Quinn v. Ocwen Loan Servicing, LLC
Opinion of the Court
Plaintiff Derek Quinn, proceeding pro se, appeals the district court’s dismissal of his complaint for failure to state a claim, pursuant to Fed. R. Civ. P. 12(b)(6). No reversible error has been shown; we affirm.
Plaintiff filed this civil action in Alabama state court against Defendants Ocwen Loan Servicing, LLC (“Ocwen”) and Deutsche Bank National Trust Company as Trustee for NovaStar Mortgage Funding Trust (“Deutsche”). Briefly stated, Plaintiff purported to assert state law claims against Defendants arising from Defendants’ servicing of Plaintiffs mortgage loan and from Defendants’ initiation of foreclosure proceedings on Plaintiffs home.
Defendants removed the case to federal court, pursuant to
On appeal, Plaintiff first argues that the district court erred in denying Plaintiffs motion to remand the case to state court. Plaintiff contends that the district court lacked diversity jurisdiction over the case because both he and Ocwen are citizens of Alabama.
We review de novo the denial of a motion to remand to state court. Moore v. N. Am. Sports, Inc.,
In their notice of removal, Defendants identified Ocwen Mortgage Servicing, Inc. as the sole member of Ocwen. The parties do not dispute that Ocwen Mortgage Servicing, Inc. is a citizen of the U.S. Virgin Islands. Because Ocwen’s only member is a citizen of the U.S. Virgin Islands, Ocwen is also a citizen only of the U.S, Virgin Islands. See
II.
Plaintiff next challenges the district court’s dismissal based on res judicata. We review de novo a district court’s decision that a claim is barred by res judicata. Ragsdale v. Rubbermaid, Inc.,
“Res judicata bars the filing of claims which were raised or could have been raised in an earlier proceeding.”
“[C]ases involve the same cause of action for purposes of res judicata if the present case arises out of the same nucleus of operative fact, or is based on the same factual predicate, as a former action.” Israel Disc. Bank Ltd. v. Entin,
In both this civil action and in Plaintiffs 2012 litigation, Plaintiffs claims are based on Defendants’ refusal to accept Plaintiffs mortgage payments beginning in early 2010 and on Defendants’ initiation of alleged unlawful foreclosure proceedings. Because both suits are based on the same factual predicate and arise from the same nucleus of operative fact, the suits involve the same causes of action. See Israel Disc. Bank Ltd.,
Plaintiffs arguments on appeal are without merit. The record evidences that Plaintiff could have raised all of his claims in his earlier 2012 lawsuit. A refusal to allow an amendment in the earlier action because Plaintiff failed to amend in a timely manner does not change our decision. We also reject Plaintiffs argument that he has asserted a new cause of action by alleging that Defendants’ wrongful conduct is ongoing. In the 2012 litigation, the district court determined that Plaintiffs mortgage loan was in default and that Plaintiffs “April 2010 payment was properly rejected by Ocwen as inadequate to cure the default.” Given the earlier determination that Defendants’ conduct was lawful, no new cause of action accrues from Defendants’ continued refusal to accept Plaintiffs monthly mortgage payments.
AFFIRMED.
.The district court also determined that Plaintiff’s state law claim for fraudulent credit-reporting (Count Four) was preempted by the Fair Credit Reporting Act. Plaintiff does not challenge this independent ground for dismissal on appeal.
. Plaintiff does not dispute that the amount in controversy exceeds $75,000 or that he (a citizen of Alabama) is diverse from Deustche (a citizen of California).
. A registered agent is no "member" of an LLC: the term “member” means the owners of an LLC.
Reference
- Full Case Name
- Derek QUINN v. OCWEN LOAN SERVICING, LLC, Deutsche Bank National Trust Company, as Trustee
- Cited By
- 1 case
- Status
- Published