Levitz v. PNC Bank National Association

District Court, D. Hawaii·Decided December 17, 2024·No. 1:24-cv-00024·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAI‘I

SAMUEL NOAH KEONI LEVITZ, Case No. 24-cv-00024-DKW-KJM

Plaintiff, ORDER (1) GRANTING DEFENDANT’S MOTION TO v. DISMISS; (2) DENYING MOTION FOR TEMPORARY PNC BANK NATIONAL ASSOCIATION, RESTRAINING ORDER; AND (3) DISMISSING AMENDED Defendant. COMPLAINT WITH LIMITED LEAVE TO AMEND

In an Amended Complaint, Plaintiff Samuel Noah Keoni Levitz (Levitz or Plaintiff), proceeding without counsel, brings various claims against Defendant PNC Bank National Association (PNC or Defendant), appearing to arise from a mortgage loan he received from PNC to purchase a property in Hale‘iwa, Hawai‘i (“Property”), and PNC’s subsequent attempts to foreclose on the Property in Hawai‘i State court. More specifically, Levitz’s claims include, among others, efforts to “quiet title” in the Property and “void” the mortgage, as well as alleged violations of federal statutes, such as the Fair Credit Reporting Act (FCRA), the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), and the Fair Debt Collection Practices Act (FDCPA). In addition, after previous failed attempts, on October 17, 2024, Levitz filed a third motion for temporary restraining order (“TRO Motion”), seeking to prevent PNC from “taking foreclosure actions” with respect to the Property. Dkt. No. 37. Less than a week later, PNC moved to dismiss this entire case on various grounds,

including under the Rooker-Feldman doctrine, res judicata, and failure to state a claim. Dkt. No. 43. With the time for briefing now complete, it is clear that the vast majority of

Levitz’s claims must be dismissed on the grounds of either Rooker-Feldman and/or res judicata (or both). This is because, in certain claims, Levitz seeks to have this Court ignore or overturn rulings in the State court foreclosure action (Rooker- Feldman) and, in others, he raises matters that were or could have been raised in

the State court foreclosure action (res judicata). The only possible exceptions are claims arising under the FCRA, the RESPA, and the FDCPA. As alleged, and liberally construed, those claims may involve matters that were not or need not

have been raised in the State court foreclosure action. Even so, those claims still fail as they each fall far short of alleging a plausible claim. Because those deficiencies may be cured by amendment, however, the Court will allow Levitz an opportunity to do so, to the extent set forth herein. Therefore, for the reasons

more fully set forth below, PNC’s motion to dismiss is GRANTED, but Levitz is permitted limited leave to amend his FCRA, RESPA, and FDCPA claims only.

2 Further, as Levitz has failed to show a likelihood of success with respect to any of his claims, the TRO Motion is DENIED.

BACKGROUND On January 17, 2024, Levitz initiated this action with the filing of a Complaint against PNC and various unidentified insurers, investors, and/or trustees

of PNC and/or an unidentified special purpose vehicle (or “SPV”) (collectively, Defendants). Dkt. No. 1. Approximately two weeks later, after the denial of a motion for an emergency injunction, Levitz filed the operative Amended Complaint. Dkt. Nos. 10-11. Therein, Levitz alleged that PNC “improperly

securitized” the mortgage on his Property in order to “obscure” ownership and “avoid legal obligations” to Levitz. Levitz alleged the following claims against the Defendants: (1) for quiet title of the Property, arguing that the mortgage was

“unenforceable”; (2) for declaratory relief as to the enforceability of the mortgage; (3) violation of the FCRA related to Defendants reporting “negative information” on Levitz’s credit report; (4) violation of the TILA related to Defendants failing to provide “necessary disclosures” during the origination of the mortgage and its

securitization; (5) violation of the RESPA related to Defendants’ actions in “servicing the mortgage”; (6) violation of the FDCPA related to Defendants’ attempts to “collect on the mortgage”; (7) breach of contract in Defendants “failing

3 to adhere” to the terms of the mortgage; (8) negligence related to the Defendants’ “handling of the mortgage servicing and securitization process”; and (9) fraudulent

misrepresentations by PNC related to the servicing, management, and securitization of the mortgage. On October 17, 2024, after a second unsuccessful attempt at seeking an ex

parte restraining order, Levitz filed the pending third TRO motion. Dkt. Nos. 21, 37. Therein, Levitz sought to enjoin PNC from “any foreclosure actions, eviction proceedings, or any activities” related to the Property, arguing that PNC did not have “legal standing to foreclose” on the Property because it had failed to produce

the original promissory note. On October 21, 2024, PNC filed the pending motion to dismiss all claims in this action. Dkt. No. 43. PNC asserts that, prior to filing this case, Levitz entered

into and subsequently defaulted on a mortgage, resulting in PNC commencing a foreclosure proceeding in 2014 in State court. According to PNC, in February 2023, the State court granted PNC summary judgment and, thereby, issued a decree of foreclosure and order of sale with respect to the Property—something

that Levitz did not appeal. PNC argues that, as a result, Levitz’s claims should be dismissed for various reasons. First, PNC argues that Levitz’s claims are barred

4 by the Rooker-Feldman1 doctrine because they are “inextricably intertwined” with the State court’s decree of foreclosure and order of sale. Second, PNC argues that

the claims are barred by principles of res judicata, specifically, privity of the parties, existence of a final judgment, and claims that could have been brought in the State foreclosure action. Finally, PNC argues that each of Levitz’s claims fail

to state a claim under Federal Rule of Civil Procedure 12(b)(6). The Court scheduled both of these pending motions for hearing on November 26, 2024. Dkt. Nos. 40, 45. As a result, pursuant to Local Rule 7.2, responses to the same were due on or before November 5, 2024, and replies in

support were due on or before November 12, 2024. As of the date of this Order, the Court has received just one additional brief. Specifically, on November 5, 2024, PNC filed an opposition to the TRO Motion, which largely incorporated the

arguments in its motion to dismiss. Dkt. No. 48. This means, although the time to do so has now long passed, Levitz has failed to oppose the motion to dismiss. With briefing now complete, this Order follows.

1Dist. of Columbia Court of Appeals v. Feldman, 460 U.S. 462 (1983); Rooker v. Fid. Trust Co., 263 U.S. 413 (1923). 5 LEGAL STANDARDS PNC moves for dismissal pursuant to Federal Rules of Civil Procedure

12(b)(1) and (6). Levitz, meanwhile, moves for a temporary restraining order, under Federal Rule of Civil Procedure 65. I. Federal Rule of Civil Procedure 12(b)(1)

A challenge to the Court’s subject matter jurisdiction is brought under Federal Rule of Civil Procedure 12(b)(1). Fed.R.Civ.P. 12

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