Temple v. Reliance First Capital LLC

CourtDistrict Court, N.D. Alabama
DecidedJune 4, 2025
Docket2:24-cv-00634
StatusUnknown

This text of Temple v. Reliance First Capital LLC (Temple v. Reliance First Capital LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Temple v. Reliance First Capital LLC, (N.D. Ala. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

ERICA DAVIS TEMPLE, ] ] Plaintiff, ] ] v. ] Case No.: 2:24-cv-634-ACA ] RELIANCE FIRST CAPITAL, ] LLC, et al., ] ] Defendants. ]

MEMORANDUM OPINION

Pro se Plaintiff Erica Davis Temple sued Defendants Reliance First Capital, LLC and Dovenmuehle Mortgage, Inc. for violating the response and reasonable investigation requirements of the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C. § 2605(e) (“Count One”); breaching a mortgage agreement (“Count Two”); and breaching their covenants of good faith and fair dealing (“Count Three”). (Doc. 5 at 14–16). Defendants moved to dismiss Ms. Temple’s amended complaint for failure to state a claim (doc. 29), and Ms. Temple responded, attaching evidence outside the pleadings to her response briefs (doc. 40 at 8–27; doc. 41 at 9–29). Because Ms. Temple attached evidence outside the pleadings, the court converted the motion to dismiss into a motion for summary judgment and gave the parties an opportunity to present evidence that was pertinent to the motion. (Doc. 43; see docs. 45, 51); Fed. R. Civ. P. 12(d). The court stayed discovery pending a ruling on the converted motion. (Doc. 63). Ms. Temple has since filed several other motions that remain

before this court, including two motions for sanctions (docs. 48, 66), three motions for injunctive relief (docs. 54, 67, 70), a motion for leave to file a second amended complaint (doc. 58), three motions to lift the discovery stay and/or for Federal Rule

of Civil Procedure 56(d) relief (docs. 65, 71, 73), and a motion for hearing (doc. 71). For the reasons set out below, the court WILL GRANT Defendants’ motion for summary judgment on Ms. Temple’s RESPA claims and WILL ENTER SUMMARY JUDGMENT in their favor on those claims. (Docs. 29, 43). Because

the court resolves the only claims over which it has original jurisdiction, the court WILL DECLINE to exercise supplemental jurisdiction over Ms. Temple’s state law claims against Defendants and WILL DISMISS those claims WITHOUT

PREJUDICE pursuant to 28 U.S.C. § 1367(c)(3). Therefore, the court WILL FIND AS MOOT Defendants’ motion for summary judgment on the state law claims. In addition, the court WILL DENY Ms. Temple’s motions for injunctive relief (docs. 54, 67, 70), motions for sanctions (docs. 48, 66), motion for leave to file

a second amended complaint (doc. 58), motions for Rule 56(d) relief (docs. 65, 71, 73), and motion for hearing (doc. 71). And the court WILL FIND AS MOOT Ms. Temple’s motions to lift the discovery stay. (Docs. 65, 71). I. BACKGROUND In December 2021, Ms. Temple executed a mortgage and promissory note

with Reliance, under which her mortgage payments were due on the first day of each month. (Doc. 5-1 at 11, 18). Reliance serviced the mortgage, and Dovenmuehle contracted with Reliance to subservice the mortgage. (Doc. 51-2 at 2 ¶ 3). In 2023,

Ms. Temple experienced financial hardship and applied for a state loan assistance program, but Reliance declined to approve Ms. Temple’s participation in the program. (Doc. 57 at 13–14). Reliance eventually approved her participation in a loss mitigation program. (Doc. 5-4 at 1). Although the loss mitigation program began

sending mortgage payments on Ms. Temple’s behalf, Reliance misplaced the payments and reported Ms. Temple’s account as delinquent. (Id. at 1–2). In January 2024, Ms. Temple’s home septic pump failed, requiring

renovation. (Id. at 2). She made a claim with her insurance company, which sent her a check. (Id.). Reliance told Ms. Temple to mail it the unendorsed check, but then after receiving the check, Reliance told Ms. Temple it had to be endorsed. (Doc. 5- 4 at 2). Ms. Temple then endorsed the check and sent it to Reliance, but Reliance

withheld 75% of the funds. (Id.). In April 2024, Ms. Temple emailed Reliance, requesting a written response about Reliance’s failures to timely enroll in the loan assistance program and release

the rest of the insurance proceeds. (Doc. 5-3 at 1–2; see also doc. 41 at 3). Ms. Temple also submitted a complaint through the Consumer Financial Protection Bureau (“CFPB”) website, describing Reliance’s misapplication of the loan

assistance program funds to her mortgage payment account. (Doc. 5-4). In this complaint, she explained that Reliance was late to apply the program’s payments to her account and inaccurately reported her account as delinquent to credit reporting

agencies. (Id.). In May 2024, Reliance responded to the CFPB complaint and Ms. Temple’s email, stating that it received and applied the program’s payments to her account from December 2023 to April 2024, and that it would backdate payments to the time

of receipt. (Doc. 5-5 at 1). Later that month, Ms. Temple sent another email addressed to Reliance and Dovenmuehle, in which she again complained of delayed and misapplied loan assistance program payments to her account. (Doc. 5-6). In June

2024, Reliance responded that it needed more information about the errors Ms. Temple alleged in her request. (Doc. 5-7). In September 2024, Ms. Temple submitted her second complaint through the CFPB website. (Doc. 5-8). She explained that various credit reporting agencies were

reporting her account delinquent as a result of Defendants’ inaccurate reporting, and she asserted that the misreporting led to her inability to get additional funding. (Id.). She also stated that Defendants were still withholding the insurance proceeds from

her. (Id. at 2). A month later, Reliance responded to this complaint, indicating that it backdated the program payments as it said it would in its May 2024 letter, sent credit corrections to the credit bureaus in June 2024, and sent an additional correction

request to the credit bureaus in September 2024 in the hope they would expedite Ms. Temple’s credit update. (Doc. 5-9). II. DISCUSSION

1. Motions for Injunctive Relief

Ms. Temple has filed one motion for injunctive relief and two supplemental affidavits in support of that motion. (Docs. 54, 67, 70). Because she requests relief in each filing, the court construes each filing as a separate motion for injunctive relief. See Erickson v. Pardus, 551 U.S. 89, 94 (2007). In her first motion for injunctive relief, Ms. Temple asks the court to “[o]rder Defendants to correct all credit reports,” “immediately correct all credit inaccuracies,” and cease further

RESPA violations. (Doc. 54 at 5). In her second motion for injunctive relief, she asks the court to “enjoin Defendants from further harassment under [the Fair Credit Reporting Act (“FCRA”),] 15 U.S.C. § 1692c(a)(2),” “compel Defendants to correct credit reports within [forty-eight] hours,” and “[c]ease . . . all current and future

RESPA [v]iolations.” (Doc. 67 at 4). And in her third motion for injunctive relief, Ms. Temple asks the court to order Defendants to “[c]orrect credit reports to reflect accurate mortgage status,” “produc[e] . . . payment algorithms and service agreements,” and “[a]ddress irreversible harm from constructive foreclosure [of Ms. Temple’s business property] and health collapse.” (Doc. 70 at 3).

To obtain a preliminary injunction, Ms.

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