John M. Barone v. Wells Fargo Bank, N.A.

709 F. App'x 943
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 21, 2017
Docket16-16079 Non-Argument Calendar
StatusUnpublished
Cited by10 cases

This text of 709 F. App'x 943 (John M. Barone v. Wells Fargo Bank, N.A.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John M. Barone v. Wells Fargo Bank, N.A., 709 F. App'x 943 (11th Cir. 2017).

Opinion

PER CURIAM:

John M. Barone, proceeding pro se, appeals the district court’s dismissal of his complaint alleging various wrongful acts by Wells Fargo Bank, N.A. (‘Wells Fargo”), after it acquired Barone’s mortgage in 2008. The district court dismissed his complaint for lack of subject-matter jurisdiction under the Rooker-Feldman 1 doctrine, concluding that Barone was, in essence, seeking to challenge the underlying state foreclosure judgment that Well Fargo obtained in October 2013. In the alternative, the court abstained from exercising jurisdiction, under both the Younger 2 and Colorado River 3 abstention doctrines, in light of a parallel state case that Barone filed against Well Fargo six months before bringing suit in federal court. Barone maintains that not one of these doctrines applies and that the court erred in dismissing his suit.

After careful review, we agree with Bar-one that the district court had subject-matter jurisdiction over at least some of his claims and that no “exceptional” circumstances warranted abstention. But Wells Fargo is correct that Barone’s complaint violated Rule 8, Fed. R. Civ. P., and was subject to dismissal without prejudice on that basis. We therefore remand this case with instructions to allow Barone to replead his claims with greater clarity and in compliance with the Federal Rules of Civil Procedure.

I.

Barone initiated this lawsuit against Wells Fargo in May 2016 in the United States District Court for the Southern District of Florida by filing a 171-page complaint and 165 pages of exhibits. Barone’s 811-paragraph complaint contains approximately thirteen 13 counts 4 and covers events both before and after Wells Fargo obtained a state-court foreclosure judgment in 2013.

Barone’s allegations reflect that Wells Fargo took over Barone and his wife’s (the “Barones”) mortgage in 2008, when Wells Fargo acquired Wachovia. At some point between then and 2011, when Wells Fargo filed the foreclosure suit, the Barones began having trouble making mortgage payments because of a downturn in business and his wife’s serious medical issues. To try to lower their monthly payment, the Barones applied for a loan modification under the Home Affordable Modification Program (“HAMP”), for which Barone asserts they were eligible. At Wells Fargo’s instruction, they stopped making mortgage payments in order to be considered for the loan modification.

Those efforts at modification appear to have been unsuccessful, however. The state foreclosure proceeding ended in a Consent Final Judgment of Foreclosure in October 2013. The Barones were represented by counsel in the foreclosure proceeding.

After the 2013 foreclosure judgment, the Barones continued to seek a loan modification and other forms of foreclosure relief from Wells Fargo. Barone alleged that, despite the Barones’ eligibility, Wells Fargo again denied modification under HAMP and instead offered less favorable modification terms.

In addition to the loan-modification issues, Barone alleged that Wells Fargo wrongfully obtained lender-placed (or “force-placed”) hazard insurance on the Barones’ home. The complaint states that Wells Fargo charged the Barones for lender-placed hazard insurance at a substantially higher cost than if they had obtained insurance on their own, and that Wells Fargo received undisclosed kickbacks from the lender-placed insurers for using their exorbitantly-priced policies. Barone alleged that Wells Fargo continued to charge for lender-placed insurance after the foreclosure judgment in October 2013.

Citing his own experiences, other court cases, and newspaper articles, Barone alleged that Wells Fargo and its affiliates were operating a RICO enterprise for the purpose of defrauding the Barones, Wells Fargo’s other customers, and U.S. taxpayers. The fraudulent scheme, according to Barone, included pushing customers to stop making monthly mortgage payments to be eligible for loan modifications which Wells Fargo had no intention of granting, as well as manipulating the lender-placed insurance market to maximize its profits by earning illegal kickbacks from the lender-placed insurers.

Well Fargo moved to dismiss the complaint on three main grounds: (1) for lack of subject-matter jurisdiction under the Rooker-Feldman doctrine; (2) for failure to comply with Rule 8, Fed. R. Civ. P.; and (3) because abstention was warranted in light of a nearly identical state-court case against Wells Fargo that Barone filed in December 2015, around six months before the federal lawsuit.

The district court dismissed the complaint for lack of jurisdiction, pursuant to the Rooker-Feldman doctrine. Finding that a “majority” of the claims raised in Barone’s current complaint were inextricably intertwined with the state-court foreclosure proceeding, the district court concluded that Barone was, in essence, attempting to challenge his state foreclosure judgment in federal court, which the Rooker-Feldman doctrine forbids. In the alternative, the district court determined that it should abstain from hearing the matter under either the Younger or Colorado River abstention doctrines in light of the parallel state case. Barone now appeals.

II.

We review de novo the application of the Rooker-Feldman doctrine. Lozman v. City of Riviera Beach, Fla., 713 F.3d 1066, 1069-70 (11th Cir. 2013). We review a district court’s decision to abstain for an abuse of discretion. Boyes v. Shell Oil Prod. Co., 199 F.3d 1260, 1265 (11th Cir. 2000). A district court will abuse its discretion if it fails to apply the proper legal standard, fails to follow proper procedures, or makes a clear error of judgment. Id.

III.

“Generally speaking, the Rooker-Feld-man doctrine bars federal district courts from reviewing state court decisions.” Nicholson v. Shafe, 558 F.3d 1266, 1270 (11th Cir. 2009). In the federal system, only the Supreme Court of the United States has appellate jurisdiction over judgments of state courts in civil cases. See 28 U.S.C. § 1257; Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280, 292, 125 S.Ct. 1517, 161 L.Ed.2d 454 (2005).

More precisely, the Rooker-Feldman doctrine applies to eases “brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments.” 5 Exxon Mobil, 544 U.S. at 284, 125 S.Ct. 1517.

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Bluebook (online)
709 F. App'x 943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-m-barone-v-wells-fargo-bank-na-ca11-2017.