Summary
The United States District Court for the Eastern District of Louisiana considers second motions to dismiss claims arising from the alleged theft and forged negotiation of a hurricane-damage check. The court grants Navy Federal Credit Union’s motion because the amended complaint did not allege delivery of the instrument as required for a conversion claim under Louisiana Revised Statutes § 10:3-420, but permits amendment. The court denies New Residential Mortgage LLC’s motion because the plaintiff alleged theories under which the parent might be liable for acts of its servicing subsidiary.
Court
United States District Court for the Eastern District of Louisiana
Jurisdiction
United States District Court for the Eastern District of Louisiana
Decision date
June 22, 2026
Docket number
No. 24-2545
Disposition
other
Questions Presented
- Whether Anglin stated a Louisiana Uniform Commercial Code conversion claim against Navy Federal Credit Union despite alleging that he never received or possessed the check.
- Whether New Residential Mortgage LLC was entitled to dismissal under Rule 12(b)(6) when the amended complaint alleged potential agency, apparent-authority, ratification, and vicarious-liability theories but the motion did not meaningfully address those theories.
Holdings
- The amended complaint failed to state a conversion claim because it expressly alleged that the check was not delivered to Anglin and that he never possessed or controlled it. Mailing a check to the wrong address does not constitute delivery under the allegations as pleaded. The court granted dismissal but allowed Anglin to amend if he could properly allege delivery.
- New Residential Mortgage LLC was not entitled to dismissal because its motion did not meaningfully address the agency, apparent-authority, ratification, or other vicarious-liability theories pleaded in the amended complaint. Although a parent company is generally not liable for its subsidiary's acts, exceptions may apply, and the defendant did not carry its burden to show that dismissal was warranted.
Court Document
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