7:25-cv-00326•Moore et al v. Federal National Mortgage Association et al
Full text
IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS MIDLAND/ODESSA DIVISION CHRISTINE M. MOORE and MICHAEL MOORE, Plaintiffs, v. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE MAE); PRISCILLA ALMODOVAR; PETER AKWABOAH; BARRETT DAFFIN FRAPPIER TURNER & ENGEL, LLP; JOSEPH M. VACEK; SHELLEY NAIL TRUSTEE; OCWEN LOAN SERVICING, LLC; MACKIE WOLF ZIENTZ & MANN, PC; ISRAEL SAUCEDO; ALDRIDGE PITE LLP; WILLIAM JARRELL; PAUL MARCHUK; TREVOR SHOELS; FREEDOM MORTGAGE CORPORATION; DAVID COBOS; and MARVIN MOORE; Defendants. § § § § § § § § § § § § § § § § § § § MO:25-CV-00326-DC-RCG REPORT AND RECOMMENDATION OF THE U.S. MAGISTRATE JUDGE BEFORE THE COURT is Defendant Freedom Mortgage Corporation’s (“Defendant FMC”) Motion to Dismiss. (Doc. 11).1 This case is before the Court through a Standing Order pursuant to 28 U.S.C. § 636 and Appendix C of the Local Court Rules for the Assignment of Duties to United States Magistrate Judges. After due consideration of the Parties’ briefs and the case law, the Court RECOMMENDS Defendant FMC’s Motion to Dismiss be GRANTED. (Doc. 11). I. BACKGROUND On May 9, 2025, Plaintiffs Christine Moore and Michael Moore (“Plaintiffs”) filed their Original Petition in the 385th Judicial District Court of Midland County, Texas, asserting claims for wrongful foreclosure, quiet title, fraud, and civil rights violations. (Doc. 1-1 at 12). Providing 1. All page number citations are to CM/ECF generated pagination unless otherwise noted. Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 1 of 7
2 little factual detail, Plaintiffs broadly allege on December 15, 2015, the abovenamed defendants foreclosed on their real property located at 1001 S. County Road 1060, Midland, Texas 79706 (“Property”) without clear and lawful authority. Id. Plaintiffs further allege Defendants fabricated, forged, and recorded false documents to falsely assert ownership rights and “Plaintiffs were forcibly evicted at gunpoint from their homestead based on fraudulent claims.” Id. Plaintiffs also contend subsequent eviction proceedings were wrongfully initiated by Defendant FMC without lawful authority. Id. Based on these allegations, Plaintiffs seek actual damages in the amount of $11,140,287.36, emotional distress damages of over $250 million, and unspecified punitive, exemplary, constitutional and civil rights damages. Id. After the action was removed to this Court, Defendant FMC filed the instant Motion to Dismiss, arguing Plaintiffs have failed to state a claim against it. (Doc. 11). Plaintiffs and Defendant filed their respective Response and Reply. (Docs. 15, 21). Accordingly, Defendant FMC’s Motion to Dismiss is ripe for disposition. II. LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(6) allows a party to move for the dismissal of a complaint for “failure to state a claim upon which relief can be granted.” To survive a motion to dismiss, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “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, 556 U.S. at 678. A claim for relief must contain: (1) “a short and plain statement of the grounds for the court’s jurisdiction”; (2) “a short and plain statement of the claim showing that the pleader is entitled to the relief”; and (3) “a demand for Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 2 of 7
3 the relief sought.” FED. R. CIV. P. 8(a). A plaintiff “must provide enough factual allegations to draw the reasonable inference that the elements exist.” Innova Hosp. San Antonio, L.P. v. Blue Cross & Blue Shield of Ga., Inc., 995 F. Supp. 2d 587, 602 (N.D. Tex. 2014) (citing Patrick v. Wal–Mart, Inc.-Store No. 155, 681 F.3d 614, 617 (5th Cir. 2012)); Torch Liquidating Trust ex rel. Bridge Assocs. L.L.C. v. Stockstill, 561 F.3d 377, 384 (5th Cir. 2009) (“[T]he complaint must contain either direct allegations or permit properly drawn inferences to support every material point necessary to sustain recovery”) (internal quotation marks and citations omitted). In considering a motion to dismiss under Rule 12(b)(6), all factual allegations from the complaint should be taken as true, and the facts are to be construed in the light most favorable to the nonmoving party. Fernandez-Montes v. Allied Pilots Assoc., 987 F.2d 278, 284 (5th Cir. 1993). Still, a complaint must contain “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555. “‘[N]aked assertions’ devoid of ‘further factual enhancement,’” and “threadbare recitals of the elements of a cause of action, supported by mere conclusory statements,” are not entitled to the presumption of truth. Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 557); R2 Invs. LDC v. Phillips, 401 F.3d 638, 642 (5th Cir. 2005) (stating that the Court should neither “strain to find inferences favorable to plaintiffs” nor accept “conclusory allegations, unwarranted deductions, or legal conclusions.”). Federal Rule of Civil Procedure 9(b) governs pleading standards for fraud claims, including state-law fraud claims. Dorsey v. Portfolio Equities, Inc., 540 F.3d 333, 338–39 (5th Cir. 2008) (“[S]tate-law fraud claims are subject to the pleading requirements of Rule 9(b).”) (citing Abrams v. Baker Hughes Inc., 292 F.3d 424, 430 (5th Cir. 2002); Williams v. WMX Techs., Inc., 112 F.3d 175, 177 (5th Cir. 1997)). Rule 9(b) provides: “In alleging fraud or Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 3 of 7
4 mistake, a party must state with particularity the circumstances constituting fraud or mistake.” FED. R. CIV. P. 9(b). “What constitutes ‘particularity’ will necessarily differ with the facts of each case and hence the Fifth Circuit has never articulated the requirements of Rule 9(b) in great detail.” Guidry v. Bank of LaPlace, 954 F.2d 278, 288 (5th Cir. 1992). The Fifth Circuit “interprets Rule 9(b) strictly, requiring the plaintiff to specify the statements contended to be fraudulent, identify the speaker, state when and where the statements were made, and explain why the statements were fraudulent.” Flaherty & Crumrine Preferred Income Fund, Inc. v. TXU Corp., 565 F.3d 200, 207 (5th Cir. 2009). “At a minimum, Rule 9(b) requires allegations of the particulars of time, place, and contents of the false representations, as well as the identity of the person making the misrepresentation and what he obtained thereby.” Tel–Phonic Servs., Inc. v. TBS Int’l, Inc., 975 F.2d 1134, 1139 (5th Cir. 1992). III. DISCUSSION Defendant FMC moves to dismiss Plaintiffs’ claims against it on the grounds they lack any factual or legal basis and fail to state a plausible claim for relief. (Doc. 11 at 1). With regard to Defendant FMC, Plaintiffs’ Original Petition merely alleges “eviction proceedings were wrongfully initiated by Freedom Mortgage Corporation without lawful authority.” (Doc. 1-1 at 11). According to Defendant FMC, Plaintiffs obtained a home loan on May 8, 2007, which was secured by a lien on the Property. (Doc. 11 at 1). After Plaintiffs allegedly defaulted on the loan, the Property was sold at foreclosure to Fannie Mae on December 4, 2015, and Plaintiffs were evicted shortly thereafter. Id. at 2. Defendant FMC asserts Defendant Aldridge Pite, LLP mistakenly commenced the eviction in its name rather than Fannie Mae’s. Id. Defendant FMC admits it has no ownership interest in the Property and lacked standing to evict Plaintiffs but contends it neither directed nor authorized Aldridge Pite to initiate the eviction Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 4 of 7
5 action. Id. Instead, Defendant FMC explains its inclusion in the eviction proceeding was a clerical error by eviction counsel, who has already initiated filings to vacate the judgment and either dismiss or amend the eviction action to reflect Fannie Mae as the proper party and correct any misstatement in the record. Id. Even accepting Plaintiffs’ allegations as true, their conclusory assertion Defendant FMC “wrongfully initiated” eviction proceedings without lawful authority cannot survive a Rule 12(b)(6) challenge. This allegation is a legal conclusion unsupported by factual content. (Doc. 1-1 at 11). Under the federal pleading standard, Plaintiffs must plead “enough facts to state a claim to relief that is plausible on its face.” Twombly, 550 U.S. at 570. That is, a plaintiff must allege sufficient facts to permit “the reasonable inference that the elements exist.” Innova Hosp, 995 F. Supp. 2d at 603. Here, Plaintiffs allege no facts explaining how the eviction was wrongful, what legal duty Defendant FMC owed, what specific conduct Defendant FMC engaged in, or how Defendant FMC’s actions satisfy the elements of any asserted cause of action. A single conclusory statement, devoid of supporting factual detail, cannot plausibly establish liability under any of Plaintiffs’ theories and thus cannot survive a Rule 12(b)(6) challenge. See Torch Liquidating Trust, 561 F.3d at 384 (“[T]he complaint must contain either direct allegations or permit properly drawn inferences to support every material point necessary to sustain a recovery.”). Because Plaintiffs’ threadbare allegation fails to plead the elements of any claim with the factual specificity required under federal law, it does not provide a reasonable basis for recovery against Defendant FMC. In sum, even accepting Plaintiffs’ allegations as true, they are insufficient to survive as Rule 12(b)(6) challenge. Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 5 of 7
6 IV. RECOMMENDATION In accordance with the above discussion, the Court RECOMMENDS Defendant’s Motion to Dismiss be GRANTED. (Doc. 11). The Court further RECOMMENDS Plaintiff’s claims against Defendant be DISMISSED WITHOUT PREJUDICE. SIGNED this 13th day of January, 2026. RONALD C. GRIFFIN UNITED STATES MAGISTRATE JUDGE Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 6 of 7
7 INSTRUCTIONS FOR SERVICE AND NOTICE OF RIGHT TO APPEAL/OBJECT In the event that a party has not been served by the Clerk with this Report and Recommendation electronically, pursuant to the CM/ECF procedures of this District, the Clerk is ORDERED to mail such party a copy of this Report and Recommendation by certified mail. Pursuant to 28 U.S.C. § 636(b)(1), any party who desires to object to this report must serve and file written objections within fourteen (14) days after being served with a copy. A party filing objections must specifically identify those findings, conclusions, or recommendations to which objections are being made; the District Judge need not consider frivolous, conclusive, or general objections. Such party shall file the objections with the Clerk of the Court and serve the objections on all other parties. A party’s failure to file such objections to the proposed findings, conclusions, and recommendations contained in this report shall bar the party from a de novo determination by the District Judge. Additionally, a party’s failure to file written objections to the proposed findings, conclusions, and recommendations contained in this report within fourteen (14) days after being served with a copy shall bar that party, except upon grounds of plain error, from attacking on appeal the unobjected-to proposed factual findings and legal conclusions accepted by the District Judge. Douglass v. United Servs. Auto. Ass’n, 79 F.3d 1415, 1428–29 (5th Cir. 1996). Case 7:25-cv-00326-DC-RCG Document 32 Filed 01/13/26 Page 7 of 7
Wondering how this text applies to your situation?
Free consultation, no commitment
Describe your situation. Our team will contact you by email about your consultation.
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.