4) slander of credit (Count IV) against PHH and Equifax, and (5) violation of the SCUTPA (Count V) against PHH. (DE 1.) PHH answered the Complaint on May 1, 2024 (DE 14). On May 17, 2025, PHH moved for summary judgment on all claims asserted against it. (DE 36.) PHH argues that Plaintiffs have failed to demonstrate the existence of a genuine issue of material fact with respect to any claim and that its

conduct was legally compliant and contractually justified. PHH also argues that Plaintiffs’ SCUTPA and slander of credit claims are preempted by the FCRA and independently deficient. (DE 36-1 at 12–28.) Plaintiffs filed a response in opposition on May 27, 2025 (DE 50), and PHH filed its reply on June 10, 2025 (DE 54). The motion is now fully briefed and ripe for disposition. II. LEGAL STANDARD “[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of ‘the pleadings, depositions, answers to interrogatories, and admissions on

file, together with the affidavits, if any,’ which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). “Under Rule 56(c), summary judgment is proper ‘if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’” Id. at 322. “A fact is ‘material’ if proof

of its existence or non-existence would affect disposition of the case under applicable law. An issue of material fact is ‘genuine’ if the evidence offered is such that a reasonable jury might return a verdict for the non-movant.” Wai Man Tom v. Hosp. Ventures LLC, 980 F.3d 1027, 1037 (4th Cir. 2020) (citation omitted). If the burden of proof at trial would be on the nonmoving party “a summary judgment motion may properly be made in reliance solely on the ‘pleadings, depositions, answers to interrogatories, and admissions on file.’” Celotex Corp., 477 U.S. at 324. “[T]he burden

on the moving party may be discharged by ‘showing’— that is, pointing out to the district court—that there is an absence of evidence to support the nonmoving party’s case.” Id. at 325. “If the moving party has not fully discharged this initial burden of production, its motion for summary judgment must be denied[] . . . .” Id. at 332 (Brennan, J., dissenting). Accordingly, once the movant has made this threshold demonstration, to survive the motion for summary judgment, under Rule 56(e), the nonmoving party must “go beyond the pleadings and by h[is] own affidavits, or by the ‘depositions,

answers to interrogatories, and admissions on file,’ designate ‘specific facts showing that there is a genuine issue for trial.’” Celotex Corp., 477 U.S. at 324 (citation omitted). Under this standard, “the mere existence of a scintilla of evidence” in favor of the non-movant’s position is insufficient to withstand the summary judgment motion. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252 (1986). “Likewise, conclusory allegations or denials, without more, are insufficient to preclude granting

the summary judgment motion.” Wai Man Tom, 980 F.3d at 1037. “Summary judgment cannot be granted merely because the court believes that the movant will prevail if the action is tried on the merits.” Jacobs v. N.C. Admin. Office of the Cts, 780 F.3d 562, 568 (4th Cir. 2015) (quoting 10A Charles A. Wright et al., Federal Practice & Procedure § 2728 (3d ed. 1998)). “The court may grant summary judgment only if it concludes that the evidence could not permit a reasonable jury to return a favorable verdict.” Sedar v. Reston Town Ctr. Prop., LLC,

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Bluebook (online)
Hughes v. PHH Mortgage Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-v-phh-mortgage-corporation-scd-2025.