U.S. Bank National Association, as Legal Title Trustee for Truman 2016-SC6 Title Trust v. Brown et al

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF RHODE ISLAND
U.S. BANK NATIONAL
ASSOCIATION, AS LEGAL TITLE
TRUSTEE FOR TRUMAN 2016-SC6
TITLE TRUST,
Plaintiff,
v.
ROBERT TED BROWN,
Defendant.
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C.A. No. 21-CV-198-JJM-PAS
ORDER
This is an action by U.S. Bank National Association, as Legal Title Trustee For
Truman 2016-Sc6 Title Trust (“U.S. Bank”) 	to foreclose a mortgage given by
Defendant Robert Ted Brown, encumbering property in West Greenwich, Rhode
Island. 	U.S. Bank alleges that the mortgage loan is in default and seeks an order
allowing it to foreclose its mortgage by following the procedures in the statutory
power of sale. ECF No. 1 at 1.
The issue currently before the Court is Mr. Brown’s Objection (ECF No. 63) to
the Magistrate Judge’s Order (ECF No. 56) denying Mr. Brown’s Motion to Compel
further disclosure by U.S. Bank under an amended Fed. R. Civ. P. 7.1. The standard
for the District Court’s review of this discovery order is “clearly erroneous or contrary
to law.” 	Fed. R. Civ. P. 72(a) (“The district judge in the case must consider timely
objections and modify or set aside any part of the order that is clearly erroneous or is
contrary to law.”); 28 U.S.C. § 636(b)(1)(A) (“A judge of the court may reconsider any
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pretrial matter under this subparagraph (A) where it has been shown that the
magistrate judge’s order is clearly erroneous or contrary to law.”).
The Magistrate Judge ruled that diversity is based on the parties’ status as of
the date the case was filed—here May 4, 2021. Consistent with Fed. R. Civ. P. 7.1 as
it existed on that date, U.S. Bank disclosed that “it is a national banking association
with a publicly traded parent entity and that no publicly held company owned 10%
or more of its stock.” ECF No. 2. After the case was filed, the Trust changed from a
New York common law trust to a Delaware Statutory Trust. ECF No. 42-2 at 2. This
change was made under a Third Amended and Restated Trust Agreement dated
June 23, 2021. ECF No. 28. Further, the Magistrate Judge found “under settled New
York law, it is the trustee – U.S. Bank – whose citizenship controls when suit is
brought on behalf of a New Yok common law trust, which is what the New York Trust
Agreement created.” ECF No. 56 at 5, 8.
Mr. Brown argues that “the Court should parse the New York Trust Agreement
and order discovery regarding every entity and agreement referenced in it, including
discovery 	regarding 	the 	depositor, 	the 	beneficiary, 	the 	program 	manager, 	the
participants, the participation agreement, the servicing agreements, the custodial
agreements and many others.”
Id. at 10. The Magistrate Judge, however, concluded
that the Trust Agreement:
“specifies that U.S. Bank is the “Legal Title Trustee” of the Trust created
by the instrument and that the Trust expressly is not a “business trust”
under New York law. 	The Court further finds that Section 2.01 of the
New 	York 	Trust 	Agreement 	creates 	the 	Trust, 	conveys 	“without
recourse” the mortgage assets (and related property) to the Legal Title
Trustee to hold, and empowers the Legal Title Trustee to “exercise all of
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the rights of the Depositor under such agreements and instruments
[with respect to the Mortgage Assets].” Confirming that it is U.S. Bank
as Legal Title Trustee that is empowered to sue or be sued in its own
name, Section 6.01(b) of the New York Trust Agreement limits the power
of the beneficiary to sue, specifying that it is the Legal Title Trustee that
institutes suits and actions in its own name “as Legal Title Trustee
hereunder.” *** [T]he New York Trust Agreement vests U.S. Bank with
legal title to the assets, the power to manage them and to bring and
control this litigation. As such, for purposes of Mr. Brown’s Fed. R. Civ.
P. 7.1 challenge, the Court finds that the disclosure is sufficient because
this Trust’s citizenship is derived from that of its Legal Title Trustee.
ECF No. 56 at 12 (citations omitted).
The Court finds that the Magistrate Judge’s findings and Order are not clearly
erroneous and are not contrary to law, and therefore the Court overrules and
DENIES Defendant’s Objection. ECF No. 63.
IT IS SO ORDERED.
s/John J. McConnell, Jr.
_________________________________
JOHN J. MCCONNELL, JR.
Chief Judge
United States District Court
June 24, 2026
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