Movahedi v. US Bank, N.A. , 853 F. Supp. 2d 19 ( 2012 )


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  •                             UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF COLUMBIA
    BABAK MOVAHEDI,
    Plaintiff,
    Civil Action No. 11-1761 (CKK)
    v.
    US BANK, N.A., et al.,
    Defendants.
    MEMORANDUM OPINION
    (March 27, 2012)
    Plaintiff Babak Movahedi, filed suit against U.S. Bank, N.A., as Trustee for the Chevy
    Chase Funding, LLC Mortgage Backed Certificates, Series 2005-3, and Capital One Bank, N.A.
    Although Plaintiff does not articulate any specific causes of action, the Complaint in general
    terms alleges Defendants wrongfully foreclosed on Plaintiff’s property and subsequently denied
    Plaintiff access to the property to recover certain furnishings. Presently before the Court is
    Defendants’ [5] Motion to Dismiss. The motion is now fully briefed and ripe for adjudication.1
    For the reasons stated below, Defendants’ Motion is GRANTED IN PART and DENIED IN
    PART. Defendants’ motion is GRANTED as to Plaintiff’s claims for wrongful foreclosure,
    wrongful eviction, and conversion of rental payments and DENIED as to Plaintiff’s claims for
    conversion of furnishings and unjust enrichment.
    I. BACKGROUND
    Plaintiff is the owner of “residential property” located at 1700 Q Street in Northwest
    1
    See Defs.’ Mot. to Dismiss (“Defs.’ Mot.”), ECF No. [5]; Pl.’s Opp’n, ECF No. [8];
    Defs.’ Reply, ECF No. [10].
    Washington, D.C. Compl. ¶ 1. In May 2005, Plaintiff borrowed $1,432,750 from Chevy Chase
    Bank, F.S.B., secured with a Deed of Trust on the property. Defs.’ Ex. A (Adjustable Rate
    Note), at 1; Defs.’ Ex. B (Deed of Trust). While residing at the property, Plaintiff installed
    “three unique antique chandeliers as well as other furnishings.” Compl. ¶ 8. In 2010, Plaintiff
    began leasing the property to a number of tenants. Id. at ¶ 9. On July 14, 2010, Plaintiff
    received a Notice of Foreclosure from Capital One Bank (“Capital One”). Id. at ¶ 10. Plaintiff
    alleges that over the next several months, Capital One noticed and cancelled several foreclosure
    auctions while the bank considered a short sale offer to purchase the property. Id. at ¶¶ 11-12.
    On October 18, 2010, Capital One issued a foreclosure notice indicating the property would be
    sold at auction on November 23, 2010. Id. at ¶ 13. Plaintiff claims he assumed this sale “like
    previously set dates, was cancelled pending negotiations” for the sale of the property to the short
    sale purchaser. Id. At 11:30 AM the day of the foreclosure sale, Plaintiff received a call
    informing him that the short sale was not approved. Id. at ¶ 14. One hour later, “Defendant,
    Capital One, NA took back the Property on reserve bid of $1,014,081.39—$300,000 less than
    the short sale offer presented to the Defendants.” Id. at ¶ 16 (emphasis and errors in original).2
    Capital One purportedly failed to inform Plaintiff that the sale had taken place. Id. at ¶¶ 17-18.
    In December 2010, Plaintiff responded to a maintenance request from a tenant, and
    installed a new washing machine and arranged for repairs to the heating system at the property.
    Id. at ¶ 19. Upon attempting to collect rent from the tenants in January 2011, Plaintiff
    discovered the foreclosure sale actually took place in November 2010. Id. at ¶ 20. U.S. Bank
    2
    Despite this allegation, the Trustee’s Deed transferring ownership of the property, as
    well as Plaintiff’s later allegations in the Complaint indicate U.S. Bank purchased the property at
    the foreclosure sale. Pl.’s Ex. 1, at 1; Compl. ¶¶ 21, 23.
    2
    recorded the transfer of the Deed of Trust on February 9, 2011, and has since denied Plaintiff
    access to the property. Id. at ¶ 22. Plaintiff filed suit in the Superior Court for the District of
    Columbia on September 13, 2011. Defendants removed the action to this Court on the basis of
    diversity jurisdiction and filed the instant motion to dismiss.
    II. LEGAL STANDARD
    Federal Rule of Civil Procedure 12(b)(6) provides that a party may challenge the
    sufficiency of a complaint on the grounds it “fail[s] to state a claim upon which relief can be
    granted.” Fed. R. Civ. P. 12(b)(6). When evaluating a motion to dismiss for failure to state a
    claim, the district court must accept as true the well-pleaded factual allegations contained in the
    complaint. Atherton v. D.C. Office of Mayor, 
    567 F.3d 672
    , 681 (D.C. Cir. 2009), cert. denied,
    
    130 S. Ct. 2064
     (2010). “[A] complaint [does not] suffice if it tenders ‘naked assertion[s]’
    devoid of ‘further factual enhancement.’” Ashcroft v. Iqbal, 
    556 U.S. 662
    , 
    129 S. Ct. 1937
    , 1949
    (2009) (quoting Bell Atl. Corp. v. Twombly, 
    550 U.S. 544
    , 557 (2007)). Rather, a complaint
    must contain sufficient factual allegations that, if accepted as true, “state a claim to relief that is
    plausible on its face.” Twombly, 
    550 U.S. at 570
    . “A claim has facial plausibility when the
    plaintiff pleads factual content that allows the court to draw the reasonable inference that the
    defendant is liable for the misconduct alleged.” Iqbal, 
    129 S. Ct. at 1949
    . Additionally, in
    deciding a Rule 12(b)(6) motion, a court may consider “‘the facts alleged in the complaint,
    documents attached as exhibits or incorporated by reference in the complaint,’” Ward v. D.C.
    Dep’t of Youth Rehab. Servs., 
    768 F. Supp. 2d 117
    , 119 (D.D.C. 2011) (quoting
    Gustave–Schmidt v. Chao, 
    226 F. Supp. 2d 191
    , 196 (D.D.C. 2002)), or “‘documents upon which
    the plaintiff’s complaint necessarily relies’ even if the document is produced not by [the
    3
    parties],” 
    id.
     (quoting Hinton v. Corr. Corp. of Am., 
    624 F. Supp. 2d 45
    , 46 (D.D.C. 2009)).
    III. DISCUSSION
    Before addressing the specific claims in this case, Defendants urge the Court to dismiss
    the Complaint (at least in part) on two grounds. First, Defendants urge the Court to dismiss the
    Complaint for failure to allege any specific causes of action. Although the Court agrees the
    Complaint is far from well-pleaded, the Complaint can be reasonably construed to include a
    “short and plain statement” of four claims: (1) wrongful foreclosure; (2) wrongful eviction; (3)
    conversion; and (4) unjust enrichment. Fed. R. Civ. P. 28(a)(2). Second, Defendants contend
    U.S. Bank should be dismissed as a Defendant because there are no specific allegations against
    U.S. Bank in the Complaint. Defendants overlook the allegations in the Complaint that
    specifically allege U.S. Bank has denied Plaintiff access to the property to recover his personal
    property. Compl. ¶ 23. Moreover, at the point the Complaint alleges U.S. Bank purchased the
    property at the foreclosure sale, the reference to “Defendants” in allegations regarding post-sale
    conduct can reasonably be construed to include U.S. Bank. Finally, the Court notes that
    ownership of the note and the relationship between the Defendants and the original lender is
    complex to say the least. See Defs.’ Reply at 3 n.3. The Court declines to penalize Plaintiff for
    any errors in referring to the proper Defendant when the Defendants themselves did not
    understand their relationship to the note until filing their reply brief. 
    Id.
     In terms of the specific
    claims at issue in this case, as explained below, based on the allegations in the Complaint,
    Plaintiff fails to state a claim for wrongful foreclosure, wrongful eviction, and conversion of
    rental payments. At this stage of the proceedings Plaintiff has stated a claim for conversion of
    furnishings and unjust enrichment.
    4
    A.      Wrongful Foreclosure
    Plaintiff’s Complaint initially asks the Court to set aside the foreclosure sale based on a
    litany of purported errors with the notice of foreclosure and the sale itself. None of these
    contentions are persuasive. First, Plaintiff alleges Capital One Bank did not have authority to
    foreclose on the property because there was no recordation of the transfer of the Deed of Trust
    from Chevy Chase Bank to Capital One, the latter of which is listed as the note holder on the
    Notice of Foreclosure. Defs.’ Ex. C (Notice of Foreclosure Sale), at 1. Defendants contend that
    Capital One, as the loan servicer, was the agent of the lender and therefore authorized to proceed
    with the foreclosure. On a motion to dismiss however, the Court cannot dismiss this claim based
    on Defendant’s bare assertion that it was an agent of the lender.3 Nevertheless, the Court agrees
    that this is not a basis on which the Court can invalidate the sale. Under District of Columbia
    law, a notice of intent to foreclose on a property must be issued by the holder of the note or its
    agent. 
    D.C. Code § 42-815
    (c)(1)(A). The Notice of Foreclosure Sale in this case was issued by
    David N. Prensky, Defs.’ Ex. C. at 2, who is also listed as the lender’s Trustee on the original
    Deed of Trust, Defs.’ Ex. B at 2. Any transfer of ownership of the note notwithstanding, based
    on the face of the Deed of Trust, the Notice of Foreclosure was issued by the note holder’s agent,
    thus Plaintiff’s claim of wrongful foreclosure on this basis must fail.
    Second, Plaintiff alleges the Notice of Foreclosure was invalid because it failed to state a
    “cure” or reinstatement amount necessary for the Plaintiff to avoid foreclosure. Plaintiff clarifies
    3
    The Court could not even grant summary judgment on this issue at this time because
    the evidence provided to the Court by Defendants indicates Capital One assumed ownership of
    the note through the merger with Chevy Chase Bank, not that Capital One was the loan servicer
    as Defendants newly contend in their reply. Defs.’ Reply at 3 n.3.
    5
    this allegation in his Opposition by claiming the cure amount was impermissibly vague insofar
    as it failed to state the specific amount of “attorney’s fees, foreclosure costs, and all other
    charges and accruals” owed in addition to the deficiency in the loan payments. Pl.’s Opp’n at 5-
    6; Defs.’ Ex. C, at 1. As Defendants note, “a complaint may not be amended by the briefs in
    opposition to a motion to dismiss.” Arbitraje Casa de Cambio, S.A. de C.V. v. U.S. Postal Serv.,
    
    297 F. Supp. 2d 165
    , 170 (D.D.C. 2003). The new allegation regarding attorney’s fees and costs
    cannot save the Complaint from dismissal. Even if the Court considered this allegation as part of
    the Complaint, the claim would still fail.
    Section 42-815.01 of the D.C. Code provides that, with certain limitations, the mortgage
    debtor must be given the opportunity to “cure” the default of the mortgage once a notice of
    foreclosure has been issued. In order to cure the default, the debtor must (1) pay all sums
    required to bring the account current; (2) perform any other obligation the debtor would have
    been required to perform but for the default; and (3) pay “any expenses properly associated with
    the foreclosure and incurred by the mortgagee to the date of debtor’s payment or tender under
    this section.” 
    D.C. Code § 42-815.01
    (c)(1)-(3). By rule, the notice of foreclosure must include
    the “minimum balance required to cure default obligation.” 
    D.C. Code § 42-815
    (c)(2)
    (incorporating by reference Notice of Foreclosure Sale of Real Property or Condominium Unit,
    available at http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/rod_move/rod-14.pdf).
    Plaintiff’s allegation would require a mortgagee to identify the exact amount of attorney’s fees
    and other expenses (such as advertising costs) before those costs are actually incurred by the
    mortgagee. Under the statute, the Plaintiff can cure the default at any point between receipt of
    the notice and five business days prior to the foreclosure sale itself. 
    D.C. Code § 42-815.01
    (b).
    6
    The amount of attorney’s fees and expenses Plaintiff must tender will depend on the point in
    time that Plaintiff brings the account current. It is simply impossible for a mortgagee to indicate
    a cure amount with the specificity Plaintiff would demand. The Notice of Foreclosure in this
    case stated the amount Plaintiff was required to pay to bring the mortgage current, and also noted
    Plaintiff would also have to pay reasonably attorney’s fees and expenses. There is no statutory
    or regulatory basis for requiring additional information from Defendants, therefore Plaintiff
    cannot state a claim for wrongful foreclosure on this basis.
    Third, Plaintiff alleges that the foreclosure sale was invalid because Defendants failed to
    acquire a “certificate of mediation” before issuing the Notice of Foreclosure. 
    D.C. Code § 42
    -
    815(b)(2). Defendants contend the mediation requirement is inapplicable to this case because (1)
    the Notice of Foreclosure was issued before the District of Columbia passed the mediation
    requirement; and (2) mediation is only required for residential mortgages, and Plaintiff’s loan
    does not meet the definition of “residential mortgage.” As an initial matter, this allegation
    appears nowhere in Plaintiff’s Complaint, and thus cannot defeat a motion to dismiss. In any
    case, the mediation requirement was not in effect when the foreclosure sale itself took place,
    much less when the notice was issued. See 
    57 D.C. Reg. 12404
    , 12411 (Dec. 9, 2010). Mayor
    Adrien Fenty did not sign the act until December 9, 2010, over two weeks after the property was
    sold, and the mediation requirement did not go into effect until March 12, 2011. See 
    Id.
    Therefore Defendants were not required to obtain a mediation certificate before issuing the
    Notice of Foreclosure or completing the sale itself.
    Fourth, Plaintiff contends that, relying on the previous notices of and subsequent
    cancellation of several foreclosure sales, he did not think the foreclosure sale would take place
    7
    on November 23, 2010 as the notice indicated. The Court understands Plaintiff to essentially
    argue that Capital One was equitably estopped from carrying out the foreclosure sale. In order to
    state a claim for equitable estoppel in this context, the Plaintiff must allege: “(1) conduct
    amounting to a false representation or concealment of material fact (2) made with actual or
    constructive knowledge of the true facts, and (3) with the intention that another person act in
    reliance upon it; (4) the other person’s lack of knowledge and of the means of knowledge
    concerning the truth of the representation, (5) and his reliance upon the mis-representation, (6)
    causing him to act so as to change his position prejudicially.” Cassidy v. Owen, 
    533 A.2d 253
    ,
    255 (D.C. 1987). Assuming without deciding, Plaintiff has sufficiently pled the first five
    elements, the Complaint is entirely devoid of any allegation that, if he had known the foreclosure
    sale was going to take place, Plaintiff could have or would have tried to stop the sale, or even
    purchase the property himself. But cf. Cassidy, 
    533 A.2d at 255
     (denying summary judgment
    where plaintiff argued she would have tendered the cure amount to prevent a foreclosure sale but
    for the bank’s misrepresentations). Absent any allegation of detrimental reliance on Defendants’
    representations, Plaintiff fails to state a claim for equitable estoppel.
    Fifth, Plaintiff alleges the foreclosure sale should be set aside because the Defendants
    “fail[ed] to maximize the sale price” for the property. Compl. ¶ 31. The only factual basis for
    this claim is that the sale price at auction, $1,014,081.39, was $300,000 less than the short sale
    offer presented to Capital One Bank. Id. at ¶ 16. “Unless the price at which the property was
    sold was so grossly inadequate as to shock the conscience . . . and raise a presumption of fraud,
    the sale must stand.” Nat’l Life Ins. Co. v. Silverman, 
    454 F.2d 899
    , 916 (D.C. Cir. 1971)
    (quoting Cromer v. DeJarnette, 
    188 Va. 680
    , 
    51 S.E.2d 201
    , 204 (1949)). In Silverman, the
    8
    Court of Appeals agreed with the district court’s finding that a foreclosure sale price of $900,000
    on a $1,300,000 note (approximately 69.2%) “was not insufficient in amount so as to constitute a
    legally inadequate price.” Id. at 916. Given the variables at play in foreclosure sales that may
    depress prices, the Court , is “usually not warranted in invalidating a sale that yields in excess of
    [20% of the fair market value].” See Restatement (Third) of Property § 8.3 cmt. b (2011).
    Comparing the sale price in this case to the face value of the note ($1,432,750) or the short sale
    offer ($1,314,000),4 the sale price was approximately 70.8% of the face value of the note, and
    77.1% of the short sale offer on the property. As a matter of law the final bid for Plaintiff’s
    property at the foreclosure auction was not inadequate. Absent other defects in the foreclosure
    sale (id., § 8.3 cmt c), the Plaintiff does not and cannot allege the sale price in this case was so
    deficient as to warrant invalidating the sale, and this claim must be dismissed.
    Sixth, in his Opposition, the Plaintiff for the first time alleges the foreclosure sale was
    fraudulent insofar as “no payment was actually required because U.S. Bank was acting in concert
    with Capital One, N.A.” Pl.’s Opp’n at 8. Plaintiff would do well to note that an exchange of
    funds is not necessarily required for valid foreclosure sales. Id., § 8.3 cmt a (noting a mortgage
    lender “can ‘credit bid’ up to the amount of the mortgage obligation without putting up new
    cash”). Regardless, because this allegation appears nowhere in the Complaint, it cannot defeat
    the motion to dismiss.
    Finally, Plaintiff alleges the foreclosure sale should be invalidated because the transfer of
    the Deed of Trust to U.S. Bank as the purchaser at the sale was not recorded within thirty days of
    4
    Plaintiff never states the exact short sale offer, the Court estimated the offer based on
    the allegations in the Complaint.
    9
    execution as required by District of Columbia law. However, Plaintiff provides no statutory or
    other support for the notion that the failure to record a deed after a foreclosure sale provides a
    basis on which the Court can invalidate the sale itself. With no viable allegation on which to
    base a claim for wrongful foreclosure, Plaintiff’s initial claim for relief must be dismissed.
    B.      Wrongful Eviction
    Plaintiff’s second cause of action alleges Defendants wrongfully evicted Plaintiff from
    his property by failing to serve him with a “30-Day Notice to Quit.” Compl. ¶ 28. “In order to
    establish wrongful eviction, a tenant must prove that the landlord performed ‘some act of a
    permanent character with the intention and effect of depriving the tenant of the enjoyment of the
    demised premises or a part thereof.’” Hinton v. Sealander Brokerage Co., 
    917 A.2d 95
    , 101
    (D.C. 2007) (quoting Int’l Comm’n on English in Liturgy v. Schwartz, 
    573 A.2d 1303
    , 1305
    (D.C. 1990)). The initial flaw in Plaintiff’s claim for wrongful eviction is that Plaintiff, by his
    own admission, did not reside at the property at the time the foreclosure sale took place. Compl.
    ¶¶ 8-9. Although the statutory eviction provisions of District of Columbia law “protect the
    tenant of a defaulting mortgagor who remains in her previously rented apartment after a
    foreclosure sale,” Plaintiff provides no authority for the contention that Defendants were
    required to provide the non-resident owner of the property with notice to quit. Banks v. E. Sav.
    Bank, 
    8 A.3d 1239
    , 1243 (D.C. 2010). Plaintiff’s claims for conversion and unjust enrichment
    aside, Plaintiff fails to state a claim for wrongful eviction from the rental party where he
    admittedly did not reside.
    C.      Conversion
    Plaintiff’s third cause of action alleges Defendants wrongfully converted Plaintiff’s
    10
    personal property, specifically rent collected from the tenants and certain furnishings installed at
    the property. In order to state a claim for conversion, Plaintiff must allege “(1) an unlawful
    exercise, (2) of ownership, dominion, or control, (3) of the personal property of another, (4) in
    denial or repudiation of that person’s rights thereto.” O’Callaghan v. District of Columbia, 
    741 F. Supp. 273
    , 279 (D.D.C. 1990). Initially, at the point Plaintiff fails to state a claim for
    wrongful foreclosure, Plaintiff cannot challenge Defendants’ collection of rent from Plaintiff’s
    (former) tenants as an unlawful exercise of ownership dominion or control. “[A] foreclosure sale
    of property extinguishes any subordinate leases with the mortgagor and the tenants who remain
    on the property stand as tenants-at-will in relation to the new owner.” Banks, 
    8 A.3d at 1243
    (internal quotation marks omitted).5 Therefore Defendants properly collected and processed the
    payments from the tenants after the foreclosure sale, and Plaintiff has no claim for conversion of
    the rental payments. See also Hyde v. Brandler, 
    118 A.2d 398
    , 400 (D.C. 1955) (“[R]ent
    accrued on its due date, that is, when it became due and payable.”).
    In terms of Plaintiff’s “personal property” at the real property in question, Plaintiff has
    sufficiently pled a claim for conversion of the furnishings in question. Defendants correctly
    point out that “[a]bandonment of personal property is a complete defense to an action for
    conversion.” Block v. Fisher, 
    103 A.2d 575
    , 576 (D.C. 1954). Defendants argue that Plaintiff
    abandoned the furnishings when he “left the chandeliers and washing machine in the
    property following a properly noticed foreclosure sale.” Defs.’ Reply at 8. “To constitute
    abandonment there must be an intent to abandon and an act or omission by which such intention
    5
    The Complaint offhandedly suggests Defendants “wrongfully interfered with the lease
    contracts between Plaintiff and his Tenant.” Compl. ¶ 30. Since the foreclosure terminated any
    contract Plaintiff might have had with his tenants, any claim for tortious interference fails.
    11
    is put into effect.” 
    Id. at 575-76
    . Taking the allegations in the Complaint as true for purposes of
    this motion, Plaintiff did not believe the foreclosure sale would take place, and thus did not
    intend to abandon the furnishings by not removing them before the date of the sale. See
    Independence Fed. Sav. Bank v. Huntley, 
    573 A.2d 787
    , 788 (D.C. 1990) (finding plaintiff
    provided sufficient evidence to support claim for conversion of personal property where plaintiff
    had actual knowledge of the foreclosure sale at issue).
    Defendants also contend that the furnishings at issue are “fixtures” that transferred with
    the real property as part of the foreclosure sale. “In determining whether an item is a fixture, the
    intent of the party attaching it to the realty is the primary test, the one of paramount importance,
    and has been said to be controlling.” LeRoy Adventures, Inc. v. Cafritz Harbour Grp., Inc., 
    640 A.2d 193
    , 201 n.12 (D.C. 1994) (internal quotation marks omitted). Defendants contend that
    Plaintiff intended the furnishing to become a permanent part of the property “because he
    necessarily attached them physically to the realty.” Defs.’ Opp’n at 8-9. Defendants’ approach
    would eviscerate the intent inquiry and replace it with a bright line rule that anything physically
    attached to real property is necessarily a fixture. The District of Columbia has rejected such a
    strict construction of “fixture.” It is the parties’ intent when attaching the furnishings that
    governs. E.g., LeRoy Adventures, 
    640 A.2d at 200-01
     (finding HVAC system was not a fixture
    because the tenant did not intend to permanently annex the system to the real property). Plaintiff
    alleges in the Complaint that he did not intend for the furnishings to become permanent fixtures
    of the property at the time he installed them, which the Court must take as true for purpose of
    this motion. Compl. ¶ 32. Therefore, Plaintiff sufficiently alleged that the furnishings are not
    fixtures and can proceed with his claim for conversion of the furnishings.
    12
    D.      Unjust Enrichment
    Plaintiff’s fourth and final cause of action alleges Defendants were unjustly enriched by
    Plaintiff’s installation of a washing machine and performance of repairs at the property after the
    sale.6 “Unjust enrichment occurs when a person retains a benefit (usually money) which in
    justice and equity belongs to another.” 4934, Inc. v. D.C. Dep’t of Emp’t Servs., 
    605 A.2d 50
    , 55
    (D.C. 1992). “A claim of unjust enrichment does not require fault on the part of the recipient of
    the benefit.” 
    Id. at 56
    . Defendants move to dismiss this claim on the grounds that Plaintiff
    cannot sustain this quasi-contract claim where a contract actually exists between the parties.
    Defs.’ Opp’n at 9. Defendants are correct that when the claim for unjust enrichment is based on
    the terms of the contract, a claim for unjust enrichment is unavailable. Albrecht v. Comm. on
    Emp. Benefits of Fed. Reserve Emp. Benefits Sys., 
    357 F.3d 62
    , 69 (D.C. Cir. 2004); see also
    United States v. Kellogg Brown & Root Servs., 
    800 F. Supp. 2d 143
    , 160 (D.D.C. 2011) (finding
    plaintiff could not sustain claim for unjust enrichment based on wrongful payment where neither
    party contested the validity of the contract between the parties). In this case, Plaintiff does not
    allege Defendants were unjustly enriched under the terms of the contract. Rather, Plaintiff’s
    claim is based on conduct that occurred after the event authorized by the contract (the
    foreclosure sale), and that would not have been governed by the terms of the contract at any
    point in time. Therefore, Plaintiff can proceed with his claim for unjust enrichment based on the
    installation of the washing machine and HVAC repairs performed after the foreclosure sale.
    6
    Contrary to Defendants’ assertion, Plaintiff explicitly pled this claim in the Complaint.
    Compl. ¶ 29 (“Defendants have been unjustly enriched by the post foreclosure installation of the
    washing machine and the HVAC heating work paid for by Plaintiff.”).
    13
    IV. CONCLUSION
    For the foregoing reasons, Defendants’ [5] Motion to Dismiss is GRANTED IN PART
    and DENIED IN PART. Plaintiff failed to allege any facts that would support a claim for
    wrongful foreclosure or wrongful eviction. Moreover, Plaintiff cannot recover for conversion of
    rental payments absent a valid claim to set aside the foreclosure. Plaintiff has sufficiently
    alleged a claim for conversion of the furnishings Plaintiff installed at the property and remained
    after the foreclosure sale. Finally, since Plaintiff’s claim is not based on the terms of the
    mortgage contract, Plaintiff can pursue his claim for unjust enrichment for the installation of the
    washing machine and repairs to the property made after the foreclosure sale. Therefore
    Defendants’ motion is GRANTED as to Plaintiff’s claims for wrongful foreclosure, wrongful
    eviction, and conversion of rental payments and DENIED as to Plaintiff’s claims for conversion
    of furnishings and unjust enrichment.
    An appropriate Order accompanies this Memorandum Opinion.
    Date: March 27, 2012
    /s/
    COLLEEN KOLLAR-KOTELLY
    United States District Judge
    14
    

Document Info

Docket Number: Civil Action No. 2011-1761

Citation Numbers: 853 F. Supp. 2d 19, 2012 WL 1014582, 2012 U.S. Dist. LEXIS 41341

Judges: Judge Colleen Kollar-Kotelly

Filed Date: 3/27/2012

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (19)

Hinton v. Corrections Corp. of America , 624 F. Supp. 2d 45 ( 2009 )

Leroy Adventures, Inc. v. Cafritz Harbour Group, Inc. , 1994 D.C. App. LEXIS 56 ( 1994 )

O'CALLAGHAN v. District of Columbia , 741 F. Supp. 273 ( 1990 )

national-life-insurance-company-a-corporation-v-jerome-silverman-carroll , 454 F.2d 899 ( 1971 )

Ward v. D.C. Department of Youth Rehabilitation Services , 768 F. Supp. 2d 117 ( 2011 )

Bell Atlantic Corp. v. Twombly , 127 S. Ct. 1955 ( 2007 )

Ashcroft v. Iqbal , 129 S. Ct. 1937 ( 2009 )

Block v. Fisher , 1954 D.C. App. LEXIS 238 ( 1954 )

Independence Federal Savings Bank v. Huntley , 1990 D.C. App. LEXIS 95 ( 1990 )

Cassidy v. Owen , 1987 D.C. App. LEXIS 483 ( 1987 )

Gustave-Schmidt v. Chao , 226 F. Supp. 2d 191 ( 2002 )

Albrecht v. Committee on Employee Benefits of the Federal ... , 357 F.3d 62 ( 2004 )

Hyde v. Brandler , 1955 D.C. App. LEXIS 225 ( 1955 )

International Commission on English in the Liturgy v. ... , 1990 D.C. App. LEXIS 97 ( 1990 )

4934, Inc. v. District of Columbia Department of Employment ... , 1992 D.C. App. LEXIS 83 ( 1992 )

Hinton v. Sealander Brokerage Co. , 2007 D.C. App. LEXIS 74 ( 2007 )

Atherton v. District of Columbia Office of the Mayor , 567 F.3d 672 ( 2009 )

United States v. Kellogg Brown & Root Services, Inc. , 800 F. Supp. 2d 143 ( 2011 )

Banks v. Eastern Savings Bank , 2010 D.C. App. LEXIS 675 ( 2010 )

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