Rose Okpalobi v. PHH Mortgage Corporation, et al.

CourtDistrict Court, E.D. Louisiana
DecidedNovember 7, 2025
Docket2:25-cv-00809
StatusUnknown

This text of Rose Okpalobi v. PHH Mortgage Corporation, et al. (Rose Okpalobi v. PHH Mortgage Corporation, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose Okpalobi v. PHH Mortgage Corporation, et al., (E.D. La. 2025).

Opinion

EASTERN DISTRICT OF LOUISIANA

ROSE OKPALOBI CIVIL ACTION

VERSUS NO. 25-809 PHH MORTGAGE CORPORATION, ET AL. SECTION: “G”(5)

ORDER AND REASONS

Before the Court is Defendants PHH Mortgage Corporation (“PHH”) and REO Management Solutions, LLC’s (“REO”) (collectively, “Defendants”) “Motion to Dismiss under Rule 12(b)(1) and for Judgment on the Pleadings Under Rule 12(c).”1 In this litigation, Plaintiff Rose Okpalobi (“Plaintiff”), both individually and as executrix for the Estate of Ifeanyi Charles Anthony Okpalobi (“Decedent”), pursues claims against Defendants for damages Hurricane Ida allegedly caused to property owned by Decedent.2 In the instant motion, Defendants argue that this case should be dismissed under the doctrine of res judicata.3 Alternatively, Defendants assert this case should be dismissed on the merits.4 Plaintiff opposes the motion.5 Having considered the motion, the memoranda in support and opposition, the record, and the applicable law, the Court grants the motion.

1 Rec. Doc. 40. 2 Rec. Doc. 1-2 at 3–5. 3 Rec. Doc. 40-1 at 8. 4 Id. at 14–24. 5 Rec. Doc. 44. A. Okpalobi v. American National Property and Casualty Company, et al., No. 23-6691 (“Okpalobi I”) Plaintiff filed Okpalobi I in state court, naming PHH, American National Property and Casualty Company (“ANPAC”), Mortgage Assets Management, LLC (“MAM”), and Nationstar Mortgage LLC d/b/a Champion Mortgage (“Nationstar”) as defendants.6 ANPAC removed the matter to this Court on November 3, 2023, at which time the case was allotted to this Section and was assigned case number 23-6691.7 In Okpalobi I, Plaintiff alleged that: she owns 4928 Cartier Ave., New Orleans, LA (hereinafter referred to as the “Property”);8 PHH services a home equity

conversion note executed by Decedent which is secured by a home equity conversion mortgage over the Property;9 ANPAC issued a homeowner’s insurance policy for the Property;10 the Property was damaged by Hurricane Ida;11 Plaintiff filed a claim on the ANPAC policy;12 and ANPAC underpaid the claim;13 PHH had a contractual and fiduciary duty to pursue additional insurance proceeds from ANPAC.14 Based on those allegations, Plaintiff claimed PHH owed her a fiduciary and contractual duty to pursue additional insurance proceeds from ANPAC.15 Plaintiff

6 Rec. Doc. 40-2. 7 Okpalobi I, Case No. 23-6691, Rec. Doc. 1. 8 Id. 9 Rec. Doc. 40-3. 10 Rec. Doc. 40-4. 11 Okpalobi I, Case No. 23-6691, Rec. Doc. 1. 12 Id. 13 Id. 14 Id. 15 Okpalobi I, Case No. 23-6691, Rec. Doc. 1-9. policy and was liable under Louisiana Revised Statutes 22:1892 and 22:1973 based on its

adjustment of the insurance claim.16 On January 3, 2024, ANPAC filed a Rule 12(b)(6) motion to dismiss in which it asserted that Plaintiff was neither an insured nor a third-party beneficiary under the ANPAC policy.17 On January 24, 2024, PHH filed a Rule 12(b)(1) and 12(b)(6) motion to dismiss on grounds that Plaintiff lacked standing to sue in her individual capacity because she does not have an interest in the property and because PHH did not owe her or Decedent a contractual or fiduciary duty to pursue additional insurance proceeds from ANPAC.18 On May 8, 2024, this Court entered an order denying PHH’s motion to dismiss without prejudice. In its ruling, this Court found that Plaintiff lacked standing to pursue any claims in her individual capacity and that PHH did not owe Decedent’s estate a fiduciary or contractual duty to pursue additional insurance proceeds, but the

Court denied the motion to allow Plaintiff to amend and cure any pleading deficiencies.19 Plaintiff did not amend by the deadline. PHH filed a renewed motion to dismiss on September 3, 2025.20 The Court granted PHH’s renewed motion to dismiss on September 25, 2024.21 This Court entered judgment on September 26, 2024 in favor of PHH, ANPAC, and MAM and against Plaintiff, thereby dismissing Plaintiff’s

16 Id. 17 Okpalobi I, Case No. 23-6691, Rec. Doc. 8. 18 Okpalobi I, Case No. 23-6691, Rec. Doc. 18. 19 Okpalobi I, Case No. 23-6691, Rec. Doc. 35. 20 Okpalobi I, Case No. 23-6691, Rec. Doc. 41. 21 Okpalobi I, Case No. 23-6691, Rec. Doc. 43. B. Okpalobi v. American National Property and Casualty Company, et al., Case No. 25-809 Plaintiff filed the instant matter in state court on August 26, 2023.23 This case also relates to damage to 4928 Cartier Ave., New Orleans, LA, as a result of Hurricane Ida.24 In the Original

Petition, Plaintiff alleged that REO was an insurer, Plaintiff filed a claim with REO, and REO failed to properly adjust the claim.25 Plaintiff claimed that PHH held the mortgage loan.26 She asserted a bad faith insurance adjusting claim against REO and alleged that her attorney would have an attorney’s fee lien over any insurance proceeds and damages that might be awarded against REO.27 Defendants filed a motion for summary judgment in state court on the grounds that neither is an insurer.28 The state court granted Defendants’ motion, but the state court also granted Plaintiff leave to amend.29 Plaintiff filed a First Amended and Supplemental Petition for Damages on March 27, 2025,30 adding a new claim under 42 U.S.C. § 1981.31 The factual allegations Plaintiff makes are

as follows: the note and mortgage specify that, if the borrower dies, the Loan would be converted to a term loan; Plaintiff is a beneficiary of the Loan; Plaintiff is the executrix of Decedent’s estate;

22 Okpalobi I, Case No. 23-6691, Rec. Doc. 44. 23 Rec. Doc. 1-1. 24 Id. at 2. 25 Id. at 1, 4. 26 Id. 27 Id. 28 Rec. Doc. 1-3. 29 Rec. Doc. 1-5. 30 Rec. Doc. 1-2. 31 Rec. Doc. 1-4. Hurricane Ida; the Property was insured under a lender-placed insurance policy; insurance

proceeds were issued by an “unknown” insurer; Defendants collected and “pocketed” the insurance proceeds rather than making them available to repair the Property; Defendants have not accounted for the insurance proceeds; Defendants had an obligation to repair the Property; and Defendants initiated foreclosure.32 Based thereon, Plaintiff asserts the following causes of action: breach of contract, negligence; intentional infliction of emotional distress; fraud; unjust enrichment; bad faith; and racial discrimination under 42 § U.S.C. 1981.33 Plaintiff seeks recovery of damages and attorneys’ fees.34 On April 28, 2025, after Defendants removed the case to this Court.35 On October 7, 2025, Defendants filed the instant Motion to Dismiss for Lack of Jurisdiction and for Judgment on the Pleadings.36 Plaintiff opposed the motion on October 14, 2025.37 Defendants filed a reply brief on

October 27, 2025.38 II. Parties’ Arguments A. Defendants’ Arguments in Support of the Motion

In the instant motion, Defendants argue that this case should be dismissed because Plaintiff lacks standing to sue in her individual capacity and the doctrine of res judicata should apply to the

32 Id. 33 Id. 34 Id. 35 Rec. Doc. 1. 36 Rec. Doc. 40. 37 Rec. Doc. 44. 38 Rec. Doc. 49. suit concerns the same property and parties as in Okpalobi I, where this Court dismissed Plaintiff’s

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