Conquest v. WMC Mortg. Corp.
Decision Date | 30 March 2017 |
Docket Number | CIVIL ACTION NO. 16–03604 |
Citation | 247 F.Supp.3d 618 |
Parties | Jerry A. CONQUEST, Plaintiff, v. WMC MORTGAGE CORP., et al., Defendants. |
Court | U.S. District Court — Eastern District of Pennsylvania |
Stewart C. Crawford, Jr., The Law Offices of Steward C. Crawford & Associates, Lansdowne, PA, for Plaintiff.
Eric Schnabel, Dorsey & Whitney LLP, Wilmington, DE, David A. Scheffel, Eric B. Epstein, Dorsey & Whitney LLP, New York, NY, Ross G. Currie, Dinsmore & Shohl LLP, Wayne, PA, Cecil J. Jones, Marks, O'Neill, O'Brien, Doherty & Kelly, PC, Steven J. Schildt, Jeffrey M. Brenner, Post & Schell, PC, Philadelphia, PA, Robert John Balch, Post & Schell PC, Allentown, PA, for Defendants.
II. BACKGROUND...626
A. Conveyance of the Property and the Terms of the First Mortgage...626
B. The Fire Insurance Policy...628
C. The Second Mortgage Assignment...629
D. Fire Loss and Insurance Proceeds...629
E. Alleged Misrepresentations About the Insurance...630
F. The Instant Action...631
IV. ANALYSIS...632
L. Count XI—Negligence Per Se...650
V. AMENDING THE AMENDED COMPLAINT WOULD BE FUTILE...650
I. INTRODUCTION
Before the Court are Defendants' Motions to Dismiss Plaintiff's Amended Complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6).1 Defendants are WMC Mortgage LLC (Doc. No. 28), Mortgage Electronic Registration Systems, Inc. ("MERS"), MERSCORP Holdings, Inc. (Doc. No. 19), Vanderbilt Mortgage and Finance, Inc. , American Modern Home (Doc. No. 14), HomeFirst Agency, Inc. (Doc. No. 20), and Southwest Business Corporation (Doc. No. 17) (collectively "Defendants").2
On May 24, 2016, Plaintiff commenced this action in the Court of Common Pleas of Delaware County. In his Amended Complaint, he alleges that Defendants committed federal and state violations by misappropriating fire insurance proceeds. The fire loss occurred on April 10, 2014 and totally destroyed Plaintiff's home.3 Plaintiff claims that Defendants withheld from him the proceeds which would have been used to restore and repair his residential home. (Doc. No. 16 at ¶¶ 10–14.) On June 30, 2016, Vanderbilt Mortgage and Finance, Inc., Mortgage Electronic Registration Systems, Inc. and MERSCORP Holdings, Inc., and HomeFirst Agency, Inc., removed this action to this Court. (Doc. No. 1.)
On August 8, 2016, Plaintiff filed an Amended Complaint. (Doc. No. 16.) Each Defendant responded by filing a Motion to Dismiss the Amended Complaint. (Doc. Nos. 14, 17, 18, 19, 20, 28.) Plaintiff filed a response to each motion (Doc. Nos. 22, 31, 32, 33, 35), and all Defendants submitted replies. (Doc. Nos. 24, 25, 36, 37, 38, 39.) For reasons that follow, the Court will grant the Motions to Dismiss. (Doc. Nos. 14, 17, 18, 19, 20, 28.)
II. BACKGROUND
A. Conveyance of the Property and the Terms of the First Mortgage
On October 31, 2006, Plaintiff's father conveyed to him the Property located at 613 Summer Street, Media, Delaware County, Pennsylvania 19063 ("Property"). (Doc. No. 16 at ¶ 10.) To accomplish this sale, Plaintiff secured a loan of $272,000 from WMC Mortgage LLC and signed a Mortgage and Promissory Note on November 10, 2006 to cover the purchase of the Property.4 (Id. at ¶ 12.)
The Mortgage was executed in favor of Mortgage Electronic Registration Systems, Inc. ("MERS"), solely as nominee5 for WMC Mortgage LLC ("WMC"), and WMC's successors and assigns.6 (Doc. No. 16, Ex. B at 2.) The Mortgage provides in relevant part:
(Doc. No. 19, Ex. B at 2.) On November 29, 2006, the Mortgage was recorded with the Delaware County Recorder of Deeds ("Recorder's Office"). (Id. ) The Promissory Note was never recorded with the local recorder of deeds. (Id. )
On June 22, 2011, MERS, as the nominee for WMC, executed an Assignment of Mortgage ("First Assignment") to Vanderbilt Mortgage and Finance, Inc. (Doc. No. 19, Ex. C at 2.)7 On July 19, 2011, the First Assignment was recorded with the Delaware County Recorder's Office. (Id. )
Pursuant to the First Assignment, MERS, on behalf of WMC, assigned to Vanderbilt all its right, title, and interest in and to the Mortgage.8 (Id. )
The Mortgage required that Plaintiff maintain hazard insurance on the Property. It contained the following provision:
B. The Fire Insurance Policy
On April 18, 2012, Vanderbilt notified Plaintiff that it had obtained a lender-placed hazard insurance policy ("Policy") covering the Property.9 (Doc. No. 16 at ¶¶ 39–40.) American Modern Home insurance company ("AMH") issued the Policy to Vanderbilt. (Doc. No. 19, Ex. D at 4.) The Notice of Placement stated that Vanderbilt...
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