Lewis v. CrossCountry Mortgage

CourtDistrict Court, S.D. Texas
DecidedJune 10, 2024
Docket4:23-cv-04568
StatusUnknown

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

Bluebook
Lewis v. CrossCountry Mortgage, (S.D. Tex. 2024).

Opinion

UNITED STATES DISTRICT COURT June 10, 2024 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION SIRENLEWIS, § Plaintiff, § § v. § CIVILACTION NO. 4:23-CV-4568 § CROSSCOUNTRY MORTGAGE,ET AL., § Defendants. § MEMORANDUM AND RECOMMENDATION This case involving Plaintiff’s mortgage loan, in which Plaintiff is proceeding pro se, is before the Court on Defendant CrossCountry Mortgage’s (CCM’s) Motion to Dismiss. ECF 16. The Court previously terminated Dovenmuehle Mortgage, Inc.’s (DMI’s) Motion to Dismiss (ECF 8) without prejudice to refiling. The Court construes the pending Motion to Dismiss as DMI’s renewed Motion to Dismiss by virtue of its joinder in Defendants’ joint Reply.1 ECF 16; ECF 23. Plaintiff has filed a Response. ECF 20. Having reviewed the parties’ submissions and the law, the

Court recommends that Defendants’ Motion to Dismiss be GRANTED and this case be dismissed with prejudice.

1 The District Court referred this case to the undersigned Magistrate Judge pursuant to 28 U.S.C. § 636(b)(1)(A) and (B), the Cost and Delay Reduction Plan under the Civil Justice Reform Act, and Federal Rule of Civil Procedure 72. ECF 7. I. Background The United States District Court for the Northern District of Ohio, Eastern

Division, transferred this case to the Southern District of Texas. ECF 5. After transfer, the Court granted Plaintiff access to the Court’s electronic filing system (ECF 11) and leave to proceed in forma pauperis (ECF 14). The Court informed

Plaintiff that her case would be dismissed if, at any time, the Court determined it was frivolous, malicious, or failed to state a claim on which relief could be granted. ECF 14 (citing 28 U.S.C. § 1915(e)(2)(B)(i)-(ii)). The Court ordered Plaintiff to file an Amended Complaint on or before March 6, 2024, and terminated DMI’s initial

Motion to Dismiss (ECF 8) without prejudice to refiling once Plaintiff filed her Amended Complaint. Id. Plaintiff did not comply with the Court’s order to file an Amended Complaint by March 6, 2024. The Court recently denied Plaintiff’s late-

filed Motion for Leave to Amend. ECF 28. Defendants’ Motion to Dismiss argues that Plaintiff’s Complaint alleges unspecified accounting errors and a RESPA “12 CFR 1026.13 violation” but fails to specify the nature of the violation. ECF 16 at 3 (citing Section III of the Complaint).

Defendants argue that under RESPA, Plaintiff cannot recover for the non-monetary injuries of harassment and stress, and that she has not alleged monetary injuries. Id. Defendants also argue that Plaintiff’s case should be dismissed for the independent

reason that she did not comply with the Court’s February 14, 2024 Order. II. Rule 12(b)(6) Standards To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must plead “enough

facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference

that the defendant is liable for the conduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); Gonzalez v. Kay, 577 F.3d 600, 603 (5th Cir. 2009). In reviewing a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), this Court accepts all well-pleaded facts as true, viewing them in the light most favorable to the

plaintiff. Alexander v. AmeriPro Funding, Inc., 48 F.3d 68, 701 (5th Cir. 2017) (citing Martin K. Eby Constr. Co. v. Dallas Area Rapid Transit, 369 F.3d 464, 467 (5th Cir. 2004)). However, the court does not apply the same presumption to

conclusory statements or legal conclusions. Iqbal, 556 U.S. at 678-79. Generally, the court may consider only the allegations in the complaint and any attachments thereto in ruling on a Rule 12(b)(6) motion. If a motion to dismiss refers to matters outside the pleading it is more properly considered as a motion for

summary judgment. See FED.R.CIV.P. 12(d). However, the court may take judicial notice of public documents, and may also consider documents a defendant attaches to its motion to dismiss under 12(b)(6) if the documents are referenced in the

plaintiff’s complaint and central to the plaintiffs’ claims. See Norris v. Hearst Trust, 500 F.3d 454, 461 n.9 (5th Cir. 2007); Collins v. Morgan Stanley Dean Witter, 224 F.3d 496, 499 (5th Cir. 2000); King v. Life Sch., 809 F. Supp. 2d 572, 579 n.1 (N.D.

Tex. 2011). In this case, the Court considers all documents attached to Plaintiff’s Complaint, Motion to Amend (ECF 19), and Response (ECF 20), because they are central to her claims.

III. Analysis Pursuant to Rule 12(b)(6), Plaintiff’s Complaint should be dismissed with prejudice because: (1) her claims are wholly conclusory and do not identify specific wrongdoing by Defendants which violated a specific statute; (2) Plaintiff cannot

recover under RESPA for nonpecuniary damages under Duncan v. LNV Corp., No. CV H-11-3797, 2012 WL 13041999, at *6 (S.D. Tex. July 20, 2012) (holding “[o]nly actual damages—not nonpecuniary losses—are recoverable for a RESPA

violation.”)). In addition, pursuant to Rule 41(b), Plaintiff’s Complaint should be dismissed based on her failure to comply with the Court’s February 14, 2024 Orders (ECF 14; ECF 15) requiring her to file an Amended Complaint on or before March 6, 2024 which contained a more definite statement of her claims.2

2 Federal Rule of Civil Procedure 41(b) authorizes the Court to dismiss a case with prejudice for failure to comply with a court order if the failure is caused by intentional conduct. Morgan v. Americas Ins. Co., 759 F. App'x 255, 257 (5th Cir. 2019). Given that the Court issued two Orders on February 14, 2024 clearly stating that “the Court has issued an Order requiring Plaintiff to file an Amended Complaint containing a more definite statement of her claims on or before March 6, 2024,” the Court concludes that Plaintiff’s failure to comply was intentional. ECF 14; ECF 15. Therefore, under Rule 41(b),this case is subject to dismissalwith prejudice. Plaintiff”s pleadings and Response consist mainly of a references to statutes and jumbled statements about purported statutory violations without any factual

supportfor the alleged violations. As the Court noted in its February 14, 2024 Order, a December 2022 letter attached to Plaintiff’s Complaint indicates that she may be attempting to state a claim for a Defendant’s failure to properly credit COVID relief

funds to her account. ECF 14; ECF 1-6.

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Related

Collins v. Morgan Stanley Dean Witter
224 F.3d 496 (Fifth Circuit, 2000)
Norris v. Hearst Trust
500 F.3d 454 (Fifth Circuit, 2007)
Gonzalez v. Kay
577 F.3d 600 (Fifth Circuit, 2009)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
King v. LIFE SCHOOL
809 F. Supp. 2d 572 (N.D. Texas, 2011)

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Lewis v. CrossCountry Mortgage, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-crosscountry-mortgage-txsd-2024.