Clarence Anglin v. New Residential Mortgage, LLC et al.

Summary

The United States District Court for the Eastern District of Louisiana addresses several motions in Clarence Anglin’s action concerning a fraudulently endorsed insurance-related check issued after Hurricane Ida. The court denied Navy Federal Credit Union’s motion to dismiss, granted NewRez LLC’s motion to dismiss with leave to amend, set aside defaults against Caliber Home Loans Inc. and New Residential Mortgage LLC, and extended the time for service on New Residential Mortgage LLC.

Holdings

1. Anglin's claim against Navy Federal was properly characterized as conversion of an instrument under Louisiana Revised Statutes section 10:3-420 and was governed by the UCC. The claim was not subject to dismissal on the ground that Navy Federal owed no duty under Louisiana negligence law because the relevant duty analysis was under Louisiana's UCC provisions, which impose duties of good faith and ordinary care on banks.
2. The complaint failed to plead fraudulent misrepresentation with the particularity required by Rule 9(b), but Anglin was granted leave to amend because facts stated in his opposition could support a claim if incorporated into an amended complaint.
3. The entries of default against Caliber and New Residential Mortgage, LLC were set aside because the defendants established good cause under Rule 55(c).
4. Service on CT Corporation was improper because New Residential Mortgage, LLC's registered agent had changed to Corporation Service Company before service. However, Anglin showed good cause under Rule 4(m), so the court extended the time for service by 30 days and denied New Residential Mortgage's Rule 12(b)(6) motion without prejudice to renewal after proper service.

Questions Presented

1. Whether Anglin's claims against Navy Federal were governed by Louisiana's Uniform Commercial Code and survived Rule 12(b)(6) dismissal.
2. Whether Anglin's fraudulent-misrepresentation claim against NewRez satisfied Rule 9(b).
3. Whether the entries of default against Caliber and New Residential Mortgage, LLC should be set aside for good cause under Rule 55(c).
4. Whether service of process on New Residential Mortgage, LLC through CT Corporation was valid.
5. Whether Anglin showed good cause for an extension of time to serve New Residential Mortgage, LLC under Rule 4(m).

Disposition

other