Derbabian v. Bank of America, N.A.

Summarized by Ryan Heilman , Heilman Law PLLC
11 years 4 months ago

Citation:

Derbabian v. Bank of America, N.A., Case No. 14-1253 (6th Cir. Oct. 17, 2014) (unpublished).

Tag(s):

Ruling:

The Sixth Circuit affirmed the District's Court's dismissal of plaintiffs' eight-count complaint relating to the foreclosure-by-advertisement of their home. Specifically, plaintiffs (i) failed to plead fraud with specificity, (ii) failed to state a claim for breach of contract because agreements relating to loans from a financial institution must be in writing to be enforceable, (iii) were barred by the statute of limitations from asserting Truth in Lending Act claims, and the recoupment and set-off exceptions do not apply to non-judicial foreclosures, (iv) failed to adequately plead fraud, irregularity, or prejudice with respect to the foreclosure process, (v) could not maintain an action to quiet title because they made no showing of superior title to the property, and (vi) could not maintain an action for slander of title because they failed to plausibly identify any false statements.

Procedural context:

The District Court for the Eastern District of Michigan dismissed all counts in plaintiffs' complaint. Plaintiffs appealed.

Facts:

Plaintiffs defaulted on a loan secured by a home mortgage. The mortgage servicer initiated foreclosure-by-advertisement proceedings as permitted under Michigan statutes. The servicer purchased the property at the foreclosure sale. Shortly after expiration of Michigan's six-month redemption, plaintiffs filed their complaint asserting eight causes of action: (i) fraudulent misrepresentations; (ii) breach of contract; (iii) violation of the federal Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601, et seq., and the federal Truth in Lending Act, 15 U.S.C. §§ 1601, et seq.; (4) violation of 15 U.S.C. § 1639; (5) violation of Michigan Compiled Laws §§ 600.3204, et seq.; (6) quiet title; (7) slander of title; and (8) injunctive relief.

Judge(s):

Cole, Keith, and Batchelder.

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!