Jerdine v. F.D.I.C.
| Decision Date | 13 August 2010 |
| Docket Number | Civil Action No. 09-01840 (PLF) |
| Citation | 730 F.Supp.2d 218 |
| Parties | Anthony JERDINE, et al., Plaintiffs, v. FEDERAL DEPOSIT INSURANCE CORPORATION, et al., Defendants. |
| Court | U.S. District Court — District of Columbia |
Anthony Jerdine, Bedford, OH, pro se.
Darryl Jerdine, Bedford, OH, pro se.
Frederick Arnold Douglas, Monica Ann O'Connell, Douglas & Boykin, PLLC, Daniel A. Glass, Edward J. Longosz, II, Eckert, Seamans, Cherin & Mellott, LLC, Washington, DC, for Defendants.
This matter is before the Court on the defendants' motions to dismiss. 1 For the reasons discussed in this Opinion, the motions will be granted, and this action will be dismissed with prejudice.
Plaintiffs Anthony and Darryl Jerdine bring this action against the Federal Deposit Insurance Corporation ("FDIC") in its capacity as the receiver for Washington Mutual Bank ("WaMu"), Select Portfolio Servicing Inc. ("SPS"), and DLJ Mortgage Capital Inc. ("DLJ") on claims arising "in Cuyahoga County, Ohio by virtue of a mortgage loan and related inter-temporal transactions associated therewith which concern the [p]laintiffs' primary residential real estate which is located in Pepper Pike, Ohio 44124[.]" Compl. ¶ 9.
Plaintiffs secured mortgage financing from WaMu. Compl. ¶ 21. At the closing in February 2005, they "executed Promissory Notes and Security Agreements in favor of ... WaMu," id., which "retained a security in [the] Pepper Pike, Ohio [property]." Id. ¶ 22. For the first two years, the interest rate was fixed; thereafter the rate adjusted at six-month intervals. Id. ¶ 12. WaMu allegedly entered into this transaction knowing that plaintiffs could not repay the loan and that "[p]laintiffs likely would be placed in a position of default, foreclosure, and deficiency judgment upon not being able to meet their increased loan obligations once the fixed rate interest period expired and the adjustable rate applied[.]" Id. ¶ 11(e). WaMu "assigned the Note and mortgage to ... SPS," id. ¶ 29, which in turn bundled the loan with others to be sold as a mortgage-backed security. See id. ¶¶ 11(g), 30, 108.
On August 23, 2005, WaMu initiated foreclosure proceedings in the Court of Common Pleas for Cuyahoga County, Ohio against Darryl Jerdine, ALJ Holdings Group, Ltd., and Citibank Federal Savings Bank "alleging breach of a promissory note for a 2005 mortgage secured by a mortgage deed for Ohio real property." Memorandum of Points and Authorities in Support of the [FDIC's] Motion to Dismiss ("FDIC Mem.") at 4; see id., Ex. 1 (Docket, Wash. Mut. Bank v. Jerdine, No. CV-05-570626 (Cuyahoga County Ohio Ct. Com. Pl. Oct. 23, 2005)) at 13. On February 12, 2007, a judge of the Court of Common Pleas adopted a magistrate's decision, decreed foreclosure for WaMu, and entered judgment in WaMu's favor in the amount of $1,017,663.33 plus interest. Id., Ex. 1 ( at 7. The court authorized the Sheriff of Cuyahoga County to sell the property and to dispose of the proceeds of the sale. Id., Ex. 1 ().
Darryl Jerdine twice appealed this decision. FDIC Mem., Ex. 1 () at 25-26, 29-30. Both appeals were dismissed. Id., Ex. 1 () at 27, 29.
In October 2007, Anthony Jerdine filed a civil action in the United States District Court for the Northern District of Ohio against WaMu, Judge Bridget M. McCafferty, the judge who presided over the foreclosure proceedings, and Cuyahoga County Sheriff Gerald T. McFaul, who sold the Pepper Pike property. See FDIC Mem., Ex. 2 (Civil Docket, Jerdine v. Wash. Mut. Bank, No. 07-cv-02984 (N.D.Ohio Oct. 1, 2007)). SPS and DLJ characterized the complaint as one to "[q]uiet [t]itle which included allegations of racketeering and alleging a private nuisance against [WaMu], Magistrate McCafferty and the sheriff who was to conduct the sale of the [Pepper Pike] [p]roperty." Defs.' [SLS] and [DLJ] Memorandum of Points and Authorities in Support of Motion to Dismiss Plaintiffs' Complaint ( ) at 2-3. Anthony Jerdine alleged that the Court of Common Pleas of Cuyahoga County had not been created by law, that the Ohio Revised Code had not been enacted, that Judge McCafferty did not properly hold her position, and that Sheriff McFaul had no authority to sell off the Pepper Pike property, such that the foreclosure sale was void. Complaint, Jerdine v. Wash. Mut. Bank, No. 07-cv-02984 (N.D. Ohio Oct. 1, 2007). Among other relief, plaintiff demanded that the district court void the Ohio Court of Common Pleas' January 12, 2007 decision, quiet title in plaintiff's favor, and enjoin the sale of the Pepper Pike property, which was to occur later in the month of October 2007. See id.
The district court dismissed the action sua sponte on the ground that a federal district court has no jurisdiction over challenges to state court decisions. Its opinion stated in relevant part:
In the present action, plaintiff directly attacks a state court's decision, and the action is clearly predicated on his belief that the state court was mistaken in rendering its decision against him. Any review of plaintiff's claims would require the court to review the specific issues addressed in the state court proceedings. This court lacks subject matter jurisdiction to conduct such a review or grant the relief as requested. In light of the foregoing, this action is appropriately subject to summary dismissal.
Jerdine v. Wash. Mut. Bank, No. 1:07-cv-2984, 2007 U.S. Dist. LEXIS 75288, at *3 (N.D.Ohio Oct. 10, 2007) (internal citations omitted). In short, "[u]nder ... the Rooker-Feldman Doctrine, a party losing a case in state court is barred from seeking what in substance would be appellate review of the state judgment in a United States District Court based on the party's claim that the state judgment itself violates his ... federal rights." Id., 2007 U.S. Dist. LEXIS 75288, at *2. The Sixth Circuitaffirmed without opinion. Order, Jerdine v. Wash. Mut. Bank, No. 08-3676 (6th Cir. Feb. 4, 2010).
In March 2008, Darryl Jerdine filed a petition for a writ of mandamus in the Court of Appeals of Ohio, Eighth District, seeking to stay the underlying foreclosure proceedings. FDIC Mem., Ex. 3 (Docket, In re Darryl Jerdine, No. CA-08-091172 (Ohio 8th Dist.Ct.App. Mar. 19, 2008)) at 2. The court struck the pleading because Jerdine "failed to establish that he [was] entitled to a writ of mandamus." In re Jerdine, No. CA-08-091172, 2008 Ohio App. LEXIS 1648, at *5 (Ohio 8th Dist.Ct.App. Apr. 21, 2008).
Returning to the Court of Common Pleas, Darryl Jerdine filed a new civil action against WaMu and others. FDIC Mem., Ex. 4 (Docket, Jerdine v. Select Portfolio Servs., No. CV-08-668159 (Cuyahoga County Ohio Ct. Com. Pl. Aug. 19, 2008)). The court dismissed these proceedings without prejudice because of plaintiff's failure to comply with two court orders. Id., Ex. 4 at 1. Darryl Jerdine appealed, but the appeal was dismissed on March 20, 2009. Id., Ex. 4 (Docket, Jerdine v. Select Portfolio Servs., No. CA-09-092890 (Ohio 8th Dist.Ct.App. Mar. 20, 2009)) at 11.
On February 10, 2009, Anthony Jerdine and Darryl Jerdine filed a civil action in the United States District Court for the Northern District of Ohio against the FDIC, WaMu, SLS and DLJ. Complaint, Jerdine v. Fed. Deposit Ins. Corp., No. 1:09-cv-00307-JG (N.D.Ohio Feb. 10, 2009).2 The court dismissed the complaint on the ground that the doctrine of res judicata barred Anthony Jerdine's "third attempt to collaterally attack the foreclosure judgment issued against him in the Cuyahoga County Court of Common Pleas." Memorandum Opinion and Order, Jerdine v. Fed. Deposit Ins. Corp., No. 1:09-cv-00307 (N.D. Ohio June 18, 2009) at 4. The Jerdines appealed the decision to the Sixth Circuit. Notice of Appeal, Jerdine v. Fed. Deposit Ins. Corp., No. 1:09-cv-00307 (N.D. Ohio June 18, 2009). The appeal subsequently was dismissed for want of prosecution, that is, for failure to pay the filing fee within the time period set by the Circuit. Order, Jerdine v. Fed. Deposit Ins. Corp., No. 09-3955 (6th Cir. July 14, 2010).
On March 23, 2009, Anthony Jerdine and Darryl Jerdine filed yet another complaint in the Court of Common Pleas against the FDIC. FDIC Mem., Ex. 6 (Docket, Case No. CV-09-688130) (Cuyahoga County Ohio Ct. Com. Pl. Mar. 23, 2009) at 6. The matter was dismissed on July 30, 2009 because plaintiffs had not appeared for a pre-trial conference. See id. at 2.
Thereafter, Anthony Jerdine and Darryl Jerdine filed a civil action against the FDIC in the United States District Court for the Western District of Washington. Complaint, Jerdine v. Fed. Deposit Ins. Corp., No. 09-cv-01596 (W.D.Wash. Nov. 9, 2009). As of the date of this Opinion, this civil action is still pending.
The FDIC became WaMu's receiver on September 25, 2008. In December 2008, plaintiffs submitted two administrative claims to the FDIC. FDIC Mem., Ex. 8 (Proof of Claim) at 1-2. By letters of notice dated June 22, 2009, the FDIC notified plaintiffs of the disallowance of their claims. Id., Ex. 8 (Notices of Disallowance of Claims) at 3-4. In neither instance didplaintiffs provide factual allegations or proof to support their claims. See id. The FDIC notices included the following statement:
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