Remus v. Wcp Fund I LLC.

CourtDistrict Court, District of Columbia
DecidedAugust 25, 2025
DocketCivil Action No. 2024-3366
StatusPublished

This text of Remus v. Wcp Fund I LLC. (Remus v. Wcp Fund I LLC.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Remus v. Wcp Fund I LLC., (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SOLON PHILLIPS, as member-trustee of REMUS ENTERPRISES, 1 LLC,

Plaintiff, Case No. 1:24-cv-03366 (TNM) v.

WCP FUND I LLC,

Defendant.

MEMORANDUM OPINION

If you take out a loan, payback is all but inevitable. When Plaintiff Remus Enterprises

did not repay two commercial loans from Defendant WCP Fund to buy and flip a house, Remus

had to pay loan extension fees for several months until it eventually lost the property to

foreclosure.

Remus already unsuccessfully sued WCP in the Superior Court of the District of

Columbia last year. Now, trying again here, the company alleges violations of the Real Estate

Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), breach of contract,

promissory estoppel, duress and unconscionability, and unjust enrichment. WCP moves to

dismiss. The Court will grant the motion because most of Remus’s claims are precluded by its

first suit and the rest fail to state a claim.

I.

Remus buys, renovates, and re-sells residential homes in Washington, D.C. Am. Compl.

¶ 7, ECF No. 14. WCP is a lender for real estate investors. Am. Compl. ¶ 2. Remus obtained

two loans from WCP to buy a property on Tennessee Avenue in Washington, D.C., one for

$820,250 and one for $48,250. Am. Compl. ¶ 18. After unexpected permitting delays and a

1 spike in interest rates, Remus failed to make payments on either loan. Am. Compl. ¶ 44. Remus

alleges that WCP agreed to accept all outstanding payments on the loans after the property sold.

Am. Compl. ¶ 47. The parties had made a similar agreement for a loan on a separate property on

8th Street, which WCP honored. Am. Compl. ¶¶ 48–49.

But WCP’s patience wore thin for the Tennessee Avenue property. While waiting for the

home to sell, WCP demanded that Remus sign four loan-extension agreements that delayed the

maturity dates to March 2024, then to June. Am. Compl. ¶¶ 50–51, 64–66; Loan Modifications,

ECF Nos. 15-6, 15-7, 15-8, 15-9. Each time Remus absorbed modification fees that ranged from

around $500 to nearly $16,500. E.g., Loan Modification, ECF No. 15-6, at 2; Loan

Modification, ECF No. 15-9, at 2. In March 2024, Remus sued WCP in Superior Court for

violating the Mortgage Lender and Broker Act and the Interest and Usury Statute. Phillips et al.

v. DP Cap., LLC, No. 2024-CAB-001373, (D.C. Super. Ct. June 17, 2024). That court granted

WCP’s motion to dismiss the case for failing to state a claim. Id. The dismissal was affirmed on

appeal. Phillips et al. v. DP Cap., LLC, et al., No. 24-cv-0635 (D.C. Aug. 4, 2025).

Eventually, Remus reduced the price and ratified a contract for sale of the Tennessee

Avenue property. Am. Compl. ¶ 65. But the sale did not go through before the loans came due

in June 2024. Loan Modification, ECF No. 15-8 at 2; Loan Modification, ECF No. 15-9, at 2.

WCP demanded another loan extension and modification fee. Am. Compl. ¶ 66. Remus had

“numerous heated conversations” with WCP in which Remus objected to paying yet another

extension fee for a third loan modification. Am. Compl. ¶ 66. Remus requested a payoff

statement to complete the home sale, but it says that WCP provided a statement reflecting “close

to $300,000 in additional fees.” Am. Compl. ¶¶ 68–69. Remus “questioned” “these unjustified

junk fees” in “another heated conversation” with WCP. Am. Compl. ¶¶ 70–72. “Upon the last

2 heated conversation,” WCP “hinted” that it “would be foreclosing on the Property.” Am. Compl.

¶ 73. WCP then refused to provide a payoff statement to Remus’s title company, so it could not

sell the property or refinance. Am. Compl. ¶¶ 73–77.

In August 2024, WCP foreclosed on the Tennessee Avenue home. Am. Compl. ¶ 78. It

bought the property for $1,000, re-listed it, and asked the same real estate agent Remus had used

to sell the property. Am. Compl. ¶¶ 78–79.

Remus then filed in this Court seeking relief for various alleged violations of federal and

D.C. law, beginning when it signed the original loans with WCP and extending through the

foreclosure. Compl., ECF No. 1. After Remus amended its Complaint as of right, WCP

responded with a motion to dismiss. Mot. Dismiss, ECF No. 15. The briefing is ripe for

consideration.

II.

The Court has subject-matter jurisdiction over the federal claims under 28 U.S.C. § 1331

and over the D.C. law claims under 28 U.S.C. § 1332. The Court will dismiss Remus’s federal

claims due to res judicata. See infra Part IV. Though neither party raised the issue, the Court

may properly exercise jurisdiction over Remus’s remaining D.C. law claims under the diversity

statute. Arbaugh v. Y&H Corp., 546 U.S. 500, 514 (2006) (“[C]ourts . . . have an independent

obligation to determine whether subject matter jurisdiction exists, even in the absence of a

challenge from any party.”).

Remus only alleged subject-matter jurisdiction under 28 U.S.C. § 1331 because he raised

a federal question under RESPA and TILA. Am. Compl. ¶ 3. Ordinarily, once the basis for

federal-question jurisdiction goes away—here, once RESPA and TILA are declared res

judicata—a district court should dismiss pendent state-law claims. Araya v. JPMorgan Chase

3 Bank, N.A., 775 F.3d 409, 418–19 (D.C. Cir. 2014) (stating that district courts “ha[ve] an

obligation to exercise [their] discretion to remand the case to the District of Columbia courts

once the federal question, like Elvis, ha[s] left the building.”). But when an alternative basis for

jurisdiction is apparent from the face of the complaint, the court should retain jurisdiction. Nat’l

Air Traffic Controllers Ass’n v. Fed. Serv. Impasse Panel, 606 F.3d 780, 788 (D.C. Cir. 2010).

Here, diversity jurisdiction is obvious from the face of the complaint. Remus was formed

in Washington, D.C., and WCP was formed in Delaware. Am. Compl ¶¶ 1–2. Remus’s primary

place of business is in Maryland, and WCP’s is in Virginia. Am. Compl., case caption. While

Remus does not allege a specific amount in controversy, his demands total well over $75,000,

because he wants at least $400,000 for construction costs and $300,000 for loan fees. Am.

Compl. ¶¶ 63, 69. So the Court must exercise diversity jurisdiction under 28 U.S.C. § 1332 over

the remaining state-law claims.

III.

To survive a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), “a

complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is

plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (cleaned up). A court must

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