Lakeview Loan Servicing, LLC. v. Green-Hall

CourtSuperior Court of Delaware
DecidedOctober 21, 2024
Docket24L-08-047 PRW
StatusPublished

This text of Lakeview Loan Servicing, LLC. v. Green-Hall (Lakeview Loan Servicing, LLC. v. Green-Hall) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakeview Loan Servicing, LLC. v. Green-Hall, (Del. Ct. App. 2024).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

LAKEVIEW LOAN SERVICING, LLC, ) ) Plaintiff, ) v. ) C.A. No. N24L-08-047 PRW ) COREY GREEN-HALL and ) NIKKI SMITH, ) ) Defendants. )

Submitted: September 30, 2024 Decided: October 21, 2024

ORDER DENYING DEFENDANTS’ SECOND AND THIRD MOTIONS TO DISMISS

HAVING FULLY CONSIDERED Defendants Corey Green-Hall and Nikki

Smith’s most recent Motions to Dismiss (D.I. 8 and 9), Plaintiff Lakeview Loan

Servicing’s response thereto (D.I. 10 and 11), the authorities cited, and the entire

record developed thus far, it appears to the Court that:

(1) On August 23, 2024, Plaintiff Lakeview Loan filed its complaint for a

writ of scire facias sur mortgage alleging that Defendants have defaulted in

payments and owes it the principal amount remaining on a mortgage for a property

known as 10 Central Avenue, Wilmington, Delaware [Tax Parcel No. 07-038.10-

345].1

1 D.I. 1.

-1- (2) Invoking this Court’s Civil Rule 12(b)(3), the Defendants immediately

answered with a “Motion to Dismiss for Improper Venue” wherein they insisted that

this Court “is an improper venue for the claims asserted.”2 The Court denied that

first motion to dismiss on September 16, 2024.3

(3) Rather than file an answer to the Complaint as then required, 4 the

Defendant’s docketed two new motions to dismiss.5

(4) The first motion is purported to be filed by Defendant Smith alone. It

is entitled “Defendant’s Motion to Dismiss for Lack of Liability” and cites as

authority “Rule 12(b) of the Delaware Rules of Civil Procedure.”6 Therein,

Ms. Smith suggests that she can not be named as a defendant in this action seeking

a writ of scire facias sur mortgage because there is no “privity of contract” between

Lakeview Loan and her.7

(5) The second motion is purported to be filed by Defendant Green-Hall

alone. It is entitled “Motion to Dismiss for Failure to State a Claim” and cites as

2 D.I. 5. at ¶ 1. Through that motion, Defendants also contended that this Court lacked subject matter jurisdiction over Plaintiff’s claim. Id. at ¶¶ 2-3. 3 D.I. 7. 4 See generally Del. Super. Ct. Civ. R. 12(a)(1) (providing that when the Court denies a Rule 12(b) motion, a defendant’s Answer to the Complaint is to be served within ten days of the Court’s denial). 5 D.I. 8 and 9. 6 D.I. 8. 7 D.I. 8 at ¶ 1.

-2- authority “Rule 12(b)(6) of the Delaware Superior Court Civil Rules.”8 Therein,

Mr. Green-Hall suggests that Lakeview Loan cannot seek a writ of scire facias sur

mortgage because he has notified Lakeview Loan that he “took full ownership of the

mortgage note, thereby guaranteeing his rights to interest” that he posits is

documented and perfected in a “signed Security Instrument” he attached to his

motion.9 According to Mr. Green-Hall, this means he has “fulfilled his obligations

and [under the mortgage] and has complied with all applicable legal requirements,”

Lakeview Loan, therefore, “has no valid claim to proceed with this lawsuit.”10

(6) Lakeview Loan has docketed its response to both motions arguing that

its complaint has named the proper and necessary parties to and pled sufficient facts

and evidence in support of its prayer for a complaint for a writ of scire facias sur

mortgage.11

(7) Though only one cites a specific Rule 12(b) provision, each of

Defendants’ motions is governed by this Court’s Civil Rule 12(b)(6).12

8 D.I. 8. 9 D.I. 9 ¶ 1. 10 Id. at ¶ 5. 11 D.I. 10. 12 Freedom Mortgage Corp. v. Rayfield, 2023 WL 2134977, at *1 (Del. Super. Ct. Feb. 17, 2023) (noting that even when a motion to dismiss is filed in a mortgage foreclosure action fails to “speak directly to any cognizable grounds for dismissal under Superior Court Civil Rule 12 . . . the Court will treat the motion as a motion to dismiss for failure to state a claim under Superior Court Civil Rule 12(b)(6)).

-3- (8) A motion to dismiss under this Court’s Rule 12(b)(6) tasks the Court

with weighing the complaint’s allegations against the governing reasonable

conceivability pleading standard.13 When applying Rule 12(b)(6), the Court views

the complaint in the light most favorable to the plaintiff, accepts as true all of the

complaint’s well-pled allegations, and draws all reasonable inferences in the

plaintiff’s favor.14 The complaint and any attached documents generally define the

“universe of facts” this Court may consider when ruling on a 12(b)(6) motion to

dismiss.15 And in the end, this Court must deny dismissal unless the plaintiff could

not recover under any reasonably conceivable set of circumstances susceptible of

proof.16

(9) Ms. Smith seems to believe that Lakeview Loan is somehow seeking to

have her pay the mortgage debt. But as Woolley on Delaware Practice explains the

purpose of the process of scire facias sur mortgage is

. . . that the sheriff make known to the defendant that he be and appear

13 Windsor I, LLC v. CWCapital Asset Mgt. LLC, 238 A.3d 863, 871-72 (Del. 2020) (Under Superior Court Rule 12(b)(6), “[t]he grant of a motion to dismiss is only appropriate when the “plaintiff would not be entitled to recover under any reasonably conceivable set of circumstances susceptible of proof.”) (internal quotations omitted). 14 Id. (quoting Deuley v. DynCorp Intern., Inc., 8 A.3d 1156, 1160 (Del. 2010)). 15 In re Gen. Motors (Hughes) S’holder Litig., 897 A.2d 162, 168 (Del. 2006) (“The complaint generally defines the universe of facts that the trial court may consider in ruling on a Rule 12(b)(6) motion to dismiss.”); Wal-Mart Stores, Inc. v. AIG Life Ins. Co., 860 A.2d 312, 320 (Del. 2004) (“On a motion to dismiss, the Court may consider documents that are ‘integral’ to the complaint, but documents outside the pleadings may be considered only in ‘particular instances and for carefully limited purposes.’”). 16 Savor, Inc. v. FMR Corp., 812 A.2d 894, 897 (Del. 2002).

-4- at the Superior Court on a day named “to show cause, if any he have, or know to say wherefore the said mortgaged premises with the appurtenances should not be seized and taken in execution and sold to satisfy the said (plaintiff), the mortgage money aforesaid . . . .17

As such, this is an in rem action that does not—as Ms. Smith suggests—seek to hold

her individually “liable for a debt” or to “collect any debt from Nikki Smith.”18 It

is instead, an action to foreclose on the mortgage held on the subject property. And

Ms. Smith, since November 4, 2021, has appeared on the recorded deed for that

subject property.19

(10) In turn, she—because of the governing statute—has been properly and

necessarily named as a party in this mortgage foreclosure action.20 And so,

Ms. Smith’s motion to dismiss must be DENIED.

(11) Again, Lakeview Loan has sought a writ of scire facias sur mortgage

via 10 Del. C. § 5061(a) which provides, in pertinent part:

. . . upon breach of the condition of a mortgage of real estate by

17 2 WOOLLEY ON DELAWARE PRACTICE § 1358 (1906). 18 D.I. 8 ¶ 2. 19 Plaintiff’s Resp. to Mots. to Dism., Ex. A (recorded deed) (D.I. 11). See In re Gen.

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Related

In Re General Motors (Hughes) Shareholder Litigation
897 A.2d 162 (Supreme Court of Delaware, 2006)
Savor, Inc. v. FMR Corp.
812 A.2d 894 (Supreme Court of Delaware, 2002)
Wal-Mart Stores, Inc. v. AIG Life Insurance
860 A.2d 312 (Supreme Court of Delaware, 2004)
Deuley v. DynCorp International, Inc.
8 A.3d 1156 (Supreme Court of Delaware, 2010)

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Bluebook (online)
Lakeview Loan Servicing, LLC. v. Green-Hall, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakeview-loan-servicing-llc-v-green-hall-delsuperct-2024.