The Sequel Group Inc et al v. Wilmington Savings Fund Society FSB et al

Filing 51

Order Accepting Findings and Recommendations of the United States Magistrate Judge 30 : Defendant's Motion to Dismiss 11 is GRANTED. Accordingly, Plaintiff's claims against Defendant Wilmington Savings Fund Society, FSB d/b/a Christiana Trust as Trustee of the Residential Credit Opportunities Trust Series 2015-1 shall be dismissed with prejudice. (Ordered by Judge David C Godbey on 8/25/2017) (ash)

UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
THE SEQUEL GROUP, INC., et al.,
Plaintiffs,
v.
WILMINGTON SAVINGS FUND
SOCIETY FSB, et al.,
Defendants.

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No. 3:16-CV-02056-N (BF)

ORDER ACCEPTING FINDINGS, CONCLUSIONS, AND
RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE
The Court has under consideration the Findings, Conclusions, and Recommendation [ECF
No. 30] (“Findings”) of United States Magistrate Judge Paul D. Stickney dated June 7, 2017. The
Court has made a de novo review of those portions of the proposed Findings, Conclusions, and
Recommendation to which objections were made. For the following reasons, the objections are
overruled, and the Court accepts the Findings, Conclusions, and Recommendation of the United
States Magistrate Judge.
Defendant Wilmington Savings Fund Society, FSB d/b/a Christiana Trust as Trustee of the
Residential Credit Opportunities Trust Series 2015-1 (“RCOT”) filed its Motion to Dismiss [ECF
No. 11] on October 3, 2016. Plaintiffs did not file a response to RCOT’s Motion to Dismiss. See
Docket. Plaintiffs’ former counsel withdrew from this case on March 17, 2017. Id. Plaintiffs’ new
counsel subsequently appeared and filed their Motion to Amend the Scheduling Order and Motion
to Continue [ECF No. 23] on May 23, 2017. In that motion, Plaintiffs never addressed their lack
of their response to RCOT’s Motion to Dismiss or requested for leave to file a response. See Pls.’
Mot. 3, ECF No. 23. Accordingly, the Court denied Plaintiffs’ motion. Order 1, ECF No. 35.
Plaintiffs have responded to Defendant Bayview Loan Servicing, L.L.C.’s (“Bayview”) Motion
for Summary Judgment [ECF No. 24] which is still currently under consideration. On June 21,

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2017, Plaintiffs filed their Objections [ECF No. 39] to the Findings. On June 27, 2017, Plaintiffs
filed their Motion for Leave to Amend Pleadings [ECF No. 40]. The gravamen of Plaintiffs’
objections to the Findings are based on newly discovered evidence that they contend could render
the foreclosure void. See Pls.’ Obj. 4 ¶¶ 12-13; 11 ¶ 43, ECF No. 39. Plaintiffs’ previous counsel
did not state this allegation in their Amended Complaint [ECF No. 10], nor did they file a response
to the Motion to Dismiss. See R. & R. 13 n.5, ECF No. 30. The Findings correctly analyzed the
live pleading at that time, Plaintiffs’ Amended Complaint [ECF No. 10], as drafted by Plaintiffs’
former counsel. Further, on August 23, 2017, Judge Stickney denied Plaintiffs’ Motion for Leave
to Amend Pleadings [ECF No. 40] based upon the same arguments that Plaintiffs assert in their
objections. See Order 3-4, ECF No. 50. Therefore, upon consideration, the Court overrules
Plaintiffs’ objections and accepts the Findings, Conclusions, and Recommendation of the United
States Magistrate Judge.1
IT IS THEREFORE ORDERED that Defendant’s Motion to Dismiss [ECF No. 11] is
GRANTED. Accordingly, Plaintiff’s claims against Defendant Wilmington Savings Fund
Society, FSB d/b/a Christiana Trust as Trustee of the Residential Credit Opportunities Trust Series
2015-1 (“RCOT”) shall be dismissed with prejudice.
SO ORDERED, this 25th day of August, 2017.

DAVID C. GODBEY
UNITED STATES DISTRICT JUDGE

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Plaintiffs’ request to add unserved defendant CitiMortgage, Inc. (“CitiMortgage”) remains denied.

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