White v. CitiMortgage, Inc.

Summary

The Eighth Circuit held that White’s claims against CitiMortgage were not barred by Missouri’s five-year statute of limitations because the alleged injury was not reasonably capable of ascertainment until White discovered that Freddie Mac still held title to his home. The court rejected the argument that White was required to discover the problem by searching county land records, emphasizing Missouri’s practical inquiry-notice standard. It reversed summary judgment for CitiMortgage and remanded for consideration of the merits of White’s fraud, Missouri Merchandising Practices Act, and equitable claims.

Holdings

1. White's claims did not accrue in 2008 merely because he could have discovered the unrescinded foreclosure deed by searching public records. Under Missouri's practical construction of 'capable of ascertainment,' the limitations period began when a reasonable person would have been put on notice that an injury and substantial damages may have occurred and would have investigated further. On the allegations and record, that point was no earlier than White's 2013 title search.
2. Missouri's recording statute did not, in this case, impute notice to White that Freddie Mac remained the record owner and thereby establish accrual of his claims in 2008.
3. White's claims were timely under Missouri's five-year statute of limitations because the record did not establish that they became capable of ascertainment more than five years before suit was filed.
4. White's allegations that CitiMortgage misled him about the effect of his reinstatement payment on title and liability for the original debt concerned conduct 'in connection with' the sale or collection of the original loan and therefore fell within the MMPA, at least as presented on appeal.

Questions Presented

1. When did White's Missouri claims accrue under the 'capable of ascertainment' standard for purposes of the five-year statute of limitations?
2. Did the recording of the foreclosure deed give White constructive notice sufficient to trigger accrual of his claims in 2008?
3. Were White's fraud, MMPA, and equitable claims timely?
4. Did White's allegations concerning CitiMortgage's reinstatement and loan-collection conduct fall within the Missouri Merchandising Practices Act?

Disposition

reversed_and_remanded