Deborah R. White v. U.S. Bank Trust, N.A. as Trustee for LSF11 Master Participation Trust

Summary

The United States District Court for the Northern District of Illinois dismissed Deborah R. White’s claims against U.S. Bank Trust arising from the foreclosure of her mortgage. The court held that Illinois claim preclusion barred her Fair Debt Collection Practices Act, fraud, and intentional infliction of emotional distress claims because the claims arose from the same transaction as the prior state-court foreclosure proceeding. The dismissal was with prejudice, and the court directed entry of final judgment.

Holdings

1. Claim preclusion is a proper basis for dismissal under Rule 12(b)(6) when the plaintiff pleads facts in the complaint that raise the defense.
2. Because the prior judgment was rendered by an Illinois state court, the federal court applies Illinois preclusion law to determine whether res judicata bars the claims.
3. Illinois claim preclusion barred White's FDCPA, fraud, and intentional-infliction-of-emotional-distress claims because there was a final judgment on the merits, an identity of causes of action, and an identity of parties or their privies.
4. Leave to amend was properly denied because amendment would be futile, and White identified no basis for believing that an amendment would state a viable claim.

Questions Presented

1. Whether claim preclusion may support dismissal under Rule 12(b)(6) when the complaint's allegations raise the defense.
2. Whether Illinois claim-preclusion law barred White's federal and state-law claims arising from the prior mortgage foreclosure.
3. Whether White should be permitted to amend her complaint.

Disposition

dismissed