Charla Turner v. NewRez LLC d/b/a Shellpoint Mortgage Servicing, et al.

Summary

A United States magistrate judge recommends denying Plaintiff Charla Turner's motion to remand and granting Defendants' motion to dismiss in a wrongful-foreclosure action. The recommendation concludes that the nondiverse defendant was improperly joined and that Turner's claims are barred by judicial estoppel based on her prior Chapter 13 bankruptcy plan surrendering the property. The magistrate judge further recommends dismissal with prejudice and denial of leave to amend as futile.

Holdings

1. Porter was improperly joined because Turner alleged no specific facts connecting Porter to a viable cause of action, and there was no reasonable basis to predict that Turner could recover against Porter under state law. Porter therefore could be disregarded for diversity purposes, and remand should be denied.
2. Judicial estoppel barred Turner's claims because she took a position in the present action inconsistent with her bankruptcy position, the bankruptcy court accepted and relied on the prior position, and her inconsistent positions were not inadvertent.
3. Further amendment should be denied as futile because judicial estoppel barred Turner's claims.

Questions Presented

1. Whether the nondiverse defendant, Kelly Porter, was improperly joined because Turner had no reasonable basis for recovery against her, thereby preserving diversity jurisdiction.
2. Whether Turner's claims were barred by judicial estoppel because she surrendered the property in bankruptcy and later challenged Defendants' right to foreclose without disclosing the asserted claims to the bankruptcy court.
3. Whether Turner should be given leave to amend her complaint.

Disposition

other