Arthur J. Bayer, Jr., et al. v. Nationstar Mortgage LLC, et al.

Summary

The United States District Court for the District of Nevada grants Defendants’ motion to dismiss Plaintiffs’ complaint arising from a mortgage loan, servicing disputes, and alleged wrongful foreclosure. The court dismisses claims premised on Defendants’ lack of authority or interest in the loan with prejudice based on claim preclusion, and dismisses the remaining claims for failure to state a claim, allowing amendment within 30 days. The court also grants judicial notice and denies as moot Plaintiffs’ motion to expedite an emergency injunction and denies their motion for entry of clerk’s default.

Holdings

1. The court may take judicial notice of recorded deeds of trust, assignments, petitions, and related state-court proceedings without converting a Rule 12(b)(6) motion into a motion for summary judgment.
2. The complaint failed to state a claim because it was largely incomprehensible, improperly lumped multiple theories together, asserted remedies as causes of action, and did not provide distinct factual allegations showing what each defendant did to violate plaintiffs' rights.
3. Claims asserting or relying on the contention that defendants lacked authority or an interest in the note, deed of trust, or loan were barred by claim-preclusion principles and were dismissed with prejudice.

Questions Presented

1. Whether the court could take judicial notice of recorded loan documents and related state-court proceedings when deciding the Rule 12(b)(6) motion.
2. Whether the complaint stated any cognizable claim for relief under Federal Rule of Civil Procedure 12(b)(6).
3. Whether claim-preclusion principles barred claims asserting or relying on the contention that defendants lacked authority or an interest in the note, deed of trust, or loan.
4. Whether defendants' statute-of-limitations arguments required dismissal of the asserted claims.

Disposition

dismissed