Hanrahran v. Specialized Loan Servicing, LLC

Filing 19

Chief Judge Patti B. Saris: ORDER entered re 5 MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM filed by Specialized Loan Servicing, LLC.(Folan, Karen)

UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS

MARY ELLEN HANRAHRAN,
Plaintiff,
v.
SPECIALIZED LOAN SERVICING,
Defendant.

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Civil Action No. 14-10397-PBS

ORDER
May 27, 2014
Saris, U.S.D.J.
I. INTRODUCTION
Plaintiff Mary Ellen Hanrahran alleges that Defendant
Specialized Loan Servicing (SLS), the servicer of her mortgage
loan, did not review her application for a loan modification, in
breach of its duty of good faith and fair dealing and in
violation of Mass. Gen. Laws ch. 93A. SLS moves to dismiss for
failure to state a claim. After hearing, Defendant’s Motion to
Dismiss (Docket No. 5) is ALLOWED as to counts I and III, and
ALLOWED with leave to amend as to count II.
Plaintiff’s good faith and fair dealing claim (count I)
fails to state a claim because there is no contractual
relationship between the parties. SLS is a loan servicer, and not
the owner of Hanrahran’s mortgage. The Home Affordable

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Modification Program (“HAMP”) establishes a relationship between
the loan servicer and the government (Fannie Mae, acting as the
agent of the U.S. Department of Treasury), but does not create an
implied contract between the loan servicer and the borrower where
one doesn’t otherwise exist. MacKenzie v. Flagstar Bank, FSB, 738
F.3d 486, 491-92 (1st Cir. 2013).
As for plaintiff’s “Injunctive Relief” claim (count III),
injunctive relief is not a stand-alone cause of action, it is a
remedy. The Court may return to the possibility of an injunction
should this case proceed to the remedy stage.
Finally, the Court will dismiss plaintiff’s Chapter 93A
claim (count II) without prejudice. Plaintiff’s complaint does
not adequately allege that SLS’s HAMP violation caused her
economic injury. See Rule v. Fort Dodge Animal Health, Inc., 607
F.3d 250, 255 (1st Cir. 2010) (plaintiff must sustain economic
injury to maintain a Chapter 93A action).
Plaintiff may amend her complaint within 45 days of this
order.

/s/ PATTI B. SARIS
Patti B. Saris
Chief United States District Judge

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