Otero v. NewRez LLC

CourtDistrict Court, M.D. Florida
DecidedJanuary 27, 2023
Docket6:21-cv-00118
StatusUnknown

This text of Otero v. NewRez LLC (Otero v. NewRez LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otero v. NewRez LLC, (M.D. Fla. 2023).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

ISRAEL OTERO and PURA RODRIGUEZ,

Plaintiffs,

v. Case No: 6:21-cv-118-PGB-DCI

NEWREZ, LLC, BANK OF NEW YORK MELLON, TROMBERG MORRIS & POULIN PLLC, ANDREA R. TROMBERG, BOB P. LEBLANC, LISA T. MUNYON, CHAD K. ALVARO, RICHARD B. ORFINGER, JAY B. COHEN, FREDERIC RAND WALLIS and VINCENT FALCONE, III ,

Defendants. / ORDER This cause is before the Court on the following filings: 1. Motion to Dismiss Amended Complaint by Andrea Tromberg and Tromberg Morris & Poulin PLLC (the “Law Firm”) (Doc. 51); 2. Motion to Dismiss Amended Complaint by the Bank of New York Mellon (“BONYM”) and NewRez LLC, d/b/a Shellpoint Mortgage Servicing (“Shellpoint”) (Doc. 52); 3. Motion to Dismiss by Judicial Defendants (Doc. 66); 4. Plaintiffs’ Responses in Opposition (Docs. 62, 64, 74); and 5. The Mandate of the Eleventh Circuit Court of Appeals (Doc. 80). I. PROCEDURAL HISTORY Plaintiffs, who are proceeding pro se, initially filed a complaint with this Court against a mortgage company, a bank, a law firm, an attorney, and six Florida

state court judges (collectively, the “Defendants”) on January 25, 2021. (Doc. 1 (the “complaint”)). On May 4, 2021, the Court sua sponte dismissed the complaint as an impermissible shotgun pleading; the Court gave the Plaintiffs leave to file an amended complaint. (Doc. 39). On May 24, 2021, Plaintiffs filed an amended complaint naming each of the Defendants and one additional Florida

state court judge. (Doc. 46 (the “amended complaint”)). Plaintiffs allege five (5) causes of action against the Defendants in various combinations: Count I (Fraud), Count II (FDCPA), Count III (§ 1983 Due Process) (Judicial Defendants), Count IV (§ 1983 Access to Courts) (subset of Judicial Defendants), and Count V (Intentional Infliction of Emotional Distress) (everyone). (Id.). Faced with renewed litigation initiated by the Plaintiffs in federal court, the

Defendants filed their respective motions to dismiss. (Docs. 51, 52, 66). The Magistrate Judge considered the motions to dismiss filed by the non-judicial defendants and recommended dismissal of the Plaintiffs’ claims as barred by the Rooker-Feldman doctrine. (Doc. 65). The Judicial Defendants submitted their motion to dismiss after the Report and Recommendation was entered; the

Plaintiffs responded, and the undersigned adopted the Magistrate’s recommendation and dismissed the case. (Doc. 76). On appeal, the Eleventh Circuit correctly found the Magistrate Judge and this Court incorrectly applied the Rooker-Feldman doctrine as it was construed before the Court’s decision in Behr v. Campbell, 8 F.4th 1206, 1209–10 (11th Cir. 2021). (Doc. 79, p. 5). That is, this Court erred by not employing Rooker-Feldman on a claim-by-claim basis instead

of the expansive approach rejected in Behr. (Id. at p. 6). The Circuit Court found none of the Plaintiffs’ claims are barred by the Rooker-Feldman doctrine because they seek damages for issues collateral to the final judgment of foreclosure. (Id.). Accordingly, the Rooker-Feldman doctrine will not be addressed in this Order. The Eleventh Circuit also found this Court erred by dismissing the fraud

claims without prejudice. (Id. at p. 3). As the Circuit noted, “[a]n action for fraud must be brought within four years under Florida law. Fla. Stat. § 95.11(3)(j).” (Id.). The Circuit found “the amended complaint makes clear that, in 2014, Appellants knew of the alleged fraud concerning Rodriquez’s absence at a hearing and were aware that [BONYM] was named trustee in the state foreclosure action.” (Id.). Since it was apparent from the face of the complaint that the statute of limitations

bars the fraud claim, the Circuit Court found this Court erred by not dismissing that claim with prejudice. (Id. at pp. 3–4). The Eleventh Circuit vacated the Court’s Order and remanded with instructions for the Court to consider the Defendants’ remaining arguments. (Id. at p. 8). II. DISCUSSION

To understand the claims raised by the Plaintiffs, one must possess a working knowledge of the foreclosure action commenced in state court which predates this federal case. Plaintiffs were sued in state court for failing to pay their mortgage, and a final judgment of foreclosure was eventually entered against Plaintiffs. (Doc. 51, pp. 2–3 (citing Orange County Circuit Court Case No. 2014- CA-1836)). Plaintiffs moved to vacate the judgment in state court (which motion

was denied); moved for rehearing on the denial (which motion was denied); and appealed the denial of the motion for rehearing (which appeal was dismissed). (Id. at pp. 3–4). After that appeal was dismissed, Plaintiffs moved to cancel a scheduled foreclosure sale (which motion was denied) and appealed the denial of the motion to cancel (which appeal was dismissed). (Id. at p. 4). Plaintiffs then filed a second

motion to vacate the judgment (which motion was denied) and appealed the denial of the second motion (which denial was affirmed on appeal). (Id. at pp. 4–5).1 Additionally, the Fifth DCA issued an order to show cause why Plaintiffs should not be prohibited from filing any appeal, petition, pleading, or motion pertaining to the final judgment, unless reviewed and signed by an attorney licensed to practice in the State of Florida. (Id. at p. 4). After considering Plaintiffs’

response, the Fifth DCA found that Plaintiffs failed to show cause why sanctions should not be imposed and subsequently barred Plaintiffs from further pro se filings in the appellate court. (Id. at pp. 4–5). Plaintiffs petitioned the Florida Supreme Court to review the Fifth DCA’s decision dismissing the appeal; the

1 Plaintiff Pura Rodriguez also filed a Suggestion of Bankruptcy the day after the state court conducted a hearing and found the Plaintiffs had failed to establish a prima facie showing of fraud by BONYM. (Doc. 52-1, Ex. B). The bankruptcy case was also dismissed. Id. Ms. Rodriguez filed a second suggestion of bankruptcy on April 7, 2016 in yet another attempt to frustrate the foreclosure sale. Id. The Plaintiffs’ various procedural maneuvers successfully delayed the sale of the foreclosed property for five (5) years. (Doc. 52, pp. 3–11). As the Fifth District Court of Appeal noted, the Plaintiffs’ tactics constituted an abuse of the judicial process. Florida Supreme Court declined to accept jurisdiction. (See id. at p. 5). Finally, Plaintiffs filed a separate lawsuit seeking to set aside the final judgment of foreclosure. (Id. (citing Orange County Circuit Case No. 2020-CA-001526-O)).

That lawsuit has since been dismissed. See Orange County Circuit Case No. 2020- CA-001526-O. The Court will now address each cause of action asserted by the Plaintiffs and each Motion to Dismiss, as directed by the Circuit Court. 1. Count I (Fraud)

The Plaintiffs allege Defendants BONYM, Shellpoint, Andrea Tromberg, and Tromberg Morris & Poulin PLLC committed fraudulent misrepresentation during the state foreclosure action by suing on behalf of a non-existent plaintiff. (Doc. 46, p. 27). The Plaintiffs incorporate paragraphs 20 through 33 to support this claim. (Id.). As the Eleventh Circuit observed, “[a]n action for fraud must be brought within four years under Florida law. Fla. Stat. § 95.11(3)(j).” (Doc. 79, p. 3). “The

clock on the statute of limitations for a fraud claim begins to run when ‘the facts giving rise to the cause of action were discovered or should have been discovered with the exercise of due diligence.’” (Id. (quoting Fla. Stat.

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