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Val-Com Acquis. v. Chase Home Finance

United States Court of Appeals, Fifth Circuit
Apr 1, 2011
420 F. App'x 405 (5th Cir. 2011)

Opinion

No. 10-11004 Summary Calendar.

April 1, 2011.

Stephen Warner Tiemann, Esq., Arlington, TX, for Plaintiffs-Appellants.

William Lance Lewis, Esq., Marcie Lynn Schout, Quilling, Selander, Lownds, Winslett Moser, P.C., Dallas, TX, for Defendant-Appellee.

Appeal from the United States District Court for the Northern District of Texas, USDC No. 4:10-CV-542-A.

Before HIGGINBOTHAM, SMITH, and HAYNES, Circuit Judges.


John and Lisa Gines purchased a home in 2004, financing the purchase through a note and deed of trust payable to Apex Lending, Inc. After the mortgage went into default, the Gineses transferred title to the home to Val-Com Acquisitions. In 2010, all three sued Defendant Chase Home Finance, L.L.C. ("Chase") alleging violations of the Truth-In-Lending Act ("TILA") and the Real Estate Settlement Procedures Act ("RESPA") as well as state-law claims for fraud, negligent misrepresentation, and declaratory judgment. After Chase removed to a federal district court, they filed an amended complaint, changing the basis of their declaratory relief from the relevant Texas statute to the federal statute.

Chase moved to dismiss. After an oral hearing, the district court granted Chase's motion under Federal Rule of Civil Procedure 12(b)(6). The only matter briefed before this court is the propriety of the dismissal of Appellants' claims for declaratory relief regarding Chase's status relative to the property in question. Thus, we conclude that any appeal of the other matters dismissed has been waived. Mullins v. TestAmerica, Inc., 564 F.3d 386, 417 (5th Cir 2009) ("[W]e deem this issue waived due to inadequate briefing.").

In their amended complaint, Appellants stated: "Defendant Chase claims to be the holder of the Note, and the person entitled to enforce the Note. . . . Defendant Chase claims to be the holder of the Deed of Trust, and the person entitled to enforce the Deed of Trust [and] . . . claims to be the current mortgage servicer of the Note." They allege no facts whatsoever casting doubt on Chase's status as assignee of the relevant documents. They simply asked for "a determination and declaration of whether Defendant Chase is the owner and/or holder of the Note and Deed of Trust" and similar declarations regarding whether Chase is the mortgage servicer and entitled to enforce and bring a foreclosure action on the relevant documents.

A federal declaratory judgment action requires an actual case or controversy, not a mere hypothetical issue. Pub. Serv. Comm'n v. Wycoff Co., 344 U.S. 237, 242, 73 S.Ct. 236, 97 L.Ed. 291 (1952). "Our decisions have required that the dispute be `definite and concrete, touching the legal relations of parties having adverse legal interests'; and that it be `real and substantial'. . . ." Medlmmune, Inc. v. Genentech, Inc., 549 U.S. 118, 127, 127 S.Ct. 764, 166 L.Ed.2d 604 (2007) (internal citations omitted). The district court concluded that Appellants did not allege an actual, current case or controversy on these points, and we agree. While there could be a dispute between the parties here, absent an allegation — even on information and belief — that Chase is not who it says it is, there is nothing for the district court to adjudicate. Accordingly, the district court properly dismissed this case.

Lozano v. Ocwen Federal Bank, 489 F.3d 636, 639 (5th Cir. 2007), is inapposite. That case involved a declaratory judgment to set aside a foreclosure deed that the plaintiffs contended was entered improperly because they had previously paid the note. Id. at 638. Here, the portions of the complaint on which the appeal is based do no more than ask whether Chase is the proper party to pursue foreclosure, etc.; they fail to allege any facts in controversy.

AFFIRMED.


Summaries of

Val-Com Acquis. v. Chase Home Finance

United States Court of Appeals, Fifth Circuit
Apr 1, 2011
420 F. App'x 405 (5th Cir. 2011)
Case details for

Val-Com Acquis. v. Chase Home Finance

Case Details

Full title:VAL-COM ACQUISITIONS TRUST; John A. Gines; Lisa V. Gines…

Court:United States Court of Appeals, Fifth Circuit

Date published: Apr 1, 2011

Citations

420 F. App'x 405 (5th Cir. 2011)

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