Reyna v. Deutsche Bank National Trust Co.

892 F. Supp. 2d 829, 2012 WL 4343721, 2012 U.S. Dist. LEXIS 135882
CourtDistrict Court, W.D. Texas
DecidedSeptember 24, 2012
DocketCivil Action No. SA-11-CA-1053-FB
StatusPublished
Cited by10 cases

This text of 892 F. Supp. 2d 829 (Reyna v. Deutsche Bank National Trust Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reyna v. Deutsche Bank National Trust Co., 892 F. Supp. 2d 829, 2012 WL 4343721, 2012 U.S. Dist. LEXIS 135882 (W.D. Tex. 2012).

Opinion

ORDER CONCERNING PENDING MOTIONS

FRED BIERY, Chief Judge.

Before the Court are Defendant Deutsche Bank National Trust Company’s Motion to Dismiss Plaintiffs Original Petition (docket # 3), Plaintiffs Motion to Remand to State Court and for Legal Fees (docket # 8), Defendant’s Response in Opposition to Motion to Remand (docket # 10), Defendant’s Supplement to Motion to Dismiss and Request for Hearing (docket # 16), Plaintiffs Response to Supplement (docket # 17) and Plaintiffs Motion for Leave of Court to Amend Pleadings (docket # 18). For the following reasons, the Court finds Plaintiffs Motion to Remand and for Legal Fees (docket #8) should be DENIED, Defendant’s Motion to Dismiss Plaintiffs Original Petition (docket #3) should be DENIED AS MOOT WITHOUT PREJUDICE to refiling, Defendant’s Request for Hearing (docket # 16) should be DENIED, and Plaintiffs Motion for Leave of Court to Amend Pleadings (docket # 18) should be GRANTED.

I. Background

This case arises out of the foreclosure of residential real property located at 331 McLaughlin Avenue in San Antonio, Texas. Plaintiff Javier C. Reyna borrowed $60,000.00 through a home equity loan secured by the McLaughlin Avenue property in 2006. (Plaintiffs Original Petition, attached as Exhibit A to Defendant’s Notice of Removal, docket #1.) Plaintiff is alleged to have defaulted on the loan, and defendant Deutsche Bank National Trust Company (hereinafter “Deutsche Bank”) instituted judicial foreclosure proceedings in the 224th Judicial District Court of Bexar County, Texas. Id. Defendant obtained a state court order permitting the foreclosure of the property and then purchased the property at auction. Id. Following the foreclosure sale, defendant sought to evict plaintiff. On October 17, 2011, Mr. Reyna filed an Original Petition against Deutsche Bank in the 131st Judicial District Court of Bexar County, Texas, Cause No. 2011-CI-16760. Plaintiff seeks to restrain defendant from evicting plaintiff and alleges various defects in the assignment of the lien and in the foreclosure. Id. at 3-6. Deutsche Bank removed the action to this Court on December 7, 2011.

II. Motion to Remand

Plaintiff filed a Motion to Remand (docket # 8), arguing this Court lacks subject matter jurisdiction under the Rooker-Feldman doctrine, and requesting the case be remanded to state court. A defendant has the right to remove a case to federal [831]*831court when federal subject-matter jurisdiction exists and the removal procedure has been properly followed. See 28 U.S.C. § 1441. However, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c).

A. Diversity Jurisdiction

In the Notice of Removal (docket # 1), defendant argues this Court has original jurisdiction based on diversity pursuant to 28 U.S.C. § 1382(a). Section 1332 confers jurisdiction on a federal district court “where the matter in controversy exceeds the sum or value of $75,000, ... and is between citizens of different States.” Here, plaintiff Javier Reyna is a citizen of Texas, and defendant Deutsche Bank is a citizen of New York. Accordingly, there is complete diversity among the parties. Furthermore, plaintiff demands at least $750,000 in damages. (Plaintiffs Original Petition at page 11.) Plaintiff does not dispute diversity jurisdiction exists. Because there is complete diversity and the amount in controversy exceeds $75,000, the Court concludes it has original jurisdiction of this matter pursuant to 28 U.S.C. § 1332(a).

B. Rooker-Feldman Doctrine

Despite the Court’s diversity jurisdiction, plaintiff argues defendant’s removal constitutes the type of collateral attack on a state court judgment prohibited by the Rooker-Feldman doctrine. Under the Rooker-Feldman doctrine, “federal district courts lack jurisdiction to entertain collateral attacks on state court judgments.” Liedtke v. State Bar of Tex., 18 F.3d 315, 317 (5th Cir.1994). The doctrine “is confined to ... eases brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments.” Exxon Mobil Corp. v. Saudi Basic Indus. Corp, 544 U.S. 280, 284, 125 S.Ct. 1517, 161 L.Ed.2d 454 (2005). Where there has not been a final state court judgment which can be attacked by a defendant, the Rooker-Feldman doctrine does not apply. See Del-Ray Battery Co. v. Douglas Battery Co., 635 F.3d 725, 730 (5th Cir.2011) (state court’s partial summary judgment orders were not final judgments, and, therefore, the Rooker-Feldman doctrine did not apply to bar their review in federal court).

Plaintiff argues the Rooker-Feldman requires remand because defendant “has already invoked the state court’s power to decide these issues by filing an [sic] TRCP 736 suit, ... [and] [t]he suit now removed is actually part of those proceedings because under the rule, without regard to the order of foreclosure, Plaintiff has the right to challenge the Defendant’s right to foreclose.” (Plaintiffs Motion to Remand at page 2, docket #8.) More specifically, Mr. Reyna contends before he filed the present action, defendant filed a separate “suit to procure and [sic] order of foreclosure under Rule 736 of the Texas Rules of Civil Procedure (Cause No.2011-CI-06600).... Without service or notice, on or about June 7, 2011, the Defendant procured an order of foreclosure.” (Plaintiffs Original Petition at pages 2-3.)

The order at issue is a Home Equity Foreclosure Order, entered on June 7, 2011 in the 224th Judicial District Court of Bexar County, Texas. (Home Equity Foreclosure Order, attached as Exhibit 3 to Plaintiffs Motion to Remand.) The order states Deutsche Bank may proceed with a foreclosure sale of the McLaughlin Avenue property in accordance with the terms of the security instrument and applicable law and further states the “Order is not appealable pursuant to Rule 736(8)(A).” Id at 3.

[832]*832Rule 736 of the Texas Rules of Civil Procedure provides a procedure whereby a party seeking the foreclosure of a home equity loan may file a verified application in the district court where the encumbered property is located. Tex.R. Civ. P. 736(1). If the court finds the application meets certain elements — namely that the application establishes a home equity debt exists, it is in default, and the proper notices have been given — then the court shall grant the application. Tex.R. Civ. P. 736(8)(A). The Rule provides:

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892 F. Supp. 2d 829, 2012 WL 4343721, 2012 U.S. Dist. LEXIS 135882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reyna-v-deutsche-bank-national-trust-co-txwd-2012.