Nicole House, Sui Juris Mortgagor, et al. v. Leigh Brady, d/b/a President of State Employees’ Credit Union, et al.

Summary

The United States District Court for the Eastern District of North Carolina dismissed plaintiffs’ collateral challenge to a completed foreclosure sale. The court held that the Rooker-Feldman doctrine deprived it of jurisdiction and that the claims were also moot and failed to state a claim because the foreclosure sale had been consummated and the parties’ rights were fixed under North Carolina law. Defendants’ motion to dismiss was granted, and plaintiffs’ requests for injunctive relief, an emergency hearing, and electronic filing were denied as moot.

Holdings

1. The court lacked subject-matter jurisdiction under the Rooker-Feldman doctrine because plaintiffs’ requested relief would require the federal court to review and invalidate state-court foreclosure findings and the completed foreclosure sale.
2. Plaintiffs’ claims were precluded and moot because the foreclosure sale had been consummated and the parties’ rights became fixed ten days after the report of sale absent a properly filed upset bid.
3. The complaint failed to state a claim because its requested relief challenged a completed foreclosure sale and did not satisfy the plausibility requirement.

Questions Presented

1. Whether the Rooker-Feldman doctrine deprived the federal district court of subject-matter jurisdiction over plaintiffs’ collateral attack on a completed state-authorized foreclosure sale.
2. Whether plaintiffs’ claims were precluded and moot because the parties’ rights became fixed after the foreclosure sale.
3. Whether the complaint stated a plausible claim for relief under Federal Rule of Civil Procedure 12(b)(6).
4. Whether plaintiffs’ requests for preliminary and permanent injunctions and an emergency hearing remained viable after dismissal of the complaint.

Disposition

dismissed