Jackson et al v. U.S. Bank, N.A. et al

Filing 46

ORDER denying 25 Motion to Dismiss; denying 20 Motion to Dismiss for Failure to State a Claim; denying 20 Motion to Dismiss for Lack of Jurisdiction; denying 22 Motion for Hearing. Signed by Judge Federico A. Moreno on 8/20/2014. (bnt) Modified signature date on 8/22/2014 (asl).

UN I
TED STA TES DI
STRI CO U RT FO R TH E
CT
SOUTHERN DI
STRI OF FLORI
CT
DA
M i m iDi s on
a
vi i
C as N um be 1 21
e
r: 4- 252- l - O R EN O
C VM

PHI P J
LI ACKSON a STEPHEN LARGESS,
nd
o be f of t m s l s a ot r sm ia l
n hal
he e ve nd he s i l ry
st t
iua ed,

Pl n @j
ait '
,
U . BAN K , N . . A SSUR AN T, I C . a
S.
A,
N
nd
A M ER I A N SECU R I Y I SU RA N CE
C
T
N
COM PAN Y,

Dee d ns
f n a t.
O R DER D ENY IN G DE FEND A NT S'M O TIO N S TO D ISM ISS

Thi matrc me b f r t e Co r u n j itr ve o Dee d n U. Ba , A.
s te o s eo e h u t po o n e iw f fn a t S. nk N. '
S
M oto t Dimis ( E.No.20) fl on June 23.201 a Dee ntAme ia Se urt
in o s s D.
, ied
4, nd fnda
rc n c iy
l urnc Compa sM oi t Dimis( E.25) fld on June23.2014.Fort f e ng
ns a e
ny' ton o s s D.
, ie
he orgoi
r s ,t Co tD EN I bo h D e e nt 'M otons t D i m i s Pl ntf s pl d f c ua c t nt
ea ons he ur
ES t
f nda s
i o s s . ai if ea a t l on e
t t a l s t Cour t dr w t r s
ha low he
t o a he ea onabl i e e
e nf r nce t t D e e nt m a be la e f t
ha
f nda s y
i bl or he
m ico uctaleg s t ca e s l no be di m i s d a t ss ag i t ltga i
s nd
l ed, o he s ha l t
s s e t hi t e n he ii ton.

Fac ualBa kg ound
t
c r

Dee ntAmeia Se urt l urnc Co ny(W SI 'pr desmoniorngs r i s
fnda
rc n c iy ns a e mpa $ C') ovi
t i e vce
a i s s i ur e polc e c rng bor ow e s'pr r i whe bonow e s f i t pr de pr
nd s ue ns anc
i i s ove i
r r ope tes
n
r a l o ovi
oof
ofa c pt bl i ur nc a r uie by t i m orga .
c e a e ns a e s eq r d
he r
t ges Thes m oniorng s r i s a polc esa e
e
t i e v ce nd i i r
pr de pur ua t c r t w ih m orga l nde sa s r c r , nc udi D e e ntU . Ba
ovi d s nt o ontac s t
t ge e r nd e vi e s i l ng f nda
S. nk,

N. CI S. nk') Pli if tl t sca sa tonCompl ntag ns Dee nt wihr pe tt
A. U. Ba '. antfs ied hi ls ci
ai ai t fnda s t es c o

aha r lnderplce i urnce($ ')pr r i Aprl201 I rc ye r,s h c ant
zad e - a d ns a k ' ogam n i 4.n e ent a s uc ompli s
LPI
ha be
ve comecomm on a i t sDiti t Se r ls h c eshavecomebe or t sve y Cour.
plce n hi src . ve a uc as
f e hi r
t
Se Fl lv W els Far Bank N A.N o.1 6072l fo z v.HSBC Bank US N o. 1 211 ,
e adel . l
go
,
,
3; pe
A,
3- 04.
Sac oc o v JP M or Chas Bank N A. N o.1 211 Pl ntf s s ven ca e ofa t o a e al
c ci .
gan
e
,
,
3- 07. ai if ' e
us s c i n r l

g oundedi f m iiral ga i
r
n a la le tons t tU. Ba r cevedt c
ha S. nk e i t kbac 'i c
ki
ks'n onne ton wih LPla
ci
t
nd
di notdicos t s
d
s l e he ame, ndt tt LPlcove a wase s i a r toa tve. f ndan sbot
a ha he
r ge
xce sve nd e r c i De e
t h
fl motonst dim isPl ntfs Compli i J 201 a bec us t em otonsi
ied
i o s s ai if '
ant n une 4, nd a e hes
i nvoke
d
s m ia a hor te a a gum e s t Cour r vi w st m t t r
i l r ut ii s nd r
nt , he
t e e he oge he .

I.
I

St nda d ofRevi w
a r
e

UnderRul 1 b)6) aco ai mus bedimis whe i f l Sosat acam upon
e 2( ( , mpl nt t
s sed n t ais ç t e li
t
whihr i ca beg a e 'CAJcompli mus algee
c elef n r ntd. I
'I
ant t le noughfct t saeacam t r i t t
a s o tt li o elefha
i pl us bl on isf ce a t tr s a
s a i e t a nd ha i es bove t s ul tve l vel' Tr yl v. 'hi Til Co. LLC,
he pec a i e .' a or # s p te ,

491F. x 988,990( 1h Ci.201 .1 cam ha fca plusbiiywhe t pl ntf plads
App'
1 t r 2) $ li s a il a i lt
A
n he ai if e
f c ua c e t ta l st cou t o dr t r a ona e i e e t tt de e
a t l ont nt ha low he r t aw he e s bl nf r nce ha he f ndanti la e f
s i bl or

temic n u talg d. As c o tv l b l 5 6 U. 6 2 6 ( 0 9 . sçe u rsmo eta
h s o d c le e ' h rj . q a , 5 S. 6 , 78 2 0 ) Thi û q ie r h n
'
r
l bel a c l i ,and a f m ul i r iato of t e e e s of a c us ofac i ' Be lA t.
a s nd onc us ons
or a c ec t i n
he l m nt
a e
ton.' l l

Cor v Twombl 55 U. 5 555(
p..
y, 0 S. 44, 2007)Sl lusbiiy'de ndst et nas rposi lt
.spja i lt ' ma l
mor ha hee sbiiy
t ta de e
ha
f ndanthasa e unl w f l ' l al 556 U . a 678.
ct d a uly. qb ,
'
S. t

11
1.

Le Anal i
cal
vss
M orga l r a s vier ha be n ltga i f c plce i ur ncec am sbr
t ge ende s nd er c s ve e ii tng or e- a d ns a
li
ought

i cl s a ton l s t na i
n as c i aw uis tonwi f m or t n t e ye s and ha f ie t pr ur di m i s
de or e ha hr e ar ,
ve a l d o oc e s s al

i tev s mao iyo ted z nso c s st yh v d fn e Se , ..Ca d nv 1 Ba k FS
n h a t j rt f h o e f a e he a e e e d d. e eg , r e .NG n B,
No. 1 c 80 9:3-v- 659KLR ( nyi motont dimisbra ofc r tbrac ofi idc nan,
de ng i o s s e ch ontac, e h mple ove t

u j s e rc me t b e c o fd cay duy a d triu itree c cams noig t a the
n u t n ib n , r a h f iu ir t, n o t s ne frn e li , t h t s
o
n
t

mao i ,f tal( PIc s sta h v p e e e tec re t a e h v al we t ep an if' l
j rt ino l, F a e h t a e rc d d h u rn c s l a e lo d h litfs FP
y
camst pr e );s ealoHamit v SunTr s M org.l .No.1 c 60749-l 201 U.
li o oce d' e s
lon .
u t t , nc,
3-vJC, 4 S.
DitLEXI 41 ( D. aM a . 201 ;Wilamsv Wels goBank NA.No.11cv- 233s.
S 668 S. Fl. r25, 4) li . lFar
,
- 21
CMA, 1W L4368 0( D. a Se .1 2011. r Dee
201
98 S. Fl. pt 9, )Hee, fndant ditnguiht rMotonst
s si s hei i o
Dimiswih a hea r inc on t r ce a l e de sons Upon c r f r vi w,howev ,
s s t
vy ela e
wo e nt ppelat cii .
a e ul e e
er
t s t de sonsa editnguihabl and Def nda sdo notm e t bur n ofde o ta i
he e wo cii
r si s e,
e nt
et he de
m nsr tng
t tPl i if f lt s a e a c ai upon w hi r i c n be g ant i a Cou oft rCo pl nt
ha a ntf s ai o t t l m
ch elef a
r ed n ny
nt hei m ai .

A.

Re e De i i byt Se nt a El nt CicuisDo NotCompelDim is
c nt c sons he ve h nd eve h r t
s s al
ofPli if Kikbac Cl ms.
antfs' c
k ai

De e nt a gue t tr e o ni by t Seve h a El ve h Cic t i Cohen v
f nda s r
ha ec nt pi ons he
nt nd e nt r uis n
.

Ame iansec i n r eCo.735F. 601( hCi. 3)a Fe v WelFar Bank NA.
rc
urt su anc ,
yl
3d
7t r201 , nd az . ls go
,

745F. 1 ( 1hCi. 4) s dc
3d 098 1 t r 201 , houl ompeldimis lofPl ntfs kikba kcli . Cour
s sa
ai if' c c ams The
t
de e nes how e r t tt a l ga i i bot c s a e m a e i l di tnc f o t e he e.
t nni ,
ve , ha he le tons n h a es r
t raly s i t r m hos r The

co ti Cohe a ove dim is ofaborowe ' c am st ts hadbe n c ge f rki kba ks
ur n
n ppr d s s al
r r s l i ha he
e har d o c c
bec us t pa m e ss des rbed i he c pl i we e pa m e sf wor s a l ge ha b n
a e he y nt he c i n r om a nt r y nt or k he le d d ee

-

3-

peror d bya afii t oft lnde - s de c i d e r comm isons a s
f me
n flae he e r he s rbe a ned
s i , nd oughtt r ove
o ec r
by lbelngt m tkikbac .' F. a 607. c pl nti Feazi ved f ce pl e tood
a i he s c
ks'735 3d t
The om ai n
nvol or - ac d l
i ur e a wa sm ia l c us y;t ale tonslcke uli a ef c st s
ns anc nd s i lry oncl or he l gai a d tm t a t o uppor ahol ng
t
di
t tt pl i ifhad,n f c , enc r edf abrbe. F. a 11 Her , c r t Pl i if
ha he antf
i a t be ha g or i 745 3d t 01. e by ontas, antfs
aleg t tki kba ks w e e pa d t U . Ba t tw e e e ie y unea ne and D e e nt ASI
l e ha c c
r i o S. nk ha r ntr l
r d,
f nda
C

m ild borowe sby r pr s ntngt t m t tt a ou swer pa e sf wor t tha be
se
r r
e e e i o he ha he m nt
e ym nt or k ha d en

p ro me . eCo rj ist ohe dsrc c u t i hodngt a alg to lk Plitfs ae
ef r d Th u t on wo t r itit o rs n li h t le ains ie anif' r
m a eraly di tnc f om t e i Cohe a Fe z s as t r
t i l si t r
hos n
n nd a o
o ende t e opi ons i ppos t .Se
r hos
ni
na
ie e
H am it 201 U . D i t LEXI 41
lon, 4 S. s .
S 668, t * 30;Els t v.U S.Bank N A. 201 U . Di t
a 26l wor h
,
, 2 S. s .

LEXI 38 , * ( D.Ca. a . , 4)1
S 691 at 63 N. lM r 21 201 .

Pli if Ha St t Cli sBa e on Exc s Cove a
antf s ve aed am
sd
es
r ge.
U . Ba l r le on Fc -w hi h i ves f c pl ce food i ur e o a g t t
S. rk e i s
lz
c nvol
or e- a d l
ns anc -t r ue ha
Pl i if he ec nno s a ec ai sba e on e s c
a ntf s r a t t t l m
sd
xce s over ge.
a Exce stood c ve a cl i s ho e r
s l
o r ge a m , w ve ,

a e ditnc fom Pli if 'haz r i ur ecl ms Pl ntfsal gi e es c a f ce i
r si t r
a ntf s
a d ns anc ai . ai if le ng xc s over ge or d n
t tood i ur nc c e ba et i cli on cove a plce i e es oft tr quie by t
he l
ns a e ont xt s he r a ms
r ge a d n xc s ha e r d he

Nai Fl I urnce Ac ($ A' a a pr son i borowes morga a e me s
tonal ood ns a
ti
NFl ' nd
)
ovii n r r' t ge gre nt
s ii ly gove ni t ood i ur nc w hi ge r ly r r t bor ow e t t ns e a l
pec fca l
r ng l
ns a e, ch ne a l equies he
r r o d ur l
i

l heCour ma consde pl di fom ot ra tonsonaRul 1 b)6)motont
'
r
t y
i r ea ngs r
he ci
e 2( (
i o
ds s wih u c n e t t emoint o ef rs
imis t o t o v ri h to o n o ummayj d me tS e eg,Cttc v Wama t
ng
r u g n . e , .. l / . l r
?.
ç
St es No.2:3-v-26, 3U. DitLEXI 1
or ,
1 c 5 201 S. s.
S 35502,a *2n. ( D.Al Se .23,201
t
1 N. a. pt
3)
(iAj ea hort e sswhihrcogni st tmatr ofpublcr or i l ngc t
sg mpl ut iy xit c e
ze ha te s
i ec d,ncudi our
r or i r l t d orunde l ng c esw hi h ha a die tr a i t t m a t r a i s m a be
ec ds n e a e
r yi as
c ve r c el ton o he te s t s ue, y

l dt whe r i ona1 b)6)motont dimis' ( ttonsomitd)
ooke o n ulng
2( (
i o s s.' ciai
)
te .

i r v me t o t P o e t .. g i s ls b to d t tee tn r q ie b t eSe rtr g f
mp o e n s n he r p ry . a an t o s y l o s o h x e t e urd y h ceay o
t De rmentofHousnga Ur nDe opment. Fe ,745F. a 11 2.nt s c es t
he pa t
i nd ba vel
q' az
'
3d t 0 l he e as ,he
que ton pr s nt d i whet r f de alr r m e s e t bls a m i m um o m axi um am ountof
si
ee e s
he e r equie nt s a i h
ni
r
m

food i ur et tt borowe i r quiedt m a n ai a c r pondi y, t rt lnde
l
ns anc ha he r r s e r o i t n nd, ores
ngl whe he he e r
b ea he t morg a ee ntorvi ae ot re r conta ual i st bonowe sbyr rng
r c d he tage gr me
ol td he xta r ct dute o
r
equii
t m t m ant i tood i u a e i exc s oft mnou r quied by f de a l w.The que ton
he o i an l
ns r nc n es
he
nt e r
e rl a
si
be or t Cour he e i dif r nt Pli if a lget tDe e nt c ge t m f t t pesof
f e he
t r s fe e . a ntfs le ha f nda s har d he or wo y
t xc s ' ha r cove ag .r r ctv c a f pe i whe e no cl ms we e made a
d e s' za d
e
r e' etoa i e over ge or rods
r
ai
r
nd
d ia i c er ge f pe i when vol a y c r ge ort morga sStnda d M org e
uplc tve ov a or rods
untr ove a
he
t ge' a r
tag
Clus ort Le r sLos Pa bl Endor e e , c ge al c rt lnderf am i m um
a e he nde '
s ya e
s m nt whi h ner ly ove he e
or ni
oft n da afe a lps i vol ar c er ge,we e i e f c .l t s i t nc ,bonowe s a e
e ys tr a e n unt y ov a
r n fe t n he e nsa es
r r
c r d f u c s r c r ge eiherbe us t ew a no r s t cove orc r ge w a a r dy
ha ge or nne es a y ove a , t
ca e her s i k o
r ove a
s lea

i pl e. ealegai nsr rpli if ' l m sditnc fom t ebr
n ac Thes l to ende a ntf s cai
si t r hos ought
bypl ntfsbrngi
ai if i ng
cli sbas on f ce tood c r ge.
am
ed or d l
ove a

TheNai lBankA c Doe N o Pr e Pl ntfs St eLa Cl ms.
tona
t s t e mpt ai if ' at w ai

Dee n saloatmptt aguet tt Nai lBn Ac,1 U. C. let e C$ ',
fnda t s te o r ha he tona nk t 2 S. j s q. NBA'
)
pr e s sa e lw cai s pr s nt he e A c s r r vi w of t r e ntc elw,howe r
e mpt tt a l m
e e ed r . ur o y e e
he elva as a
ve ,

d mo srtsta c u tr u ieyrj c t eag me th th Nain l n Ac p e mp s tt 1w
e n tae h t o rs o tn l ee th r u n t a t e to a Ba k t re t sae a
c ai si f c - a ed i ur nc ca es Se ,eg. Le
l m n or e pl c ns a e s . e . , ghor v.We l Far Bank N A. 950 F.
n
ls go
,
,
Supp.

2d 1
093,11 1 ( D.Cal 201 ;Kun l
07-4 N.
. 3)
zemann,201 U. Dit LEXI 18 34,a *1 1
2 S. s.
S 61 t 2- 6;
W ilam s 20ll U . D i t LEX I 11 36,a *1 35.U . Ba r i est ar m e hopi f a
li ,
S. s .
S 91
t 9S. nk a s he gu nt
ng or

dif r ntr s tbutt si not c s off
fe e e ul, hi s a a e i
whoe t l t be t t ywi . iAm it 'Dr n W or
ver els he s sor ns' k sad' e m
'
#
ks

SKG ( 997) TheNBA andr ae r ultonssmpl donotl e
1 .
eltd eg ai i y
s emptt e ietel ofba ng.
pr
he ntr i d nki '
'
Demig v Fis Fr ln,No.C09- 8,201 W L 21
n . rt anki
541
0
94830,a *3( . W as Apr 23,201 )
t W D. h. .
0.
Though t NBA doe çs edg nai lba fom undul bur ns a duplc tve sat
he
s shil l tona nks r
y de ome nd
iai t e
rgulton,ed al c ree ba r i s j c t saelwsofg r a i toni t rdal
e ai f erly ha trd nks eman ub e to tt a
eneal pplcai n hei iy
busne st t e e s h lw sdono c lc wiht ltero t ge r pum os oft NBA.
i s o he xt nt uc a
t onfit t he e t r he ne al
e he
'
'

Ge h r v Ba ko q ,NA. No 2:9 CV- 1 9 2 0 W L 5 0 9 , t* ( D. l Fe l ,
b a d . n fzm. , . 0 - 03 5 , 01
8 9 5 a 4 E. Ca. b. 1
201 (iai a i enalquot i omitd) The eor,Sglaesma rgult t aci te of
0) ctton nd ntr
atons te . r f e tstt y e ae he tviis
na i lba s l a t ydonot eve orsg fc l i e f ewih t e r s oft ba s
tona nks o ong s he
pr nt i niianty nt rer t he xe cie he nk'

a hort 'Mwantmbev FD Bank N A.669F.Supp.2d5 549( D. 2009.
ut iy.
'
e
.
, ,
45, E. Pa. )
The s ope ofNBA pr e i i f r na r rt n U. Ba s gess The d e a
c
e mpton s a rowe ha
S. nk ug t .
t es nd
f
c g 'atis e he ea enotbn ng f esa al- t yar i ur ncepr m i sa a i sr i
har es' s u r r
nki e t l he e ns a
e um nd dm nitatve

fesc c atd a c gedby i urnc compani f t i pr sand sr c .1 C. R.j
e alul e nd har
ns a e
es or her oduct
e vies 2 F.
7. b)2)i,7. b)2)i) Se i 7. oft NBA doe notpr e Pli if cams
4002( ( () 4002( ( (i. cton 4002 he
s
e mpt antfs' li
be us i a e s ss r i ec r si
ca e t ddr s e e v c ha ge mpos d b na i ba , i ur nc pr m i si pos d
e y tonal nks not ns a e e um m e
by i ur nce c
ns a
ompa es The s c i woul notpr emptPli if 'cl m se i i di a y,
ni .
e ton
d
e
a ntfs ai ven f t d ppl
m o eove , ca ePl ntfsdonot hale U. Ba sa hort t esabls t pr mi , y
r r be us ai if
c l nge S. nk' ut iy o t ih he e ums onl

isalg dma p lto o t p e u . e 1 C. R. 74 0 ( )2 ; e ,as Guir e , 01
t le e niuain f he rmi ms S e 2 F. j .0 2 b ( ) s e lo t r z 2 0
e
WL1
233885,a * (i ngnopremptonwheet prci c l ddi notquetonba s
t 2 fndi
e i
r he a tce halenge d
si nk'
rg t c gepa tc a ovedr tfe .
iht o har riulr r af e )

-

6-

D.

TheFie lat DocrneDoe NotBa Pli if 'Cli .
l d-k e ti
s
r antf s a ms

Bot De e n s' otons c t ndt tt fl r t docrneba sPli tfs cli sbec us
h f nda t M i
on e ha he ied-ae ti
r a n if ' am
a e
t r tsus dt cac aet pr um sc r dt U .S. nkwe ea ove b M is i ndRhode
he ae e o lul t he emi
ha ge o
Ba
r ppr d y s our a

lln r g ltr . u t i t i a doh rd srcsh v rj ce t sag me t h we e, e l i
sa d e u ao s Co rs n h s n te itit a e ee td hi r u n, o v r d ci ng
n
t a y t doc rne t l nder ,s r i e s or i ur r i t f ce pl ed i ur nc c e . See
o ppl he t i o e
s e v c r , ns e s n he or - ac ns a e ont xt
K u e mann,201 U . D i t LEX I 18 34, a *8- 0;
nz l
2 S. s .
S 61
t 1 Abel,678 F.Supp. a 1 78;ac or
s
2d t 277c d

Ho v r 2 4 U. Dit LEXI 4 7 3, t* 4 2 (iigt u tn ilb d o c s lw'rj cig
o e , 01 S. s.
S 0 4 a 2 - 5 ctn s bsa ta o y f a e a ' ee tn
s
a iai offl rt docrneonmoton t dimisi f c plce i urnc c e )(iai
pplc ton ied-ae ti
i o s s n ore- a d ns a e as s cttons

omitdl Canno v Wel Far Bank N. ,91 F.Supp.2d 1 1 38 ( D.Ca.201 ;
te ;
n . ls go
, A. 7
025, 036- N. l 3)
Galov PlH Morg.Cor ,91 F.Supp. 537,543- ( N. 201 .
l . l
t
p. 6
2d
49 D. J. 2)
TheCour ' de e m i ton he ei c i t nt iht s o he dec s o . TheCo t
ts t r na i
r s ons s e w t he e t r i i ns
ur fndst t
ha

t tld-a e docti i una ia e a a de e e i t s ltgai n be us De e nt a e no
he ie r t
rne s val bl s
f ns n hi ii to ca e f nda s r t

i s rr s b e t terlv n r g ao yrgme'Ho v r 201 U. Dit LEXI 4 4 , t* 0.
n u e s u j d o h ee a t e ultr e i . o e , 4 S. s.
'
S 07 3 a 3
U. Ba ki n ts b e t a miitaieo esg t ysaei u a c c mmiso ' sars l,t
S. n s o u j d o d n srtv v rih b tt ns r n e o sins a e utis
,
a hort t r ul t a a ove i ur r 'r t sdoesnott h Pl i i f 'cl i st tU .S.Bank,a
ut iy o eg a e nd ppr
ns e s a e
ouc a ntf s a m ha
l nde a s r c ,i l
e r nd e vi er nc uded i pe m i s bl cos s i t a ount i cha ge bor ow e s f f r e
m r s i e t n he m
s t r d r r or o c -

plc d i u a e.Se i ;s e alo Le or 950 F.Supp. 2d a 1 1 1 (
a e ns r nc
e d. e s gh n,
t 1 5- 6 dodrnei pplc bl
i na ia e
be us pl ntf ha notc lng l ul s ofr t , but nk' de son t c
ca e ai if d
hale ed awf ne s a e
ba s cii o hoos i ur t pa
e ns er o y

akikba k) Abes,678F.Supp. a 1 (ame .
c c ; l
2d t 277 s )
The doc rne i a s i pplc bl he e be us Pl i if a e not r t pa r . See e. ,
t i s l o na i a e r ca e a ntf s r
a e ye s
, g.

Roh ti 2 3 W L 5 7 4 , t* 8 9(ee t a p ia lt o d crn b c u er tsh db e
tsen 01
43 6 8 a - rj ci p lc bi y f o tie e a s ae a e n
ng
i
a oved f r pay e by m orga l r whih wa t r t pa r a notby borowes.
ppr
o
m nt
t ge ende , c
s he ae ye , nd
r r)

Pl i if a lge t tU. Ba pur ha e am a t polc fo ot rDef nda s t tt f c antfs le ha S. nk c s d
ser iy r m he
e nt ha he or e
,

pl c d polcisa e c
ae
i e r omm e c a i u anc polcis a U . Bal pai t i ur epr um st
r i l ns r e i e , nd S. rk d he ns anc emi
o
ot r De e nt. U. Ba , t r or , not Pl ntf s i t ale d r t pa er ba r d fom
he
f nda s S. nk he ef e
ai i f , s he l ge a e y
re r
c le ng t ot De e nt 'r es Thefl d-a edoc rnedoesnota y. Se Squar D Co.
hal ngi he her f nda s at .
ie r t
ti
ppl e
e

v Niga aFr nirT rf r, n .47 U. 4 9 4 2n2 ( 98 )
. a r o t a l .I c, 6 S. 0 , 2 .9 1 6 .
e
fBu

Pl i if Cli Ar NotBa r d by t Vol a yPa e Doc rne.
antfs' a ms e
re
he untr ym nt ti
U. Bark a s a gue t tPli if 'cli a e ba r d by t vol ar pay e docrne
S. t l o r s ha a ntfs a ms r re
he unt y m nt ti
be us Pl ntfspad a ount f f c - a edc a wih f lknowl
ca e ai if i m
s or or e pl c over ge t ul
edgeoft a ount t y
he m
s he
woul bec r d,ha t amount mi c
d ha ge t t he
s ght overc misonst U .S. nk, nd oft tmepe i ds
om s i o
Ba a
he i
ro
f whih c r gewoul bepr de . Butt s f c sa e notm a e i l o Pl ntf s' l i s Fort
or c ove a
d
ovi d
he e a t r
t r a t ai if c a m .
he
doc rnet a y, . Bankwoul ha t s t tPl ntfsha f lknowl
ti o ppl U S.
d ve o how ha ai if d ul
edgeoft aleg y
he l edl

undicos kikba a ot wr ulconduc al ge . M or over t vol ar paym ent
s l ed c cks nd her ongf
t le d
e
, he unt y
docrnei ana tr tvede e et tor na iy ma no ber i e onamoton t dim is See,e. ,
ti s fi ma i
f ns ha di rl y t a s d
i o s s.
g.

Els t 908 F.Supp.2d a 1 ( ci ng t dimisFPIcli be us vol ay pa nt
lworh,
t 083 de lni o s s
am ca e untr yme
defns wasnota e fo fceofc ant; l 91 F.Supp. a 553n 11(W thi sa
e e
pparntr m a
ompli ) Galo, 6
2d t
ç t s tge
.

o tep o e dn ,ti n tce rfo t efc o t eg Co liti P an ifh df l k o e g
f h r c e igs i s o la r m h a e f h l mp an f litf a ul n wld e
of t r e nt f ct whe he m a pa nt unde t f c pl c i ur nc polc .)I i
he elva a s
n
de yme s
r he or e- a ed ns a e iy t s
i pr ntt c i ri he e.
m ude o ons de t r

Pl ntfsHa Sufi i l Plad RI Cli s
ai if ve fcenty e
CO am .

Dee nt ague f dimis ofPli if'Seci 1 2()Ra kee rI l nce a
fnda s r or s sal
antfs ton 96 c c te nfue d nd

Co r p Or a iains (k CO' camscami ha d s ls rs r vie oPlitfsaeS o
ru t g nz t Ad $
o
R1 ' li , li ngt t ico u e p o d dt an if r t t
)
n
c itnt'wih m aland wie fa r l ng ag n on Cohe and Fe , a he f c pl c
onsse ' t
i
r r ud, eyi
ai
n
az not r or e- a ed
i ur nc o ni n a es i RI cli s Wenb gerv M elon M orgageCo. 1 W L 5991 2
ns a e pi o ddr sng CO am , i er
.
l
t
, 998
9

( D. Se .1 1 ,a ont M ccara Fegus nAc (t FA' ,15U. C.j 1 2( ) But
E. Pa. pt 0, 998) nd he
rn- r o t ;
M '
)
S. 01 b).
Cohe a Fe zdono a yher , c us t a lga i pr s nt i t eca e we em ae ily
n nd a
t ppl e be a e he le tons e e ed n hos s s r tra l
ditnc fom t e pld he e s e Sec i A.M o eove , W ei r r hasbee di tng s i t
si t r hos e r , e
ton
r r
nbe ge
n s i ui hed n he
f r - a d i ur nc c t xt See e. ., Rotsen, 3W L 5437648, t* (l Wenbe ge ,he
o ce pl ce ns a e on e . , g
h ti 201
a 13 1n i r r t
$

co tco l
ur ncuded t tnone oft a t i t ale s he e... ul be r as
ha
he c s n he l ged c m
co d
e onabl cac a e t
y lult d o
de i a t wa ni lte sa notc hads cii ly sa edt t hef ce pl e i ur nc wa
ceve, s he r ng el r nd i es
pe fca l tt ha t or - ac d ns a e s
am or e
e xpensvepr tt twoul notpr t c t pl n if 'i e e t ..l t c r ntc e,o
i
oduc ha
d
o e t he aitfs nt r ss . n he ure as n

teoh rh n Pl it d n t le etath f a d ln s h mewJ&itn e omirpr s n te
h te a d, an p o o a lg h t e r u ue t c e
, ne d dt s e e e th
n tr o
au e fLP1o tikt e it lpsn o t er a me t. t rt ealg dsh meh r i mo e
r rc h m n o a ig n h i p y n s Rahe,h l e c e ee s r
e
sm pl t tC oss' nd t em bureme s'lsed i t l te a lgii ael owed we ema e i ly
i e: ha t t 'a d i
c
r
s nt' it n he et r s e tm t y
r t ral

ove sae '(mphassadde )
rttd. e
'
i
dl.
Pli tfs s t inty a lge a RI c us of a on.Pli if pl d t t U .S. Bank
a n if ufk e l le
CO a e
di
a ntf s ea ha
unde t k t pr vi contnuo haz r c a on borowe s'pr ri i t e tofalps ,
roo o o de
i us a d over ge
r r ope tes n he ven
a e
pur ha e am as e i f om ot rD e e nt and pa dt pr m i sdie tyt t m ,us dASI
c sd
t rpolcy r
he f nda s
i he e um r c l o he
e
C

t pr de l n ta ki s r c sa be o c t a t tot De e nt pa d at
o ovi oa r c ng e vie t l w os, nd ha her f nda s i s
comm iso 't
s i n' o
U. Ba t t awholyunea ne kikbac The f t ra lget Def ndan smaiednotc s
S. nk ha was
l
r d c
k. y urhe le hat e
t
l
ie
t bor o e s w ih U . Ba s pe s i a on is l te hea , r pr s ntng t tt a ount
o r w r , t S. nk' nni s on nd
t e t r d e e e i ha he m
s
c r t m r l c e t i t of i ur e,' a om itng t m enton t tt s m e a o m t
ha ged he efe t d he f
cos
ns anc ' nd
ti o
i ha he a
m t s
c r une r ki kba ks a ot r c r s The e alega i ns s a e a c a m f vi a i of
ove ed
a ned c c nd he ha ge . s l t o t t
l i or ol ton

-

9-

s cin 1 6 ()S e eg.Ca n n, 01 U.. s.
e to 9 2 c . e , . , n o 2 4 S DitLEXI 1 1 3, t 7 1 (p ligRI cam
S 1 6 a * - 1 u hodn CO li
bec us ' efnda s non- s l ur oft kikba ksma bet bassf hes he t defa '
a e O e nt' dicos e he c c
y he i ort c me o rud'
)
.

ASI a g t tt M c ra Fe g onAc (t FA' basPli if 'RI cams The
C r ues ha he ca rn- r us
t$
M ' r antfs CO li .
)
wr ng ulco uc a lged,
o f nd t le
howe r doesnotconsiut t ûbusnes ofi u a e,'a t RI
ve ,
tt e he û i s ns r nc ' nd he CO
saut doe no S n lda e i
t t e s t t vai t ,mpai, xs re 't a i a eM is ur orlhodeI l i u a e
i
r o upe s de'he pplc bl s o i l
sand ns r nc
lw.Tha Ac d e l sa i ton o a f r lsa ut i f e ofsa e l w e t d . . . f t
a
t t s cude pplcai f ede a t t e n ac
pr
tt a nac e
or he

pupos ofrgultngt busne sofi urnc ,'ft fde a me s edoesnotlpecfc lyr ag)
e e ai he i s ns a e'i he e r l aur
Cs iial elte
t t busnes ofi ur nc ,' ndwo dCnvaldae,i i, s r e 't sae' lw . Hu
o he i s ns a e'a
ul û i t mpa r or upe s de'he tt s a ' mana
i
'

I c v Fo s h 5 5U. 29 ( 9 9 (uoi 1 U.. j1 2 b )He e Plitfs no c alng
n . . ryt, 2 S. 9 1 9 ) q tng 5 SC. 01 ( ). r , anif do t h l e
e
ASI Sû i i dee mi to 'ort r t st ti s t f rt f ce pl e c r t ti s lst
C' s cng tr nai ns' he a e ha t es o he or - ac d ove age ha t e l o
pr
U . Ba Pl i if i t d c le ASI Spa tc pa i i a a l ed l r r s he e w he e
S. nk. a ntf s nsea ha l nge
C' ri i ton n n leg a ge c m
r by
bo r e s a e c r d by t i l nde ,U . Ba ASI S r e i t t s hem e i notaleg t
r ow r r ha ge
he r e r S. nk. C' ol n ha c
s
l ed o

i vet i i sofi urnc 'ASI i c r dwihpa ngbrbe ( c cks t U. Ba
nvol he s nes ns a e. C s hage t yi i s kikba ) o S. nk
bus
'
t mai a nise l i r a i hi wiht lnde , f i t lnde bel c ta i sr tve
o nti t xcusve eltons p t he e r oferng he e r ow- os dm nitai

s r c ( c pr ry beong t t sr c r,a a c e ofsndi mil di notee t
evies whih ope l l o he evie) nd c usd e ng sea ng i s o
borowe spur tngt beU . Ba Pl i if 'cai sdo noti vet d i s ofi ur nce''
r r pori o
S. nk. antfs l m
nvol he t ne s ns a ,
bus
bu i t a t lndersl n s r i i o i a i ,s t M FA ha no a i a i on Pl n if '
t nse d, he e ' oa e v cng blg tons o he
s
pplc ton
aitf s
RI c am she e. Cannon,201 U. Dit LEXI 111 , a +1 24;M oor v.Fi lt Fi
CO l i
r See
4 S. s.
S
63 t 8e
de i n.
y

Se v .88 F.Supp. 8,292- @ , 11 1 )( CO woul noti i,nvai t ors re
r s, 4
28
93 D.1. 995 RI
d mpari ldae upes de

llnoi i urncelw unde M FA i f cepl e c ext; okahomaM org.Cop.v Ca t
li s ns a a
r
n or - ac d ont ) Banc l
t r . pial
Til Co. 1 4F. 1 1 ( 0hCi.l .
te , 9 3d 089, 099 1 t r 999)

Pli if Ha Sufk inty Ale TI Cli .
antfs ve f e l lged LA a ms

U. Ba aruest tPl ntfs Tr hi Le ngAc (ç LA' cli oughtbedimis d
S. nk g ha ai if' ut n ndi t û
TI ' ams
)
s se

.

The f m e a pur e ofTI , 1 U. C. 1 1 e s ,st pr deboroweswi cla
unda nt l pos
LA 5 S. jj 60 , t eq. i o ovi
r r t er
h

a a cu at di cos e ofl n t r s Be h v Ocwe Fe Banks
nd c r e s l ur s oa e m . ac .
n d
523U. 41 41 ( 998) 1
S. 0, 2 1 ; 2

C. R. 2 .7 c . ihrs c t rsd n il rg g s TI ai sdt ass et cons er ar
F. j 261 ( )W t epe to e ie ta mo ta e , LA m to ur hat um s e
ofer d a r c ver sde i morgagel nson t
f e nd e ei e i ntal t
oa
enns. . . t ta eunde sa bl a no u ai
ha r
rt nda e nd t nf r

,

de ptve ora i .' l U. C. 1
ce i , bus ve ' 5 S. j 639b()2) Addii l i e ur t tç c e trma not
a( . tonaly, t ns es ha ' r dio y
a

c nget tr soft ext i n ofcr di i s h c nge m a t dic os e i c ae unl s
ha
he e m
he enso
e t f uc ha s ke he s l ur s na cur t
es
,

ne dicl ur sa epr de .'l j1 a( ( .
w s os e r ovi d 'd 639()2)A)
Pli if s fc e l sat a c us ofa i i t i Compli a t t i TI cli s
a ntfs ufii nty t e a e
cton n her
ant s o her LA am .
Pli if a lge t tU .S.Ba c nged t t r s ofPl ntfs l ns t c eai ne l n
antfs le ha
nk ha
he e m
ai if ' oa , hus r tng w oa
oblga i b addi f c plce i ur ncet Pl i if outtndi l n balnce . The a l ge
i tons y
ng or e- a d ns a
o antfs' sa ng oa
a s
le d

k c b c swo l h v b e s b e t oTI Sdicos r rq ie ns K i kbacksar notpr ry
ik a k ud a e e n u j c t LA' s l u e e u rme t c
e
ope l
.

c a sfe a i emi s f i ur nce'unde t excuson cie by U .
l s ii d s û
pr um or ns a '
r he l i
td

S.Ba ,1 C. R.j
nk 2 F. j

2 6.( )8 , 2 4 d ( ) U. Ba kwo l h veb e r q ie t ds l s t ea u t n n t r o
2 4 b ( )2 6.( )2 . S. n u d a e n e urd o ico e h mo n a d au e f
t ç omm isons' spa toft ç i nc c r '
he '
c
s i 'a r he i na e ha ge'unde 1 C.F. j226.8d)bec us unea e
f
r 2
R.
1(
a e nzd
commisonsa enot t i dbyPl ntfs m orga . Se Cannon, 3 W L 1 2450, a *1 -1
si r
au horze
ai if ' t ges e
201
3
t 6 7

( di t tTI cam bas onki c t or i f c plce i ur nc ltgai wa vibl)
hol ng ha LA li ed ckba k he y n ore- a d ns a e ii ton s a e
.

Not y, . Ba a guest t ai if ' LA cai sa eba r dbyTI Sone-years at e
abl U S. nk r
ha Pl ntfs TI l m r re
LA'
t ut
oflm ia i . ow e r o t ep e dn s Plitfs TI camsaes b e tt e ui bet l n .
i t tons H
ve , n h la ig , anif' LA li r u j c o q t l ol g
a
i

Thedocrneofe t bl t lng û a s' TI c am whe eapl ntf hast n pr ve e fom
ti
quia e oli t ve 'a LA l i
s
r
ai if
t
bee e nt d r

g i ngs t duet i quiabl cr t e .' lsv G en.M ot sAcce anceCor ., 160F.
brngi uil o ne t e icumsanc s'Eli
or
pt
p
3d
.

7 3, 0 -08( lh Ci.1 9 ) Dimis lo aTI cam a t pe d n sa ei a p o rit onl
0 76
1 t r 9 8 . s sa f LA li t he la ig tg s p r p ae y
tft a s tonsoft co pl nt r d wih t r r d lbe alt woul notper tt pl i if
i he s eri
i
he m ai , ea t he equie i r iy
d
mi he antf
,
t pr t t hesat ewa t ld.'yt t v De Witr& Co.,
o ove ha t t ut s ole ' l/? . an te
a
61 F. 677,682( hCi.1 .
4 2d
9t r 980)
He e,Pl i if cai t tt had no mea bywhi h t dic rU .S. nk' pr c iesbec us
r antfs l m ha hey
ns
c o s ove
Ba s a tc
a e
U. Ba ne rdicl e isf c plc i ur e s he e t bonowe s a hi t f c t t
S. nk ve s os d t or e- a ed ns anc c m o
r , nd d he a t ha
i lt d pr m i s r s t d fom U .S. Bank' ki kba s he e The Cour t r uphol
nfa e e um e ule r
s c ck c m .
t he eby
ds

Pl ntfs TI cli she e, mid ulh tt l arme il tt t, LA mus b c nsr e lb rly
ai if ' LA am
r n f ta Ca s e da saue TI
l
t e o tu d ieal
i f voroft c um e .' Br
n a
he ons r ' agg v BilH e d Chev ol , I . 374 F. 1
. l ar
r et nc,
3d 060,1 ( 1h Ci.
065 1 t r

20 4 .
0)

H.

Pl ntfsHaveSufii nty Ale d Tori I e f r nceCl m s
ai if
fc e l l ge
tous ntr e e
ai .

Fi ly, C a g st Pli if ha f ie t s fc e ypl d ist tousi e f rence
na l ASI r ue hat antfs ve al d o ufi i nc ea t ori ntre
cai s r l ngonisfld-aedocti de e e. Thi ar
l m , eyi
t ie r t
rne f ns
s gume f isf t s m er as a isfldnt al or he n e ons s t ie
r e docrne de e e.Se Se ton D . I a ton,t docrne doesno a y t e iislkeU .S.
at
ti
f ns e c i
n ddii he ti
t ppl o ntte i
Ba whih donotfl i ur ncer t . Se Abel, F.
nk, c
ie ns a
aes e
s 678 Supp. a 1 . Bec us Pl ntfsha
2d t 277
a e ai if ve

pl d t t U. Ba br a d t r morga a e nt and t t t As ur nt De e nt
e ha S. nk e che hei
t ge gr eme s
ha he s a
f nda s

itn in l a d u j siiby c u e s c b e c e , Pli if havesuffcinty st ed cl m sf
ne to al n n u tfa l a s d u h ra h s antf s
y
i e l at ai or
t ri i e f r nc t s vi a m oto t dim is Se ,e g. H am it 201 U . Di t LEX I
o tous nt re e e o ur ve
in o s s . e . ,
lon,
4 S. s .
S
41
667,a *17- W ilams 2011 W L 4368980,a *1 .
t
24; li ,
t 2

Th Co r as rj csAS C' p iie ed f n ea t stme becausePli if havealeged
e u t lo ee t I S rv lg ee s thi i ,
antfs
l
ta te Dee a t weeno j tfe i teritree c , as t y act wih i oper means
h t h fnd n s r t usiid n h i n efr n e he ed t mpr

.

Pl i if a lget tDe enda sma pult d t ma ke f f c - pl c d i ur ea knowi y
antfs le ha f nt ni a e he r t or or e a e ns anc nd
ngl
-

1
2-

i e e e a s he t pas kikbac t U .S Ba k a d oh r s u j siiby itae te
mplm nt d c me o s c
ks o
. n n te wie n u tfa l nl t h
a o sc r dt borower . e We t r M as . Bl tn Cor v. e r . Pr p.drCas I .Co.
m unt ha ge o r
s Se
sen
s as i g
p. M t o o
. ns ,

783A. 398, -02( I2001 ( ai ifma ovec t prviegebys ngû t mai
2d
401 R.. ) pl ntf y rome he i l
howi acual lce'

o tep r o tealg dwr n d e '. C i p r te t r-r u t ed fns a altrsa ei
n h a t f h l e o g o r' ASI s e mitd o eag e h ee e t ae tg n
e
)
t sltgai
hi ii ton.

Concl i
uson
Uli t l t Cour dee nest tf ea h Countoft i Compl nt Pl ntfsplad
tma ey, he
t tnni ha or c
her
ai , ai if e
f c ua c en t talowst Co t odr w t r as bl i er ncet tDe e
a t l ont t ha l
he ur t a he e ona e nf e
ha f ndant a ela ef r
s r ibl o
t mic
he s onduc alege M or over e n t
t l d. e , ve hough bot De e nt aleget tt sc us s d be
h f nda s l ha hi a e houl

dim is dbe us Pli ifLa ge s swiea co- orgag , Elz b t Lea d h sn t e nj n d
s s e ca e a ntf r s ' f nd m t or ia eh ln , a o b e oie

a ds ei a idip n a l p ry t eCo r fn sta s en e n tb j ie a apat. an if
n h s n n s e s be a t,h u t id h t h e d o e on d s ry Plitfs
ha de c i t the i e essa he hus nd' a e a i d, and t rl ga c am sa eonea
ve s rbed ha r nt r t nd r ba s r lgne
hei e l l i r
nd
t s me t rpay e oblgai wih r pe tt t m o t ge a t f r - a ed i u a e
he a - hei m nt i tons t es c o he rga nd he o ce pl c ns r nc

po so aej ita ds v r la dafn l u g n o Pli tf Lag s ' camsi t i c s wil
rviin r on n e ea, n i a j d me t n anif r e ss li n h s a e l
ha apr cl i efec on any f t ec am sb M s Le and.I i ac or ngl
ve e usve f t
' ur l i y . l
u
t s c di y
ADJ
UDGED t tDe e nt 'M otonst Dimi sar bot DENI .
ha f nda s
i o s s e h
ED
>

DO NDOR E E ica est a ,lrati oAuut 04
NEA D R D n hmbraMi Foi s JQy f gs21.
mi d h
,

FED
O A .M O N O
U N ED STA TES D I
STRI J DG E
CT U
Copi pr d t
es ovi ed o:
Couns ofRe or
el
c d