Smith v. Rocket Mortgage LLC

CourtDistrict Court, W.D. New York
DecidedSeptember 11, 2025
Docket6:25-cv-06468
StatusUnknown

This text of Smith v. Rocket Mortgage LLC (Smith v. Rocket Mortgage LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Rocket Mortgage LLC, (W.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NEW YORK

JEFFREY C. SMITH, Plaintiff, Vv. 25-CV-6468-MAV DECISION & ORDER ROCKET MORTGAGE LCC, et al., Defendants.

Pro se Plaintiff, Jeffrey C. Smith, filed a complaint and motion for a temporary restraining order ("T'RO”) on September 9, 2025, seeking to enjoin the foreclosure of a piece of real property of which he is the owner and to enjoin all further attempts by Defendants to collect on the mortgage thereon. ECF Nos. 1, 4. Plaintiff's complaint raises several claims including violations of the Truth in Lending Act (“TILA”), the Real Estate Settlement Procedures Act (““RESPA”), mail fraud, wire fraud, and antitrust violations, and seeks declaratory and injunctive relief, compensatory, statutory, and punitive damages, reasonable costs and expenses of suit, and the Defendants’ imprisonment. See ECF No. 1 at 3-4, 6—7. Plaintiff did not pay the filing fee and filed an application to proceed in forma pauperis (“IFP”). ECF No. 2. Because Plaintiffs application is incomplete, his request to proceed IFP is denied without prejudice, and his case is administratively closed. As set forth below, the Clerk of Court shall administratively terminate this action. If Plaintiff wishes to reopen this case, he must notify the Court in writing within 45 days of the date of this Order and must include either (1) a complete IFP

application or (2) the $350.00 filing fee and the $55.00 administrative fee ($405.00 total). Furthermore, the Court finds that it lacks subject matter jurisdiction to adjudicate Plaintiffs request for injunctive relief. Therefore, his motion for a TRO is denied. BACKGROUND According to Plaintiffs complaint and motion for a TRO, he is the “equitable and beneficial owner” of the property at issue located in Naples, New York (the “Property’). ECF No. 4 at 1. He entered into a loan transaction with Defendant Rocket Mortgage, LLC (“Rocket Mortgage”), which he alleges is unenforceable because it “lacked two wet-ink signatures.” ECF No. 1 at 2. He alleges, inter alia, that Rocket Mortgage “securitized Plaintiffs promissory note into mortgage-backed securities without disclosure,” continued to attempt to collect on the mortgage on the Property despite his cease-and-desist letter, and refused to except his “lawful payment via Bill of Exchange and IRS Form 1099-A to discharge the debt obligations . .. demanding ‘U.S. dollars only.” Jd. Plaintiff also alleges that Defendant Nicole DiStasio, an attorney working for Defendant LOGS Legal Group LLP, acted as debt collectors and initiated “foreclosure proceedings in state court without compliance with the FDCPA [Fair Debt Collection Practices Act],” and conspired with Rocket Mortgage and Defendant Mortgage Electronic Registration Systems, Inc. “(MERS”) “to deprive Plaintiff of property rights.” Jd. Plaintiffs motion for a TRO argues he is entitled to

relief because “Defendants continue to pursue foreclosure despite Plaintiffs lawful tenders of discharge and repeated objections.” ECF No. 4 at 1. Plaintiff attached several exhibits to his complaint, including a July 30, 2025 “Order Granting Summary Judgment/Default Judgment and Order of Reference” issued by the Supreme Court of the State of New York, County of Yates, in favor of Rocket Mortgage and against Plaintiff. ECF No. 1 at 22-24. Although there appear to be pages missing from the state court’s order, 1t 1s clear that the state court struck Plaintiffs (there, the defendant’s) answer, and granted summary judgment and default judgment to Rocket Mortgage in its action to foreclose on the Property. Id.; see id. at 73 (DiStasio’s affirmation in support of Rocket Mortgage’s motion for summary judgment and order of reference, stating “[t]his action was brought to foreclose a Mortgage for failure of Defendant, Jeffrey C. Smith, to make said Mortgage payments to Plaintiff [Rocket Mortgage] pursuant to the terms of the Mortgage and the Note secured thereby.”). In the state foreclosure proceedings, Rocket Mortgage argued it was entitled to summary judgment as against Plaintiff Smith here because “there is no defense” to its cause of action. Id. at 71. As noted, the state court granted summary judgment and default judgment to Rocket Mortgage. Id. at 22-24. DISCUSSION I. Plaintiff's Motion to Proceed IFP Under 28 U.S.C. § 1915(a)(1), a plaintiff seeking to bring a civil action IFP must submit an affidavit or affirmation detailing his or her assets and liabilities,

including monthly living expenses, and swearing under oath that the plaintiff is unable to pay the filing fee. The United States District Court for the Western District of New York has made available a form IFP motion with supporting affirmation (“Court IFP Form”)! that is designed to help pro se litigants (such as Plaintiff here) comply with 28 U.S.C. § 1915(a)(1). “The in forma pauperis statute provides that a party may proceed without prepayment of fees if that party ‘submits an affidavit that includes a statement of all [of the party’s] assets’ and the court then determines that the party is unable to pay the otherwise required filing fee.” First Keystone Consultants, Inc. v. Kalish, No. 18- CV-5140, 2013 WL 9047160, at *4 (E.D.N.Y. Sept. 27, 2018) (quoting 28 U.S.C. § 1915(a)(1)), report and recommendation adopted 2014 WL 3696086 (E.D.N.Y. July 24, 2014). Plaintiff bears the burden of establishing her indigence. See Potnick v. E. State Hosp., 701 F.2d 248, 244 (2d Cir. 1988). “[O]ne [need not] be absolutely destitute to enjoy the benefit” of the IFP statute. Adkins v. E. I. DuPont de Nemours & Co., 385 U.S. 331, 389 (1948); see also Potnick, 701 F.2d at 244 (“Section 1915(a) does not require a litigant to demonstrate absolute destitution; no party must be made to choose between abandoning a potentially meritorious claim or foregoing the necessities of life.”). Rather, “[a]n affidavit to proceed in forma pauperis is sufficient if it indicates that one cannot, because of his poverty, afford to pay the costs of litigation and still provide himself and his dependents with the necessities of life.” Kilichowskt v. Hocky,

1 Available at https://www.nywd.uscourts.gov/sites/nywd/files/ProSe Forms IFPApplicationForm.pdf

No. 99-CV-2874, 1999 WL 504285, at *1 (K.D.N.Y. July 5, 1999). “In assessing an application to proceed in forma pauperis, a court may consider the resources that the applicant has or ‘can get’ from those who ordinarily provide the applicant with the ‘necessities of life,’ such as ‘from a spouse, parent, adult sibling or other next friend.” Fridman v. City of New York, 195 F. Supp. 2d 534, 5387 (S.D.N.Y. 2002) (quoting Williams v. Spencer, 455 F. Supp. 205, 208-09 (D. Md. 1978)). Although Plaintiff submitted an affidavit in support of his motion to proceed IFP, the information provided is incomplete and what was provided obscures details that are required for the Court to sufficiently assess whether Plaintiff qualifies for IFP status. Plaintiffs claims to receive $2,020 per month in Social Security benefits, and claims that his monthly expenses are also exactly $2,020. ECF No. 2 at 1-2. Plaintiff does not itemize any expenses as required by the Court’s IFP Form, nor is it clear whether or how the mortgaged Property is accounted for in Plaintiffs claimed expenses. In fact, despite his federal action arising out of his stated ownership of the Property, the Property and any details about expenses therefrom are entirely absent from Plaintiffs application.

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Bluebook (online)
Smith v. Rocket Mortgage LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-rocket-mortgage-llc-nywd-2025.