Proctor v. Wells Fargo Bank, N.A.

• Decision Date: 25 January 2018
• Docket Number: Case No.: PWG–17–113
• Citation: 289 F.Supp.3d 676
• Parties: Aleea PROCTOR, Plaintiff, v. WELLS FARGO BANK, N.A., et al., Defendants.
• Court: U.S. District Court — District of Maryland

289 F.Supp.3d 676

Aleea PROCTOR, Plaintiff,

v.WELLS FARGO BANK, N.A., et al., Defendants.

Case No.: PWG–17–113

United States District Court, D. Maryland, Southern Division.

Signed January 25, 2018

Aleea Proctor, Nanjemoy, MD, pro se.

Justin E. Fine, Michael S. Barranco, Treanor Pope and Hughes PA, Towson, MD, Jason Lee Levine, Office of the Attorney General Maryland State Treasurer's Office, Annapolis, MD, Adam Marc Kaplan, BWW Law Group LLC, Rockville, MD, for Defendants.

MEMORANDUM OPINION

Paul W. Grimm, United States District Judge

On September 13, 2007, Plaintiff Aleea Proctor obtained a $126,889.98 mortgage loan secured by the real property she purchased at 2066 Shadyside Avenue, Suitland, Maryland 20746 (the "Property"). Am. Compl. ¶¶ 20–21, ECF No. 20. After a foreclosure action was initiated against Proctor in the Circuit Court for Prince George's County, Case No. CAEF15–00209 (the "Foreclosure Action"), id. ¶ 31, resulting in the sale of the Property and a state court Order of Judgment awarding possession of the Property to Defendant Federal National Mortgage Association ("Fannie Mae"), Proctor filed suit in this Court.¹ ECF No. 1. In addition to Fannie Mae, Defendants include Wells Fargo, N.A. ("Wells Fargo," and together with Fannie Mae, the "Lenders"); the "Substitute Trustees" who initiated the Foreclosure Action (Howard N. Bierman, Joshua Coleman, Nicholas Derdock, Jacob Geesing, Richard R. Goldsmith, Jr., Elizabeth C. Jones, Jason Kutcher, Pratima Lele, Ludeen McCarthy–Green, and Carrie M. Ward); and Prince George's County Sheriff Melvin High. Am. Compl.

Currently pending are Sheriff High's Motion to Dismiss or for Summary Judgment, ECF No. 26, which the parties fully briefed, ECF Nos. 26–1, 28, 29; the Lenders' Motion to Dismiss, ECF No. 31, which the parties fully briefed, ECF Nos. 31–1, 39, 43; and the Substitute Trustees' Motion to Dismiss (adopting the Lenders' arguments), ECF No. 40, which the parties fully briefed, ECF Nos. 46, 47. A hearing is not necessary. See Loc. R. 105.6. Because res judicata bars Proctor's claims against the Lenders and the Substitute Trustees, I will dismiss the claims against them without reaching the alternative grounds Defendants raise for dismissal. Proctor also fails to state a claim against Sheriff High in his official or individual capacity. Accordingly, I will dismiss the claims against him.

Background

Proctor used her Property to secure a $126,889.98 mortgage loan and executed a Deed of Trust on the Property in favor of the original lender, Wachovia Bank, N.A. ("Wachovia"). Thereafter (presumably because Proctor fell behind on her mortgage payments, although none of the parties state the reason for the Foreclosure Action or whether Proctor was current on her mortgage payments), Wells Fargo—not Wachovia—appointed the Substitute Trustees pursuant to the Deed of Trust to initiate foreclosure proceedings. Am. Compl. ¶ 26. Proctor claims that Wells Fargo was not the proper holder of the Deed of Trust and therefore lacked the authority to foreclose on her Property through the Substitute Trustees. Id. Yet, Wells Fargo acquired Wachovia in 2010. See Wachovia's Institution History, Nat'l Info. Ctr., ECF No. 31–2.²

The Substitute Trustees filed the Foreclosure Action against Proctor in the Circuit Court for Prince George's County, Am. Compl. ¶ 31, and Proctor filed counterclaims against the Substitute Trustees, which the court dismissed with prejudice. State Ct. Docket, http://casesearch.courts.state.md.us/casesearch/inquiryDetail.jis?caseId=CAEF1500209&loc=65&detailLoc=PGV. The Property was sold through the Foreclosure Action, and the state court ratified the sale on March 22, 2016. Id. On September 13, 2016, the state court entered an Order of Judgment awarding possession of the Property to Fannie Mae. Id. Proctor filed a motion to vacate the judgment, which the court denied. Id. The court issued a Writ of Possession on September 21, 2016 for the Prince George's County Sheriff to serve.³ Id.

At that point, when an Order of Judgment had been entered but the Foreclosure Action remained open, Proctor filed a 63–page complaint in this Court on January 13, 2017, alleging violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1962(a), (c), (d), as well as other federal and state law claims arising from the foreclosure of her Property. ECF No. 1. She named the Lenders, Wells Fargo's Senior Vice President Michael J. Heid and Vice President Gloria Ann Hernandez, BWW Law Group, LLC ("BWW"), Sheriff Melvin High, and "DOES 1 through 15" as Defendants. Id. She also sought "declaratory and injunctive relief as to the planned unlawful seizure of the Plaintiff's house." Id. at 54.

The named Defendants noted their intent to file motions to dismiss, ECF Nos. 6, 10, 15, and I permitted Plaintiff to file an amended complaint to address the deficiencies Defendants raised before Defendants filed their motions. Apr. 17, 2017 & Apr. 19, 2017 Ltr. Orders, ECF Nos. 12, 16. I cautioned that any dismissal of Plaintiff's claims based on a ground raised in Defendants' pre-motion conference requests would be with prejudice. Apr. 17, 2017 & Apr. 19, 2017 Ltr. Orders; May 15, 2017 Ltr. Order, ECF No. 25.

Plaintiff filed a verified Amended Complaint, ECF No. 20, removing BWW, Heid and Hernandez as Defendants and adding the Substitute Trustees as Defendants. See Pl.'s Opp'n to Lenders' Mot. ¶ 5, ECF No. 39.⁴ In her Amended Complaint, Proctor also abandoned her RICO claims. With regard to the Lenders, she alleges wrongful foreclosure and violations of the Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692 et seq. , Maryland Consumer Debt Collection Act ("MCDCA"), Md. Code Ann., Com. Law § 14–201 et seq. Am. Compl. ¶¶ 42 & 44. She also sues Wells Fargo for breach of contract and violations of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. §§ 2601 – 2617. Am. Compl. ¶¶ 40 & 43. She brings a claim for slander and to quiet title against Fannie Mae. Id. ¶ 41. As for Sheriff High, she claims civil rights violations. Id. ¶ 46. Additionally, she seeks injunctive relief against all Defendants. Id. ¶ 45.

Sheriff High and the Lenders moved to dismiss, ECF Nos. 26 & 31, and the Substitute Trustees filed a pre-motion conference request with regard to filing a motion to dismiss. ECF No. 35. I permitted them to file a motion that adopted the grounds that the other Defendants had raised, stating that any dismissal on those grounds would be with prejudice as Plaintiff already had the opportunity to amend to address those grounds. I also permitted them to address any new grounds. June 22, 2017 Ltr. Order, ECF No. 38.

Standard of Review

The Lenders, Sheriff High, and the Substitute Trustees move to dismiss pursuant to Rule 12(b)(6), under which Proctor's pleadings are subject to dismissal if they "fail[ ] to state a claim upon which relief can be granted." Fed. R. Civ. P. 12(b)(6).⁵ A pleading must contain "a short and plain statement of the claim showing that the pleader is entitled to relief," Fed. R. Civ. P. 8(a)(2), and must state "a plausible claim for relief," Ashcroft v. Iqbal , 556 U.S. 662, 678–79, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). "A claim has facial plausibility when the [claimant] pleads factual content that allows the court to draw the reasonable inference that the [opposing party] is liable for the misconduct alleged." Iqbal , 556 U.S. at 678, 129 S.Ct. 1937. "Although courts should construe pleadings of self-represented litigants liberally, Erickson v. Pardus , 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007), legal conclusions or conclusory statements do not suffice, Iqbal , 556 U.S. at 678, 129 S.Ct. 1937." Moore v. Jordan , No. TDC-16-1741, 2017 WL 3671167, at *4 (D. Md. Aug. 23, 2017).

Rule 12(b)(6)'s purpose "is to test the sufficiency of a [claim] and not to resolve contests surrounding the facts, the merits of a claim, or the applicability of defenses." Velencia v. Drezhlo , No. RDB-12-237, 2012 WL 6562764, at *4 (D. Md. Dec. 13, 2012) (quoting Presley v. City of Charlottesville , 464 F.3d 480, 483 (4th Cir. 2006) ). If an affirmative defense, such as res judicata , "clearly appears on the face of the [pleading]," however, the Court may rule on that defense when considering a motion to dismiss. Kalos v. Centennial Sur. Assocs. , No. CCB-12-1532, 2012 WL 6210117, at *2 (D. Md. Dec. 12, 2012) (quoting Andrews v. Daw , 201 F.3d 521, 524 n.1 (4th Cir. 2000) (citation and quotation marks omitted)).

Discussion

Claims against the Lenders and the Substitute Trustees

Proctor brings various federal statutory and state tort claims against the Lenders and the Substitute Trustees. Am. Compl. ¶¶ 40–45. In response, these Defendants raise various grounds for dismissal, one of which is the affirmative defense of res judicata , or claim preclusion. When, as here, federal court litigants assert that a state court judgment has preclusive effect, "[the] federal court must give to [the] state court judgment the same preclusive effect as would be given that judgment under the law of the State in which the judgment was rendered." Migra v. Warren City Sch. Dist. Bd. of Educ. , 465 U.S. 75, 81, 104 S.Ct. 892, 79 L.Ed.2d 56 (1984). Under Maryland law, res judicata , or claim preclusion, provides grounds for dismissal if a defendant establishes that "(1) the present parties are the same or in privity with the parties to the earlier dispute, (2) the claim presented is identical to the one determined in the prior adjudication, and (3) there has been a final judgment on the merits." Capel v. Countrywide Home Loans, Inc. , No. WDQ-09-2374, 2010 WL 457534, at *3 (D. Md. Feb. 3, 2010) (citing Anne Arundel County Bd. of Educ. v. Norville, 390 Md. 93, 887 A.2d 1029, 1037 (2005) ).

1. Same parties

In the Foreclosure Action, Proctor was the defendant and Ward, Bierman, Geesing, Lele, Monto and Coleman ("WBGLMC"), acting as substitute trustee, was the plaintiff....