Norma Damouni v. Citimortgage, Inc. and Cenlar FSB

Summary

The United States District Court for the District of New Jersey granted Citimortgage’s motion to dismiss Norma Damouni’s claims concerning the handling of her mortgage loss mitigation application. The court held that Damouni’s claims under RESPA and the New Jersey Consumer Fraud Act were germane to the prior state foreclosure action and were therefore barred by New Jersey’s entire controversy doctrine. The court did not reach Citimortgage’s alternative arguments concerning Rooker-Feldman, failure to state a claim, or Rule 9(b).

Holdings

1. Yes. Damouni's claims are barred because they are germane to the prior state court foreclosure action and should have been raised there.

Questions Presented

1. Whether Damouni's federal lawsuit claims against Citimortgage are barred by New Jersey's entire controversy doctrine because they could have been raised as germane counterclaims in the prior state foreclosure action.

Disposition

dismissed