Borrani v. Nationstar Mortgage LLC
- Nelson Roman
- 7:20-cv-01444
- U.S. District Court · Southern District of New York
- 12
In Borrani v. Nationstar Mortgage, Judge Roman granted Nationstar’s motion to dismiss claims challenging a prior state foreclosure judgment, ending the federal action.
Grace Borrani’s claims against Nationstar Mortgage LLC were dismissed, and the federal action was terminated. Nationstar obtained dismissal of the action.
What happened
In Borrani v. Nationstar Mortgage LLC, Grace Borrani, representing herself, sued Nationstar after it obtained a state-court foreclosure judgment against her. She alleged that the mortgage and its assignment were fraudulent and asserted federal and state claims, including claims involving foreclosure practices, debt collection, lending disclosures, fraud, and emotional distress.
The court held that some claims were barred because they effectively challenged the state foreclosure judgment, which federal district courts cannot review under the Rooker-Feldman doctrine. It held that the remaining claims were barred because they had been raised, or could have been raised, in the foreclosure case or an earlier federal case involving Nationstar.
The court granted Nationstar’s motion to dismiss and terminated the action. Judge Nelson S. Roman directed the clerk to terminate the motion and send the opinion and order to Borrani.
The detailed version
- Borrani v. Nationstar Mortgage LLC · No. 7:20-cv-01444
- Nelson Roman
- Mar. 21, 2022
Background
Grace Borrani, proceeding without a lawyer, sued Nationstar Mortgage LLC, doing business as Mr. Cooper. She brought claims under several federal statutes, including Section 1983, the Racketeer Influenced and Corrupt Organizations Act, the Fair Debt Collection Practices Act, the Truth in Lending Act, and the Real Estate Settlement Procedures Act. She also asserted claims involving wire fraud, fraud and deceit, unjust enrichment, and emotional distress.
Borrani’s claims followed a New York state foreclosure action concerning property at 144 Lee Avenue, Yonkers, New York. Nationstar filed that foreclosure action in 2013, and a state judgment of foreclosure and sale was entered against Borrani on December 5, 2016. Borrani alleged that the mortgage documents and assignment were fraudulent or invalid, that Nationstar lacked authority to foreclose, and that Nationstar had engaged in improper practices involving the mortgage and foreclosure.
Borrani had previously sued Nationstar and its counsel in federal court over related matters. The earlier federal action was dismissed, and the Second Circuit affirmed that dismissal in 2020. Nationstar then moved to dismiss this action. Borrani did not file an opposition to the motion.
Rooker-Feldman doctrine
The court applied the Rooker-Feldman doctrine, which prevents federal district courts from functioning as appeals courts for state-court judgments. The court concluded that Borrani lost in the state foreclosure action, that the injuries alleged in several claims were caused by the foreclosure judgment, that the requested relief would require rejecting or overturning that judgment, and that the state judgment came before this federal case.
The court held that Counts One, Two, Three, Four, Five, Six, Seven, Eight, and Twelve were inseparably connected to the foreclosure action and would require overturning the state judgment. Those counts were dismissed for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1).
Claim preclusion
The court next applied res judicata, also called claim preclusion. This rule prevents a party from bringing a later case based on the same factual grouping when the claims were already decided or could have been raised in an earlier case.
The court held that Borrani’s remaining claims under the Fair Debt Collection Practices Act, the Truth in Lending Act, Regulation Z, and the Real Estate Settlement Procedures Act, along with her unjust-enrichment claim, arose from the same facts supporting her defenses in the state foreclosure case. The court also held that substantially similar claims had been brought in the earlier federal action and that any additional allegations could have been raised there. The court therefore dismissed Counts Nine, Ten, and Eleven as barred by res judicata.
Disposition
The court granted Nationstar’s motion to dismiss. It directed the clerk to terminate the motion, send a copy of the opinion and order to Borrani, and terminate the action.
Read the full 12-page opinion on CourtListener, the free public archive maintained by the Free Law Project.