Justia Civil Procedure Opinion Summaries

Karen Richardson obtained a loan in 2008, secured by a promissory note and a deed of trust on her home. After a series of transfers, Nationstar Mortgage, LLC became the holder and servicer of the note. Nationstar appointed members of McCabe, Weisberg & Conway, LLC (MWC) as substitute trustees. In 2015, Nationstar filed for judicial foreclosure, alleging Richardson defaulted on her mortgage. Richardson counterclaimed, challenging Nationstar's standing and alleging violations of lending laws. The Superior Court ruled in favor of Nationstar, and the property was sold in a foreclosure sale.Richardson opposed the ratification of the sale, arguing that Nationstar and MWC provided an incorrect payoff amount, constituting fraudulent misrepresentation and breach of fiduciary duty. The Superior Court ratified the sale, concluding that Richardson's right to cure the default had expired before the incorrect payoff amount was provided. Richardson's subsequent appeals were dismissed as moot.Richardson then filed a new suit against Nationstar, MWC, and the trustees, alleging wrongful foreclosure, fraud, and misrepresentation. The Superior Court dismissed her claims against Nationstar and others as barred by res judicata, but held her claims against MWC and the trustees in abeyance. Richardson amended her complaint, and the Superior Court dismissed it again on res judicata grounds, believing she had not disputed privity.The District of Columbia Court of Appeals reviewed the case and reversed the Superior Court's dismissal on the issue of privity. The court held that MWC and the trustees had not sufficiently demonstrated privity with Nationstar to invoke res judicata. The case was remanded for further proceedings to address the privity issue and any other unresolved claims. View "Richardson v. McCabe, Weisberg & Conway, LLC" on Justia Law