Hubbard v. Argent Mortg. Co.

• Decision Date: 31 August 2016
• Docket Number: Civil Action No. 15-cv-02375-WJM-CBS,c/w Civil Action No. 16-cv-01446-WJM-CBS
• Parties: DANIEL HUBBARD, and MARGARET HUBBARD, Plaintiffs, v. ARGENT MORTGAGE COMPANY, LLC, CITI RESIDENTIAL LENDING, INC., CITIGROUP MORTGAGE LOAN TRUST INC., CITIMORTGAGE, INC., MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., and U.S. BANK NATIONAL ASSOCIATION, Defendants.
• Court: U.S. District Court — District of Colorado

DANIEL HUBBARD, and MARGARET HUBBARD, Plaintiffs,
v.
ARGENT MORTGAGE COMPANY, LLC, CITI RESIDENTIAL LENDING, INC.,
CITIGROUP MORTGAGE LOAN TRUST INC., CITIMORTGAGE, INC.,
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC.,
and U.S. BANK NATIONAL ASSOCIATION, Defendants.

Civil Action No. 15-cv-02375-WJM-CBS
c/w Civil Action No. 16-cv-01446-WJM-CBS

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

August 31, 2016

ORDER REGARDING PENDING MOTIONS TO TRANSFER VENUE

Magistrate Judge Shaffer

THESE CONSOLIDATED ACTIONS come before the court on Defendant CitiMortgage, Inc.'s ("CMI") Motion to Transfer Venue (doc. #4) [hereinafter the "CMI Motion"] and Memorandum in Support of Motion to Transfer Venue (doc. #5), filed on November 2, 2015 in Civil Action No. 15-cv-02375-WJM-CBS. Pro se Plaintiffs Daniel and Margaret Hubbard filed their Memorandum in Response (doc. #15) to the CMI Motion on November 24, 2015, which was followed by Defendant CMI's Reply Memorandum in Support of Motion to Transfer Venue (doc. #17), filed on December 8, 2015. The CMI Motion was referred to this Magistrate Judge pursuant to a memorandum (doc. #26) dated May 9, 2016.

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Also pending is Defendants Citi Residential Lending, Inc., CitiMortgage, Inc., and Citigroup Mortgage Loan Trust, Inc.'s (collectively the "Citi Defendants") Motion to Transfer Venue (doc. #25) [hereinafter the "Citi Defendants' Motion"], filed on June 29, 2016 in Civil Action No. 16-cv-01445-WJM-CBS. The Hubbards have not responded to this motion.

The district judge consolidated Civil Action No. 15-cv-02375-WJM-CBS and Civil Action NO. 16-cv-01446-WJM-CBS with an Order (doc. #36) dated August 9. 2016. In that Order, the district judge specifically noted that the Hubbards have brought two actions, "both of which appear aimed at preventing foreclosure on their home." The Order went on to observe that while "the parties in the two actions are not entirely overlapping, the goal of both, apparently, is to invalidate the deed of trust on their residence. Thus, the two actions present essentially identical questions of law and fact." The district judge directed this magistrate judge to "docket [an] order resolving the Motion to Transfer (EFC No. 25) both in Civil Action No. 15-cv-2375-WJM-CBS and Civil Action No. 16-cv-1446-WJM-CBS." This court has reviewed the pending motions and the applicable law, and is sufficiently advised in the premises. For the following reasons, the court will grant the pending motions to transfer and direct that these consolidated actions be transferred to the District of Minnesota.

BACKGROUND

The parties' litigious relationship apparently began on April 3, 2015 when CitiMortgage filed a declaratory judgment action in the United States District Court for the District of Minnesota, Case No. 15-cv-01870 (PJS/JSM) [hereinafter "the Minnesota Action"]. In its Complaint, CMI alleges that the Hubbards "are the mortgagers of property in Colorado, upon which [CMI] holds a valid and perfected mortgage." See Exhibit A (doc. # 6-1, at ¶ 10, page 3

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of 70), attached to the Affidavit of Thomas J. Lallier (doc. #6). The Complaint in the Minnesota Action further alleges that on or about July 8, 2010, Mr. Hubbard sent CMI a "demand note challenging the validity of the note and mortgage." Id. at ¶ 12, page 3 of 70. In his letter, Mr. Hubbard insisted that CMI prove that it is "the current legal title holder-in-due course to the property" in question and further asserted that if CMI could not prove the validity of its claim, the Hubbards' account should "reflect a '0' balance owed and that all liens and encumbrances placed by CitiMortgage Inc. be removed and cancelled." Mr. Hubbard also warned that if his account balance was not "reduced to a '0' . . . other severe penalties for dishonor in commerce, theft, racketeering, punitive damages, and the theft of public funds . . . will be incurred or assessed." See Exhibit D (doc. #6-1, at pages 42-43 of 70) appended to the Complaint in the Minnesota Action and attached to the Affidavit of Thomas J. Lallier (doc. #6).

The Hubbards sent CMI a second demand letter on or about December 28, 2011. While that letter purports to advance various legal arguments (most of which are difficult, if not impossible, to follow), the December 2011 letter closed with a warning that if CMI failed to "discharge" the Hubbards' account, they would view that "dishonor . . . as a commercial injury, violation of agreement, fraud, fraud by scienter, violation of commercial law and otherwise." See Exhibit E (doc. #6-1, at page 45 of 70) appended to the Complaint in the Minnesota Action (page 3 of 10) and attached to the Affidavit of Thomas J. Lallier (doc. #6). In these and subsequent letters, the Hubbards took the position that CMI's failure to respond to their demands and legal arguments "will vitiate the mortgage which [CMI] holds on the property." The Hubbards consistently have maintained that they have the "right to rescind, revoke or otherwise abolish the mortgage rights of [CMI] or note owing to [CMI]." See Exhibit A (doc. # 6-1, at ¶¶

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16-18, page 4 of 70), attached to the Affidavit of Thomas J. Lallier (doc. #6). In the Minnesota Action, CitiMortgage seeks declaratory relief under the Truth in Lending Act, 15 U.S.C. § 1601 et. seq., the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq., and the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq. The Minnesota Action also seeks compensatory damages for injuries caused by Defendants' "conspiracy to defraud, harass, and injure" CitiMortgage, as well as injunctive relief barring the Hubbards and their co-conspirator (Daniel Sellors) "from serving any false and fraudulent papers or pleadings on the Plaintiff." See Exhibit A (at page 10 of 70), attached to the Affidavit of Thomas J. Lallier (doc. #6).

The Hubbards filed a Response in the Minnesota Action on May 11, 2015. See Exhibit B (doc. # 6-3), attached to the Affidavit of Thomas J. Lallier (doc. #6). In that pleading, the Hubbards asked the district court to "dismiss" CMI's lawsuit and to "Declare RESPONDENTS' Rights and Status outlined herein." Id. at page 6 of 18. While their Response is not a model of clarity, the Hubbards insist that CMI's rights under the mortgage and note have been fully discharged or supplanted by...