Editor: David Reiss
Brooklyn Law School

February 26, 2013

D.C. District Court Rules Bank Has Standing in Foreclosure Case

By Rafe Serouya

In McCarter v. Bank of New York, 873 F. Supp. 2d 246 (D.D.C. 2012), Plaintiff Homeowner was issued a mortgage loan of $270,000 which was reduced to a Deed of Trust and Promissory Note. Plaintiff then applied for a loan modification, which was later denied and Defendant Bank foreclosed on Plaintiff’s property. Plaintiff sought an injunction preventing the Bank from “attempting to take any action to take possession of the property….”

The Plaintiff brought 20 causes of action in addition to her request for injunctive and declaratory relief, and damages. The Defendants argued that Plaintiff’s claims were “’conclusory,’ ‘unclear,’ and ‘insufficiently pled'” and Plaintiff also failed to provide Defendants notice of the claims being raised against them. An example of one of Plaintiff’s conclusory allegations was that “BANA sold her a ‘deceptive loan product’ and unlawfully foreclosed on her property.”

The Court said that Plaintiff failed to state a claim upon which relief could be granted, and “failed to allege facts that would allow the court to draw the reasonable inference that the defendants are liable for any of the misconduct alleged.” The Court also found Plaintiffs allegations were merely conclusory statements and were not “sufficient to raise a right to relief above the speculative level.” The Court agreed with Defendants and granted their Motions to Dismiss.

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